PERFORMANCE EVALUATION OF

K.708 THE NILGIRIS COOPERATIVE MARKETING SOCIETY

LTD

PROJECT REPORT

Submitted in Partial Fulfillment of the Course of

Higher Diploma in Co-operative Management

By

R.SINDHUJA
(Roll No: 43 - 28)

Senior Inspector of Cooperative Societies

Under the Guidance of

Dr.V.ALAGUPANDIAN
Faculty

INSTITUTE OF COOPERATIVE MANAGEMENT,

CHINNA UDAIPPU, MADURAI- 625 022.

1
 CERTIFICATE

This is to certify that the project work entitled “ Performance

Evaluation of K.708 THE NILGIRIS COOPERATIVE

MARKETING SOCIETY LTD” that R.SINDHUJA is submitting, in

partial fulfillment for the award of Higher Diploma in Cooperative

Management (HDCM) to the Institute of Cooperative Management,

Madurai is a record of bonafide work carried out by her under my

guidance.

Place: Madurai Signature of the Guide

Date: .03.2021

2
 DECLARATION

I hereby declare that the work described in this project

entitled “Performance Evaluation of K.708 THE NILGIRIS

COOPERATIVE MARKETING SOCIETY LTD” which is being

submitted by me in partial fulfillment for the award of Higher Diploma in

Cooperative Management (HDCM) in the Institute of Cooperative

Management, Madurai is the result of investigations carried out by me

under the guidance of Dr.V.Alagupandian., Faculty, ICM, Madurai.

The work is original and has not been submitted for any

Degree/Diploma of this or any other institution.

Place : Madurai (R.SINDHUJA)

Date : .03.2021 ROLL.NO : 43-28

3
 ACKNOWLEDGEMENT

I wish to express my sincere thanks and gratitude to

Dr.R.Gopalasamy, Director, ICM, Madurai, for giving me an
opportunity to do this project work.

I wish to express my gratitude to Dr.V.Alagupandian, Faculty,

ICM, Madurai, and my project guide for his valuable guidance,
encouragement, and suggestion for carrying out my project work.

My sincere thanks to the Deputy Registrar/ Managing

Director, Mr.V.Tamilselvan, and all other staff members of K.708,
THE NILGIRIS COOPERATIVE MARKETING SOCIETY LTD,
for their kind Cooperation in completing the project work.

Place: Madurai (R.SINDHUJA)

Date : .03.2021 ROLL NO: 43-28

4
 CONTENTS

CHAPTE DESCRIPTION PAGE NO.

R
I INTRODUCTION AND DESIGN OF THE STUDY 8-19
II PROFILE OF THE SOCIETY 20-27
III FINANCIAL AND BUSINESS PERFORMANCE 29-44
OF THE SOCIETY
IV FINDINGS, SUGGESTIONS & CONCLUSION 45-48

5
 LIST OF TABLES

TABLE NO. DESCRIPTION PAGE NO.

2.1 General Particulars of the marketing 21
society
2.2 The details of activities undertaken by 26
the marketing society
2.3 The cadre strength of the Society 26
2.4 The financial status of the Society 27
3.1 Marketing of Agricultural produces(in 31
value)
3.2 Complex fertilizer production for the 33
requirements of different vegetable
crops
3.3 Agricultural input distribution(in value) 34
3.4 Jewel loan issued and outstanding(in 36
value)
3.5 Weigh Bridge Income (in value) 37
3.7 Total sales of Kerosene (in value) 38
3.8 Total sales by renting community 38
hall(in value)
3.9 Income earned through vehicle 39
parking(in Rupees)
4.1 Supply Chain Management figures 41

6
 LIST OF FIGURES

FIGURE NO. DESCRIPTION PAGE NO.

1.1 STRUCTURE OF AGRICULTURAL CO- 17
OPERATIVE MARKETING
2.1 FINANCIAL STATUS OF THE SOCIETY 28
3.1 MARKETING OF AGRICULTURAL 31
PRODUCES(In Value)
3.2 AGRICULTURAL INPUT DISTRIBUTION (in 34
Value)
3.3 JEWEL LOAN ISSUED AND OUTSTANDING(in 36
Value)
3.4 E-TRADING FLOW CHART 42

7
 CHAPTER - 1

INTRODUCTION AND
DESIGN OF THE
STUDY

CHAPTER – I

INTRODUCTION AND DESIGN OF THE STUDY

1.1 INTRODUCTION

HISTORY OF THE COOPERATIVE MOVEMENT

8
 The cooperative movement began in Europe in the 19th century,
primarily in Britain and France. However, The Shore Porters Society
claims to be one of the world's first cooperatives, being established in
Aberdeen in 1498 (although it has since demutualized to become a
private partnership). The industrial revolution and the increasing
mechanization of the economy transformed society and threatened many
workers' livelihoods. The concurrent labour and social movements and
the issues they attempted to address describe the climate at the time.
The first consumer cooperative may have been founded on March
14, 1761, in a barely furnished cottage in Fenwick, East Ayrshire, when
local weavers manhandled a sack of oatmeal into John Walker’s
whitewashed front room and began selling the contents at a discount,
forming the Fenwick Weavers’ Society.
In the decades that followed, several cooperatives or cooperative
societies formed, including Lennoxtown Friendly Victualling Society,
founded in 1812.
By 1830, there were several hundred cooperatives. Some were
initially successful, but most cooperatives founded in the early 19 th
century had failed by 1840. However, Lockhurst Lane Industrial Co-
operative Society (founded in 1832 and now Heart of England Co-
operative Society) and Galashiels and Hawick Co-operative Societies
(1839 or earlier, now Lothian, Borders & Angus Co-operative Society)
still trade today.
It was not until 1844 when the Rochdale Society of Equitable
Pioneers established the 'Rochdale Principles' on which they ran their
Cooperative, that the basis for development and growth of the modern
cooperative movement was established.

