MAMCOS Shivamogga - Project Report

PROJECT REPORT
On
“A STUDY ON EFFECTIVENESS OF CO-OPERATIVE MARKETING OF
ARECANUT IN MAMCOS LTD, SHIVAMOGGA”
By
USN: -
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of
Department of Business Administration
2014 - 2016
INTERNAL GUIDE EXTERNAL GUIDE

ACKNOWLEDGEMENT
I, Your Name, wish to express my deep sense of gratitude to all the concerned people who
have helped me, to successfully complete this report. I am very thankful to Vishvesvaraya
Technological University, Belagavi for this wonderful opportunity to take on the project study
as a part of the fulfilment of master of Business Administration.
I am highly grateful to External Guide Name, Accounting head of MAMCOS Shivamogga
ltd. And also thankful to Managing Director of MAMCOS Shivamogga for their advice and
suggestions at various stages in completing the report.
I deeply thankful to Principal Name, Principal of collage name and Prof. HOD Name, Head
of MBA dept., Collage Name, for providing all the support and encouragement to successfully
complete this project.
I express my special gratitude and thanks to Internal Guide name, Senior Assistant Professor,
Department of MBA, for his valuable guidance and encouragement while doing this project
work.
I am also thankful to the faculty members, teaching and non-teaching staff of the Department
of MBA, Collage Name and Location, for their cooperation extended to me during my project
work.
Date: 06th April 2016

Table of Contents
CHAPTER 1........................................................................................................................................
Introduction.......................................................................................................................................1
1.1 Introduction about the internship .............................................................................................1
1.2 Topic chosen for the study..........................................................................................................1
1.3 Need for the study.......................................................................................................................1
1.4 Objectives of the survey..............................................................................................................1
1.5 Methodology................................................................................................................................2
1.6 Scope of the study........................................................................................................................2
1.7 Review of literature.....................................................................................................................2
1.8 Limitations of the study..............................................................................................................3
CHAPTER 2............................................................................................................................................
Industry profile and company profile.................................................................................................4
2.1 Industry profile ...........................................................................................................................4
2.1.1 Future outlooks ....................................................................................................................6
2.2 Company profile (MAMCOS LTD) ..........................................................................................6
2.1.1 Main objective ......................................................................................................................7
2.1.2 Objective of MAMCOS .......................................................................................................7
2.3 Promoters.....................................................................................................................................7
2.3.1BoardofDirectors......................................................................................................................8
2.4 Vision of the society ....................................................................................................................8
2.5 Mission of the society..................................................................................................................8
2.6 Quality policy ..............................................................................................................................9
2.7 Products/ Service profile ............................................................................................................9
2.8 Area of Operations......................................................................................................................9
2.9 Infrastructure facility ...............................................................................................................10
2.10 Competitors .............................................................................................................................10
2.11 SWOT Analysis...................................................................................................................11
2.12 Future growth and prospects.................................................................................................12
2.14 Financial Statement ................................................................................................................13
CHAPTER 3............................................................................................................................................
Theoretical Background.....................................................................................................................14
3.1 Co-operative societies ...............................................................................................................14
3.2 The History of co-operative......................................................................................................14
3.3 Objectives...................................................................................................................................15

3.4 Types of co-operative societies.................................................................................................16
3.5 Formation of co-operative societies.........................................................................................16
3.5 Market........................................................................................................................................17
3.6 Types of market.........................................................................................................................18
3.7 Marketing channels ..................................................................................................................19
CHAPTER 4............................................................................................................................................
Data Analysis and Interpretation..........................................................................................................
Chapter 5 .............................................................................................................................................47
Findings suggestions and conclusion.................................................................................................47
5.1 Findings......................................................................................................................................46
5.2 Suggestions.................................................................................................................................47
5.3 Conclusions................................................................................................................................47
Bibliography..............................................................................................................................................
ANNEXURE............................................................................................................................................

List of Tables
Table 4. 1 showing age of the respondents...........................................................................20
Table 4. 2 showing annual income of respondents..............................................................21
Table 4. 3 showing types of arecanut preferring to market...............................................22
Table 4. 4 how respondents came to know about MAMCOS............................................23
Table 4. 5 showing how long respondents Associated with MAMCOS ............................24
Table 4. 6 showing how often respondents do transact through MAMCOS?..................25
Table 4. 7 showing about arranging finance to procuring arecanut for MAMCOS? .....26
Table 4. 8 showing selling in MAMCOS..............................................................................27
Table 4. 9 showing about storage facility in MAMCOS.....................................................28
Table 4. 10 showing opinion about the transportation facility in MAMCOS. .................29
Table 4. 11 showing opinion about PAYMENT facility in MAMCOS.............................30
Table 4. 12 showing opinion about other service provided by MAMCOS.......................31
Table 4. 13 showing about Information of service provided by MAMCOS.....................32
Table 4. 14 showing opinions of respondents towards the Image of the society. ............33
Table 4. 15 showing Quality of service provided by MAMCOS........................................34
Table 4. 16 showing Transparency in service in MAMCOS..............................................35
Table 4. 17 showing Speed of service in MAMCOS. ..........................................................36
Table 4. 18 showing about Credit and payment facility in MAMCOS.............................37
Table 4. 19 showing about arecanut diseases ......................................................................38
Table 4. 20 showing Satisfaction level of respondents in the co-operative marketing of
arecanut in MAMCOS. .........................................................................................................39
Table 4. 21 chi Square Test......................................................................................................40
Table 4. 22 showing problems of farmers in selling through co-operative societies........41
Table 4. 23 showing about immediate payment on sale in MAMCOS. ............................42
Table 4. 24 showing about method of sale adopted in mamcos. ........................................43
Table 4. 25 showing regarding expected market rate of arecanut. ...................................44
Table 4. 26 showing on which parameter respondents chosen MAMCOS? ....................45

List of Charts
Chart 4. 1 showing age of the respondents ..........................................................................20
Chart 4. 2 showing annual income of respondents .............................................................21
Chart 4. 3 showing types of arecanut preferring to market ..............................................22
Chart 4. 4 how respondents came to know about MAMCOS............................................23
Chart 4. 5 showing how long respondents Associated with MAMCOS............................24
Chart 4. 6 showing how often respondents do transact through MAMCOS? .................25
Chart 4. 7 showing about arranging finance to procuring arecanut for MAMCOS.......26
Chart 4. 8 showing selling in MAMCOS .............................................................................27
Chart 4. 9 showing about storage facility in MAMCOS ....................................................28
Chart 4. 10 showing opinion about the transportation facility in MAMCOS..................29
Chart 4. 11 showing opinion about PAYMENT facility in MAMCOS.............................30
Chart 4. 12 showing opinion about other service provided by MAMCOS.......................31
Chart 4. 13 showing about Information of service provided by MAMCOS. ...................32
Chart 4. 14 showing opinions of respondents towards the Image of the society..............33
Chart 4. 15 showing Quality of service provided by MAMCOS .......................................34
Chart 4. 16 showing Transparency in service in MAMCOS .............................................35
Chart 4. 17 showing Speed of service in MAMCOS...........................................................36
Chart 4. 18 showing about Credit and payment facility in MAMCOS ............................37
Chart 4. 19 showing about arecanut diseases......................................................................38
Chart 4. 20 showing Satisfaction level of respondents in the co-operative marketing of
arecanut in MAMCOS ..........................................................................................................39
Chart 4. 21 showing problems of farmers in selling through co-operative societies .......41
Chart 4. 22 showing about immediate payment on sale in MAMCOS.............................42
Chart 4. 23 showing about method of sale adopted in mamcos.........................................43
Chart 4. 24 showing regarding expected market rate of arecanut....................................44
Chart 4. 25 showing on which parameter respondents chosen MAMCOS?....................45

