The Formation And Management

of Agricultural Co-operative
Societies

ANAS KHAN
ENROLLEMENT NO.-GM6334
FACULTY NO.-21AEM23
 WHAT IS AGRICULTURE AND CO-OPERATIVE
SOCITIES:-
 The science or practice of farming, including cultivation of the soil for the growing of
crops and the rearing of animals to provide food, wool, and other products.

 A cooperative society is a voluntary association that started with the aim of the service of
its members. It is a form of business where individuals belonging to the same class join
their hands for the promotion of their common goals.
 These are generally formed by poor people or weaker sections of people in society.
 WHAT IS AN AGRICULTURAL CO-OPERATIVE
SOCITIES:-
 An Agricultural cooperative society, also known as a farmers’ co-op, is a cooperative
where farmers pool their resources in certain areas of activity.
 A broad typology of Agricultural cooperatives distinguishes between Agricultural service
cooperatives, which provide various services to their individually farming members, and
Agricultural production cooperatives, where production resources (land, machinery) are
pooled and members farm jointly.
 Agricultural production cooperatives are relatively rare in the world.
 The Formation Of Agricultural Co-operative
Societies:-
 The formation of Agricultural cooperative societies involves a group of farmers or
Agricultural producers coming together to pool their resources, skills, and knowledge to
achieve common goals. These societies are usually formed to promote the interests of
their members and improve their economic status through collective action.

 Here are some steps to follow in forming an Agricultural co-operative society:

 Identify the need: Identify the need for a cooperative society among the farmers in
your locality or region. This could be to access better markets, increase bargaining
power, or access credit facilities.
 Form a core group: Form a core group of interested farmers who can help in setting up the
cooperative society. This group should be committed and dedicated to the cause.
 Conduct a feasibility study: Conduct a feasibility study to determine the viability of the
cooperative society. This study should focus on the market demand for the products, the
availability of resources, and the potential risks involved.
 Develop a business plan: Develop a business plan that outlines the objectives, goals, and
strategies of the cooperative society. This plan should also include the organizational
structure, financial projections, and marketing plans.
 Register the cooperative society: Register the cooperative society with the relevant
government authorities. This involves filing the necessary documents, such as the articles of
association, by-laws, and memorandum of association.
 Elect the management committee: Elect a management committee to oversee the
operations of the cooperative society. This committee should comprise of members who are
knowledgeable, experienced, and committed to the goals of the cooperative society.
 Raise funds: Raise funds to finance the operations of the cooperative society. This could be
through member contributions, loans, grants, or other sources of funding.
 Develop a marketing plan: Develop a marketing plan to promote the products of the
cooperative society. This plan should focus on identifying the target markets, pricing
strategies, and distribution channels.

By following these steps, an Agricultural cooperative society can be formed and

operated successfully, helping farmers to improve their economic status and achieve their
common goals
 Management Of Agriculture Co-operative Societies:-

 After the formation of the society, the next step is management, that is:-

I. To constitute a management committee. this committee(5-9 members) will then see

to the day today running of the activities and welfare of the society.

II. A constitution or bye-law for member will be drafted by appointed members.

III. A Bank account will be opened for the society with about 3 signatures to the
account.

IV. The cooperative then register with the corporate affairs Commission after due
process. It is ready for registration when it has at least 10 members.

V. All members are then involved in the activities of the organization. they have equal
voting right.
 Management Structure Of Co-operative Society:-

Members

Management committee chosen by

members

Elected president

Appointed secretary

The unit managers

Other members
 Qualities Of A Good Co-operative Members:-
 He must have team spirit.
 He must so dedication to a cause of a group.
 He must operate team player having good relationship with other members.
 He must so selfless service and dedication.
 He must be honest.
 A good member should have team spirit he should be able to cooperate and work with others
to achieve the objectives of society.
 He must be dedicated to the courts of the society.
 He must be responsible and loyal to the society.
 He must be humble and obedient.
 He must be fair in his decision making.
 He must be honest others should be able to trust him and place confidence in him.
 Problems Of Agricultural Co-operative Societies:-

 Despite the qualities of leader and members of the cooperative societies there are
challenges facing the cooperative which include:-

I. Inadequate capital.

II. Poor management resulting from lack of needed skill and experience.

III. Poor marketing system.

IV. Embezzlement of the funds of the society by some dishonest leader.

V. There is problem of payments of loan by the beneficiaries.

VI. Unstable policies and programmes of financial institutions and governments.

 Conclusion:-

 In conclusion, the formation and management of Agricultural cooperative

societies can be a beneficial approach for farmers to pool their resources and
increase their bargaining power in the marketplace. Through cooperatives,
farmers can access services and products at lower costs, receive training and
support, and benefit from economies of scale.
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