GROWTH OF COOPERATIVE SECTOR IN INDIA

9
 India has an agricultural economy, with 72% of its total
population residing in rural areas. The rural people need not services in
daily life which are met by village cooperative societies. The seeds of
Cooperation in India were sown in 1904 when the first Cooperative
Societies Act was passed. Since then, the joint movement has made
significant progress. The Cooperative has extended across the entire
country, and there are currently an estimated 230 million members
nationwide. India's Cooperative Credit system has the most extensive
network globally, and the Cooperatives have advanced more credit in the
Indian agricultural sector than commercial banks.
The village cooperative societies provide strategic inputs for the
agricultural sector. Consumer societies meet their consumption
requirements at concessional rates; marketing societies help the farmer
get remunerative prices. Suitable processing units help in value additions
to the natural products, etc. Besides, cooperative societies are helping in
building up storage godowns, including cold storages, rural roads, and in
providing facilities like
 irrigation
 electricity
 transport
 health

Various development activities in agriculture, small industry, marketing and

processing, distribution, and supplies are now carried on through
cooperatives.
In fertilizer production and distribution, the
FERTILIZER India Farmers Fertilizer Cooperative
(IFFCO) commands over 35% of the market.
SUGAR In the production of sugar, the market's

10
 cooperative share is over 58%, and in the
marketing and distribution of cotton, they
have a share of around 60%.
The cooperative sector accounts for 55
LOOMS percent of the looms in the hand-weaving
sector.
EDIBLE Cooperatives process, market, and distribute
OILS 50% of edible oils.

The main areas of operation of cooperatives in India are as under:

Natural
Agricultural Agricultural Agricultural Agricultural Industrial
Credit Supplies Marketing Marketing Cooperatives

 Public distribution of essential commodities through consumer

cooperatives
 Urban credit cooperatives
 Housing cooperatives

COOPERATIVE MOVEMENT IN TAMILNADU

From a small beginning, the cooperative movement in
Tamilnadu has grown in strength over the years. Opening of a village
cooperative credit society in THIROOR IN THIRUVALLORE
DISTRICT IN 1904
Marked the advent of the cooperative movement in Tamilnadu, ushering
in a new era of services for the State's people, particularly the agricultural
families.
11
 The cooperative societies functioning in Tamil Nadu are governed by the
following:
i) The Tamil Nadu Co-operative Societies Act, 1983
ii) The Tamil Nadu Co-operative Societies Rules, 1988.
iii) Bye-laws of the respective institutions.

PRINCIPLES OF COOPERATION

Open Democratic Limited Distribution

Interest on of surplus
Membership Management based on
Capital
patronage

o Provision of Cooperative Education and Training

o Cooperation among cooperatives
o Concern for community

ADMINISTRATIVE SETUP:
The Registrar of Cooperative Societies is the head of the
department is functioning in Chennai. The Registrar of Cooperative
Societies is assisted by Additional Registrars of Cooperative Societies
Joint Registrars of Cooperative Societies and Deputy Registrars of
Cooperative Societies at the Headquarters. A Joint Registrar of
Cooperative Societies is in-charge of each region. Circle Deputy
Registrars of Cooperative Societies are working under their control.
There are twenty-nine regions in the State with a joint Registrar in-
charge of each area (District). The regional joint registrars are responsible
for the proper functioning of the cooperative societies in the district (i.e.,)
cooperative credit institutions, consumer Cooperatives, cooperative
12
marketing and processing societies, farming societies, and a particular
type of cooperative societies like labour contract societies.
There are two Joint Registrars (Public Distribution System) in
Chennai, exclusively to attend to the work relating to the distribution of
essential commodities through the public distribution system outlets of
the cooperative societies functioning in Chennai City and belt areas.
The State has been divided into 63 circles for the administration of the
department. The processes on the territorial basis are generally coincident
with the Revenue Division. In Chennai City, however, two circles
function on a functional basis, one for credit and the other for non-credit
cooperatives. The process Deputy Registrars are working under the
immediate control of regional joint Registrars. Many of the Registrar
powers under the Tamilnadu Cooperative Societies Act, 1983, and the
rules framed thereunder have been delegated to circle Deputy Registrars
regarding primary cooperatives. The Deputy Registrar attends to all
cooperative societies' inspection and supervision in his circle and
discharges all statutory functions relating to the societies, such as inquiry,
arbitration, execution, liquidation, etc. A circle Deputy Registrar is
assisted by few Cooperative Sub Registrars and a complement of Senior
Inspectors, Junior Inspectors, and other ministerial staff.
Apart from the regular circle Deputy Registrars, there is one
Deputy Registrar (Public Distribution System) with a complementary
staff for the supervision of fair price shops in every District. They are
also working under the direct control of the regional Joint Registrars.
There are seven Deputy Registrars (Public Distribution System) in
Chennai City functioning under the direct control of Joint Registrar
(Public Distribution System) Chennai. They inspect the cooperative
societies' various public distribution system outlets in Chennai City and
belt areas.

