According to RBI “Co-operative Marketing is a co-operative Association of cultivators formed primarily for the purpose of helping the members to market their produce more profitably than is possible through private trade.”

According to FAO ‘Co-operative Marketing is a system through which a group of farmers join together to carry on some or all the process involved in bringing goods to the consumer.”

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1. To sell the members product directly in the best market and in a state which attracts the best price.

2. To grade the produce in such a way that the best price is obtained for all qualities to the advantages of the grower.

3. Give fair weight.4. Handle the crop without damage or waste.5. Strengthen the bargaining power.6. Help members to produce the best product, which has

most demand, this may include processing also.7. Educate the members in marketing.8. Stand for fair trading practices and stop manipulation of

prices.9. Provide finances to producers and help them in getting

finances.

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Marketing of produce Distribution of fertilizers Distribution of seeds and agricultural machinery Grading and pooling of produce Processing activities Provision of storage faccilities Provision of financial assistance Manufacture of Implements Foreign and Inter-state trade Other activities

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• Brings in economy in cost of marketing.• Supply quality goods to customer.• Makes available grading & transportation

facilities.• Acts as a part of the government for procurement

and implementation of price support policy.• Encourage self – help and thrift.• Links marketing with credit.

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1. Abolition of Middlemen.2. Collective bargaining.3. Storage facilities – for members.4. Standardization and grading.5. Higher prices of members.6. Market infrastructure.7. Supplying inputs and consumer goods.8. Facility of correct weighing.9. Relief from illegal deductions.10. Linking credit, processing and & farming.

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1. Reduce cost and improved services.2. Improve marketability – reduce all undefined and

undesirable market changes.3. Safeguards against rising costs & input prices.4. Provides credit.5. Storage facilities.6. Processing of agr. produce.7. Market intelligence.

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National Agricultural Co-operative MarketingFederation (NAFED)It was established in 1958, with the following objectives:1. Co-ordinate & promote the marketing and trading

activities of its members in agr. Goods.2. Undertake or Promote inter – state, intra – state &

international trade.3. To Undertake the supply of agr. Inputs lilke seed,

fertiliser, manure, agr. Implements, etc..It has brancehs at Chennai, Mumbai, Kolkata &

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These are apex institutions for all co-operative marketing in the state.Functions of State Level Co-operative MarketingSocieties:1. They provide credit and other facilities to District

Marketing Societies.(DMS)2. They buy and sell products of DMS.3. Wholesale distribution of chemical fertlisers, iron,

steel, cement, sugar, wheat, kerosene, coffeeseeds, rice, milkpowder, etc., in addition to agr. Implements & insecticides.

4. Overall co-ordination of co-operative marketing.

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District Level Marketing Societies – Central MarketingSocieties1. They deal with primary marketing societies(PMS) at

village level.2. Purchase & sell agr. produce & supply agr. Inputs to

farmers through PMS.

Primary Marketing SocietiesThey deal in a single commodities or manycommodities at a time. They collect & standardise the produce brought to them by their members & make arrangements for theirsale. They also advance loans to their membersAgainst the produce. They are multipurposesocieties.

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1. Less cost of marketing.2. Quality goods supplied to customers.3. Help in growth of better crops.4. Credit facilities at low interest rates.5. Fair prices to customers.6. Stabilization of prices.7. Surplus distribution.8. Help Govt. in programmes for rural development.9. Educative value.

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1. Unplanned setup – no attention while fixing the volume of produce, area of operation, finance requirements, etc.

2. Malpractices.3. Lack of initiative by members, only Govt.

initiative.4. Less no. of regulated markets.5. Competition from credit societies, middlemen,

traders, etc..6. Lack of co-ordination.7. Lack of audit and supervision.

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8. Illiterate farmers & less marketable surplus.9. Lack of warehousing & transport facilities.10. Defective loan policies.11. Untrained persons.12. Lack of funds.13. No incentives to Marketing Societies.

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1. Proper Storage facilities.2. Grading & Standardization.3. Large area of operation – so as to have large

business.4. Bring down cost of management.5. Specialized knowledge and techniques.6. Better co-ordination between credit societies and

marketing societies.7. Trained and experienced staff.

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8. Target oriented approach – in terms of number of societies.

9. Organization of societies should be run on democratic lines

10. Finances of the societies should be improved11. Marketing societies should undertake sales on

commission basis12. Existing potentially viable societies should be

revitalized while defunct societies should be liquidated

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