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