The corporation’s focus is on programmes of marketing processing and storage of agricultural produce as also supply of agricultural inputs and essential consumer goods in rural areas. National Co-operative Development Corporation provided financial assistance to the cooperative societies through or on the guarantee of the state governments. Only in case of regional or national level societies coming under the purview of the Multi-State Cooperative Societies Act, NCDC provides funds directly to the federation. The National Agricultural Co-operative Marketing Federation of India (NAFED) is an apex organization of marketing cooperatives in the country. The current membership of NAFED is around 409 comprising of Co-operative Marketing Federations of the State and Union Territories, Tribal and Commodity Federations and the Primary Marketing Societies. In addition it has the representatives of the Government of India, NCUI, NCDC, NCCF, Bharat Krishak Samaj and the State Bank of India. Membership There are two types of members of co-operative marketing societies: -
Individual farmers, co-operative farming societies and service societies of the area may become the ordinary members of the co-operative marketing society. They have the right to participate in the deliberations of the society, share in the profits and participate in the decision making process.
Traders with whom the society establishes business dealings are enrolled nominal members. Nominal members do not have the right to participate in decision making and share in the profits. Sources of finance The following are the major sources of finance of co-operative marketing society.
Farmer members and the State Government subscribe to the share capital of co-operative marketing societies. Members may purchase as many shares as they like. They are encourage to invest sufficiently in the share capital. They are also persuaded to invest their dividend and bonus in the shares of co-operative marketing societies.
Co-operative marketing societies may raise their finance by way of loans from the Central and State Co-operative Banks and from commercial banks by pledging and hypothecation and also by clean credit to the extend of 50% of owned capital.
The Co-operative marketing societies get a subsidy from the government for the purchase of grading machines and transport vehicles to meet their initial heavy expenditure. They also get a subsidy for a part of the cost of the managerial staff for a period of 3 years to make them viable. Functioning The important functions carried out by the co-operative marketing societies are:
Co-operative marketing societies act as commission agents in the market, i.e., they arrange for the sale of the produce brought by the members to the market. The produce is sold by the open auction system to one who bids the highest price.
Co-operative marketing societies also enter the market as buyers. A society participates in bidding together with other traders, and creates conditions of competition. The commodities thus purchased by a society are sold again when prices are higher.
Co-operative marketing societies advance finance to farmers against their stock of foodgrains in the godowns of the societies. This increases the holding power of the farmers and prevents distress sales. Generally, societies advance credit to the extent of 60-75% of the value of the produce stored with them. The recoveries are effected from the sale proceeds of the produce of the farmer. This function involves no risk to the society. Moreover, it increases the business.
Co-operative marketing societies act as agents of the government in the procurement of foodgrains and other agricultural commodities at the announced procurement or support prices. Other functions
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