13
 Citizens can organize any cooperative Society as they have various
needs and services subject to the provisions of the Tamilnadu
Cooperative Societies Act, 1983 and Rules 1988. Types of cooperative
Societies now functioning in the state catering to various needs of citizens
are furnished hereunder:
Sl. Type of Cooperative Societies Purpose served
No
1 Primary Agricultural Cooperative For Agriculturist at Village level
Credit Society/ Farmer’s service
Cooperative Societies.
2 Cooperative Urban Banks For Urban People (Urban Area)
3 Agricultural Producers For Purchase/ sale of Agricultural
Cooperative Marketing Societies. product at the remunerative price
and get the loan on the product's
pledge.
4 Primary Cooperative Agriculture Loans for Minor Irrigation,
and Rural Development Banks. Farming, Sericulture, Horticulture,
Non-Farm sector, Tractor
requirement, Rural Housing,
Small, Transport, Hospital. The
clinic, Computer center.
5 Primary Cooperative Stores, For getting consumer goods at the
Cooperative Wholesale Stores, right price and right weight.
Cooperative Super Markets.

6 Employees Thrift and Credit For employees in Government

Cooperative Societies. Departments, Government sector,
public sector, private sector.
7 Barbers Cooperative societies and For Barbers and Washermen

14
 Washermen Cooperative
Societies.
8 Labour Contract Cooperative For Labourers
Marketing Societies.
9 Vegetable Growers Cooperative For Vegetable Growers
marketing Societies
10 Large-sized multipurpose Agricultural Loan, Medium-term
societies. loan, and other loan further needs
of tribal members.

1.2 Cooperative Marketing Society

A Cooperative Marketing Society is a trading firm. All the
members of the Cooperative Marketing Society sell their products
through the Society.
The art of marketing is more complex than production, especially in
the case of agricultural products. The marketing of farm products should
be systematic, scientific, and organized to enable the farmer to negotiate a
square deal and get a fair share of his product's value. For this purpose,
agricultural Cooperative Marketing Societies are functioning in different
places in a district. Besides providing marketing facilities, these societies
make arrangements for the supply of farming requisites in rural areas.
Cooperative Marketing Societies in India are helping a large number of
the rural population. Cooperative Marketing Societies arise due to the
prevalence of any defects in the private marketing system.

Importance of Cooperative Marketing Society

 Increase bargaining strength of the farmers
 Storage Facility
 No intermediary- direct dealing with final buyers
15
 Easier and cheaper transport
 Grading and standardization
 Market intelligence
 Influencing market prices
 Provision of inputs and consumer goods
 Processing of agricultural produce
 Elimination of Speculation

Cooperative marketing in India

The Cooperative Marketing structure comprises 2,633 general-
purpose primary Cooperative Marketing Societies, covering all the
essential mandis in the country, 3.290 specialized primary Cooperative
Marketing Societies for oilseeds, etc. 172 district Central Federations and
the National Agricultural Cooperative Marketing Federation of India Ltd.,
at the National level. NAFED is the apex Cooperative Marketing
organization dealing in procurement, distribution, export, and import of
selected agricultural commodities. Many states have achieved a
considerable level of success in Cooperative Marketing.
Cooperative Marketing is considered essential in the country as it
reduces the cost of marketing and arranges reasonable prices for the
participants.

1.3 National Agricultural Cooperative Marketing Federation of

India Ltd. (NAFED)
NAFED was established on the auspicious day of Gandhi Jayanti on
2nd October 1958. NAFED is registered under the Multi-State Co-
operative Societies Act. NAFED was set up with the object of promoting
Cooperative marketing of Agricultural Produce to benefit the farmers.
Agricultural farmers are the prominent members of NAFED, who have

16
 the authority to stay in the form of members of the General Body in the
working of NAFED.
STRUCTURE OF AGRICULTURAL CO-OPERATIVE MARKETING

NAFED

STATE MARKETING SOCIETIES

REGIONAL MARKETING DIRECTION MARKETING

FEDERATION COOPERATIVES

PRIMARY MARKETING SOCIETIES

CULTIVATORS PRIMARY VILLAGE

FEDERATION

Fig.1.1 Structure of agricultural cooperative marketing

1.4 METHODOLOGY OF THE STUDY

Primary data for the study were collected in an unstructured schedule.
Secondary data were also used for the analysis. Data regarding share
capital, procurement of vegetables, sale of vegetables, procurement and
sales of pesticides and fertilizers, etc., collected from the Society's
Records, Audit reports, Balance sheet annual reports, and By-laws of the
Society.

1.5 SOURCES OF THE DATA

17
 1.5.1 INTERNAL SOURCES
The data such as total members of the Society, members share
capital, details about Purchase and sale of vegetables, pieces of fertilizers
and fertilizers purchase and sales, components of chemical mixture and
sales, interests obtained from the deposits, deposits, Receipts and
Disbursement Statement, Trading account, Profit and loss account,
Balance Sheet of the Society, etc., have been obtained for the period from
2011 - 2012 to 2017 - 2018 from the records and registers of the Society
and also audit report of the Society. The area of operation, objectives of
the Society, details of membership, details of management, etc., have
been obtained from the by-laws of the Society.

1.5.2 EXTERNAL SOURCES

The Textbooks for cooperative subjects, Co-operative Journals,
World Wide Web, etc., have been used as external sources for the study.

1.6. OBJECTIVES OF THE STUDY

 The main objective of the study is to analyze and to evaluate the
performance of the Society with particular reference to the Purchase and
sale of vegetables and fertilizers
 To study the management practices for controlling trading and
administrative expenses of the Society
 To examine the Profit earned by the Society through other activities
 To analyze the ratios of chemicals used for different types of crops
 To explore the various business activities carried out by the Society
 To analyze the viability of the Society.

18
1.7. PERIOD OF STUDY
The present study is confined to a period from 2014– 2015 to
2018-2019.

