Maharashtra Board Class 11 Cooperation Chapter 8 Marketing Co operative Society PDF Download

Marketing Co-Operative Society

8.1 Introduction

India being an agricultural country, it is said that agriculture is the backbone of Indian economy. On the principles of co-operation, in view to provide fair price to farmers for their agricultural produce and to eliminate middlemen, Marketing co-operative societies are formed. The arrangement of buying the agricultural produce from the farmers and selling them to the consumers and traders is done by this society. These societies are also known as Buying and Selling Society or Marketing Co-operative Society.

There are various drawbacks observed in system of sale of agricultural produce. As the sale of the agricultural produce is carried out by brokers, the farmers are cheated in weights and measurements. The farmers incurs losses due to low price given by brokers. Due to this the farmers don't have any scope to increase or improve agricultural produce. On account of various factors such as lack of knowledge, poverty, illiteracy, insufficient knowledge about market conditions, lack of storage facilities, frequent drought, indebtedness, not getting reasonable price for agricultural product etc. due to this, farmers sell their product at whatever prices are offered to them.

With the motto of providing reasonable price for the agricultural produce and to protect the financial interests of the farmers the society conducting buying-selling activities of agricultural produce on the principles of co-operation farmers comes together and forms a society such societies are known as "Marketing co-operative society" or "Co-operative buying-selling society".

Marketing co-operative societies have an important place in the development of agricultural sector. So, in this chapter, we will be studying about Marketing Co-operative Society in detail.

Formation of Marketing Co-operative Society

The Marketing co-operative societies are formed for supplying the goods from producers to consumers, to sell agricultural produce of the farmers and as well as provides assistance for export quality goods. In India, the first Marketing co-operative society was established in Hubli in the former Mumbai province in the year 1915. Currently, by the end of 2018, there are 1207 Marketing co-operative societies in Maharashtra.

Teacher's Note

Marketing co-operative societies help farmers get fair prices for their crops. In India, farmers in villages use these societies to sell their vegetables and grains at good prices without middlemen cheating them.

Exam Trick

Remember: Marketing co-operative = buying and selling together. Just like a ration shop sells things at fixed prices, marketing co-operatives sell farm products at fair prices to all farmers.

Points to Remember

Marketing co-operative society helps farmers sell their crops at fair prices.
These societies were formed to stop middlemen from cheating farmers.
The first marketing co-operative society in India started in Hubli in 1915.
These societies buy crops from farmers and sell them to consumers and traders.
Farmers lose money because of low prices and cheating by brokers.

8.2 Meaning and definition

Meaning

The word 'marketing' is used very extensively. Marketing includes buying and selling and other related services. This societies purchase goods from the producers and performs necessary functions to supply goods upto consumers.

Marketing co-operative society is formed by the farmers voluntarily. This society helps the farmer members to sell their goods at reasonable prices. This society carries out the function as assembling of agricultural goods, transport and storage of the goods, standardization and grading of agricultural produce and facilitating for suitable market, etc. The society provides seeds of good quality, fertilizers, pesticides, agricultural equipment's to the farmers so as to increase agricultural produce and also prevents exploitation of farmers in the market. Other than agricultural sector, it has observed that co-operative societies have also been formed in other sectors such as weaving, fishing, cord production, etc. These societies play an important role in conducting fair trade practice.

Definition

Marketing co-operative society has been defined by various prominent thinkers and experts. In all their definitions importance is given on buying and selling of agricultural produce. Over the period, the role of marketing co-operative society has turned out to be more prominent. Marketing co-operative societies are defined in various ways as below:

1. As per Reserve Bank of India: "Co-operative Marketing is a co-operative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than through private trade".

2. As per Margaret Digby: A renowned scholar of Food and Agricultural Organization - "A co-operative marketing is the system in which a group of farmers or market gardeners join together to carry on some or all processes involved in bringing goods from the producer to consumer".

3. As per D. B. S. Mathur: "A marketing cooperative society is a society formed by the farmers to carry out marketing activities on co-operative principles".

After studying all the above definition we can conclude that it is voluntarily association of cultivators former primarily for the purpose of helping the members to market their produce more profitably and to carry on processes involved in bringing goods from producers to consumers and protects maximum interests of cultivators.

Teacher's Note

A marketing co-operative society is a group of farmers who come together to sell their crops together. For example, in Punjab, farmers come together to sell wheat at fair prices instead of selling to traders one by one.

Exam Trick

Remember: Three important definitions - RBI, Margaret Digby, and D. B. S. Mathur. All say the same thing: farmers work together to sell crops at good prices. Write any one in the exam.

Points to Remember

Marketing includes buying and selling of goods.
Marketing co-operative society is formed by farmers voluntarily.
It helps farmers get reasonable prices for their crops.
These societies provide seeds, fertilizers, and pesticides to farmers.
They work to stop the exploitation of farmers by middlemen.

8.3 Features / Characteristics of Marketing Co-operative Society

Marketing co-operative society is formed by the farmers coming together for their economic development. The features of the society are as under:

1. Voluntary association of farmers: Marketing co-operative society is a society formed by the farmers coming together voluntarily for their development. The major person residing in working area of the society can be the members of the society. There is no compulsion on any of the individuals to become a member of the society. The society follows the principles of voluntary association. There is no force for cancelation of membership. The membership can be cancelled as per own wish.

Teacher's Note

Farmers can join or leave a marketing co-operative society freely. For example, if a farmer in a village co-operative doesn't like the society, he can leave and join another one without any problem.

Exam Trick

Remember: Voluntary = no force. No one can force you to join or leave the society. It's like a club - you join because you want to, not because someone makes you.

Points to Remember

Farmers come together by their own choice to form these societies.
No farmer is forced to become a member.
Any farmer living in the working area can join.
Members can leave whenever they want to.
There is no punishment for leaving the society.

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