Functions of a Consumers Co-operative Society

A consumers co-operative society performs a set of interrelated functions, all built around one activity — buying goods wisely and selling them fairly to its members. Its functions may be grouped as follows.

• Bulk purchase of goods — It buys goods of daily use (food grains, sugar, oil, pulses, soap, stationery and other household necessities) in large quantities directly from producers, manufacturers or wholesalers, obtaining them at low, wholesale rates.
• Elimination of middlemen — By purchasing at the source, it removes the wholesaler-distributor-retailer chain and, with it, the layers of profit that push up market prices.
• Retail sale to members at fair prices — It sells the goods, usually for cash, through its own store to members (and often the general public) at fair and reasonable prices, passing on the saving made by bulk buying.
• Ensuring quality and correct weight — It supplies pure, genuine, standard-quality goods of full weight and measure, protecting members from adulteration and cheating.
• Maintaining a regular supply — It keeps essential goods in stock and ensures their steady availability to members, guarding them against artificial scarcity and black-marketing.
• Distributing the surplus — Out of its trading surplus, after setting aside reserves, it pays a dividend on shares and a patronage bonus in proportion to each member's purchases, returning the saving to the members themselves.
• Building reserves — A part of every year's surplus is set aside as a reserve fund to strengthen the society and to meet unexpected losses, ensuring its long-term stability. …