1.8. ANALYSIS OF DATA

The data collected were analyzed and interpreted to fulfill the
objectives framed for this study. Also, a Suitable par chart and pie
diagram were presented to show the result.

CHAPTER – II
19
 PROFILE OF THE
SOCIETY

CHAPTER – II

GENERAL PROFILE OF
K.708 NILGIRIS COOPERATIVE MARKETING
SOCIETY LIMITED

Table 2.1
General particulars of the marketing society

Sl. Particulars of NCMS Details of Establishment

20
 No
01 Date of Registration of the 8th December 1935
Society
02 Registration Number K-708
03 Date of Commencement of the 20th December 1935
Society
04 Name of the Founder of the Mr. Rao Bahadur Ari Gowder
Society
05 Permitted Value of the Shares Rs. 50 Lakhs
06 Share Capital of the Members 09.73 Lakhs
07 Number of Members of the 26237
Society
08 Total sales of the Society Rs.7075.22 Lakhs
09 Jurisdiction of the Society Nilgiris District and the
Mettupalayam Town of
Coimbatore District

2.1 ORIGIN AND DEVELOPMENT OF THE NILGIRIS

COOPERATIVE MARKETING SOCIETY LTD.

Rao Bahadur H.B Ari Gowder found the Nilgiris Cooperative

Marketing Society in the year 1935. started it with the Cooperation of the
local farmers aiming for the farmers' welfare in the region.
The Nilgiris Cooperative Marketing Society Ltd., J.708, Sailing
House, Charing Cross, Udhagamandalam was registered on 8 th December
1935. It commenced its operations on 28th December 1935 in audit
reports classified as 'A' class.
The Society, which initially functioned in the rented building, now
owns large acres of land in Udhagamandalam Municipality and
Coimbatore District due to its first President's hard efforts, Rao Bahadur
H.B Ari Gowder, and the initial directors.
Sailing House, Charing Cross, Udhagamandalam has been
functioning as the Headquarters of the Society.
The Nilgiris Cooperative Marketing Society is one of the leading
Cooperative institutions in the State and engaged in agri- produces
marketing and distribution of various agricultural inputs to serve the

21
 Nilgiris farmers through its 18 retail sales outlets besides its Head office
in Udhagamandalam and Mettupalayam branch. The sales units are in the
village areas spread throughout the District and also in the Head office.
The Society has built Auction yards, Godowns, Fertilizer mixing units,
Weighbridge, lodges for farmers, and its office buildings. The Society
owns seven manure storing godowns of 6775 MTS.
The eighty years old Society has functioned as an excellent
companion to the farmers of the Nilgiris and also of the Coimbatore
district. The Society has also been awarded as the Best Marketing Society
in the State and has been functioning in Profit continuously.

2.2 Area of Operation

The Nilgiris district as a whole and Mettupalayam Municipality of
Coimbatore district are included in the area of operation of the Society.

2.3 Members Qualification

 They should have completed 18 years of age
 They should live within the area of operation
 They should have a sound mind
 They should not be insolvent

2.4 Objectives

2.4.1 Principal Object

The principal object of the Society is arranging for and undertaking
the Purchase, storing, processing, and marketing of the agricultural and
other products or produces of its members or the undertaking of
distribution of commodities.

2.4.2 Other objectives

22
 To encourage the members to grow improved and standard varieties of
produce
 To advance loans to members on the security of their produce, raw or
processed
 To prepare the produce for markets by sorting, grading, marking,
packing, and repacking
 To own or hire lorries, van, and other transport vehicles for the
transport of produce from members residence, farms, godowns to
markets
 To rent or hire or own godowns, processing yards, and plants to
facilitate storage processing and sale of products belonging to
members and members affiliated societies or purchased by the Society
 To undertake the Purchase or procurement of fertilizers,
pesticides, seeds, and other requirements of its members for sale and
distribution among them.
 To work in collaboration with the financing bank and Primary
Agricultural Cooperative Banks which are affiliated to it, to link up
the supply of credit by the Primary Agricultural Cooperative Banks to
member producers with the marketing of their products and for that
purpose to act as agent of the Primary Agricultural Cooperative Banks
for recovery of production loan given by them to their members.
 To act as agent of the affiliated societies in the matter of receiving safe
custody in its godowns or elsewhere, the produce pledged to such
societies by their members
 To act as an agent of Consumer Cooperatives or the Federation or any
other Cooperatives for the Purchase of commodities which it may
require.
 To propagate and supply pure seeds.

23
 According to the Agricultural Department's advice, to disseminate
among the members the knowledge of the latest improvement in
agriculture by arranging actual demonstration carried out by each
member in his own land.
 To act as a Warehouseman under the Tamilnadu Ware House Act
1951.
 To encourage thrift, self-help, and Cooperation among the members.
 To undertake distribution of essential commodities to Family Card
holders under the Public Distribution System and for to open Fair
price shops.
 To act as a lead society in the implementation of a Public Distribution
System.
 To act as an agent for the sale of finished products of other
cooperatives or as distributer of deputed firms for the sale of
agricultural machinery and implements.
 To open branches or depots or seasonal market yard of the Society at
suitable places within the area of operation of the Society with the
permission of the Registrar.
 To process raw materials belonging to the members of affiliated
societies or purchased by the Society.
 To do such other Acts as incidental or conducive to attaining the
above principle and other objects of the Society.

2.5 Functions
 Purchase potatoes from the farmers and sell through the Auction yard
 Sell fertilizers, seeds, pesticides, and agricultural implements to the
farmers at a low price.
 Procurement and sales of Ooty vegetables through the Auction yard.