Executive summary
This project work is the part of the academic study is intended to give an opportunity to have
an overall exposure to the working of organization to related theoretical concepts learnt in class
rooms to the organizational functions. The study has been done by observing the operation and
collecting relevant data from MAMCOS.
MAMCOS ltd is one of the successful marketing co-operative society in Karnataka.it was
established in the year 1939, the main business of MAMCOS ltd is giving a platform to the
farmers to sell their arecanut, and it act as a commission agent between farmers and buyers.
A detailed report on the project us undergone is prepared and presented in foregoing pages.
This report contains a view towards co-operative society and detailed information about
background of the society, nature of business carried, area of operation, infrastructure facility,
management, and future growth and prospect.
MAMCOS has computerised transaction system, the value is being shared by MAMCOS is by
providing welfare measures to its members, it has various skills like risk taking, leadership are
given profession. Authorised type of style is being fallowed to get the work done. The total
number of employees 58 and they take various activities accordingly.
And this report is also includes general introduction which defines the problems. And the
objective of the study is clearly defined in order to get accurate results, for this data has been
collected from various sources like, structured questionnaire and personal interviews, both
primary and secondary data supports the reports, statistical tools like tables, chart, graphs used,
through these techniques the report has been designed and given a meaningful conclusion.

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1.1 Introduction about the Internship
Internship is an important part in VTU MBA curriculum. It is an attempt made to bridge
the gap between theoretical knowledge and its application through a series of application that
will make the students of vtu mba have practical knowledge about the industry.
This project work is the part of the academic study is intended to give an opportunity to have
an overall exposure to the working of organization to related theoretical concepts learnt in class
rooms to the organizational functions. The study has been done by observing the operation and
collecting relevant data from MAMCOS.
As a part of academic requirement a project work has undertaken at MAMCOS for 10 weeks.
The assignment is intended to study the marketing concept in the arecanut as well as roll played
by the society in the same. The 10 week internship has been positioned between 3rd
and 4th
semester of MBA program as it serves the twin purpose of providing critical business insights
to students as well as providing industry with graduates of a high calibre who are ready to get
ahead in the world from day one.
1.2 Topic chosen for the study
I have chosen the topic “A study on effectiveness of co-operative marketing of areca
nut in MAMCOS LTD. Shivamogga”
1.3 Need for the study
The study is done for the fulfilment of degree in MBA, and other need is based on individual’s
act and their perception, not on the basis of reality, the society felt the need to get information
about their merchant’s satisfaction as well as effectiveness in the marketing of arecanut
o To know the reason behind choosing MAMCOS for co-operative marketing.
o To know marketing of arecanut in MAMCOS.
o Effectiveness of marketing.
1.4 Objectives of the survey
The survey was conducted in order to know many information regarding arecanut, they are
as fallows.
a. To know why the formers prefer particular co-operative society

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b. To know the problem of the growers towards the co- operative marketing of
arecanut
c. To find out the solutions to the problem faced by the formers
1.5 Methodology
This study is mainly based on primary and secondary data. The primary data is collected
by governing a structured questionnaire to the selected farmers. Personal interview is also
conducted wherever nessosory and the manager of MAMCOS, Shivamogga is also interviewed
after obtaining opinion of arecanut growers.
The secondary data is also collected to backing the study from various sources like website of
the society, Annual report of MAMCOS. Newspapers etc.
The collected data is classified tabulated analysed to draw meaningful conclusion and suggest
some useful actions to improve the production and marketing of arecanut.
1.6 Scope of the study
Shivamogga market for arecanut is an important market in India, therefore this
particular area and near places like Koppa and Sringeri is taken for survey by selecting 50
arecanut growers to identify the problem faced by them in the production processing and
marketing of arecanut.
1.7 Review of literature
The purpose of the literature review is to give an overview of the research on arecanut related
topics like marketing of areca, price, and problems of the growers, and societal co-operation
for the marketing of arecanut.
This study helps in identifying, the conceptual and methodical issues. It provides a
framework for the current study as well as provides reference and literature for the future
studies.
Bhale rao et.al, conducted a study in Jalpaiguri district of west Bengal on processing, storing,
grading and marketing of arecanut, in this study the researcher found that the grading of areca
is usually done by the wholesalers, not growers but wholesaler do not grade the produce on
any scientific methods. They do it on the basis of colour and size of arecanut.

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Preethi N.S In this study she found that arecanut is the only one commercial crop which is
more profitable compared to the crops like maize, paddy and ragi. It also shows that investment
in small garden which is less than three acres is more profitable compared to large lands. And
human labour also makes a slight difference in the profit or yield of arecanut.
Shruthi (2008) in this study she publicised that the consumer of arecanut has spent an average
of 228 in a month for various arecanut products. In terms of average consumptions per person
uses 4 to 5 packs in week. In that around 64% people uses tobacco with areca like gutka and
paan masala.
Vinay Kumar b.s 2009 In this study he found that the role of the market intermediaries is
playing major differences, while these intermediaries consist of private traders 75% and
wholesalers 25%. In shivamogga the source of arecanut for beeda is around 70% from the
wholesalers while 25% buy from the retailors and rest 5% from their own sources like they
only grow arecanut. And also he suggested that a special areca value chain zone should be
created with SEZ and export zone in places like shivamogga. And also he suggested that the
Government should encourage co-operatives like CAMPCO to produce value added areca nut
products.
1.8 Limitations of the study
Being the arecanut marketing in a national level the study has been limited to
Shivamogga, Koppa and Shringeri. The sample size is selected due to the pacing of time.
The figure in the survey findings are given on the basis of 100 formers. The study does
not shows the position of entire market of arecanut, but represent only a certain places in
shivamogga and surrounding.

CHAPTER 2
Industry profile and company profile

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2.1 Industry profile
Agriculture is the backbone of gross domestic product (GDP) in India. Where 58% of rural
people depend on agriculture as their mean of livelihood. As per CSO estimations the
contribution of agriculture related sector was 15.35% of the GVA during 2015-16.
Since India is the largest in consumer exporter of spices and other spice related products and
second in fruit products in the world. Agriculture export contributes 10% to the total export.
Market
In recent past there are many aspects have worked together to develop Indian agriculture sector.
It includes household income and consumption, agricultural export, private participation,
growth of organic forming and use of IT in agriculture.
Giving the importance of the agriculture sector, the Government of India, in recent budget
planned some steps for the sustainable improvement of agriculture. Budget was anticipated a
slew of measures to improve agronomy and increase farmers prosperity such as 2.85 million
hectares to be carried under irrigation, The government has already taken steps to report two
major factors (soil and water) precarious to improve agriculture sector.
Steps have been taken to improve soil fertility on a sustainable basis through the soil health
card scheme and to support the organic farming scheme ‘Paramparagat Krishi Vikas Yojana’
Other steps include improved access to irrigation through ‘Pradhanmantri Gram Sinchai
Yojana’; enhanced water competence through `Per Drop More Crop’; continued support to
Mahatma Gandhi National Rural Employment
The Government of India recognises the importance of micro irrigation, watershed
development and ‘Pradhan Mantri Krishi Sinchaia Yojana’ it allocated a Rs 5,300 crore for it.
It urged the states to focus on this key sector. The state governments are compelled to allocate
adequate funds to develop the agriculture sector, take measures to achieve the targeted
agricultural growth rate and address the problems of farmers.
In India the production as well as marketing of agricultural goods suffers from a large number
of defects. The farmers in India have no control over the marketing of their produce. They have
to sell their product at unfavourable price, at an unfavourable price. At an unfavourable time
and on unfavourable terms.

