Co-operative Marketing and Consumer Co-operatives
Co-operative Marketing and Consumer Co-operatives
This domain tests how member produce is pooled and sold, and how consumer stores work.
Marketing societies
They collect member produce, grade, weigh, store, process where needed and sell. Functions include pooling, standardisation, market intelligence, storage, transport, price stabilisation and patronage refund. The structure runs from primary marketing societies to State federations and NAFED at the national level.
Consumer co-operatives
Primary consumer stores, wholesale stores and federations; NCCF and Kendriya Bhandar are national examples. They aim to remove exploitative middlemen, supply quality goods at fair prices and return surplus to members.
Worked example
A wheat marketing society pools 100 quintals from 40 farmers. It grades the lot, sells at ₹2,200 per quintal, deducts transport, weighing and commission charges, and pays each farmer according to quantity and grade. If a surplus remains after reserves, it is distributed by patronage. Reasoning: the member is paid for produce, and surplus follows participation-not shareholding.
Traps
A marketing society is not a credit society. NAFED is not a consumer cooperative. Consumer stores are not merely fair-price shops; membership and democratic control matter. Do not confuse commission deducted by the society with the trader’s margin.