PRESENTATION OF RURAL MARKETING
Submitted To, Prof. Mukesh Ranga
Submitted By, Monica Kalwani Neelam Pandey Archna Verma MBA (B.E.) 3rd sem. (2011-2013) IBM,CSJMU Kanpur.
CO-OPERATIVE MARKETING
LIST OF CONTENTS
Co-operative Marketing Co-perative Marketing in India Co-operative Societies in Agriculture 4-25
27-40
42-51
According to RBI
Co-operative Marketing is a cooperative association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably, than is possible through trade.
Objective
To secure best possible market price for members products To reduce the cost of marketing To act as a powerful check upon the monopolistic power To save farmers from exploitation Protection of consumers interest
Need and Importance
Abolition of Middlemen Collective Bargaining Storage Facility Standardization and Grading
Need and Importance
Higher prices to members Large and wide Infrastructure Supply inputs & Consumer goods Relief from illegal deduction
Advantages
Provides easy and cheap credit Offers Collective bargaining to farmers Help reduce price spread
Advantages
It links, integrate and streamline production, processing and marketing Guarantees of a fair return
Business Operations
[Link] Business [Link] Purchase [Link] Against Stock [Link] [Link]
Business Operations
[Link] [Link] [Link] of Inputs to Agriculture [Link] Of Consumers Goods [Link] [Link]
Business Operations
[Link] Business -The marketing society acts as the agent between the farmers and the traders.
Business Operations
[Link] Purchase - The marketing society purchases the farmers produce outright by making them payments immediately.
Business Operations
[Link] Against Stock
- The marketing co-operative helps farmer by allowing them to store their product with it for which they receive advance payments.
Business Operations
[Link] - In this type, farmers produce is assembled and sold in one lot instead of selling on an individual basis by the farmers.
Business Operations
[Link] - The farmer is motivated to raise its product quality, for which he is rewarded with better returns.
Business Operations
[Link] - The marketing society take up the work of processing the commodities and make them fit for consumption.
Business Operations
[Link] - On behalf of the government, the marketing society may take up the procuring agricultural produce from the farmers to ensure their products with the minimum support price fixed by the government.
Business Operations
[Link] of Inputs to Agriculture - The members are provided with the inputs necessary for better cultivation.
Business Operations
[Link] Of Consumers Goods - The marketing society supplies essential goods at reasonable prices, in areas where viable consumer cooperatives do not exist.
Business Operations
[Link]
- The marketing co-operative provides its members with storage and transport facility.
Business Operations
[Link]
- If there is foreign demand then the society arranges for export through its higher marketing organization.
Co-operative- Marketing
In INDIA
Scope
[Link] average farmer in India is illiterate and poor is prone to exploitation And does not have adequate storage facilities.
Scope
[Link] transportation network in our country is not well developed.
Structure Of
Co-operative Marketing
NAFED State Co-operative Marketing Federation District Marketing Co-operative Society
Primary Marketing Co-operative Society
Dr. Bijender Singh, MLA, Chairman, NAFED
NAFED
National Agricultural Cooperative Marketing Federation of India Ltd.(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 setup with the object to promote Co-operative marketing of Agricultural Produce to benefit the farmers. Agricultural farmers are the main members of Nafed, who have the authority to say in the form of members of the General Body in the working of Nafed.
Source of Finance
Marketing societies raise their finance by Issuing Shares The State Govt. purchases half the number of shares.
Source of Finance
Raising Loans Loans are raised from [Link] Central Co-operative Bank
[Link] National Co-operative
[Link] Corporation
Source of Finance
[Link] National Agricultural Cooperative Marketing Federation
[Link] State Bank of India
[Link] Marketing Board
Failure of Marketing Cooperatives in India
They do not have sufficient storage space.
The loaning policies has been faulty. Their operational costs are high.
Their staffs are untrained.