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In order to sell the produce to the advantage of the farmers, some conditions must be fulfilled.
Firstly, the quality of produce must be superior. This is possible by using improved seeds and
scientific fertilizers, by adopting correct methods of cultivation by grading the produce by
storing it properly and avoiding malpractice such as mixing and adulteration secondly, the must
have the waiting capacity. In other words, there should not be any kind of pressure on the
formers to sell their produce immediately after the harvest. Thirdly there should be good means
of transport and communication and adequate storage facilitates to enable the farmers to bring
their produce to the city markets and sell it when prices are remunerative. Fourthly, there
should be well organized markets at convenient distances. A well developed and regulated
market assures the farmers of the fair marketing practices of the middle man.
Agricultural co-operatives or formers cooperatives are cooperatives where formers pool their
resources for mutual economic benefits. Agricultural co-operatives are broadly categorised into
agricultural service cooperatives which provides various service to their individual forming
members, and agriculture production co-operatives where production resources such as land or
machinery are pooled and members farm jointly.
An agricultural cooperatives, also known as a formers co-op, Is a cooperative where
formers pool their resources in certain areas of activity. In agriculture, there are broadly three
types of co-operatives: a machinery pool, a manufacturing/ marketing cooperatives, and a
credit unions.
ARECA NUT
The betel nut is the seed of areca or betel palm and the leaf from the billet pepper or
pan plant. Areca is used for chewing with billet leaf and lime or chanan. In some cases a little
car donor turmeric is added the people chew it with billet leaf and lime after the food for
digestion.
Arecanut is grown in the hot and humid regions in India, Bangladesh and Srilanka, Malaysia
and to the smaller extent in the east inclines and Burma. It is grown with coconut, jack, mango,
banana and spice.
Arecanut is used in India by all section of the people. It is usually called as ‘KALPATHARU’
for its usefulness in one way or other.

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2.1.1 Future outlooks
Indian agriculture is beginning to appear globally competitive, the two important policy
which made the changes are first is the deliberate reduction in the high degree of protection
earlier accorded to the manufacturing sector – which has improved the relatives profitability of
the agriculture sector. The second is letting the farming community receive market prices so as
to bring about more equitable terms of trade for this sector.
2.2 Company profile (MAMCOS LTD)
The Malnad Arecanut Marketing Co-Operative Society, Ltd., Shivamogga, popularly
known as MAMCOS is the leading arecanut processing and marketing agency in the malnad
region. It is a co-operative society which was established in the year 1939. It was established
under the presidency of Anil Kumar, the deputy commissioner of shivamogga. It celebrated its
diamond jubilee in the year 2000. At the time of position to establish a common place for them
on their own. So as an existence to meet the needs of the arecanut growers.
Arecanut one of the important commercial crop in India. It plays a major role in the religious,
social and cultural life of the people. Where MAMCOS ltd is a successful marketing co-
operative society which is having strong goodwill in shivamogga and surrounding, MAMCOS
ltd is commission agent which sell arecanut of farmers to areca merchants by charging 2%
commission on areca merchants, and protect the farmers from other middlemen’s who cheat
the formers by providing lesser price, it gives a platform for the formers to sell their arecanut
and helps in getting finance.
The arecanut was produced by large number of small growers with the financial resources at a
comparatively to a situation where they had no option but past with they produce at a
comparatively low price. The cultivators had no contact with the distant consuming and
distribution centers as such a major portion of the price paid by the consumers was pocketed
by the middlemen.
To come out with these drawbacks a full pledge co-operative society become inevitable. The
MAMCOS came up to shoulder the responsibility as marketing intermediary and it act as a
commission agent.

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2.1.1 Main objective
“The main objectives of the society are to provide systematic marketing facility for selling the
areca and other sub-crops grown by the members and agriculturists, to provide storage facilities
and to sell the same at an agreed rate, to provide katav loan and giving advance on the produce
brought in, to undertake processing activities etc.,"
2.1.2 Objective of MAMCOS
 To make arrangement to dispose plantation such as areca, pepper and soap to the best.
 To grant produce loan on areca, pepper and other plantation produced by the members
 To take up manufacturing, processing, storage, sale of chemical and fertilizers useful
to produce areca growers and also take up all nessosory activity in this connection.
 To establish branches, trade and sales centers and exhibition if required.
 To supply ammunition to protect crops from wild animal.
 Encourage the members to produce pure plantation crops such as; areca, pepper.
 To arrange for distribution of chemical which are required to prevent fruit not diseases
(Kole Roga) on cash or credit basis.
 To take up all activities as engaged by the government connected with the main
objective of the society.
2.3 Promoters
Mr. Sheshadri started this co-operative society in the year 1939 as deputy commissioner and
president, and as a mentor, friend and guide visionary. He has played each of these roles at
MAMCOS ltd and continues to steer it towards realising its visions, and he has been a focal
force of support for the movement. With Sri V.P. Ikkeri I.A.S Deputy Commissioner,
Shivamogga And Ex-Officio President, Sri Subramanya Y.S Vice-President.

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2.3.1BoardofDirectors
Sri V.P. Ikkeri I.A.S Deputy Commissioner, Shivamogga
And Ex-Officio President
Sri Subramanya Y.S Vice-President
Sri Nagesh S Dongare
MA, NET,KCS,HDCM
Managing Director
(Deputy Registrar of Co-op Societies
Sri Narasimha Nayak K Director
Sri Venkappa G.R Director
Sri Virupakshappa J. Director
Sri. Raghavendra Rao B.H Director
Sri Bhima Rao T.R Director
Sri Ashoka Nayaka H.R Director
Sri Mahesh H.S Director
Sri Shashidhara P.N Director
Sri Narendra B.C Director
Sri Sureshchandra A. Director
Sri Devanand R Director
Sri. Marthanda H Director
Sri Chandrashekar K.E Director
Sri Nagesh Rao H.C Director
Sri Somashekar E.G Director
Sri Badiyanna H.M Director
Sri Jayashree K.K Director
Sri Vijayalakshmi U.H Director
2.4 Vision of the society
“To provide systematic marketing facility for selling the areca nut and other sub crops
grown by the members and agriculturist.”
2.5 Mission of the society
“Our mission is to provide good services to our shareholders and provide good
marketing facility to agricultural produce.”

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2.6 Quality policy
MAMCOS as the country’s nodal organization for implementing the areca nut marketing
policy, is committed to provide credible, customer focused services, for efficient and effective
arecanut management in the society that are:
• Professional excellence in management of areca nut and other commodities
• Service quality and stake holder’s orientation
• Transparency and accountability in transitions
• Optimum utilization of resources
2.7 Products/ Service profile
 To cope up with changing times, technological facilities are provided.to ensure
quick extensions of facilities smart card have been issued to all the members.
 MAMCOS has introduced a unique and first of its group insurance scheme to
come to the rescue of its members.
 They includes providing facilities like harvest loan, produce loan at competitive
rate of interest, supplying quality kole chemical timely at competitive rates,
providing storage facilities to the members to produce, and offering attractive
rate of interest on the members deposits, providing bonus on the areca sold
through society.
 Incentives to the children’s of members in cash who secure highest marks in
academic qualifications and co-operative training programs.
 It provides loan schemes like harvest loans, produce loans and crop loans at
competitive rate of interest.
 Photo identity cards are issued to the members. Smart card is compulsory to
transact in the society, to get various facilities quickly to participate in the
general body and to vote in the elections.
2.8 Area of Operations
It extends to the revenue districts of shivamogga and chikkamagaluru and revenue
taluks of honnali and chennagiri of daavangere districts. It has branches at:

