The Co-operative Development Corporation
The National Co-operative Development Corporation has been promoting and financing a wide
range of economic activities in rural areas through co-operatives. The Co-operative is a unique
institution in the country catering to the development of the rural economy and agriculture sector
through co-operative. There is no other institution in the country which is exclusively for
meeting the requirement of co-operatives.
NCDC has been playing special attention to weaker sections co-operatives in various part of the
country. The promotional and development role of NCDC had lead to continuous diversification
and expansion of co-operative programs under its preview.
Co-operative Marketing Society
When producers of agricultural commodities or any other product form a society with an
objective of carrying out marketing of their produce, such society is called as co-operative
marketing society. The need for co-operative marketing arose due to many defects observed and
experienced in the private and open marketing system. Those are
1. Several malpractices prevail in the marketing of agricultural produce. For example,
arbitrary deductions from the produce, manipulation of weights and measures and cheating
the farmers, collusion between the broker and the buyer while fixing the prices, delay in
payment of amounts due to farmers, etc. The result is the farmers are indebted to trader -
moneylender. In such circumstances co-operative marketing society can largely help the
farmers reduce the malpractices and offer honest and correct services.
2. There exists a chain of intermediaries between the producer and the final consumer. They
include village merchant, itinerant trader, wholesaler, commission agent, pre-harvest
contractor and retailer. They take their own margins for the services, they render. But these
margins are generally ex-orbitant, making the commodities costly for the consumers and
reducing the producer's share in the consumer's price. A co-operative marketing society can
eliminate some or all of the intermediaries and can reach to the consumers and establish direct trade relations with them. This will make commodities cheaper to the consumers and
also ensure good quality of produce to them because much of the handling is avoided.
3. There are some services such as transport, storage, financing, grading, packing,
loading/unloading which are carried out by some private functionaries who charge high rates
for these services. A co-operative marketing society performs these services efficiently and at
4. A co-operative marketing society provides market finance to farmers and ensures better
returns to their produce. Besides marketing society can act as an agent of credit co-operative
society and help to recover loans advanced by credit societies. At present, most of the
financial needs of the farmers are fulfilled by trader - moneylenders at very high rates of
interest and with the condition that they will sell their produce through them. This can be
avoided, if there is co-operative marketing society.
Under the system of co-operative marketing whole responsibility of marketing is taken up by the
farmers themselves, organized on co-operative basis. The area of operation of marketing society
is usually fixed with reference to local conditions - area based or commodity based. The
commodity-based societies related to grapes, oranges, banana, pomegranate, etc. have wider
jurisdiction covering the major areas growing each cr