24
  Give Jewel Loan to the members.
 Earn income by giving to rent Marriage Hall.
 We are providing Parking space to the Tourists.
 Providing lodging facilities to the farmers at the Mettupalayam
Auction yard
 To function as a dealer and distributor of LPG domestic cylinders
from the Indian Oil Corporation.
 To provide storage facilities.
 Distribution of Kerosene through fair price shops.

2.6 Vehicles
The Society owns five vehicles consisting of 2 lories for the
transportation of the agricultural produce and inputs and three jeeps for
the use of Officers like Managing Director, President, Secretary and
others and distributing the agricultural inputs like pesticides, seeds, and
implements to the outlets.

Table.2.2

The details of activities undertaken by the marketing society (NCMS)

S.No Details of Activities

01 Marketing of Vegetables Produced by the Farmers of Nilgiris District
02 Production and Distribution of Crop Specific Fertilizers and Chemicals
03 Fertilizer Mixing Unit to meet the Requirements of Different
Vegetable Crops
04 Distribution of Jewel Pledge Loan to the Farmers of Nilgiris
05 Distribution of Kerosene to the Farmers Through Public Distribution
System
06 Distribution of Liquid Petroleum Gas to the Farmers

25
 07 Vehicle Parking Facility for the Tourists
08 Computerized Weigh Bridge Services
09 Providing Community Hall Services to the Farmers
10 E-Trading platform established at the Mettupalayam Unit.

2.7 Cadre Strength

As of date, the approved cadre strength is 78 employees and 34
body constituted posts. Nearly 40% of the cadre strength remains vacant
due to retirement and death, with no new appointments.

Table 2.3
The cadre strength of the Society
The approved Number of regular Number of vacant
cadre strength employees posts
of the Society working at present
78+34 32+18 40

2.8 Membership and Share Capital Details

 The number of members as of 31.01.2021 is Rs. 26,198.
 The share capital as of 31.01.2021 is Rs.9.73 lakhs respectively

2.9 Audit Status

An audit has been completed up to 2018-2019, and the report for
the year 2019-2020 is in progress. Society has been functioning
continuously in Profit, and there is no accumulated loss.
26
 TABLE NO 2.4
The financial status of the Nilgiris Cooperative Marketing Society
S.No Year Net Profit Status
1. 2011-2012 82,74,295.50 Audited
2. 2012-2013 90,82,080.00 Audited
3. 2013-2014 3,01,86,080.00 Audited
4. 2014-2015 3,18,50,428.00 Audited
5. 2015-2016 3,48,50,000.00 Audited
6. 2016-2017 3,90,75,612.65 Audited
7. 2017-2018 4,10,11,215.32 Audited
8. 2018-2019 2,06,01,960.66 Audited
9. 2019-2020 2,75,25,659.99 Approximately

Figure No 2.1
The financial status of the Nilgiris Cooperative Marketing Society

27
 Profit in lakhs
600

500

400

Profit in lakhs
300

200

100

0
2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019-
2013 2014 2015 2016 2017 2018 2019 2020

CHAPTER - III
28
BUSINESS PERFORMANCE OF
THE SOCIETY LIMITED

CHAPTER – III
3.1 INTRODUCTION
The Society being formed even before independence has entered
into versatile business activities influencing The Nilgiris people. It has
helped the farmers in marketing their products as well as providing them
quality agricultural inputs. Though the main aim is to help the farmers,

29
 the Society has entered into various business activities and also has
succeeded in its diverse activities.

3.2 MARKETING OF AGRICULTURAL PRODUCES

The agricultural produces grown by the farmers in the Nilgiris
district- Potatoes, hill vegetables, and garlic are marketed through the
marketing yards of the Society at Mettupalayam by daily auction to their
best advantages, during the season commencing from June to December.
At Udhagamandalam Municipal market, a vegetable auction center
has been functioning to help the small and marginal farmers and those.
They bring their produce on head loads in open auction. Through this
Unit, a significant quantum of agricultural produce is sold throughout the
year.
Of late, the farmer community and general public have a keen
interest in raising tea gardens. Since raising tea is a one-time investment
and also permanent. The high cost of potato cultivation also forces
farmers to switch over to tea plantations. Due to the above fact and
reasons, the area under potato cultivation is reduced considerably.

TABLE 3.1
MARKETING OF AGRICULTURAL PRODUCES (value in lakhs):
.
Potatoes Vegetables and Garlic
Year Quantity in Value in Quantity in Value in
Mts. Lakhs Mts. Lakhs
2014-2015 17986 2190.57 2095 748.56
2015-2016 18127 2795.67 2785 928.97
30
 2016-2017 18650 2853.90 3590 1253.66
2017-2018 19297 2995.58 3646 1317.81
2018-2019 13385 2703.21 2229 729.07
2019-2020 13976 3179.09 10894 706.48
2020- 12741 4376.60 949 290.7
31.01.2021

FIGURE 3.1
MARKETING OF AGRICULTURAL PRODUCES (value in lakhs):

3000

2500

2000

Agricultural seeds
1500
Pesticides
Fertilizers
1000

500

0
2016-2017 2017-2018 2018-2019 2019-2020

3.3 Distribution of Agricultural Inputs

Fertilizer Mixing Unit
The Society has two fertilizer mixing machines installed at the
Mettupalayam Fertilizer Mixing Unit to produce various mixed fertilizers
by the mixing of straight fertilizers procured from cooperative and public
sector institutions like KRIBHCO, IFFCO, IPL, and FACT Ltd. Etc and

