Co Operative Marketing

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Co Operative Marketing

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Co Operative Marketing

  1. 1. <ul><li>According to RBI “Co-operative Marketing is a co-operative Association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than is possible through private trade.” </li></ul><ul><li>According to FAO ‘Co-operative Marketing is a system through which a group of farmers join together to carry on some or all the process involved in bringing goods to the consumer.” </li></ul>10/22/09
  2. 2. <ul><li>To sell the members product directly in the best market and in a state which attracts the best price. </li></ul><ul><li>To grade the produce in such a way that the best price is obtained for all qualities to the advantages of the grower. </li></ul><ul><li>Give fair weight. </li></ul><ul><li>Handle the crop without damage or waste. </li></ul><ul><li>Strengthen the bargaining power. </li></ul><ul><li>Help members to produce the best product, which has most demand, this may include processing also. </li></ul><ul><li>Educate the members in marketing. </li></ul><ul><li>Stand for fair trading practices and stop manipulation of prices. </li></ul><ul><li>Provide finances to producers and help them in getting finances. </li></ul>10/22/09
  3. 3. <ul><li>Marketing of produce </li></ul><ul><li>Distribution of fertilizers </li></ul><ul><li>Distribution of seeds and agricultural machinery </li></ul><ul><li>Grading and pooling of produce </li></ul><ul><li>Processing activities </li></ul><ul><li>Provision of storage faccilities </li></ul><ul><li>Provision of financial assistance </li></ul><ul><li>Manufacture of Implements </li></ul><ul><li>Foreign and Inter-state trade </li></ul><ul><li>Other activities </li></ul>10/22/09
  4. 4. <ul><li>Brings in economy in cost of marketing. </li></ul><ul><li>Supply quality goods to customer. </li></ul><ul><li>Makes available grading & transportation facilities. </li></ul><ul><li>Acts as a part of the government for procurement and implementation of price support policy. </li></ul><ul><li>Encourage self – help and thrift. </li></ul><ul><li>Links marketing with credit. </li></ul>10/22/09
  5. 5. <ul><li>Abolition of Middlemen. </li></ul><ul><li>Collective bargaining. </li></ul><ul><li>Storage facilities – for members. </li></ul><ul><li>Standardization and grading. </li></ul><ul><li>Higher prices of members. </li></ul><ul><li>Market infrastructure. </li></ul><ul><li>Supplying inputs and consumer goods. </li></ul><ul><li>Facility of correct weighing. </li></ul><ul><li>Relief from illegal deductions. </li></ul><ul><li>Linking credit, processing and & farming. </li></ul>10/22/09
  6. 6. <ul><li>Reduce cost and improved services. </li></ul><ul><li>Improve marketability – reduce all undefined and undesirable market changes. </li></ul><ul><li>Safeguards against rising costs & input prices. </li></ul><ul><li>Provides credit. </li></ul><ul><li>Storage facilities. </li></ul><ul><li>Processing of agr. produce. </li></ul><ul><li>Market intelligence. </li></ul>10/22/09
  7. 7. 10/22/09
  8. 8. <ul><li>National Agricultural Co-operative Marketing </li></ul><ul><li>Federation (NAFED) </li></ul><ul><li>It was established in 1958, with the following </li></ul><ul><li>objectives: </li></ul><ul><li>Co-ordinate & promote the marketing and trading activities of its members in agr. Goods. </li></ul><ul><li>Undertake or Promote inter – state, intra – state & international trade. </li></ul><ul><li>To Undertake the supply of agr. Inputs lilke seed, fertiliser, manure, agr. Implements, etc.. </li></ul><ul><li>It has brancehs at Chennai, Mumbai, Kolkata & Delhi. </li></ul>10/22/09
  9. 9. <ul><li>These are apex institutions for all co-operative </li></ul><ul><li>marketing in the state. </li></ul><ul><li>Functions of State Level Co-operative Marketing </li></ul><ul><li>Societies : </li></ul><ul><li>They provide credit and other facilities to District Marketing Societies.(DMS) </li></ul><ul><li>They buy and sell products of DMS. </li></ul><ul><li>Wholesale distribution of chemical fertlisers, iron, steel, cement, sugar, wheat, kerosene, coffeeseeds, rice, milkpowder, etc., in addition to agr. Implements & insecticides. </li></ul><ul><li>Overall co-ordination of co-operative marketing. </li></ul>10/22/09
  10. 10. <ul><li>District Level Marketing Societies – Central Marketing </li></ul><ul><li>Societies </li></ul><ul><li>They deal with primary marketing societies(PMS) at village level. </li></ul><ul><li>Purchase & sell agr. produce & supply agr. Inputs to farmers through PMS. </li></ul><ul><li>Primary Marketing Societies </li></ul><ul><li>They deal in a single commodities or many </li></ul><ul><li>commodities at a time. They collect & </li></ul><ul><li>standardise the produce brought to them by </li></ul><ul><li>their members & make arrangements for their </li></ul><ul><li>sale. They also advance loans to their members </li></ul><ul><li>Against the produce. They are multipurpose </li></ul><ul><li>societies. </li></ul>10/22/09
  11. 11. <ul><li>Less cost of marketing. </li></ul><ul><li>Quality goods supplied to customers. </li></ul><ul><li>Help in growth of better crops. </li></ul><ul><li>Credit facilities at low interest rates. </li></ul><ul><li>Fair prices to customers. </li></ul><ul><li>Stabilization of prices. </li></ul><ul><li>Surplus distribution. </li></ul><ul><li>Help Govt. in programmes for rural development. </li></ul><ul><li>Educative value. </li></ul>10/22/09
  12. 12. <ul><li>Unplanned setup – no attention while fixing the volume of produce, area of operation, finance requirements, etc. </li></ul><ul><li>Malpractices. </li></ul><ul><li>Lack of initiative by members, only Govt. initiative. </li></ul><ul><li>Less no. of regulated markets. </li></ul><ul><li>Competition from credit societies, middlemen, traders, etc.. </li></ul><ul><li>Lack of co-ordination. </li></ul><ul><li>Lack of audit and supervision. </li></ul>10/22/09
  13. 13. <ul><li>Illiterate farmers & less marketable surplus. </li></ul><ul><li>Lack of warehousing & transport facilities. </li></ul><ul><li>Defective loan policies. </li></ul><ul><li>Untrained persons. </li></ul><ul><li>Lack of funds. </li></ul><ul><li>No incentives to Marketing Societies. </li></ul>10/22/09
  14. 14. <ul><li>Proper Storage facilities. </li></ul><ul><li>Grading & Standardization. </li></ul><ul><li>Large area of operation – so as to have large business. </li></ul><ul><li>Bring down cost of management. </li></ul><ul><li>Specialized knowledge and techniques. </li></ul><ul><li>Better co-ordination between credit societies and marketing societies. </li></ul><ul><li>Trained and experienced staff. </li></ul>10/22/09
  15. 15. <ul><li>Target oriented approach – in terms of number of societies. </li></ul><ul><li>Organization of societies should be run on democratic lines </li></ul><ul><li>Finances of the societies should be improved </li></ul><ul><li>Marketing societies should undertake sales on commission basis </li></ul><ul><li>Existing potentially viable societies should be revitalized while defunct societies should be liquidated </li></ul>10/22/09

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