A co-operative society is a voluntary association of persons who join together to safeguard their own interests. The primary object of forming a co-operative society is to protect the weaker section of society. The co-operative society can be classified from different points of view. Types of co-operative society are described below:
Types of a co-operative society
1. Consumer’s co-operative societies:
Consumer’s co-operative societies are established by the consumers of a certain loyalty for the purpose of the economic and social upliftment of their members.
The objectives of the consumer’s co-operative societies are:
- Availability of consumer goods of higher quality at a cheap rate.
- Maintaining stability in the prices of essential commodities.
- Avoiding black marketing and hoarding practices.
- Avoiding the evil effects of inflation as far as possible.
- Establishing equality of status among the members.
- Enhancing the purchasing power of the members.
2. Producer’s co-operative societies:
These societies are formed for the benefit of small producers, who have difficulty collecting various factors of production and face market problems. The objectives producer’s co-operative societies are:
- To stimulate higher production.
- To improve the quality of the products.
- To make full use of the available industrial skills of individuals.
- To utilize idle manpower.
- To strengthen the position of small scale artisans or crafts.
3. Marketing co-operative societies:
These societies are formed to enable their members to secure fair prices for their goods. In other words, these co-operatives are associations of producers for selling their products at remunerative prices. The objectives of these societies are:
- To ensure a ready, steady, and favorable market for the products of different members.
- To eliminate middlemen and reduce the costs of marketing.
- To improve the bargaining position of the producers.
- To control the flow of supplies and thus influence prices.
4. Housing co-operative societies:
These societies are organized to provide residential accommodation to their members, either on an ownership basis or at fair rents.
The members of the society contribute their savings to the common fund of the society with borrowed money from banks to by a plot to land in order to construct a building for their dwelling purposes.
5. Farming co-operative societies:
These societies are voluntary associations of small farmers, who join hands with the objectives of achieving the economics of large scale farming and maximizing agricultural output.
Scientific agriculture involves mechanization of farming, provision of improved seeds, fertilizers, improved methods of cultivation, irrigation, soil conservation, etc. which can be ensured through farming co-operative societies.
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