Co-operative Marketing : Objectives and Types
[ AGRI Grovestudies ]
Cooperative agricultural marketing refers to the process of marketing agricultural products collectively by a group of farmers through a cooperative organization. In a cooperative marketing system, farmers pool their resources together to market their crops, livestock, or other agricultural products.
The main objective of cooperative agricultural marketing is to help small and medium-scale farmers to obtain better prices for their products by avoiding the exploitation of intermediaries and middlemen. By collectively bargaining, farmers can also secure better prices for their products and achieve greater market power.
Cooperative marketing organizations can help farmers with various services such as transportation, storage, processing, and packaging of their products. They can also provide access to credit facilities and other support services to help farmers improve the quality and quantity of their products.
Cooperative agricultural marketing has several advantages over individual marketing by farmers. It reduces marketing costs, provides better market information, helps in quality control, and ensures fair prices for farmers. It also helps in the development of rural areas by promoting agro-based industries and generating employment opportunities.
Functions
The main functions of co-operative marketing societies are:
(i) To market the product of the members of the society at fair prices;
(ii) To safeguard the members for excessive marketing costs and malpractices;
(iii) To make credit facilities available to the members against the security of the
produce brought for sale;
(iv) To make arrangements for the scientific storage of the members' produce;
(v) To provide the facilities of grading and market information which may help them
to get a good price for their produce;
(vi) To introduce the system of pooling so as to acquire a better bargaining power
than the individual members having a small quantity of produce for marketing
purposes;
(vii) To act as an agent of the government for the procurement of foodgrains and for
the implementation of the price support policy;
(viii) To arrange for the export of the produce of the members so that they may get
better returns;
(ix) To make arrangements for the transport of the produce of the members from the
villages to the market on collective basis and bring about a reduction in the cost
of transportation; and
(x) To arrange for the supply of the inputs required by the farmers, such as improved
seeds, fertilizers, insecticides and pesticides.
Types
On the basis of the commodities dealt in by them, the co-operative marketing
societies may be grouped into the following types:
(i) Single Commodity Co-operative Marketing Societies
They deal in the marketing of only one agricultural commodity. They get sufficient
business from the farmers producing that single commodity. The examples are
Sugarcane Co-operative Marketing Society, Cotton Co-operative Marketing Society and
Oilseed Growers Co-operative Marketing Society.
(ii) Multi-Commodity Co-operative Marketing Societies
They deal in the marketing of a large number of commodities produced by the
members, such as foodgrains, oilseeds and cotton. Most of the co-operative marketing
societies in India are of this type.
(iii) Multi-purpose, Multi-commodity Co-operative Marketing Societies
These societies market a large number of commodities and perform such other
functions as providing credit to members, arranging for the supply of the inputs required
by them, and meeting their requirements of essential domestic consumption goods.