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 SHIVAMOGGA
 SAGAR
 HOSANAGARA
 BHADRAVATHI
 THIRTHAHALLI
 SHRINGERI
 KOPPA
 THARIKERE
 CHANNAGIRI
The head office of society is located at shimogga and all the branches are the capacity about
16000 MTS. The immovable property in the form of buildings, go downs, vacant places, are
worth about 4000.00 lakhs.
2.9 Infrastructure facility
Infrastructure facilities mean the basic requirements that the company should look after
in order to ensure free flow of activities. The company contains good infrastructure, planned
buildings, plant layout, water and power supply, vehicles parking, good meeting hall, with
adequate lightings, ventilations and other facilities.
2.10 Competitors
There are various competitors to mamcos are:
 Tota Utpanna marketing co-operative society (TUMCOS) Chennagri
 CAMPCO (collecting agency)
 RAMCO Bhadravathi
 APCOS Sagara
TUMCOS
It was established with an aim of providing good service to their shareholders and was
established by a grate visionary R Murulappa in 1984 with the share amount of ₹100 with 950
shareholders, and now it is one of the top society in Karnataka in the field of areca nut products,

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CAMPCO
The CAMPCO ltd as a co-operative is a success story of the people, by the people and
successful implementation of vision and values of the all the great founders of this country like
Mahatma Gandhi.
The objectives are:
Procuring the areca nut and cocoa by members, cultivators and by the growers on agency
basis or an outright purchase basis. Sale of areca nut and cocoa and their products to the best
advantage of members and also to advance loans to members on the pledge of goods and to do
all other things nessosory.
2.11SWOT Analysis
STRENGTHS
A. Financial base
MAMCOS has more than 15000 members constitute more than 11 crore paid up shares. It
is financially strong.
B. Goodwill
MAMCOS was established in 1939 including 659 members with a share capital of ₹16,031.
But now membership has grown very large number. It shows its goodwill.
C. Administrations
The administration of MAMCOS is best. As a proof it has prompt tax payer award to its
credit by the state government.
D. Network
A unique features is network of the society. It has 10 branches and 20 agencies all over
malnad. It helps in linking up of farmers very easily.
E. Diversifications
Recently the society has opened the scented arecanut manufacturing unit. It has opened a
good opportunity for growth in the market where there are very few players.

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WEAKNESS
A. No advertisement
Now a day’s advertisement shows a very popular role in making people to know about
something. But MAMCOS is lacking in it. There is no media advertisement for MAMCOS.
B. MAMCOS has No control over price fluctuations
C. MAMCOS is asking in taking active part in research and development to open new
dimensions for areca.
OPPORTUNITY
A. Diversifications
There is tremendous scope for diversification for arecanut, as it can be used for many
purposes.
B. Demand
MAMCOS can increase the demand for arecanut by exporting the same to foreign market.
THREATS
A. Rapidly increasing of commission agents in rural areas is a big threat for the society.
B. Government may give licence for importing arecanut which may Couse price decrees.
C. Banning of gutka: - Recently several state government have banned the use of gutka,
for which areca nut is main input. It has caused a serious decrease and in demand for
areca nut.
2.12 Future growth and prospects
The management is exploring all its activities in various activities in various areas this is
because of the board of director strongly feels that this is the right time to extend better facilities
to members the management is doing sincere efforts to take these things forward.
The future plans of MAMCOS are as fallows
 Head office and all branches are fully computerised. Arecanut technology information
center is opened in head office to provide latest information, www.mamcos.info is the
website of the society and it’s looking forward to improve it
 They are trying to implement online trading facilities

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 Society has plans of adding the insurance schemes for harvest loan and is constant touch
with the insurance.
 Supply of solar water heater and lights for members of MAMCOS on subsidy basis.
 Group insurance schemes for the labours and members for accidental benefits.
2.14 Financial Statement
Malnad Areca Marketing co-operative society ltd, Shivamogga
Balance sheet as on 31st March 2015
Liabilities Amount ₹ Assets Amount ₹
1.Paid up capital
2.Contingency fund
3.Other Funds
4.Loans and advances
5 Deposits
6.Loans
7.Creditors
8.Other current liabilities
9.Reserves
Net Profit 2014-15
62724090
145556550.05
186984324.74
865728193.47
79857718.00
561366475.86
111448927.45
6410740.00
279557153.62
35141350.04
1.Cash
2.Cash at Banks
3.Other Current Assets
4.Investment in other
societies
5.Shareholders Loans
6.Other Loans
7.Debtors
8.Motors and vehicles
9. Land and Building
10.Closing Stock
11.Tax
12.Misused fund collected
1315864.49
326214936.28
138038875.00
5331000.00
1191205705.20
511736790.60
24734527.00
19881816.67
73685654.17
6838780.00
35754384.31
37189.51
Total 2334775523.23 Total 2334775523.23

CHAPTER 3
Theoretical Background of the Study

Page | 14
3.1 Co-operative societies
Introduction
Co-operative societies are one of the forms of business organizations they are found all over
the world. The first co-operative society called the Rochdale society of pioneers was started by
Robert Owen in the year 1844 at Rochdale England. It was a consumer co-operative society to
protect themselves against the exploitation by the economically stronger section forms co-
operative society. Thus poor farmers may form co-operative credit societies to get cheap credit
facilities and get protect themselves against exploitations of moneylenders. Small producers
may form co-operative societies to sell their products at favourable prices and protect
themselves against the exploitations of the traders.
Meaning of co-operative society
“The term cooperation derived from the Latin word co operari which means “to work with” so
literally cooperation means working with others to solve common economic problems,
according Indian co-operative societies act 1912 “ a co-operative society is a society which has
as its objective the promotion of interest of its members in accordance with co-operative
principles.”
“A cooperative is a legal entity owned and democratically controlled by its members.
Members often have a close association with the enterprise as producers or consumers of its
products or services, or as its employees."
3.2 The History of co-operative
The history of co-operative movements concerns with the origins and history of
cooperatives. Although co-operative arrangements like mutual insurance and principles of
cooperation existed long before, the co-operative movement began with the application of
cooperative principle to business organizations.
Identity
Cooperativeness are typically based on the cooperative values of “self-Help, self-
responsibility, democracy and equality, equity and solidarity” and the seven cooperative
principles are:

Page | 15
1. Open membership
In the co-operative societies farmers are open to join the society, who wants to sell their
produce through this, normally traders are not allowed to become members.
2. One man one vote
This principle says that each members get one vote irrespective of any number of shares
they hold in the society.
3. Sales at market price
In this society sells the produce at market price and makes the payment after deducting
nessosory commissions.
4. Limited dividend
Dividend to be declared on the share capital, however it is limited in India as maximum
rate of dividend is fixed at 61%.
5. Surplus distribution
The surplus which remain after the distribution of the fixed dividend among the
members is however is distributed on the basis of percentage extended by the members
to the society. In other words, the surplus profit is distributed among the members
according to the amount of business done by the member with or without the society.
6. Service motto
Here profit is not a primary motto of the society, they look towards provide good service
to their members.
7. Education
Considerable amount of time, money human power is spend in educational efforts, and
missionary work to spread the gospel of cooperation.
3.3 Objectives
 To sell the produce in the markets and obtain fair price to the produces. The society
will be the main link between the producer and the buyer eliminating middlemen in
process.

