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INTB 2200 (27)
Lecture

The Co-operative Development Corporation .docx

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Department
International Business
Course
INTB 2200
Professor
Luming Wang
Semester
Winter

Description
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 cheaper rates. 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. Organization: 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
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