Horti-Business Management (2+0)

Objectives and Functions of Co-operative Marketing Societies

• The co-operative marketing societies play an important part in the following spheres:-
1. They arrange for sale of member's produce to the best possible advantage by enabling them to obtain better price because of the sale in bulk and consequent economy in the cost of marketing.
2. They undertake activities in connection with grading, pooling and procuring of produce of members. Unfortunately very few marketing societies have undertaken this activity and even those who undertake it., do it on a limited scale. It is confined to a few products only; cotton, jute, turmeric, potatoes etc.
3. Some co-operative marketing societies have now undertaken other types of processing activities.
4. Co-operatives provide storage facilities to their members by renting or owning godowns and thereby facilitate grant of advances against pledge of produce, and sale of member's produce.
5. They make advances to members on the pledge of produce and support them in interim periods between deposit of produce and sale. Against the deposit of goods, members may receive advances upto the extent of 75% of the current market price.
6. They protect members from several malpractices like unauthorized deduction, incorrect weighments etc. They also eliminate the long chain of middlemen and connect the producer with the consumer.
7. Co-operative marketing reduces waste and stands for fair trading practices and uses its influence against rings and manipulation of prices.
8. Co-operative marketing teaches the farmers business methods and serves them as agencies for supplying market information.
9. Marketing societies stabilize prices over long periods by adjusting the supply according to market demand. In this way seasonal fluctuations of price or their evil effects can be eliminated.
10. Co-operative marketing societies are also being encouraged to participate in the export trade of the country so that the actual grower might get a better price for his produce.
National Agricultural Marketing Federation

• A National Agricultural Marketing Federation was set up at New Delhi in 1958-59 with the object of coordinating and promoting the marketing and trading activities of its members in agricultural and other commodities. Its objectives are to: i) make arrangements for the supply of agricultural requirements to its members, ii) to promote inter-State and international trade in agricultural and other commodities.