Page | 16
 To provide credit to the farmers to save them from the necessity of selling produce
immediately after harvesting
 To increase the bargaining power of farmers compared to merchants and intermediaries.
 To influence the market price and obtain better price for agricultural produces.
 Provide agricultural inputs such as seeds fertilizers and pesticides and consumer goods
at low price to farmers.
 To undertake processing of agricultural produce like milling of paddy, ginning and
pressing of cotton.
 To obtain update information on market prices demand and supply position of
agricultural commodities and plan activities accordingly.
 To provide storage facility so that the farmers can store the produce and wait till the
prices are encouraging. Further this facility will also prevent loss of quantity and quality
of the produce due to moisture rodents and insects.
3.4 Types of co-operative societies
Different types of co-operative societies are formed by different classes of people for serving
different purpose.
The important types of co-operative societies are as follows:-
1. Co-operative credit societies
2. Co-operative marketing societies or co-operative sales societies
3. Consumer co-operative societies
4. Producer co-operative societies or industrial co-operative societies
5. Co-operative housing societies
6. Co-operative farming societies
3.5 Formation of co-operative societies
In India the formation of co-operative is governed by the provision of Indian co-operative act
1912 or the state co-operative societies act in force in various states.
For the formation of the co-operative societies there should be at least ten members who are
bound together by a common bond these member should submit an application for registration

Page | 17
to the registrar of co-operative societies of the state in which the socities office to be located.
The application for the registration should state
1. The proposed name of the society
2. The aim and objectives of the proposed society
3. Its area of operation
4. Particulars of share capital proposed to be raised by the issue of shares
5. The nature of members liability
Further the application for the registration should be accompanied by two copies of proposed
bye – law of the society. The bye- laws contains the rules for the internal working of the
proposed society.
On receipt of the application for registration and the bye laws the registrar of co-operative
societies will examine them and if he is satisfied will register the society and will issue the
certificate of registration. On registration society comes into existence and becomes a body
corporate with a distinct legal entity, perpetual succession and a common seal.
In commodities like areca nut whose production is concentrated in four states and
consumption spread all over the country the efficiency of marketing system assumes great
importance. Operations involved in the movement of areca nut from the producer to the
consumer could be prepared under two main phase. In the first phase called “Assembling”
producers themselves or the intermediate merchant brings the producer to the assembly and the
next phase described as distribution subsequent movement at the produce from the assembling
centers to the consumer taken place since there are many intermediates in the marketing system,
producer normally get only reduces share consumers price depending on the distance between
the assembling and distribution centers various market changes and margins and seasonal
disposal.
3.5 Market
There are no exclusive markets for the sale of areca nut in the country. As in the case
at other Agricultural crops, areca nut also forms one of the commodities handled in a particular
market there are primary, secondary and terminal dealing in agricultural commodities including
areca nut.

Page | 18
The primary market at the village level is generally held once in a week on a fixed days. They
are usually located in the interior parts and serve the needs of villages. The secondary markets
are regular wholesale markets held daily at fixed place and are usually situated in district or
taluk headquarters and important trading centers. Bothe assembling and distribution takes place
in their markets. The third type is called terminal markets. These markets are those in which
the produced s assembled for further distribution for entire state traders and for export. This
type market is common in trade of processed areca nut, but does not exist for ripe areca nut.
Areca marketing is the systematic performance of break business activities related to
processing, grading, standardizing, assembling, storing, transporting, financing, selling and
distributing in order to reach the areca produce from the point of ultimate consumer.
Areca nut is marketed as unhooked white fruit, De husked, dried nut boiled and whole kernel
or their cuts over 20% of the total production in the country is consumer as ripe fruit and rest
in the form of whole nut and processed forms. The chali (white) and the red are two prominent
varieties of areca nut consumed. The areca markets in the country with a total demand of Rs27
lakh tonnes per annum is estimated at Rs 1000 cores at the grower’s level and an addition of
Rs 258 cores for the value of finished products. Further the annual turnover interns of marketing
units from areca nut is above 6520 cores. Besides this it contributes about 2100 cores of rupees
to the gross national product of the country.
3.6 Types of market
There is no exclusive market for areca nut. The produce is marketed in the primary market,
secondary market and consuming centers or terminal markets like any other agricultural
commodity. The primary markets are situated at village level is generally held once in a week
on a fixed days.
These are usually located in the interior parts and serve the needs of villagers. The secondary
markets are generally situated at taluk place or district headquarters.
Both assembling and distribution takes place in these markets. Intra-state trade and for export
of areca nut are arranged in the terminal markets. These types of market are common in trade
of processed areca nut.

Page | 19
In the present marketing system of areca nut, .The intermediaries play a predominant role. The
intermediates are commission agents, primary traders at village level, marketing society’s
processers and secondary traders are involved in marketing chain of areca nut up to secondary
market. Commission agents, wholesalers, traders and retailers are involved in distribution again
at consuming market.
3.7 Marketing channels
Areca nut produce is pass through different types of channels they are:-
 Producer – Itinerant trader-Retail traders –Secondary market traders –bulk or wholesale
traders.
 Producer-Retail traders-Village merchants –Secondary market traders wholesale traders
 Producer-Trader –Cooperative institutions –selling representatives –wholesale traders
 Producer-Locally settled outside traders.
 Producer-Secondary market trader
 Producer-cooperative institutions
 Producer –outsider traders settled in secondary market.
 Producer-wholesale traders retail traders Panwalas-Consumer
 Producer –processing units-household and purchase-line sales-Panwalas
 Producer- Panwalas-consumer
In India the production as well as marketing of agricultural goods suffers from a large
number of defects. The farmers in India have no control over the marketing of their
produce. They have to sell their product at unfavourable price, at an unfavourable price. At
an unfavourable time and on unfavourable terms.
In order to sell the produce to the advantage of the farmers, some conditions must be
fulfilled. Firstly, the quality of produce must be superior. This is possible by using
improved seeds and scientific fertilizers, by adopting correct methods of cultivation by
grading the produce by storing it properly and avoiding malpractice such as mixing and
adulteration.

CHAPTER 4
Data Analysis and Interpretation

Page | 20
Table 4. 1 showing age of the respondents.
AGE GROUP NO. OF RESPONDENTS PERCENTAGE
20-25 1 2
25-30 5 10
30-35 10 20
35 and above 34 68
Total 50 100
Chart 4. 1 showing age of the respondents
Interpretations
From the above chart we can see that 68% (34) of the respondents are belongs to the age group
of 35 and above, and 20% (10) respondents are belong to the age group of 30-35, while 10%
(5) and 2% (1) 0f the respondents belong to the age of 25-30 and 20-25 respectively.
1
5
10
34
0
5
10
15
20
25
30
35
40
20-25 25-30 30-35 35 and above
AGE GROUP

Page | 21
Table 4. 2 showing annual income of respondents
INCOME NO. OF RESPONDENTS PERCENTAGE
Below 50,000 4 8
50,000 – 75000 6 12
75,000 – 1,00,000 16 32
1,00,000 and above 24 48
Total 50 100
Chart 4. 2 showing annual income of respondents
Interpretations
From the above chart and table it clearly shows that most of the respondents are lies in income
category of 100000 and above 48% (24), and 32% (16) of the respondents comes under income
group of 75000-100000, while 12% (6) of the respondents are in 50000-75000 category, only
8% (4) respondents income falls below 50000.
8%
12%
32%
48%
Below 50,000 50,000 – 75000 75,000 – 1,00,000 1,00,000 and above
INCOME OF THE RESPONDENTS

Page | 22
Table 4. 3 showing types of arecanut preferring to market
ARECANUT TYPE NO. OF RESPONDENTS PERCENTAGE
Raw or green 5 10
Sun dried 9 18
Boiled 36 72
Total 50 100
Chart 4. 3 showing types of arecanut preferring to market
Interpretations
From the above table and chart, it is clearly defines that 72%of the respondents are prefer boiled
arecanut to market, and 18% of the people prefers sun dried arecanut to market, and remaining
10% of the respondents prefers to market Raw or green areca.
Raw or green
10%
Sun dried
18%
Boiled
72%
TYPES OF ARECANUT

Page | 23
Table 4. 4 how respondents came to know about MAMCOS
SOURCES NO. OF RESPONDENTS PERCENTAGE
Family and Friends 13 26
Newspaper & Magazines 3 6
Word of mouth 32 64
Other 2 4
Total 50 100
Chart 4. 4 how respondents came to know about MAMCOS
Interpretations
From the above chart and table we came to know that 64% (32) of the respondents are known
MAMCOS through word of mouth, and 26% (13) from family and friends, while 6% (3) and
4% (2) through Newspaper & magazines and other sources respectively.
0
5
10
15
20
25
30
35
Family and Friends Newspaper and
Magazines
Word of mouth Other
13
3
32
2
HOW DO YOU KNOW ABOUT MAMCOS?

