Functions of a Marketing Co-operative Society

To achieve its objectives, a marketing co-operative society carries out a range of marketing functions on behalf of its members.

1. Collection and pooling of produce — The society collects the produce of its members and pools it together into large, saleable lots. Pooling is what gives the society the bulk it needs to bargain effectively.

2. Grading and standardisation — It sorts and grades the pooled produce by quality, so that uniform grades can be sold at appropriate prices. Graded produce fetches a better and more reliable price than an unsorted mixed lot.

3. Storage and warehousing — It provides (or arranges) godowns and warehouses to store produce safely until market conditions are favourable, protecting it from damage and helping members avoid distress selling.

4. Transport — It arranges transport to carry the pooled produce from the village or collection centre to the market, spreading the cost across all members so that transport becomes affordable.

5. Sale of produce — It sells the pooled, graded produce in the wholesale market or directly to bulk buyers, government agencies, or processing units, aiming for the best available price.

6. Providing finance / advances — Many marketing co-operatives give members an advance against the produce deposited with the society, so that a member gets some cash immediately and does not have to sell in distress while waiting for the final sale.

7. Supplying market information — It gathers and passes on information about prices, demand, and market trends to help members decide what and when to sell. …