Question

Attempt the following:

Explain various types of Co-operative Society.

Answer 1

Types of Co-Operative Society are as follows:

1. Consumer Co-operative Societies: A consumer co-operative is a business owned by its customers. They purchase in large quantities from wholesalers and suppliers in small quantities to customers. Goods are provided to buyers at reasonable prices and also provide services to them. Members get a share in the profit. The consumer society is formed to eliminate middlemen from the distribution process e.g.-Apana Bazar, Sahakari Bhandar.
2. Credit Co-operative Societies: Members pool their savings together with the aim of obtaining loans from their pooled resources for productive purposes and non-productive purposes. They may be established in rural areas by agriculturists or artisans called a Rural Credit Society. They may be established by salary earners or industrial areas called Urban Banks, Salary Earners Society, or Workers Society.
3. Producer’s Co-operatives: Producer’s Co-operatives are voluntary associations of small producers and artisans who come together to face competition and increase production. These societies are of two types:
   (a) Industrial Service Co-operatives: This society supplies raw materials, tools, and machinery to the members. The producers work independently and sell their industrial output to the co-operative society. The output of members is marketed by society.
   (b) Manufacturing Co-operatives: In this type, producer members are treated as employees of the society and are paid wages for their work. The society provides raw material and equipment to every member. The members produce goods at a common place or in their houses. Society sells the output in the market and its profits are distributed among the members.
4. Marketing Co-operatives Societies: These co-operatives find better markets for members to produce. They also provide credit and other inputs to increase members' production levels. They perform marketing functions such as standardising, grading, branding, packing, advertising, etc. The proceeds are then distributed among members depending on the quantities sold.
5. Co-operative Farming Societies: Farmers voluntarily come together and pool their land. The agricultural operations are carried out jointly. They make use of the scientific methods of cultivation.
6. Housing Co-operative Societies: Housing Co-operatives are owned by residents. Society purchases land and develops it. Houses are constructed for residential purposes on an ownership basis. They aim at establishing houses at fair and reasonable rents to members. For construction purposes, loans are made available from Governmental or Nongovernmental sources. The society also looks after the maintenance of its buildings.