Page | 24
Table 4. 5 showing how long respondents Associated with MAMCOS
YEARS NO. OF RESPONDENTS PERCENTAGE
Below 5 Years 11 22
5-10 years 20 40
10-15 years 13 26
15 and Above 6 12
Total 50 100
Chart 4. 5 showing how long respondents Associated with MAMCOS
Interpretations
This table and graph shows that 40% of the respondents are associated with mamcos from 5-
10 year, and 26% of the respondents associated from last10-15 year, while 22% respondents
are trading with mamcos from 5 years, then rest 12% of the respondents are associated from
15 years and above.
Below 5 Years
22%
5-10 years
40%
10-15 years
26%
15 and Above
12%
ASSOSIATED WITH MAMCOS SINCE

Page | 25
Table 4. 6 showing how often respondents do transact through MAMCOS?
PERIOD NO. OF RESPONDENTS PERCENTAGE
Weekly 4 8
Once in 15 days 6 12
Once in a month 28 56
Other 12 24
Total 50 100
Chart 4. 6 showing how often respondents do transact through MAMCOS?
Interpretations
The above table and chart shows that 56% of the respondents transact through MAMCOS once
in a month, and 12% of respondents transact once in 15 days, while only 8% of the respondents
transact weekly in MAMCOS, at last 24% respondents transact with MAMCOS at any other
duration or period.
8%
12%
56%
24%
TRANSACT THROUGH MAMCOS
Weekly
Once in 15 days
Once in a month
Other

Page | 26
Table 4. 7 showing about arranging finance to procuring arecanut for MAMCOS?
SOURCES NO. OF RESPONDENTS PERCENTAGE
Co-operative society 6 12
Nationalized Bank 5 10
Co-operative banks 4 8
Non-financial banks 7 14
Own funds 28 56
Other 0 0
Total 50 100
Chart 4. 7 showing about arranging finance to procuring arecanut for MAMCOS
Interpretations
From this chart it clearly shows that 56% (28) of respondents uses their own fund to procure
arecanut to MAMCOS, and 14% said they use funds from non-financial banks, and 12%
respondents said that they use co- operative societies to raise funds, 10% and 8% of respondents
said that they use nationalized banks and co –operative banks respectively.
Co-operative society
12%
Nationalized Bank
10%
Co-operative banks
8%
Non-financial banks
14%
Own funds
56%
other
0%
FUNDING

Page | 27
Table 4. 8 showing selling in MAMCOS.
PARAMETRS NO. OF RESPONDENTS PERCENTAGE
Excellent 12 24
Good 16 32
Average 14 28
Poor 5 10
Very poor 3 6
Total 50 100
Chart 4. 8 showing selling in MAMCOS
Interpretations
From the above chart we can see that effectiveness of MAMCOS in selling the arecanut, 24%
of respondents said that it is excellent, and 32% respondents said that it is good, whereas
most of the respondents said that it is Average(28%), while 10% and 6% respondents
believes that selling in MAMCOS is poor and very poor respectively.
Excellent, 24%
Good, 32%
Average, 28%
Poor, 10%
Very poor, 6%
SELLING

Page | 28
Table 4. 9 showing about storage facility in MAMCOS.
Excellent 8 16
Good 13 26
Average 23 46
Poor 4 8
Very poor 2 4
Total 50 100
Chart 4. 9 showing about storage facility in MAMCOS
Interpretations
From the above data we can see that storage facility provided by mamcos is being rated most
as average by 46% respondents, where 26% people said that it is good, and 16% rated excellent,
and 8% said that it is poor and rest 4% rated very poor.
16%
26%
46%
8%
4%
NO. OF RESPONDENTS
STORAGE
Excellent Good Average Poor Very poor

Page | 29
Table 4. 10 showing opinion about the transportation facility in MAMCOS.
Excellent 7 14
Good 16 32
Average 23 46
Poor 3 6
Very poor 1 2
Total 50 100
Chart 4. 10 showing opinion about the transportation facility in MAMCOS
Interpretations
Here we can see that transportation facility provided by mamcos is rated as average by 46%
respondents, and 32% people said that it is good, and 14% rated excellent, and 6% said that it
is poor and rest 2% rated very poor.
14%
32%
46%
6%
2%
Excellent
Good
Average
Poor
Very poor
0 5 10 15 20 25
TRASPORTATION

Page | 30
Table 4. 11 showing opinion about PAYMENT facility in MAMCOS.
Excellent 11 22
Good 16 32
Average 22 44
Poor 1 2
Very poor 0 0
Total 50 100
Chart 4. 11 showing opinion about PAYMENT facility in MAMCOS
Interpretations
The above chart and table shows that the payment facility provided by mamcos is rated as
average by 44% respondents, where 32% people said that it is good, and 22% rated excellent,
and only 2% said that it is poor.
22%
32%
44%
2%
PAYMENT
Excellent
Good
Average
Poor

Page | 31
Table 4. 12 showing opinion about other service provided by MAMCOS.
Excellent 9 18
Good 17 34
Average 18 36
Poor 4 8
Very poor 2 4
Total 50 100
Chart 4. 12 showing opinion about other service provided by MAMCOS
Interpretation
The above data shows the rating of various other small services provided by MAMCOS, where
most of the respondents said it is average (36%), while 34% respondents said those services
are good, 18% respondents said services are excellent, and only 12% said that it stands in poor
and very poor category.
18%
34%
36%
8% 4%
OTHER SERVICES
Excellent Good Average Poor Very poor

Page | 32
Table 4. 13 showing about Information of service provided by MAMCOS.
SERVICES AWARE UNAWARE
Transportations 32 18
Credit facility 23 27
Warehouse facility 42 8
Deposit schemes 50 0
Machines and tools 46 4
Total 50 50
Chart 4. 13 showing about Information of service provided by MAMCOS.
Interpretation
The above table and graph shows that awareness of services provided by MAMCOS, here most
of the respondents (54%) were not aware of credit facilities, while 36% respondents were not
aware of transportation facility, and 16% respondents said they are not aware of warehouse
facility, and 8% respondents are not aware of machine and tools, whereas all the respondents
aware about deposit services, 92% respondents know about various machine and tools in
MAMCOS.
32
23
42
50
46
18
27
8
0
4
0
10
20
30
40
50
60
Transportations Credit facility Warehouse facility Deposit schemes Weighted machines
SERVICE PROVIDED BY MAMCOS
AWARE UNAWARE

Page | 33
Table 4. 14 showing opinions of respondents towards the Image of the society.
PARAMETERS NO. OF RESPONDENTS PERCENTAGE
Excellent 12 24
Very good 11 22
Good 23 46
Poor 2 4
Very poor 0 0
Total 50 100
Chart 4. 14 showing opinions of respondents towards the Image of the society
Interpretation
Above table and chart shows that 46% respondents said that the image of the society is good,
while 24% people said it is excellent and very good by 22% respondents, only 4% said it is
poor. This shows the positive image of the society.
Excellent
24%
Very good
22%
Good
46%
Poor
4%
IMAGE OF THE SOCIETY
Excellent Very good Good Poor

Page | 34
Table 4. 15 showing Quality of service provided by MAMCOS.
Excellent 17 34
Very good 11 22
Good 19 38
Poor 2 4
Very poor 1 2
Total 50 100
Chart 4. 15 showing Quality of service provided by MAMCOS
Interpretation
He above data shows that the quality of service provided by MAMCOS is being said as
excellent by 34% (17) and 22% (11) respondents said very good, meanwhile 38% (19)
respondents said that services are good and 4% (2) said poor, only 2%(1) respondents said that
quality of services are very poor in MAMCOS.
34%
22%
38%
4% 2%
QUALITY OF SERVICE
Excellent Very good Good Poor Very poor

