Maharashtra Board Class 11 Cooperation Chapter 7 Processing co operative society PDF Download

Processing Co-operative Society

7.1 Introduction

India is an agriculture-based country. Its economic growth depends on the agriculture sector. It is quite important to provide a good price and market place for selling farm produce. If farmers sell agricultural produce in its original form, they do not get good prices. They do not make money. On the other hand, brokers, traders and agents buy the produce. They process it and sell it at higher prices. They make big profits. This is not fair. The farmers and consumers are both cheated. Processing co-operative society was created to change this situation.

Teacher's Note

In India, farmers often get low prices for raw sugarcane. But when sugar factories process sugarcane into sugar, the price becomes much higher. Processing co-operative societies help farmers get better prices.

Exam Trick

Remember: Processing = raw material becomes finished goods = higher price. Like how raw cotton becomes expensive cloth after processing.

Points to Remember

India depends on agriculture for economic growth.
Farmers get low prices for raw produce without processing.
Brokers and traders exploit both farmers and consumers.
Processing co-operative society was formed to solve this problem.

7.2 Meaning And Definition Of Processing Co-operative Society

Meaning

Not all farm goods can be eaten in their raw form. Some agriculture produce needs processing before it reaches consumers. For example, jaggery and sugar are made from sugarcane. Cotton bales are made from raw cotton. Cloth is made from cotton. Edible oil is made from oil seeds. Pulp is extracted from fruits. Oil is extracted from coconut. Tea and coffee are processed. Processing co-operative society makes these products available to consumers.

Definitions

Definition 1: The societies which are formed to provide satisfaction to consumers on co-operative principle, to process food grains and commercial crops so they are made available to consumers, are known as processing co-operative society.

Definition 2: The societies whose main objective is processing of goods are known as Processing Co-operative Society. - Maharashtra State Co-operative Societies Act 1960.

Teacher's Note

Processing means changing raw materials into useful products. In your village, you can see sugar factories that change sugarcane into sugar, or oil mills that change seeds into oil.

Exam Trick

Remember: Processing co-operative = raw to finished goods. The word "processing" means changing something from one form to another.

Points to Remember

Raw agricultural produce cannot be eaten directly in many cases.
Processing means changing raw materials into finished products.
Examples: sugar from sugarcane, cloth from cotton, oil from seeds.
Processing co-operative societies do this work and help consumers get good products.

7.3 Features Of Processing Co-operative Society

1. Voluntary Association: Processing Co-operative society is formed when members come together voluntarily. Farmers decide by themselves whether to accept or reject membership. No one forces them.

2. Capital Raising: Capital for processing co-operative societies is raised by issuing shares to farmers and agricultural producers in the area. The State Government also contributes money. On the State Government's guarantee, co-operative banks provide long term loans to the society.

3. Democratic Management: The management of processing co-operative societies is conducted on democratic principles. The societies elect a Board of Directors or a Managing Committee to manage day-to-day activities. All decisions are taken in the Annual General Meeting by the members.

4. Development Of Dual Business: Processing co-operative societies encourage members to do agricultural-related business. The societies also provide financial help for this. In the working area of the society, agricultural businesses like milk production, vegetable cultivation, and poultry farming are developed. This creates employment opportunities in rural areas. Farmers increase their income and raise their standard of living.

5. Development Of Processing Sector: Processing co-operative societies provide transportation for farmers to move goods from farms to processing units. To help transportation, the societies provide concrete roads, electricity, water, post offices, schools, and hospitals. These services help develop the processing sector.

6. Establishment In Agricultural Sector: After farmers grow crops, they need to transport and store the produce. The societies do this work. Processing units are usually set up in farm areas. Collecting products from nearby areas is easy. Time and transportation costs are saved. For example, sugar factories are set up in areas where sugarcane is grown.

7. Co-operative Training And Guidance: Processing co-operative societies work for the welfare of farmers. They provide information, knowledge, training, and guidance to members. They teach about government policies, business development, good markets for selling products, and new technology. This guidance helps members a lot.

8. Services And Facilities For Producer Members: Capital for forming a processing co-operative society comes from producer members. When goods are processed, their value increases. The society creates a link between producers and the market place. Farmers get guidance and loans from the society. This helps the agricultural sector grow.

9. Encourages Rural Industrialization: In rural areas, co-operative sugar factories, co-operative spinning mills, and oil processing industries are formed. The Government supports processing industries that work on co-operation principles. Rural industries give jobs to people and reduce poverty and unemployment.

10. Employment Opportunities: After processing agricultural goods, many helper services are needed. These include grading, storage, transportation, and selling. Many workers are needed for these jobs. This creates new jobs for unemployed people.

11. Elimination Of Middlemen: Processing co-operative societies buy raw materials directly from farmer members and sell finished goods directly in the market. There are no middlemen, brokers, or agents in this trade. This stops the exploitation and cheating of farmers. Consumers get quality goods at reasonable prices.

Teacher's Note

These 11 features show how processing co-operative societies help farmers and consumers. In Maharashtra, sugar factories follow these features and help rural development.

Exam Trick

Remember the 11 features by remembering: Voluntary, Capital, Democratic, Dual business, Processing sector, Agricultural area, Training, Services, Rural industry, Employment, and No middlemen.

Points to Remember

Processing co-operative societies are formed by farmers coming together voluntarily.
They use democratic management, not rule by one person.
They help reduce poverty and create jobs in villages.
They remove middlemen and give fair prices to farmers.
They provide training and guidance to their members.

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