Long Answer Questions · Q12
Q.Distinguish between a processing co-operative society and a marketing co-operative society.
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Start your 14-day free trial to unlock the full solution →Both societies serve producer-members, but they differ in their core function:
| Basis | Processing Co-operative Society | Marketing Co-operative Society |
|---|---|---|
| Main function | Processes (transforms) members' raw produce into finished goods and then markets it | Markets (sells) members' produce, usually without transforming it |
| Value addition | Creates value by converting raw produce into a finished product (cane to sugar, milk to butter) | Adds value mainly through better bargaining, grading, storage and bulk selling, not transformation |
| Capital needed | Heavy — needs a processing plant, machinery and buildings | Comparatively lower — mainly storage, transport and selling arrangements |
| Nature of output sold | A finished/processed product | Members' produce, often in its original (unprocessed) form |
| Example | Co-operative sugar factory (e.g. Pravara), dairy processing union, cotton ginning-pressing unit | A society that collects members' grain, fruit or cotton and sells it in the market at a better price |
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