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 Marketing
Federation (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 &
Delhi.
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These are apex institutions for all co-operative
marketing in the state.
Functions of State Level Co-operative Marketing
Societies:
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
Marketing
Societies
1. They deal with primary marketing
societies(PMS) at village level.
2. Purchase & sell agr. produce & supply agr.
Inputs to farmers through PMS.

Primary Marketing Societies

They deal in a single commodities or many
commodities at a time. They collect &
standardise the produce brought to them by
their members & make arrangements for their
sale. They also advance loans to their members
Against the produce. They are multipurpose
societies.

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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
improved
11. Marketing societies should undertake
sales on commission basis
12. Existing potentially viable societies should
be revitalized while defunct societies
should be liquidated

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