Co-operative Marketing

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Farmers come together to collectively carry out the operations in carrying the produce to the consumer. Farmers supply their excess produce to the co-operatives for a price and they in turn process it and sell it at the ‘mandi’ level.

 

Importance of co-operative marketing:

1. Sells the members produce directly in the market at the best price:

Since they have the advantage of collective bargaining they can sell the produce at the best price.
2. Abolishes middlemen:

By abolishing the middle men they are able to protect the interests of their members.

 

3. Storage facility:

They have their own godowns for storage of their products and provide storage to its members at a nominal charge.

 

4. Standardization and grading:

Goods are arranged according to their standards and are sold at the highest price possible.

 

5. Infrastructure:

Co-operatives have very good infrastructure such as godowns, warehouses, transport and grading.

 

6. Supply inputs:

Because co-operative societies can avail credit easily they can provide inputs to their members.

 

Example:

HPMC (Himachal Pradesh Horticulture Produce Marketing and Processing Corporation Ltd.) markets fresh fruits and processes the excess stock.

 

 

 

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