CO-OPERATIVE MARKETING FOR AGRICULTURAL GOODS

CO-OPERATIVE MARKETING FOR AGRICULTURAL GOODS By Dr. Anil Wavare Chhatrapati Shivaji College, Satara.

CONCEPT “Marketing includes not only purchase and sale of goods, but also the various business activities and processes involved in bringing the goods from the producer to the consumer”.

DEFINITION • American Marketing Association – “The performance of business activities directed towards and incidental to, the flow of goods and services from producer to consumer or user.” • Margaret Digbi: “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 producer to the consumer.” • R. B. I.: “Marketing 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.”

It includes following activities • Collection of surplus from the individual farmers. • Transport to the nearest assembling centre. • Grading and standardization. • Pooling • Processing • Warehousing • Packing • Transport to the consuming centers • Bringing the buyers and sellers together • Sale to ultimate consumer. ( i.e. milk, Sugar, Tobacco co-operatives etc.) • Collection of marketing information • Credit supply • Co-ordination among credit supply and marketing • Export • Price stability

SPECIAL FEATURES OF AGRICULTURAL MARKETING • Agricultural produce in most cases is bulky for its value in comparison with many manufactured goods. • The farming output is seasonal. • Collection of the produce becomes a complicated process particularly as the consumers are generally concentrated in urban areas. • Most of the farm produce suffers loss and deterioration in quality during storage and transport.

OBJECTIVES OF CO-OPERATIVE MARKETING SOCIETIES • To strengthen the bargaining capacity of the cultivator. • To secure the members a better price for their produce • To eliminate superfluous middlemen • To provide members the needed finance • To persuade the farmer to grow better quality goods. • To stabilize prize • To develop fair trading practices • To provide the facility of grading and transportation • To act as an agent of government for procurement and implementation of price support policy. • To promote the economic interest of its members by encouraging self-help, thrift and better farming among members. • To act as a distributive center for agricultural requisites such as seeds, implements etc. • To help in the expansion of co-operative credit programme by linking marketing with credit.

ADVANTAGES OF CO-OPERATIVE MARKETING • Economy in cost of marketing • Better Prices • Safeguards against price rings • Credit facilities • Supply of quality goods of consumers • Help in growing better crops • Division of surplus • Educative value

MALPRACTICES IN PRESENT SYSTEM OF AGRICULTURAL MARKETING • Dantwala Committee on Co-operative marketing mentioned below • Multiplicity of market charges. • Trade allowances • Adulteration and lack of grading • Method of sale • Malpractices in weight • Delay in payment of sale proceeds • Large samples • low marketable surplus • Super flows middlemen • Inadequate storage facilities • Defective transport • Lack of market information • Absence of regulated markets.

OTHER PROBLEMS • Result of official initiative: these societies have not been organised as a result of efforts of the cultivators. • Target hunting: tried for quantitative development, not try for qualitative development • Unplanned set up • No integration of tiers • Weak organizational link • Competition from credit societies • Bias towards individual membership • Poor management • Malpractices • Unregulated markets • Concentration of distribution of activities • Lack of supervision and audit • Purchases through private trade. • Individual interest • CONTN.

Inadequate capital • Competition among credit institutions • No correlation between co-operative credit and co-operative marketing • Less awareness among members • Unplanned development • Inefficient management • Lack of transport facilities • Lack of processing facilities • Lack of credit supply • Untrained workers • Corruption • Lack of audit and supervision • Faulty government policy.

SUGGESTIONS • These societies should be located at mandi centers • Concerted efforts should be made • Link between credit and marketing is essential • The supervisory staff of co-operative department should be see that the marketing societies are not dominated and exploited by traders • To attract competent managerial personnel • Existing untrained managers should be trained • To increase the capital base • SBI should be give high priority to the requirements of co-operative marketing • Consumers and the producers co-operative should have an effective link with marketing societies • These societies should establish their own godowns • Director Body – Board policies • Some assistance from state government

THANKS

CO-OPERATIVE MARKETING FOR AGRICULTURAL GOODS