Presented by:Talha Akbar Kamal Dept.

of Agricultural Economics And Business Management Aligarh Muslim University (UP)

 Process of marketing through a co-operative

association formed to perform one or more of the marketing functions in respect of the produce of its members.
It is voluntary business organization established by its

members to marketing farm products collectively for their direct benefits.

 In the words of Margaret Digby, an F.A.O. expert, co-

operative marketing is the system by which a group of farmers or market gardeners join to carry on some or all the processes involved in bringing goods from the producers to the consumers
According to the R.B.I. , a marketing society can be

considered as a co-operative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than is possible through the private trade

 Importance of co-operative marketing was stated as

early as 1928 by the royal commission on agriculture as :

A group of sellers are more powerful than an individual

seller. Educating the cultivator about:

Market demand Market prices Grading of product

Bring producers into direct touch with the export

market.

 Marketing sub-committee of the policy committee on

agriculture, forestry and fisheries of the reconstruction committee of council in 1944 also stated , as:
Co-operative marketing is necessary for attainment of

maximum efficiency. Improve economic condition of farmers. Strengthening the bargaining power of farmers.

The U.N. also stated in one of their report, as

marketing associations are next in importance for rural prosperity to those providing and administrating credit.

 The broad aims of co-operative marketing societies

are:
Rationalize the whole marketing system Strengthen the bargaining capacity of the cultivators To eliminate the superfluous middlemen

To provide finance to needy members

To persuade the members to grow better quality of

products Stabilize price by an orderly and judicious supply of commodities in market

 Main aims and objective in brief given by the committee,

are :
To strengthen the bargaining capacity of the cultivator Better price to producer Eliminate superfluous middleman

Provide finance to members

Persuade farmer to grow better quality produce Stabilize price Develop fair trade practices Provide facilities of grading and transportation To act as an agent of government

 To promote the economic interest of its member To act as a distributive center for agricultural requisites To help in the expansion of co-operative credit

programme by linking marketing with credit.

 Economy in cost of marketing

Better price
Safeguard against price rings Credit facilities

Supply of quality goods to consumers

Helps in growing better crop Division of surplus

Educative value

 The need for co-operative marketing in India arises

from a variety of factors, those are:

Defects and malpractices in the existing system of

agricultural marketing Middlemen's charges are excessive, numerous and variable. Excessive pressure of landlords(money lenders) Ignorance and lack of resources Small holdings and scanty output Difference in the price spread between the producer and the consumer Fluctuating prices

 Begin in India in 1915 in the former Bombay province at

Hubli. The second society was formed at Gadag in 1917 in the same province Both these societies were formed by the Agriculture Department The main objective behind setting these societies was to encourage the cultivators to grow improved quality cotton and sell them collectively.

 From 31 societies in 1920-21 the number moves to 142

in 1942-43 in Bombay province In Madras, the no. moved from 2 in 1920-21 to 181 in 1943-44 In Uttar Pradesh, there were 116 marketing union In Punjab, 37 sales societies were present in 1943-44 Co-operative marketing were also started in some other areas also, such as, Baroda , Mysore, Bengal..etc

 In 1945, the Co-operative Planning Committee, set up

roughly one mandi for 200 villages for selling about 25% of there marketable surplus in next 10 years. The committee also emphasize the need for an effective link between co-operative credit and marketing Government subsidies were also be required for to minimise the managerial cost

 In 1951, the All India Rural Credit Survey committee,

found the position of these societies very unsatisfactory Although, it was satisfactory in number but contribute very less only 1% of the total sales

 1st five year plan: No scientific targets were made Considered as neglected field by Dantwala committee No measures were taken to strengthen the movement. The total value of agr. Produce marketed by co-operatives was Rs 53

crore in 1955-56 as against Rs 47 crore in 1950-51

2nd five year plan: Pay emphasis on development of co-operative marketing Plan expected the organisation of 1800 primary marketing societies and

an apex marketing society in each state as a central organisation. Financial assistance from government is also given in the form of,
1. 2.

