Cooperative marketing societies allow farmers to collectively market and sell their produce. They grade, process, store and transport agricultural goods to help farmers obtain better prices than selling individually. Cooperative marketing brings economy of scale, bargaining power, access to market information and infrastructure, and links farmers to input and credit cooperatives. However, some cooperatives face challenges like unplanned organization, lack of member initiative, poor facilities, and insufficient training. Strengthening infrastructure, professional management, coordination between credit and marketing cooperatives, and revitalizing viable societies can help address these issues.

1. 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.”
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.”
03/10/15 1

2. 1. To sell the members product directly in the best market
and in a state which attracts the best price.
2. To grade the produce in such a way that the best price
is obtained for all qualities to the advantages of the
grower.
3. Give fair weight.
4. Handle the crop without damage or waste.
5. Strengthen the bargaining power.
6. Help members to produce the best product, which has
most demand, this may include processing also.
7. Educate the members in marketing.
8. Stand for fair trading practices and stop manipulation of
prices.
9. Provide finances to producers and help them in getting
finances.
03/10/15 2

3.  Marketing of produce
 Distribution of fertilizers
 Distribution of seeds and agricultural machinery
 Grading and pooling of produce
 Processing activities
 Provision of storage faccilities
 Provision of financial assistance
 Manufacture of Implements
 Foreign and Inter-state trade
 Other activities
03/10/15 3

4. • Brings in economy in cost of marketing.
• Supply quality goods to customer.
• Makes available grading & transportation
facilities.
• Acts as a part of the government for procurement
and implementation of price support policy.
• Encourage self – help and thrift.
• Links marketing with credit.
03/10/15 4

5. 1. Abolition of Middlemen.
2. Collective bargaining.
3. Storage facilities – for members.
4. Standardization and grading.
5. Higher prices of members.
6. Market infrastructure.
7. Supplying inputs and consumer goods.
8. Facility of correct weighing.
9. Relief from illegal deductions.
10. Linking credit, processing and & farming.
03/10/15 5

6. 1. Reduce cost and improved services.
2. Improve marketability – reduce all undefined and
undesirable market changes.
3. Safeguards against rising costs & input prices.
4. Provides credit.
5. Storage facilities.
6. Processing of agr. produce.
7. Market intelligence.
03/10/15 6

7. 03/10/15 7

8. National Agricultural Co-operative Marketing
Federation (NAFED)
It was established in 1958, with the following
objectives:
1. Co-ordinate & promote the marketing and trading
activities of its members in agr. Goods.
2. Undertake or Promote inter – state, intra – state &
international trade.
3. To Undertake the supply of agr. Inputs lilke seed,
fertiliser, manure, agr. Implements, etc..
It has brancehs at Chennai, Mumbai, Kolkata &
Delhi.
03/10/15 8

9. These are apex institutions for all co-operative
marketing in the state.
Functions of State Level Co-operative Marketing
Societies:
1. They provide credit and other facilities to District
Marketing Societies.(DMS)
2. They buy and sell products of DMS.
3. Wholesale distribution of chemical fertlisers, iron,
steel, cement, sugar, wheat, kerosene, coffeeseeds,
rice, milkpowder, etc., in addition to agr. Implements
& insecticides.
4. Overall co-ordination of co-operative marketing.
03/10/15 9

10. District Level Marketing Societies – Central Marketing
Societies
1. They deal with primary marketing societies(PMS) at
village level.
2. Purchase & sell agr. produce & supply agr. Inputs to
farmers through PMS.
Primary Marketing Societies
They deal in a single commodities or many
commodities at a time. They collect &
standardise the produce brought to them by
their members & make arrangements for their
sale. They also advance loans to their members
Against the produce. They are multipurpose
societies.
03/10/15 10

11. 1. Less cost of marketing.
2. Quality goods supplied to customers.
3. Help in growth of better crops.
4. Credit facilities at low interest rates.
5. Fair prices to customers.
6. Stabilization of prices.
7. Surplus distribution.
8. Help Govt. in programmes for rural development.
9. Educative value.
03/10/15 11

12. 1. Unplanned setup – no attention while fixing the
volume of produce, area of operation, finance
requirements, etc.
2. Malpractices.
3. Lack of initiative by members, only Govt.
initiative.
4. Less no. of regulated markets.
5. Competition from credit societies, middlemen,
traders, etc..
6. Lack of co-ordination.
7. Lack of audit and supervision.
03/10/15 12

13. 8. Illiterate farmers & less marketable surplus.
9. Lack of warehousing & transport facilities.
10. Defective loan policies.
11. Untrained persons.
12. Lack of funds.
13. No incentives to Marketing Societies.
03/10/15 13

14. 1. Proper Storage facilities.
2. Grading & Standardization.
3. Large area of operation – so as to have large
business.
4. Bring down cost of management.
5. Specialized knowledge and techniques.
6. Better co-ordination between credit societies and
marketing societies.
7. Trained and experienced staff.
03/10/15 14

15. 8. Target oriented approach – in terms of number of
societies.
9. Organization of societies should be run on
democratic lines
10. Finances of the societies should be improved
11. Marketing societies should undertake sales on
commission basis
12. Existing potentially viable societies should be
revitalized while defunct societies should be
liquidated
03/10/15 15