Question

The main objective behind the formation of Marketing Co-operative Societies is:

• A. To increase the profit margins for middlemen.
• B. To establish government control over agricultural production.
• C. To avoid middlemen and offer better prices to producers
• D. To solely focus on exporting goods to international markets.

Answer 1

Answer:

C. To avoid middlemen and offer better prices to producers

Marketing Co-operatives:

• Marketing Societies emerged with a concept to avoid middle men and to offer better price to the Producers.

• It was formed by farmers, artisans and small producers.

• Simply saying, it is an association of cultivators organized on co-operative principles to perform marketing functions

• The birth place of marketing societies : USA

• No restriction for overlapping Marketing type co-operative societies

• First Co-operative marketing Society in India was in former Bombay presidency in 1915 - Hubli in Karnataka (to encourage cultivation of improved cotton and to sell it collectively.)

Classification:

• It is an agricultural non-credit society

• Rule 15 (2)(A) Mentioned about - Co-operative Marketing Society

Structure:

1. Primary marketing Societies

2. Federal Primary marketing Societies(having more than one district area of operation)

3. MARKETFED Kerala State Co-operative Marketing federation

4. NAFED (National Agricultural Co-operative Marketing Federation)

Primary Marketing Societies:

Area of operation:

• One or more than one Taluk may extended upto one or more than one districts

Membership

• Individual Cultivators & wholesalers

• PACS & Farming Societies (working under area of operation)

Management:

• Board of Directors consists of 9-11 members

• Separate representation in the board will be given to individual members as well as for the representative societies.