Reasons behind Failure
[Link] are indifferent to Cooperatives [Link] co-operatives do not have a well thought out programme of action in regard to the conduct of different marketing activities
Reasons behind Failure
[Link] is no proper link between Primary Marketing Co-operatives and State Marketing Federation, Primary Marketing Societies and Primary Credit Societies [Link] managing committees of most marketing societies do not take keen interest in conduct of their business.
Reasons behind Failure
[Link] marketing societies provide only few marketing services such as processing, to the farmers
[Link] societies suffer from lack of sufficient working capital.
Measures for Improvement
[Link] relationship between marketing and credit societies. [Link] Marketing Societies should be member of the State Marketing Federation. [Link] marketing societies must work out the detailed plans best suited to their local conditions.
Measures for Improvement
[Link] management committee should be wisely elected to ensure effective functioning. [Link] Central and State Government must help the societies to build proper storage places.
Measures for Improvement
[Link] and standardization must be done by experts hired by marketing society. [Link] Government must offer adequate financial assistance to marketing societies
CO-OPERATIVSOCIETIES IN AGRICULTURE
PRIMARY AGRICULTURE COOPERATIVESOCIETIES
An agricultural cooperative society, also known as a farmers' co-op, is a cooperative where farmers pool their resources in certain areas of activity. Agricultural production cooperatives are relatively rare in the world, and known examples are limited to collective farms in former socialist countries
PRIMARY AGRICULTURE COOPERATIVESOCIETIES
Marketing cooperatives are established by farmers to undertake transformation, packaging, distribution, and marketing of farm products The co-operatives societies have madean allround progress and their role in, and contribution to agricultural progress has particularly been significant.
INTRODUCTION OF CO-OPERATIVE MOVEMENT
The Co-operative Movement was introduced into India by the Government. The Co-operative Credit Societies Act, 1904 was passed by the Governmentof India and rural credit societies were formed. Within a short period, the Government realized that there are some shortcomings of the 1904 Act and, therefore, passed a more comprehensive Act, known as theCo-operative Societies Act of 1912
FEATURES
[Link] AGRICULTURAL CREDIT SOCIETIES Assessment of credit needs Disbursement of credit to members Recovery of credit Promote the economic interests of the members
2 DISTRICT CENTRAL COOPERATIVE BANKS Serve as balancing centre in the district central financing agencies Organise credit to primaries Carry out banking business Sanction , monitor & control implementation of policies
4. NATIONAL FEDERATION OF STATE COOPERATIVE BANKS Provides a common forum to the member banks Promotes and protects the interests of the member banks Co-ordinates and liaison with government of India,
5. RESERVE BANK OF INDIA , NATIONAL BANK AND OTHERS Provides research and consultancy inputs to the member banks Organizesconferences/seminars/ workshops/meetings
TYPES OF SOCIETIES
Co-operative Weaver's society Co-operative Consumer's Societies Co-operative Housing Societies Co-operative Women's Societies Co-operative Milk-Societies
CHALLENGES BEFORE CO-OPERATIVES
Co-operatives have covered 100% of villages and 67% of rural households. Co-operative sector contributes 50% of total agricultural credit and distributes 35% of total fertilizer consumption in the Country. They are procuring 60% of total sugar-cane. They are also playing crucial role in the agroprocessing sector i.e. processing of sugarcane, milk, cotton and oil seeds etc.
CHALLENGES BEFORE CO-OPERATIVES
There are about 5.5 lakhs of cooperative Societies with membership of more than 22crores. It covers a wide range of commercial activities and nearly 50% of them are engaged in agriculture and agriculture related matters. Nearly 70% of the Indian population being dependant on agriculture, is thus, connected with agricultural Co-operatives.
REFERENCE
[Link] Wikipedia Various slides on internet
QUIZ ROUND
[Link] form of NAFED and who is Chairman of it. [Link] any three business operations in co-operative marketing. 3. Co-operative Credit Society Act was passed in year.
