Different kinds of Co-operative Societies Discussed
“Different types of co-operative societies are set up to cater to different kinds of needs.”
There are different types of cooperative societies and each of them caters to different kinds of needs. Some are started to help consumers and others to help small producers. There are some societies that help farmers in a number of ways.
The consumers’ co-operative societies are started to help lower and middle class people. Theses societies protect weaker sections from the clutches of profit hungry businessmen. The members put in capital in the shape of share money.
The membership of these societies is open to all and sundry irrespective of caste, belief and color. The members elect the office bearers and administrative members to supervise the routine activities of the society.
The societies make mass purchases directly from producers and sell these commodities to the members on retail basis. The commission and profits of middlemen are eliminated in the process. The societies charge small amount of money to cover up the managerial cost.
The producers’ co-operative societies are established for the advantage of small producers who find it difficult to bring together various factors of production. They also help these small manufacturers in solving their marketing problems. Their purpose is to improve monetary conditions of small producers by giving them required facilities.
These societies are of two kinds: the production co-operative and industrial service co-operative. The members undertake the production of goods either in their house or at a common place. The members are treated as human resources of the society and are rewarded wages for their services.
The industrial co-operative are started with the aim to help members in getting different industrial inputs at rational prices. The marketing co-operative are the associations of producers that trade their products at remunerative prices. The production of different members is pooled and the society undertakes to sell these products by eliminating middlemen. These societies also provide services like grading, warehousing, transport, indemnity etc.
The individual producers may not be able to wait for longer periods because of their limited resources. If they do so, they are bound to end up with serious losses. These societies also provide small loans to their members on easy terms in case they get entangled in some kind of pressing matters.
Author - DeeKay
Tags - Finance, Economy
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