31
distribute them throughout the District through the 18 own sales outlets as
well as 74 Primary Agricultural Cooperative Credit Societies.
The various standard mixtures produced and marketed by the
Society as per the ratio bits of advice in the fertilizer control order are as
follows.
1. Std. No. 4 (Potato)
N : P: K
6: 12: 6
2. Std. No. 5 (Vegetable)
N : P: K
9 : 9: 9
3. Std. No.18 (Potato and Vegetables)
N : P: K
17: 17: 17
4. Std. No. 12 (Tea Mixture) Ammonium Based
N : P: K
16 : 0: 12
5. Std. no. 16 (Tea Mixture) Ca Based
N : P: K
20 : 0: 10
6. Std. No. 26. (Tea Mixture) Urea Based
N : P: K
26 : 0: 26
7. Std. No. 27 (Tea mixtures)
N : P: K
21 0: 32
8. Std. No. 24 (Tea and Coffee)
N : P: K
20: 6: 10

32
 Table.3.2
Complex fertilizer production for the requirements of different
vegetable crops

S. No Name of the Crop Fertilizer Complex

identification Fertilizer Ratio
number (N: P: K)
1 Potato and other 04 06:12:06
Vegetables
2 Vegetables 05 09:09:09
3 Tea 12 16:00:12
4 Tea 16 20:00:10
5 Potato 18 17:17:17
6 Tea and Coffee 24 20:06:10
7 Tea 26 26:00:26
8 Tea 27 21:00:32

The Society has its analytical laboratory at Mettupalayam, and the

quality of fertilizer/mixtures is maintained by the
society.
Apart from the fertilizers sales, the Society is engaged in quality
seeds, pesticides, and implements distribution. The performance of the
Society in the agricultural input distribution is given below.

TABLE 3.3
AGRICULTURAL INPUT DISTRIBUTION(Value in lakhs)
Agricultural
Fertilizers Pesticides Implements &
Year Seeds
Quantity in Value in Lakhs Value in Lakhs Value in Lakhs

33
 Mts.
2014-2015 17986 2806.82 70.93 120.91
2015-2016 18876 2903.03 86.83 140.86
2016-2017 19205 3022.32 136.01 162.77
2017-2018 19017 3002.19 230.99 186.98
2018-2019 9784 1334.13 73.36 77.39
2019-2020 10195 1544.49 54.30 113.63
2020- 10055 1534.22 49.40 140.78
31.01.2021

FIGURE 3.2
AGRICULTURAL INPUT DISTRIBUTION (Value in lakhs)

2500

2000

1500

Value of fertilizers in lakhs

1000 Value of pesticides in lakhs
Value of Agricultural im-
plements and seeds in
500 lakhs

0
1 6 1 7 1 8 1 9 2 0
1 ....
20 20 20 20 20 1.
0
1 5- 1 6- 1 7- 1 8- 1 9- 3
20 20 20 20 20 2 0-
20

3.4 Other Activities

Apart from the significant activities, society is also engaged in
various other activities to maintain and increase the business turnover.
Distribution of jewel loan at five centers of the District, distribution of
Indane LPG based at Gudalur, distribution of Kerosene under the PDS
system in the head office complex, running off two community halls,

34
godowns on rent at Regent House Complexes and Sailing House
Complexes, running away bridge with 60 Metric Tons capacity at
Charing Cross Udhagamandalam are the major diversification activities
of the Society.

3.4.1 Jewel Loan

 The Society has started issue of jewel loan at its Mettupalayam
branch from 19.08.1994, and subsequently, additional jewel loan
units were opened
 To apply various inputs in the production process, the farmers
require investment. Since most of the farmers have one to two acres
of land, they face financial problems to carry out the agricultural
operations; they seek financial assistance from the money lenders and
traders. In Traditional Marketing Systems, the producers or growers
often receive financial support from Traders
 Since the money lenders and traders follow a threatened approach and
make the farmer an indebted situation, the NCMS has come forward
to provide the pledge loan facilities to the farmers.

TABLE 3.4
JEWEL LOAN ISSUED AND OUTSTANDING (Value in lakhs)

Year Jewel loan issued Jewel loan outstanding

(Value in lakhs) (Value in lakhs)

35
 2014-2015 2208.74 1560.43
2015-2016 1957.59 1118.84
2016-2017 1873.57 1274.05
2017-2018 1704.66 1174.73
2018-2019 1716.30 1114.67

2019-2020 2373.06 1508.85

2020-31.01.2021 2488.50 1995.42

FIGURE 3.3
JEWEL LOAN ISSUED AND OUTSTANDING (Value in lakhs)

36
 3000

2500

2000

1500

Jewel loan issued

1000
Jewel Loan Outstanding

500

0
15 16 17 18 19 20 21
20 -2
0 20 20 20 20 20
4- 15 6- 7- 8- 9- 1.
1 1 1 1 1 .0
20 20 20 20 20 20 31
2 0-
20

3.4.2 Weighbridge at Charing Cross

The Society is running a computerized Weigh Bridge with 60 MT
capacity installed under the Government fund by the 110 announcements of
the Honourable Chief Minister of Tamilnadu. Fund of Rs. 22,00,000/- has
been released by the Tamilnadu Cooperative Union for the purpose. It helps
the accurate weighing of the District's farmers' agricultural produce for the
marketing at Mettupalayam auction centers.
TABLE 3.5
Year Total Quantity in Metric Tonne Value in (Rs)
Vehicles

2016-2017 5571 11383.470 385580.00

2017-2018 5582 9565.000 429860.00
2018-2019 6751 12335.500 462910.00
2019-2020 7201 15041.460 495370.00
2020- 2379 6073.710 291720.00
31.01.2021

37
 3.4.3 Distribution of Indane LPG

The Society has been appointed as one of the distributors of Indian Oil
Corporation Ltd. For doing distribution of Liquefied Petroleum Gas
(Domestic and commercial cylinders) at O'Malley town panchayat of
Gudalur Taluk of Nilgiris District. As of 31.12.2018, more than 10,000
connections were released to the general public.

