Objectives of a Marketing Co-operative Society

The objectives of a marketing co-operative society all flow from its central purpose — getting producers a fair deal for their produce.

1. To secure a fair and remunerative price — The foremost objective is to ensure members receive a reasonable, fair price for their produce, closer to the price the final consumer actually pays.

2. To eliminate exploitation by middlemen — By marketing produce collectively, the society reduces the members' dependence on commission agents, traders, and moneylenders who would otherwise take a large share of the value.

3. To increase members' bargaining power — Selling in bulk on behalf of many producers gives the society far greater bargaining strength in the market than any individual member could ever have.

4. To provide marketing facilities — To arrange storage, grading, packing, transport, and market information that individual small producers cannot afford on their own.

5. To avoid distress selling — By offering storage (and often advances/loans against stored produce), the society lets members hold their produce and sell when prices are favourable, rather than being forced to sell cheap immediately after harvest. …