Page | 35
Table 4. 16 showing Transparency in service in MAMCOS.
Excellent 9 18
Very good 13 26
Good 18 36
Poor 6 12
Very poor 4 8
Total 50 100
Chart 4. 16 showing Transparency in service in MAMCOS
Interpretation
He above data shows that transparency in the service provided by MAMCOS is being rated as
good by 36% (16) and 26% (13) respondents rated very good, while 18% (9) respondents rated
as excellent and 12% (6) rated poor, only 8%(4) respondents rated that transparency in the
service provided by MAMCOS is very poor.
18%
26%
36%
12%
8%
TRANSPERENCY IN SERVICES
Excellent
Very good
Good
Poor
Very poor

Page | 36
Table 4. 17 showing Speed of service in MAMCOS.
Excellent 6 12
Very good 10 20
Good 23 46
Poor 7 14
Very poor 4 8
Total 50 100
Chart 4. 17 showing Speed of service in MAMCOS
Interpretation
The above information clearly shows that speed of service provided by MAMCOS is rated as
good by 46% (23) and 20% (10) respondents rated very good, while 12% (6) respondents rated
as excellent and 8% (4) rated poor, and 14%(7) respondents rated that speed of service provided
by MAMCOS is very poor.
Excellent
12%
Very good
20%
Good
46%
Poor
14%
Very poor
8%
SPEED OF SERVICE

Page | 37
Table 4. 18 showing about Credit and payment facility in MAMCOS.
Excellent 10 20
Very good 14 28
Good 21 42
Poor 3 6
Very poor 2 4
Total 50 100
Chart 4. 18 showing about Credit and payment facility in MAMCOS
Interpretation
He above data shows that credit and payment service provided by MAMCOS is rated as good
by 42% (21) and 28% (14) respondents rated very good, while 20% (10) respondents rated as
excellent and 6% (3) rated poor, only 4%(2) respondents rated that credit and payment service
provided by MAMCOS is very poor.
20%
28%
42%
6%
4%
CREDIT AND PAYMENT
Excellent Very good Good Poor Very poor

Page | 38
Table 4. 19 showing about arecanut diseases
DISEASES NO. OF RESPONDENTS PERCENTAGE
Kole roga 18 36
Bud rot 12 24
Anduodakke roga 7 14
Other 13 26
Total 50 100
Chart 4. 19 showing about arecanut diseases
Interpretation
Above data clearly shows that the main problem of arecanut growers, where 36% of
respondents said kole roga is the biggest threat for them, while 14% said anduodakke roga and
24% said budroot is the biggest threat. And 26% respondents having problem with other
diseases.
Kole roga
36%
Bud rot
24%
Anduodakke roga
14%
other
26%
DISEASES

Page | 39
Table 4. 20 showing Satisfaction level of respondents in the co-operative marketing of
arecanut in MAMCOS.
Chart 4. 20 showing Satisfaction level of respondents in the co-operative marketing of
arecanut in MAMCOS
Interpretation
The above Table and chart shows the overall satisfaction of the respondents towards co-
operative marketing of arecanut in MAMCOS, in this 46% respondents are satisfied and 28%
respondents are neither satisfied nor dissatisfied, and 16% respondents are highly satisfied,
only 10% respondents are bellow satisfaction level.
16%
46%
28%
8%
2%
Highly satisfied
Satisfied
Neither satisfied nor dissatisfied
Dissatisfied
Highly dissatisfied
OVERALL SATISFACTION LEVEL
Satisfaction Level No. of Respondents Percentage
Highly satisfied 8 16
Satisfied 23 46
Neither satisfied nor
dissatisfied
14 28
Dissatisfied 4 8
Highly dissatisfied 1 2

Page | 40
STATISTICAL TOOL USED
Chi Square Test
To statistically prove the findings, let’s check chi square test.
H0 = respondents satisfaction level with services is not satisfactory
H1 = respondents satisfaction level with services is satisfactory
Table 4. 21 chi Square Test
Option O E O-E (O-E)2
(O-E)2
/E
Highly satisfied 8 10 -2 4 0.4
Satisfied 23 10 13 169 16.9
Neither satisfied
nor dissatisfied
14 10 4 16 6.4
Dissatisfied 4 10 -6 36 3.6
Highly
dissatisfied
1 10 -9 81 8.1
50 35.4
Degree of freedom= 5-1
=4
Significance level =.05(5%)
Table value of event with degree of freedom 4 and significance level 5% is 9.488
Table value is below observes value.
So we should reject null hypothesis and accept alternative hypothesis.
We can conclude that the respondent’s satisfaction level in services provided by MAMCOS is
satisfactory.

Page | 41
Table 4. 22 showing problems of farmers in selling through co-operative societies.
NO. OF RESPONDENTS PERCENTAGE
Selling 13 26
Storage 18 36
Advances 7 14
Transport 7 14
Others 5 10
Total 50 100
Chart 4. 21 showing problems of farmers in selling through co-operative societies
Interpretation
Above graph and table shows that the problems in co-operative marketing of arecanut, 36%
respondents said that they have the problem with storage facility, while 26% have problem
with selling of arecanut and 14% said that they face the problem in transportation as well as
advances, only 10% respondents have problems with other concerned areas.
Selling
26%
Storage
36%
Advances
14%
Transport
14%
Others
10%
PROBLEMS IN CO OPERATIVE MARKETING

Page | 42
Table 4. 23 showing about immediate payment on sale in MAMCOS.
OPINIONS NO. OF RESPONDENTS PERCENTAGE
YES 33 66
NO 17 34
TOTAL 50 100
Chart 4. 22 showing about immediate payment on sale in MAMCOS
Interpretation
From the above chart and table we can see that respondent’s opinion about payment on sale in
MAMCOS, 66% people said that they are getting immediate payment on sale, while only 34%
respondents said they are not getting immediate payment on sale.
YES
66%
NO
34%
PAYMENT ON SALE

Page | 43
Table 4. 24 showing about method of sale adopted in mamcos.
SALES NO.OF RESPONDENTS PERCENTAGE
Tender 16 32
Direct 34 68
Total 50 100
Chart 4. 23 showing about method of sale adopted in mamcos
Interpretation
This above data shows that the method of sales adopted in mamcos, 68% respondents prefer
direct marketing where 32% respondents prefer tender method of sales.
32%
68%
METHOD OF SALES
Tender
Direct

Page | 44
Table 4. 25 showing regarding expected market rate of arecanut.
MARKET RATE NO.OF RESPONDENTS PERCENTAGE
10000-20000 0 0
20000-30000 9 18
30000-40000 23 46
40000 Above 18 36
TOTAL 50 100
Chart 4. 24 showing regarding expected market rate of arecanut
Interpretation
This table and chart shows that 46% farmers expecting the market rate areca in between 30000-
40000 while 36% people expecting above 40000, and rest of the respondents (18%) expected
around 20000-30000.
0
18%
46%
36%
0
5
10
15
20
25
10000-20000 20000-30000 30000-40000 40000 Above
EXPECTAED MARKET RATE

Page | 45
Table 4. 26 showing on which parameter respondents chosen MAMCOS?
Chart 4. 25 showing on which parameter respondents chosen MAMCOS?
Interpretation
From the above data we can see that 58% of the respondents choose MAMCOS for its image,
while 16% for quality of service, and 12% for Credit and payment, 8% for transparency in
service and 6% respondents choose MAMCOS for its speed of services.
58%
16%
8%
6%
12%
WHY MAMCOS?
Credit and payment Speed of service Transparency in service
Quality of service Image of the society
PARAMETERS NO OF RESPONDENTS PERCENTAGE
Image of the society 29 58
Quality of service 8 16
Transparency in service 4 8
Speed of service 3 6
Credit and payment 6 12

