A consumer cooperative is a cooperative business owned by its customers for their mutual benefit. It is a form of free enterprise that is oriented toward service rather than pecuniary profit. Consumers' cooperatives often take the form of retail outlets owned and operated by their consumers.

1. Consumer Cooperative
PRESENTED BY: KEYUR DARJI

2. Introduction
A consumer cooperative is a cooperative business owned by its customers for their mutual
benefit.
 It is a form of free enterprise that is oriented toward service rather than monetary profit.
Consumers' cooperatives often take the form of retail outlets owned and operated by their
consumers.

3. Overview
The NCCF (National Cooperative Consumer’s Federation) was established in 1965 to function as
the apex body of consumer cooperative societies in the country, it is registered under the Multi-
State Co-operative Societies Act.
 NCCF operates through a network of 28 Regional offices located in different parts of the
country and head office at New Delhi.

4. Objectives
The main objectives of the NCCF are to provide supply support to the consumer cooperatives and
other distributing agencies for distribution of consumer goods at reasonable and affordable rates
besides rendering technical guidance and assistance to the consumer cooperatives.
Agricultural commodities like food grains, spices, oil seeds, pharmaceutical items and other
consumer goods.
Manufactured and value added items, drugs, medicines, pharmaceutical items and other Consumer
Goods.
Coal and its by products, chemicals, fertilizers, pesticides, insecticides and other industrial goods.

5. History
Consumer cooperatives design to reputation during the industrial revolution as part of
the labor movement.
As employment moved to industrial areas and job sectors declined, workers began organizing
and controlling businesses for themselves.
Workers cooperative were originally sparked by "critical reaction to industrial capitalism and
the industrial revolution."

6. Cont…
The formation of some workers cooperatives were designed to "cope with the evils of
unchecked capitalism and the insecurities of wage labor".
The first documented consumer cooperative was founded in 1769, in a barely furnished
cottage in Fenwick, East Ayrshire, when local weavers manhandled a sack of oatmeal into John
Walker's whitewashed front room and began selling the contents at a discount, forming
the Fenwick Weavers' Society.

7. Movement
The first successful organization was the Rochdale Society of Equitable Pioneers, established in
England in 1844.
The Rochdale Pioneers established the ‘Rochdale Principles’ on which they ran their cooperative.
This became the basis for the development and growth of the modern cooperative movement.
As the mechanization of the Industrial Revolution was forcing more and more skilled workers into
poverty, these tradesmen decided to band together to open their own store selling food items they
could not otherwise afford.

8. The Rochdale Society of Equitable
Pioneers was established in 1844 and defined
the modern cooperative movement.

9. Organizational Structure

10. Features
i. There is no restriction on membership of a consumer co-operative store as any adult person can
become a member of a co-operative.
ii. The members of the consumer co-operative store and distribute capital in the form of share. A
member can purchase shares of a value of Rs. 1000 only. Beyond this, shares are not issued to
members.
iii. The surplus of a store is distributed among the members in the form of dividend. The dividend is
paid in proportion to purchases made by the members.
iv. It adopts the principles of one man one vote. A man is not allowed vote by proxy system.
v. The trading of co-operative stores is made on the basis of cash.
vi. A sale can be made to non-members on the basis of market rate.
vii. It makes bulk purchases directly from the producers and sell these goods to its members on retail
basis.

11. Functions
Supplying Office stationary articles to different Offices and organizations ,
Supply of relief materials to different districts,
Supply of food items to Indian Consumer Development Stores (ICDS) medical equipments
Supply of food item to different hospitals,
Supply of food grains to Border Security Forces,
Supply of fish and fire woods to different departments,
Make various supplies of police ration items,
Supply of certified seeds to different Zilla Parishads,
Participate in various different tenders of other departments including Forest, Fire Service and supply
of Tender articles.

12. Advantages
(1) As the value of the shares of a co-operative society is limited, it attracts many people.
(2) The control and management of society is democratic.
(3) These societies lead to the elimination of middlemen.
(4) Since the control and management of the society is in the hands of the members, it ensures
better quality of goods to the members.
(5) Advertising expenses are limited.
(6) Co-operative societies are very helpful in training and developing managerial abilities among
the members.
(7) Economies of large scale purchases are availed by the societies.
(8) The societies help the members in the adjustment of their family budgets to their incomes.

13. Disadvantages
(1) The societies usually suffer from inadequacy of finances as majority of the members of the
societies are from middle class or low income group people.
(2) Most of the members do not have proper managerial ability and training, so they cannot
manage the affairs of the societies properly.
(3) The members may not be loyal and honest which adversely affects the smooth functioning of
the societies.
(4) As the capital can be withdrawn by the members at any time, this is greatly harmful during
the periods of depression and carelessness of business activities.
(5) There is lack of advertising and salesmanship which results in lesser sales.

14. Thank You