INDUSTRIAL CO-

OPERATIVES-
PROBLEMS AND REMEDIES

ABILASH.S
Industrial cooperative is an
undertaking of craftsmen's or skilled
worker engaged in the cottage or
small scale industrial production,
purchase of suppliers an raw material,
marketing of products and supplies
other service of members.

Two types of industrial co-operatives

working in India. They are workshop
societies and industrial service
 Workshop societies
In these activity is performed in a
common workshop with necessary
tools and equipments

Members are paid wages on piece

rate system

The essential feature is they entire

responsibility for production as well as
marketing is borne by societies.
 INDUSTRIAL SERVICE
SOCIETIES
Main function is to render various
service to members

They generally supply raw materials

tools and equipments

They help their members in marketing

their finished products

They does not undertake the risk of

 STRUCTURE OF INDUSRIAL
CO-OPRATIVES
Structure of industrial cooperatives is
two tier federal

At the basic level primary society with

individual worker as members. these
primary society are federated at state
level to form apex society for apex
federations

In some important sectors the apex

socities or federations are also federated
 PROBLEMS OF INDUSTRIAL
CO-OPERATIVES
Lack of working capital
Problem of raw material
Problem of marketing
Lack of technical know-how
Competition from textile mills and power
looms
High rate of interest in borrowings
Managerial inefficiency
Technical improvement and processing
Lack of sufficient storage facilities
Lack of loyalty of members
 REMEDIES FOR THE SUCCESS OF
INDUSTRIAL CO-OPERATIVES
 Provision for credit facilities
 Marketing facilities
 Provision for raw materials
 Give cooperative education to members
 Need for revitalization and reorganization
 Ensuring cooperative character
 Technical advice
 Modernization
 Need for single agency
 Collaboration with lager scale industries