Role of Co-Operative Society in Rural Marketing:

ROLE OF CO-OPERATIVE SOCIETY IN RURAL MARKETING:

WHAT IS A COOPERATIVE SOCIETY?

A cooperative society is an autonomous association of persons who voluntarily cooperate for their mutual, social, economic, and cultural benefit. Cooperatives include non-profit community organizations and businesses that are owned and managed by the people who use its services (a consumer cooperative) and/or by the people who work there (a worker cooperative).

CHARACTERISTICS OF COOPERATIVE SOCIETY IN RURAL MARKETING:

* Open membership

* Voluntary Association

* State control

* Sources of Finance

* Democratic Management

* Service motive

* Separate Legal Entity

* Distribution of Surplus

* Self-help through mutual cooperation

ABOUT COOPERATIVE SOCIETY:

The Companies Amendment Act 2000 made it possible to create cooperative societies as companies. The objects of such Company should include production, processing manufacture and sale of primary produce and allied matters. Primary producers and persons connected with primary produce can become members. Members’ equity is not publicly traded, but can be transferred with approval of the Board of Directors of the company. Producer Companies are not vulnerable to takeover by MNCs and other companies. Existing cooperative society can be converted into a producer company and re-converted into an interstate cooperative society, if the majority so desires.

Cooperatives have demonstrated that they can contribute to economic and social development. Though the value which cooperatives contribute to society may differ depending on their individual objectives, they stand to play a vital role in finding solutions to unemployment and promoting other much need skills.

They ensure their members are in a better position to meet their everyday needs, especially in rural areas where jobs are scarce and basic services are lacking.

They aim to empower the people by enabling even the unprivileged segments of...