State participation in share capital Subsidy towards the cost of managerial staff in initial stages

 1869 PMS were organised and apex marketing societies were set

up in each state except J&K A NACMF was also set up popularly known as NAFED Co-operatives handled agr. Produce worth Rs. 174 crore at the end of 5 yr plan But nearly 50% comes from sugarcane which is legally compled By and large co-operative marketing failed to made any substantial impact

3rd five year plan: Special importance were given to integrated rural credit Main task is to strengthen the marketing structure and cover the areas which were left in 2nd plan Target of setting up 544 new marketing societies and marketing agr. Produce worth Rs. 360 crore in the last year

 452 additional primary societies were organised and 900

marketing societies were also set up out side the planned programme

4th five year plan: Aims at strengthen the existing marketing societies at primary level. Grading and pooling techniques were introduced First time the target of handling agr. Produce was crossed from 900 cr. To 111o cr. Expected to increase storage capacity from 2.6 million tonnes to 4.6 million tonnes Inter state disparities were continue.

 5th five year plan: Consolidation and strengthening of existing societies About 100 new PMS were to be organised It was expected that , during last year of 5th plan value of agr. Produced amounted to Rs. 1900 cr. Inter state trade by co-operatives expected to Rs. 80 cr. Annually In the field of exports, it was expected to come close to Rs. 15 cr. Storage capacity would be raised to 6.8 million tonnes Up to 1975-76 the total output market were Rs. 1128 cr. , il alone goes to Rs. 1073 cr in 1976-77& Rs. 1797 cr in 1978-79

6th five year plan: Amount of arg. Produce marketed by co-operatives goes to Rs. 3032

cr. Development of agr. Co-operative market is uneven At the end of the 6th plan the number of societies were 4130 The value of food grains handled by co-operatives was Rs. 900 cr.

7th five year plan: Aim at strengthen the PMS and there activities. Proposed the effective links between marketing co-operatives and

public sector commodity co-operatives such as FCI, CCI & JCI Close co-ordination with consumer co-operatives, civil supply cooperatives and public distribution system

 It was expected that at the end of the plan co-operatives

would under take the retail sale of fertilizer to the extent of 8.3 million tonnes The value of agr. Produce marketed by co-operatives is expected to increase to 5000 cr.

8th five year plan: 76000 fertilizer retailer outlets distributing 40 lakhs tonnes of fertilizers Price support operation were taken for oilseed, pulses, potatoes etc 360220 tonnes of onion was exported Storage facility had to be increased to 141 lakhs tonnes

 9th five year plan: Infrastructure has not kept pace with the accelerated growth of production Panchayats were proposed to take active role in development of this Schemes were introduce for low cost technologies adoption Educating the rural youth to adopt change 10th five year plan: Strengthening of marketing with value addition infrastructure Special training to farmers

 11th five year plan(present scenario): States disparities Crop insurance scheme was implemented Lack of credit facilities Only one forth of the market have proper facilities Cold storage are required Information and communication technology(ICT) is implemented for better market information.

Result of official initiative 2. Target hunting 3. Unplanned set up 4. No integration of tiers 5. Weak organizational links 6. Competition from credit society 7. Bias towards individual member 8. Poor management 9. Malpractices 10. Un regulated market 11. Lack of supervision
1.

Societies should be located in the mandi centers Efforts should be made to forge an effective link between credit and marketing Mirdha Committee on co-operatives recommended that producer-cum-trader should not be allowed to become a member of society Requirement of trained supervisory staff RBI should allow SBI to borrow additional fund at bank rate for co-operatives Societies should sale their members produce after grading and peocessing

 Societies should have their own godown and govt.

should provide finance for this. Societies should have directors and managers and role of each member is specified Societies should have bye-laws specifing dos and don'ts of co-operatives Special course in co-operative marketing conducted by the Committee for Co-operative Training should be more job-oriented

 Co-operation in India, by Dr. B.S.Mathur

New Dimensions Of Co-operative Management, by

G.S.Kamat Principles Problems &Practice of Co-operation by T.N.Hajela www.google.com www.wikipedia.com www.planningcommission.in www.nafed-india.edu

Thank you