Question

What is meant by Consumer Cooperative Store? Explain its merits in brief.

Answer 1

A consumer cooperative store is a retail organization owned, managed, and controlled by the consumers themselves to obtain products of daily use at reasonable low prices. Its objective is to eliminate profits to middlemen by establishing direct contact with the manufacturers.

For people belonging to middle and low-income groups, at least 25 persons have to come together 1 to form a voluntary association and get it registered under the Cooperative Societies Act. The capital of a cooperative store is raised by issuing shares to members. The management of the store is democratic and entrusted to an elected managing committee, where “one man one vote” is the rule.

The cooperative stores are very famous in Tamil Nadu. For example, Kamadhenu and Chinthamani cooperative supermarkets in Chennai, Karpagam in Vellore, etc.