Exercises · Q10
Q.Distinguish between the advantages and the limitations of a service co-operative society (give at least three points on each side).
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Start your 14-day free trial to unlock the full solution →A complete answer sets the society's benefits against its practical problems, with at least three points on each side.
Advantages of a service co-operative society:
- All essential services in one place. Being multipurpose, the society gives members credit, inputs, consumer goods, storage, and marketing help through a single village organisation — saving time, travel, and cost.
- Freedom from exploitation. Cheap credit frees members from the moneylender, fair-price supply protects them from profiteering traders, and collective marketing shields them from exploitative middlemen.
- Gains of bulk buying and collective bargaining. Acting together, members enjoy lower input prices and better sale terms than any of them could obtain alone.
- (Further) Fair, moderate interest rates; promotion of thrift and self-help; and equal democratic control ('one member, one vote'), all contributing to overall rural development.
Limitations of a service co-operative society:
- Shortage of capital. Members are small farmers of limited means, so funds are scarce and the society leans heavily on borrowings and government help.
- Heavy overdues and bad debts. Loan recovery is often poor because repayment depends on an uncertain harvest, which weakens the society's finances.
- Weak and inexperienced management. The elected committee of ordinary villagers may lack the training and business skill to run the society efficiently.
- (Further) Small size and limited area, over-dependence on government, lack of co-operative awareness/unity, and the risk of political interference.
In short: the advantages describe what the society achieves for its members when it works well, while the limitations describe the real practical difficulties that can prevent it from working well — which is why member education, professional management, better loan recovery, and less outside interference are the constant themes of co-operative reform. …
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