Maharashtra Board Class 11 Cooperation Chapter 10 Consumer Co operative Society PDF Download

Consumer Co-operative Society

10.1 Introduction

Co-operative movement started with the establishment of consumers co-operative society. In 1844, in England at Rochdale, 28 weavers came together and started Rochdale Equitable Pioneers Society Limited. In India, the first Consumers co-operative society was established on 20th September 1905 namely Tripliken Urban Co-operative Society Limited in Chennai (Madras).

During the Second World War, there was a steep rise in the prices of various commodities. In order to check this rise in prices and ensure equitable distribution, the government entrusted the work of distribution of controlled commodities to consumers co-operative stores.

Consumer stores were established to supply quality goods at reasonable price. The Consumers Co-operative Society purchase goods directly from producer or manufacturer. Therefore, middlemen are eliminated. As the goods are purchased directly from producer they get goods at low price due to which goods are supplied to consumers at reasonable price.

Teacher's Note

In India, you can find consumer co-operative stores like Janta Bazaar or Super Bazaar in your city. They sell good quality things at lower prices because they buy directly from makers.

Exam Trick

Remember: Consumer co-operative = no middlemen. Just like when you buy directly from the farmer in the market, there is no shopkeeper in between, so prices are cheaper.

Points to Remember

Consumer co-operative societies buy goods directly from makers or producers.

These stores remove middlemen from the supply chain.

Quality goods are sold at reasonable prices to consumers.

The first consumer co-operative society started in England in 1844.

10.2 Meaning and Definition of Consumer co-operative society

Meaning

The society formed by the consumers voluntarily in democratic manner on co-operative principles to protect their economic interest such society is called as Consumers co-operative society.

The main objectives of these societies is to eliminate the middlemen like wholesaler, retailer, agent from the chain of supplying goods from producer to ultimate consumer and to protect the consumers interest. To supply qualitative, unadulterated goods at reasonable prices to its members.

Most of the Consumers Co-operatives Societies works as per the Rochdales principles. These societies try to control monopoly, hoardings, adulteration of private traders and stop the exploitation of consumers and improves their standard of living.

To remove the drawbacks of capitalistic economic system of distribution, collective efforts of consumers are necessary. Consumer co-operative society is established to provide quality consumers goods at reasonable price.

Definition

1) A society established voluntarily on co-operative principle with an objective to supply unadulterated and quality goods to the consumers at reasonable prices such societies are called Consumers Co-operative Society.

2) The society formed by consumers voluntarily to protect their interest in democratic manner on co-operative principles such economic organization is known as Consumers Co-operative Society.

3) The society formed by the consumers voluntarily to fulfil their requirement of consumer goods and services is known as Consumers Co-operative Society.

Teacher's Note

Meaning is simple - when people come together to buy good things at low prices without middlemen, that is a consumer co-operative. Like your school's stationery shop run by students.

Exam Trick

Remember: Consumer co-operative = people + good goods + low price + no profit motive. Write this formula and you will never forget the meaning.

Points to Remember

Consumers come together voluntarily to form these societies.

The main goal is to protect consumer interests.

Good quality goods are supplied at reasonable prices.

Middlemen are removed from the distribution chain.

10.3 Features / Characteristics of Consumer co-operative society

1. Formation: The Consumers co-operative societies are formed by consumers to provide the essential consumer goods and commodities. Consumers are spread all over in rural as well as urban area. So, consumers co-operative societies are found in rural as well as in urban areas.

2. Members voluntary association: Consumers co-operative society is established by the consumers voluntarily for the protection of their interest. This societies are formed to protect and relieve the consumers from the exploitation of capitalist and private businessmen.

3. Cash transaction: The goods are sold on cash basis in Consumer co-operative society. Credit transactions are not accepted in consumer co-operative society. Due to cash transactions the financial position of the society is improved.

4. Supply of quality and unadulterated goods: The Consumers co-operative society purchase goods directly from producer or manufacturer therefore the middlemen are eliminated and goods are directly supplied to consumers. Many times, there is adulteration of goods and cheating is done by businessmen. This cheating of consumers is stopped and good quality of commodities are supplied at reasonable price to the consumers.

5. Democratic management: Consumers co-operative society is democratic organization formed by consumers voluntarily on co-operative principle. To look after day-to-day working of the co-operative society and to take policy decision Managing Committee is elected by the members. This Managing committee conducts the working of co-operative society in democratic manner.

Teacher's Note

Features are the special qualities that make consumer co-operative different from regular shops. For example, a local shop may sell things, but a consumer co-operative gives you honest prices and no cheating - just like Mother Dairy does in many Indian cities.

Exam Trick

Remember: 10 features - Formation, Members, Cash, Quality goods, Democratic, Control profit, Better living, Reasonable price, Federal, Buy from maker. Use the first letter of each word as your memory trick.

Points to Remember

These societies are formed by common people who want to buy good things cheaply.

They only take cash payment, not credit.

All goods are pure and not adulterated or fake.

Members choose leaders through democratic voting.

Profit is not the main goal - helping consumers is.

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