3.4.4 Distribution of Kerosene

Distribution of kerosene oil has been undertaken under Public

Distribution System, issuing Kerosene to the family cardholders on the
bunk system, thereby helping the district administration issue Kerosene to
the public. It is distributed through 6 fair price shops to about 5025 family
cardholders. Monthly, about 25,000 liters of Kerosene are distributed by
the Society.
TABLE 3.6
TOTAL SALES OF KEROSENE
Year of sales Total sales amount in lakhs
2016-2017 17.23
2017-2018 7.22
2018-2019 7.00
2019-2020 6.62
2020-31.01.2021 4.64

3.4.5 Community Halls – Kalyana Mandapams

Apart from the other services, the Society runs two community halls
or Kalyana mantabams at comparatively cheaper rates for the members
and the general public's convenience. One is operating at Kotagiri, and

38
another one is working at the head office complex, Udhagamandalam.
The Udhagamandalam community hall has been modernized through the
Integrated Cooperative Development Project and is opened to the public.
TABLE 3.7
TOTAL SALES BY RENT OF NCMS COMMUNITY HALL

S.NO Year of sales Sales through

renting (Rs)

1. 2018-2019 6,21,600
2. 2019-2020 7,87,000
3. 2020-31.01.2021 12,500

3.4.6 Storage Facilities

The Society is already having 16 godowns with a total storage

capacity of 14,575 MT. Tons for storing agricultural inputs and
agricultural produce for marketing.
The godowns were fully utilized by either storing commodities or
renting out the vacant godowns by which rental income is derived. The
Society has rented out its surplus godowns to the following institutions.
 TASMAC
 Nilgiris District Consumers Cooperative Wholesale Stores Ltd.
 Deputy Director Of Health Services, Udhagamandalam.
 Deputy Registrar Of Cooperative Societies, Office.
 District Consumer Redressal Forum

Substantial income is being derived as building rent.

3.4.7 Parking Ground

39
 At the head office at Udhagamandalam, about 2 acres of ground has been
provided for parking vehicles for the tourists. Parking facilities are
provided at low costs. This helps in overcoming traffic congestion during
the season period. Close to the parking ground, modern toilets and
bathrooms are being built to facilitate the tourists.
TABLE 3.8
Income earned through vehicle parking facility
S. No Year Income Earned through
Vehicle Parking in Rupees

01 2014-15 1941760.00
02 2015-16 2307428.00
03 2016-17 2297850.00
04 2017-18 2264288.00
05 2018-19 1158470.00
Average 1993959.20

3.5 INNOVATIVE PROJECTS AT NCMS:

3.5.1 SUPPLY CHAIN MANAGEMENT

 It is implemented by the Department of Agricultural Marketing

and Agri-Business.
 The project's objective is to integrate the Farmers Producers with
significant market centers, processors, and consumers to provide
integrated and complete supply chain management infrastructure
for perishable fruits and vegetables.
 It reduces post-harvest losses to ensure remunerative prices to
the farmers and convert surplus production into value-added
products.

40
  Primary Processing Centres are established as a platform to carry
out the process and provide logistics support to take the produce
to terminal markets.

Primary Processing Centre at NCMS:

 In the Nilgiris region, the PPC has been established in
Kothagiri in 0.5 acres to serve the farmers to markets their
produces.
 The PPC has been working and has earned a significant amount
of value since its inception.

TABLE 3.9
Name of Name of the Infrastructure Cost of the
the District APCMS infrastructure
Nilgiris Nilgiri Co- Auction hall, Rs.4.90 Crores
(Inclusive of
operative Grading and Packing
machinery and
Marketing hall (10 MT Cold
Civil Works
Society Storage), Genset
Equipment for Multi
produce (Line 3) 1
TPHR capacity.

3.5.2 E-TRADING

41
 Buying and selling agricultural commodities through electronic
trading portals situated at APMC's (or) other market yards is known
as e-trading. The quality details of the farming products are displayed
on the electronic platform, traders from different parts of the State
participate in the buying process and quote prices electronically. The
sale proceeds are also transmitted online.
 In many mandis, the traders quoted Prices online after visual
inspection/scientific assaying of the commodity and based on the
available market information. The price quotes are tabulated
automatically, and the highest bidder gets to buy the item.
 Information regarding the highest quote is then communicated to the
farmer as text messages, displayed on big screens or loudspeakers.
Farmers get the opportunity to accept or reject the offer. If the farmer
gets born, money gets transferred to him through RTGS/Cheque/cash.
The trader gets to take the commodity after obtaining the exit permit
from the mandi.

42
 FIGURE 3.4

3.6 Future Plans of the Society

 Arasu Cement – Proposal has been sent to function as an agent for
Arasu cement in the Nilgiris District.
 Indian Oil Corporation - Proposal has been sent to open a petrol bunk
with Indian Oil Corporation.
 Opening new branches – To open jewel loan branches at the Head
office and Coonoor branches with safety locker facilities.
 To open new fertilizer sales centers.

3.6 A deep insights on the future plans

43
1. One of the activities for diversification is becoming a dealer of Arasu
Cement. It is one of the good efforts because most of the cement
requirements were drawn from the nearby cities like Mettupalayam and
Coimbatore, and hence the NCMS can establish such a business which
will be of promising in nature due to the growing demand for
construction activity in Nilgiris. But the further expansion of the city
should not create ecological and environmental issues, and hence the
same should be subjected to environmental scrutiny.

