CO-OPERATIVE MARKETING

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CO-OPERATIVE MARKETING

  1. 1. Shivam AzadSubmitted to: Shyam KumarProf. mukesh ranga MBA (BE), BATCH(2011-13) INSTITUTE OF BUSINESS MANAGEMENT, C. S. J. M. UNIVERSITY KANPUR
  2. 2. Objective To make the students aware regarding the concept of cooperatives To learn about the role and functions of cooperative marketing in India
  3. 3. Introduction Today cooperation has come to stay as an instrument of economic growth and social reforms all over the world. It was introduced in European countries over a century ago. The first cooperative society which was formed in England at Rockdale in 1844, gave philosophy and procedure of work on the basis of cooperative doctrine. It was found useful and got recognition in all the countries. The society consisted of twenty-eight weavers.
  4. 4. MEANING OF COOPERATIVEMARKETING H. Calvert di defines cooperation “as a form of organisation, wherein person voluntarily associate together as human beings, on the basis of equality for the promotion of the economic interest of themselves”. Whereas Prof. Paul Lumbert has defined that “Cooperative society is an enterprise formed and directed by an association of users
  5. 5. ROLE OF COOPERATIVES Transfer of technology Fertiliser production and distribution Irrigation Organised marketing Processing of agricultural produce Agricultural credit Package deal Equity in agricultural development
  6. 6. STRUCTURE OF COOPERATIVEMARKETING SOCIETIES Base level Central/District level State level
  7. 7. TYPES OF CO-OPERATIVEMARKETING SOCIETIES Single commodity cooperative marketing societies Multi-commodity cooperative marketing societies Multi-purpose, multi-commodity cooperative marketing societies
  8. 8. MEMBERSHIP Ordinary members Nominal members
  9. 9. Source of finance Share capital Loans Subsidy
  10. 10. FUNCTIONING Sale on commission basis Purchase of members produce Advancement of credit Procurement and price support purchases
  11. 11. PROGRESS The value of agricultural produce marketed through the cooperative marketing societies increased from Rs. 53 crores in 1955-56 to Rs. 738 crores in mid-nineties. The produce marketed through these societies account for 8 to 10 per cent of the marketed surplus. The important commodities marketed by these societies are food grains, sugarcane, cotton, oilseeds, fruits, vegetables and plantation crops. The progress of cooperative marketing societies has varied from state to state and within each state from commodity to commodity
  12. 12. Reason for slow progressof cooperative marketing Farmers are indebted to local traders and enter into advance contracts with them for the sale of the crop In some cases rivalries among farmer-members result in indecision, which hampers the progress of the societies Members lack confidence in cooperative organizations, for most of the cooperative sector enterprises run at loss
  13. 13.  Societies do not provide facilities of food and shelter to farmers when they visit the market for the sale of the produce There is lack of sufficient funds with the societies to meet thecredit need of the farmers against pleding of the producebrought fore sale. Nor do they make an advance payment ofthe value of the produce purchased or sold through them
  14. 14. Suggestions forstrengthening ofcooperative marketingsocieties Cooperative marketing societies should develop sufficient storage facilities in the mandi as well as in the villages The societies should give adequate representation to the small and marginal farmers in their organisational set-up
  15. 15.  Cooperative marketing societies should diversify their activities. They should sell the produce and inputs, and engage in the construction of storage facilities In the selections of the officials of cooperative marketing societies, weightage should be given to business experience and qualifications. After their selection, the officials should be given proper training so that they may deal efficiently with the business of the society. The efficiency should be rewarded, wherever possible
  16. 16. Thank you

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