role of cooperative institute in rural marketing

8/4/2019 Role of Cooperative Institute in Rural Marketing

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Role of cooperative institute in ruralmarketing


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Cooperatives asorganisations The first cooperatives was started in

country in or around 1904

The central and state government take

the lead in the formation ofcooperatives at state,district andvillage levels,share in capial

contribution and stand gaurantee forloans to them from organisation likeNABARD and national cooperative

development corporation(NCDC)


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FORMATION OF THEORGANISATION IN CAPITALIST SYSTEM the

organisation is established as anindividual proprietorship,corporation,

or a joint stock company IN SOCIALIST ECONOMY-the state is

responsible for creation of

organisation. IN MIXED ECONOMY-both the

systems may compete with each other


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The fact hat the best-suited form oforganisation for rural people is

cooperatives(amul)


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The main intention of cooperativesis to bring persons desirous to havean economic activity together,sharing the functions in such a waythat it benefits them individually as

well as collectively


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The people who come together areprimarily called promoters, who

frame by- laws and adopt them The society is registered with the concerned state

cooperative department and the society gets alegal status to run the business activity envisaged.

The members constitutes the general body meetat least once a year-for future plans and objectivesand devise ways and means of administration,management and control.

They elect a board of directors to administer andmanage he societies affair and this board elects oroppoints chief executive,secretary to carry on thedaily affairs.


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The concerned state governments,NABARD,& national cooperativesdevelopment(NCDC) liberally

contribute towards the share capitaland also extends credit facilities tothe societies


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There has been a tremendous progress

in the field of cooperatives and in factvery efficient& profitable companies are

in the cooperative sector

viz indian farmers fertilisers coopertiveltd(IFFCO),krishak bharati cooperative

ltd(KRIB CO),the gujarat cooperatives

milk federation ltd(which exports diaryproducts)

(NAFED)the main exporting body of

agricultural commodities from country


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Structure of cooperativesorganisations

Village level marketing socities

Taluka agricultural produce cooperativemarketing socities

Karnataka state cooperatives marketingfederation


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The three tier structure hasadvantages in administration and

management

The state mrktng federation open a letter

of credit with banks & is responsible forfinal payments to suppliers

All the input like cattle feed, grass slipsetc required by village societies to thevillage societies through he district- levelunions

State- level organisations takes theresponsibility of settlement of bills


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Types of cooperativeorganisations The other types of societies

includes:

Primary agriculture credit societies

Cooperatives marketing societies Cooperatives processing societies

Multi-purpose cooperatives societies

Arts & craftsmen cooperative societies Rural industrial cooperatives

Consumers cooperatives societies


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Cond..

Cooperative fair price shops

Cooperatives weavers societies

Oil-seeds growers cooperatives

societies

Cooperative cottonprocurement,ginning and bailing

societies cooperative cotton marketingsocieties

farmers service cooperatives

societies


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The activities of the societiesinclude:

Providing credit to farmers ,artisans andcraftspeople

Supplying agricultural inputs likefertilizers,pesticides etc

Marketing of agricultural produce Processing and marketing of agricultural produce Supply of essential commodities like sugar,edible

oil, kerosene etc Supply of raw materials to artisans craftspeople

and rural industries Marketing of rural industrial products Serving as retail outlets for consumables

&durables

Sh f it l i ti l


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Share of capital in national

incomeSl no Activity Propotion covered

1 Rural network in terms ofvillages covered

100%

2 Agricultural credit disbursed 46.31%

3 Share in fertilizersdistribution

36.60%

4 Share of nitrogenousfertilizers produce

14.80%

5 Share in phosphoricfertilizers produce

23.50%

6 Share in sugar production 54.95%

7 Capacity utilization incooperative sugar factories

85.70%

8 Share in wheat procurement 27.80%

9 Share in jute procurement 21.50%

C d


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Cond..10 Cooperatives share of

retail fair shop28.00%

11 Share of milk procured to

total production

6.70%

12 Share of edible oil-seedsprocured and edible oilsold

51.00%

13 Share of spindleage in

cooperative spinning andweaving mills

10.00%

14 Share of cotton produceand marketed

67.50%

15 Share of cooperatives inhandlooms

55.00%

16 Share of fish handled 21.00%

17 Village-level storagefacility

62.50%

18 Share of soya beanproduction

7.50%

19 Proportion of salt 7.40%


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Impact of cooperatives on ruralmarketing

The strength of cooperatives should beunderstood and the already existingnetwork of distribution has to be used incoverage and extension of rural market

The three tier structure of operationsthere is a dependable inter- linkageamong the organization a different levels

He apex body in the three tier structureat state level takes the responsibility ofprocurement distribution, marketing andcollection of dues


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The iniciatives to promote thecooperatives comes from thegovernments,the bureaucratic

approach is inbuilt and there ispolitical inference or control whichmakes the organisation inefficientand ineffective


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With all the limitations,there aresome sucessful cooperationorganisation operation in thecountrylike AMUL,IFFCO,KRIBHCOAND OTHERS

role of cooperative institute in rural marketing

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