This document discusses principles and types of agricultural cooperatives in India. It outlines seven types of cooperatives that support agriculture, including cooperative credit, marketing, farming, processing, storage and women's cooperatives. It also describes the functioning of various cooperative structures like primary agricultural credit societies (PACS), marketing cooperatives, and multi-purpose societies. PACS provide short-term credit for farm needs and household items. Marketing cooperatives help members market and process agricultural products. Multi-purpose societies integrate credit and services to support better farming, business and living.

1. PRINCIPLES CO-OPERATIVE GROUP
Voluntary and
open
membership
Democratic
control
Limited
interest on
share capital
Patronage
dividend
Promotion of
education
Mutuality

2. TYPES OF COOPERATIVES IN AGRICULTURE
Co-operative
Credit
Co-operative
Marketing
NAFED
NCDC
Co-operative
Farming
Co-operative
Tenant
Farming
Co-operative
Collective
Farming
Co-operative
Better
Farming
Co-operative
Joint Farming
Co-operative
Processing
Co-operative
Storage
Women Co-
operatives

3. FUNCTIONING OF CO-OPERATIVES IN AGRICULTURE
Short-term
Structure: Supply of
credit for seasonal
requirements
Long-term
Structure:
Supply of credit for long-
term investment for
improvement of land,
purchase of costly farm
agricultural equipment,
sinking of wells and
pumps etc .
Primary
Agricultur
al Credit
Societies
(PACS)
Marketing
Co-
operatives
Multi-
purpose
Societies
Farmers’
Service
Societies
Large-
sized
PACS
Processing
Co-
operatives

4. PRIMARY AGRICULTURAL
CREDIT SOCIETIES (PACS)
• Crop loans for routine agricultural operations
• Supply of farm requirements such as seeds,
fertilizers, pesticides, etc.
• Provide household requirements
• Same as PACS except for size of
operation and linkage of credit
and marketing
LARGE-SIZED PACS

5. FUNCTIONS OF PRIMARY AGRICULTURAL CREDIT
SOCIETIES (PACS)
• To provide short-term credit required
for the purchase of farm requirements
and medium-term loans for other
agricultural purpose.
• To arrange the supply of farm
requirements such as improved seeds,
fertilizers and insecticides etc.
• To provide household requirements
such as sugar, kerosene oil, etc.
• To raise funds mainly through savings
of members.

6. MULTI-PURPOSE SOCIETIES:
• Credit for all multi-purpose activities
in rural development
• Aims at “better farming, better
business, better living”
• Support in marketing and processing
of agricultural products
FARMERS’ SERVICE SOCIETIES
• Integrated credit and other
services to small and marginal
farmers, tenants and landless
farm labourers
• Credit for development
activities like development of
land, wells, storage facility etc.
for collective use.

7. MARKETING CO-OPERATIVES
• To market members’
produce
• Provide credit on
security of produce
• Provide grading,
processing and
pooling of
agricultural produce
PROCESSING CO-OPERATIVES
• Integration of agricultural
production and processing to
enhance rural employment and
livelihood
• Establishment of commodity-based
processing units as Spinning Mills,
Sugar Mills, Oil Mills, etc.