What are the different types of cooperative societies?

cbse
formsofbusiness

#1

1.Consumers cooperative societies : These societies are formed to protect the interests of the consumers. Basically, its members are the customers who want to get better quality products at reasonable prices. The main aim of the society is to achieve economy of sales by eliminating middlemen. Goods are purchased in large quantities directly from the wholesalers and are sold to the members.
2. Producers’ cooperative societies : These societies are formed to protect the interests of small producers. Such a society consists of the small producers who find it difficult to obtain inputs like raw material, equipments, etc. to sell their output. These societies are formed to achieve two objectives:
(i)To supply inputs to the members and also to purchase their output for sale.
(ii)To protect small producers from big capitalists in order to increase the bargaining power of the small firm.
3.Marketing cooperative societies : These societies are formed to help the small producers in selling their products. Its members are the producers who want to obtain reasonable price for their output. The main aim of such a society is to eliminate middlemen and to provide a secured and favourable market for the products. The society also performs various marketing functions like transportation, warehousing, grading, etc. It ensures the sale of output at the best price." ’
4.Farmers cooperative societies : These societies are formed to protect the interests of the farmers. The members are those farmers who want to carry on farming activities jointly. The basic purpose of forming these societies is to obtain benefits of large- scale farming thereby increasing the productivity. These societies provide better quality seeds, fertilizers, manures and other equipments for use in the cultivation of crops. These societies help the farmers in solving the problems of doing farming on fragmented holdings.
5.Credit cooperative societies : These societies are formed to provide credit facilities to their members at reasonable terms and conditions. The members are the persons who need financial assistance in the form of loans. Loans are provided out of the amount collected from the members as capital and deposits. The main aim of the society is to provide loans to the needy members at low rate of interest.
6.Cooperative housing societies : These societies are formed to help their members to construct houses at reasonable costs. These societies either construct flats or provide plots to the members at reasonable rates. The members are allowed to pay for the same in easy instalments.