A co-operative sales association is a voluntary business organization established by its member patrons to market farm products collectively for their direct benefit. It is governed by democratic principles, and savings are apportioned to the members on the basis of their trade. The members are the owners, operators and contributors of the commodities and are the direct beneficiaries of the savings that accrue to the society. No intermediary stands to profit or loss at the expense of the other members.
Co-operative marketing organizations are associations of producers for the collective marketing of their produce and for securing for the members the advantages that result from large-scale business which an individual cultivator cannot secure because of his small marketable surplus. In a co-operative marketing society, the control of the organization is in the hands of the farmers, and each member has one vote irrespective of the number of shares purchased by him. The profit earned by the society is distributed among the members on the basis of the quantity of the produce marketed by him.
In other words, co-operative marketing societies are established for the purpose of collectively marketing the products of the member farmers. It emphasizes the concept of commercialization. Its economic motives and character distinguish it from other associations. These societies resemble private business organization in the method of their operations; but they differ from the capitalistic system chiefly in their motives and organizations.
The National Cooperative Development Corporation established in 1963 under an Act of Parliament has been promoting and financing a wide range of economic activities in rural through cooperatives. The Corporation provides assistance to agro processing units like cotton ginning and pressing units, spinning mills, oil mills, solvent extraction plants, edible oil refinaries, sugar mills and similar other agro-based cooperative units. The National Cooperative Union of India (NCUI) is a promotional organization. The objectives of the Union are ‘to promote and develop the cooperative movement in India, to educate, guide and assist the people in their efforts, to build up and expand the cooperative sector and to serve as an exponent of cooperative opinion in accordance with cooperative principles.
The National Agricultural Cooperative Marketing Federation of India (NAFED) is an apex organisation of marketing cooperatives in the country. It deals in procurement, processing, distribution, export and import of selected agricultural commodities. The NAFED is also the central nodal agency for undertaking price support operations for pulses and oilseeds and market intervention operations for other agricultural commodities.
An integrated programme of co-operative development embracing credit, marketing, processing, warehousing and storage has been formulated.
Organisation
(Co-
operative)