Chapter 5
Findings suggestions and conclusion

Page | 46
5.1 Findings
 This survey clearly shows that the tradition of growing arecanut has been come from
long back. That’s why 68% of respondents belong to the age group of 35 and above.
 In malnad area majority of growers prefer boiled arecanut to market, while some
growers prefer sundried or raw or green areca to market due to labour problem and
other related issues.
 Since MAMCOS does not have any paid form of advertising to promote, the image of
the society and word of mouth does the things.
 Important aspects in cooperative marketing is that the various functions of the society,
here in MAMCOS most of the services are rated in positive opinions.
 Payment to the farmers is key in co-operative marketing, here MAMCOS is doing it in
a positive way.
 The quality of service provided by MAMCOS is comparatively good compare to others,
and there is more transparency in the services of the society.
 Most of the people felt that the storage facility is not up to the mark in MAMCOS.
 Major problem for the arecanut growers is that diseases which effects arecanut yield,
many diseases like Kole roga, bud root, haladi roga, etc.,. Causes heavy decline in profit
for farmers.
 To provide better return to the growers, some people believed cooperative marketing
has a major role to play. Certainly it is the only marketing intermediaries working for
the betterment of arecanut cultivator.
 To sell a cultivator has three options namely mandi, co-operative society, directly to
the village traders. His decision to sell through these marketing intermediaries may be
influenced by
o Advance
o Interest rates
o Transportation and other practices.
 In the last few years areca growers got a good price for their product because of Gutka,
paanmasala, and other areca products, in some state’s gutka was banned, as it is
injurious to health. This is the main reason for decrease in areca price.

Page | 47
 Most importantly the image of the company is the key for the increase of the
membership in the society, most of the people choose MAMCOS for marketing of
arecanut because of the good image of the society.
5.2 Suggestions
 Society should provide advance facility on a more flexible basis to save cultivators from
traps of mandi operators.
 Society should arrange some sort of transportation facilities to growers to bring their
produce to market.
 There should be an awareness programs for growers to improve quality control and
grading practises to earn better return.
 Collection centers should be enter more interior and rural parts.
 Society should invest more in research and development area so that they can come up
with more creative move in the areca market.
 There should be a proper distribution of pesticides and other chemicals to prevent crop
from various deceases.
5.3 Conclusions
The success of cooperative society depe1nds upon on the effective involvement of members,
the slogan of a cooperative society is “each for all and all for each” a producers cooperative
society requires for its development. Proper coordination between growers and management.
The management of the society should have a clear idea of grower’s needs, problems and
marketing environment. It is nessosory for the management to suit its marketing infrastructure
to the needs of the growers within its marketing managerial and financial setup. Here various
functions of MAMCOS has been analysed and considered its effectiveness in co -operative
marketing.

Bibliography
Agro-products-in-India. (2015, 12 25). Retrieved from indianfoodprocessing.bogpost.com:
http://indianfoodprocessing.blogspot.com/2008/10/agro-products-in-india.html
Cooperative . (2016, 1 20). Retrieved from en.wikipedia.org:
https://en.wikipedia.org/wiki/Cooperative
Mamcos. (2015, 12 20). Retrieved from www.scribd.com:
https://www.scribd.com/doc/79082029/Mamcos
mamcos. (2016, 1 7). Retrieved from Utkrista.com:
http://www.utkrishhta.com/websites/mamcos/abtus.html
problems-and-prospects-of-cooperative-society. (2016, 1 23). Retrieved from www.docslide.us:
http://docslide.us/documents/problems-and-prospects-of-cooperative-society-in-nigeria.html
scenario-of-areca-marketing. (2015, 12 20). Retrieved from www.tssindia.in:
http://www.tssindia.in/about-areca/scenario-of-areca-marketing.html

QUESTIONNAIRE
Dear Respondents,
I’m …Your Name… perusing MBA at ….Your Collage…... As a part of MBA curriculum I
have undertaken a research on the topic “A Study on effectiveness of co-operative marketing
of arecanut in MAMCOS LTD. Shivamogga”.
Hence I request you to fill the questionnaire and provide relevant information. I will assure
you that the information provided by you will only be used only for academic purpose and the
collected data will not be revealed to any other external party or agency.
Thanking You.
1. NAME :
2. Address :
3. Age :
A. 20-25 year [ ] C. 30-35 year [ ]
B. 25-30 year [ ] D. 35 and above [ ]
4. Annual income
A. Bellow 25000 [ ] C. 25000-35000 [ ]
B. 35000-55000 [ ] D. 55000 above [ ]
5. Land holding in Acres
A. 1 to 5 [ ] D. 15 to 20 [ ]
B. 5 to 10 [ ] E. 20 & above [ ]
C. 10 to 15 [ ]
6. Do you grow areca nut?

A. Yes [ ] B. No [ ]
7. Which type of arecanut you prefer for markets?
A. Raw or green [ ]
B. Sun dried [ ]
C. Boiled [ ]
8. Do you market Arecanut with MAMCOS?
A.YES [ ] B. NO [ ]
9. How do you came to know about MAMCOS?
A. Family and friends [ ] C. Word of mouth [ ]
B. Newspapers & magazines [ ] D. Other [ ]
10. How long you are associated with MAMCOS?
A. Below 5 year [ ] C. 10 – 15 year [ ]
B. 5 – 10 year [ ] D. 15 & above [ ]
11. How often do you transact through MAMCOS?
A. Weekly [ ] C. Once in a month [ ]
B. Once in 15 days [ ] D. Other (specify) [ ]
12. How do you arrange finance procuring arecanut for MAMCOS?
A. Co-operative society [ ] D. Non-financial bank[ ]
B. Nationalized bank [ ] E. Own funds [ ]
C. Co-operative banks [ ] F. Other (specify) [ ]
13. Grade the Performance of MAMCOS in the fallowing parameters

PARAMETERS Excellent Good Average Poor Very Poor
Selling
Storage
Transportation
Payment
Other
14. Please give the information about the service provided by the MAMCOS
15. Your opinion about various parameters about MAMCOS,
(Excellent, Very good, Good, Average, Poor, Very poor)
S.L Parameters opinion
1 Image of the society
2 Quality of service
3 Transparency in service
4 Speed of service
5 Credit and payment
Serial
Number
SERVICES
OF MAMCOS AWARE UNAWARE
1 Transportations
2 Credit facility
3 Warehouse facility
4 Deposit schemes
5 Weighting machines

16. Your satisfaction level towards overall service provided by MAMCOS in the co-
operative marketing of arecanut?
Satisfaction level Opinion
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied
17. Which disease do you think you need more support from MAMCOS to avoid them?
A. Kole roga [ ] C. Anduodakke roga [ ]
B. Bud rot [ ] D. Other {mention} [ ]
18. What is the interest rate charged on advances?
A. Bellow 10 [ ] C. 15 – 20 [ ]
B. 10 – 15 [ ] D. 20 & above [ ]
19. Any problem in selling through co-operative societies: Yes / No
Mention them
A. Selling [ ] D. Transport [ ]
B. Storage [ ] E. Other [ ]
C. Advances [ ]
20. Do you get immediate payment on sale?
A. Yes [ ] B. No [ ]
21. Which method of sale is adopted in MAMCOS?
A. Tender [ ] B. Direct [ ]

22. What is the expected market rate?
A. 10000 – 20000 [ ] C. 30000 – 40000 [ ]
B. 20000 – 30000 [ ] D. 40000 above [ ]
23. In your opinion which parameters you consider important in choosing the MAMCOS,
S.L Parameters Opinion
1 Image of the society
2 Quality of service
3 Transparency in service
4 Speed of service
5 Credit and payment
24. Any suggestions OR opinion towards MAMCOS?
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THANK YOU

MAMCOS Shivamogga - Project Report

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