Horti-Business Management (2+0)

Organization, Membership and Resource s of Co-operative Marketing Societies

• Under the system of co-operative marketing the whole responsibility of marketing of agricultural produce is undertaken by the farmers themselves organized on a co-operative basis. The area of operations of a marketing society is usually fixed with reference to local conditions. The area may be different according to the type of producers to be dealt with. As such, a paddy marketing society may have an area coterminous with that of a Taluka, whereas a marketing society dealing with commercial crops like cotton, jute or sugarcane may extend to a whole district or whole area growing the crops.
  
• Membership of the marketing society is open to individual agriculturists, large-sized credit societies, service co-operatives, or other rural credit cooperative societies and multi-purpose societies. Traders are normally not taken as members except where the marketing society may have dealings with them. Even in such cases, their number is very small and they have usually no right to participate in the management of the society and share in profits.
  
• The sources of capital are usually shares, deposits, loans from central enhancing agencies upto 8 to 10 times, the value of paid up share capital. Reserve Bank of India or Govt's grant or subsidy from government for consideration of godowns; issue of debentures, borrowings from State Bank of India against security of warehouse receipt or pledge of goods in the society's godown and reserves created out of profit.