2. The second proposal available with NCMs is the establishment of the

Indian Oil Corporation petrol bunk. This is also a good effort. Because of
the availability of land with NCMS, it can operate a petrol bunk on
Chinthamani Cooperative Stores' lines in Coimbatore city. Increasing
urbanization and vehicular traffic, a reasonable demand exists among the
two and four-wheelers if the product is offered at the offer price and
quality enforcement to convince the consumers.

3. The establishment of new branches for fulfilling or extending the

pledge loan provision to the farm and rural households is also an ideal
proposal. Hence, the NCMS can explore the demand-driven environments
to gain considerable revenue. It is learned that the NCMS has identified
the place at Ooty and Coonoor of Nilgiris District with a safety vault for a
pledge loan facility to the farmers. This will contribute to the agricultural
operations planned by the farm households of Nilgiris.

4. To promote the fertilizer sales, the Fertilizer Distribution Centres were

also aimed at, and the Managing Director of NCMS has identified
different points. The potential places for establishing the fertilizer
distribution centres were found to be Pandalur, Thenaducumbai,

44
SolurMattam, and Nedugula. These areas have been identified to tap the
possible villages in which farming operations were intensive, and hence
the inputs like fertilizer will have much demand, and hence NCMS could
reap the Profit from fertilizer and another input sale.

45
CHAPTER – IV
FINDINGS,
SUGGESTIONS
& CONCLUSIONS

CHAPTER – IV

46
 A SUMMARY OF
FINDINGS, SUGGESTIONS, AND CONCLUSION

4.1 Findings
Generally, Agricultural Marketing activities are fully
grasped by the whole set of intermediaries from harvest zone to the
consuming end, and hence the producers placed with a dismal share of
Profit, and the intermediaries are gaining much. To alleviate this process,
cooperative marketing was practiced by a progressive farmer, Auri
Gowder. Nilgiris Cooperative Marketing Society is a special type of
marketing society established during pre-independence and currently
involved with the diversification of various activities and extending
valuable services to the farm households who are cultivating the hill
vegetables at Ooty. The farmers' main activities were getting benefitted
were direct procurement of vegetables by NCMS and selling the same to
the consumers and the traders directly. Besides, the farmers are provided
with inputs like fertilizer, pesticides, and seeds for taking up vegetable
cultivation. Pledge loan facility is also extended to the farming
community to meet the immediate cash needs for taking up the
cultivation practices. On analyzing the profit scenario, the Society can
generate a net profit of Rs 234 lakhs per annum on an average. To
enhance the return further, futuristic programs are also aimed at and are
under consideration by the Government.
K.707 The Nilgiris Cooperative Marketing Society Ltd. is
functioning in an effective manner. It has been functioning continuously
in Profit in the past years. The Society is performing diverse business
activities and is gaining through all its activities. It has obtained Fertilizer

47
Mixing unit and Weighbridge through the 110 Announcement scheme
and is utilizing them effectively.
Though versatility is a good sign of growth, it appears as though
the Society is moving away from its principal objective of helping the
farmers. A society should be more of service-oriented than being Profit
oriented. Assisting a farmer to earn his life is more important than giving
dividends to its members. During the past four years, the number of
members remains the same. So the principal object is slightly
questionable. The Government and NABARD have funded E-Trading
and Supply Chain Management processes, and yet the performance is not
up to the mark. The farmers are not aware of the process, and less
attempts have been made to create awareness of these digitized processes.
However, if the right amount of knowledge is created among the masses,
it would prove highly beneficial to the farmers and Society.
Otherwise, the Society has won The Best Society award at the
district and state level many times. The Society has been a site for an
educational tour for the Cooperative and students of Tamilnadu
Agricultural University.
The idea of the Society to enter into diverse business activities
shows its development and effectiveness. The Working capital has been
increasing in the past period. The Society has made investments and has
cleared all its debts, making it a positive sign for improved functioning.

4.2 Suggestions
 The Society should increase the marketing of agricultural produce.
 The Society should extend the agricultural marketing to other
vegetables in an effective manner.
 It should provide education and support to its members in cultivating
other hill vegetables also.
48
 It should provide educational facilities to the farmers regarding
irrigation utilization of scarce water sources.
 Society should try to market food grains other than vegetables. It
should encourage the farmers to cultivate the native breeds of grains.
 The Society should introduce and develop organic fertilizers in the
District. Since chemical fertilizers tend to erode the soil's nutrition and
Nilgiris being a mountainous region, the soil's organic content is vital
for sustained well-being.
 The Society has a large empty area in the town space of
Udhagamandalam. It could use this area to create a regulated market
within the District. This would help small local farmers.
 The Society should increase its number of members covering all he
village areas and thereby including even petty farmers.
 The Society can provide employment to the local people through
outsourcing.

4.3 Conclusion
The performance evaluation of K.708 The Nilgiris Cooperative
Marketing Society Ltd. reveals that the Society's performance is going on
outstandingly and healthily. It has ventured into new and diverse business
activities and has also succeeded in all those activities. In the same way,
the fruits of Cooperation should reach the baskets of all people.

BIBLIOGRAPHY:
 The practice of Co-operative - A.P.Subramaniam
 Cooperative Principles problem and practices - T.N.Hajela

49
 Annual reports of K.708 Nilgiris Cooperative Marketing Society Ltd.
 Audit Reports of K.708 Nilgiris Cooperative Marketing Society Ltd.
 Other relevant records and registers.
 www.en.wikipedia.org/wiki/cooperative

50