My study of types of co-operative societies have been started with different motives. Some are started to help consumers and others to help small producers. There are some societies which help the farmers in a number of ways. Important types of co-operative societies are discussed as follows:
My Study of Types of Co-operative Societies In Business Study
1. Consumers’ Co-operatives. The consumers’ co-operative societies are started to help lower and middle class people. These societies protect weaker sections from the clutches of profit hungry businessmen. The members contribute capital in the shape of share money. The membership of these societies is open to everyone irrespective of caste, creed and colour.
The members elect the office bearers and executive members to supervise day-to-day activities of the society. The societies make bulk purchases directly from producers and sell these goods to the members on retail baris. The commission and profit of middlemen are eliminated in the process. The societies charge small profit to cover up administrative costs. The sales, however, are made at market rates to non-members. The surplus earned from the business are distributed among members in the shape of bonus. Some of the surplus is spent on the welfare of members.
My Study of Types of Co-operative Societies In Business Study
My Study of Types of Co-operative Societies In Business Study
In India, consumers’ co-operatives started under the control of government. Government sells essential commodities to consumers at regulated prices through co-operative societies. The co- operative stores, as they are called, are working both in urban and rural areas.
2. Producers’ Co-operatives. These societies are established for the benefit of small producers who find it difficult to collect various factors of production and also to face marketing problem. The purpose is to improve economic conditions of small producers by giving them necessary facilities These societies are of two types:
My Study of Types of Co-operative Societies In Business Study
(a) Production Co-operatives. The production of goods is undertaken by the members either in their house or at a common place. The members are treated as employees of the society and are paid wages for their services. The members are supplied raw materials and equipment by the society and output of the members is collected by the society. The society sells these goods in the market. The profits are distributed among members after retaining some profits in the general pool.
My Study of Types of Co-operative Societies In Business Study
(b) Industrial Service Co-operatives. These co-operatives are started to help members in getting various industrial inputs at reasonable prices. The co-operatives make bulk purchases of raw materials from suppliers and supply them to members. The societies also arrange machinery and equipment for their members. The individual members may not be able to purchase small quantities of their requirements at reasonable prices. So, the societies make bulk purchases and help their members to get their requirements at reasonable prices. The output of members is marketed by the society. Individual members can profits on their sales and also share the profits of the society on the basis of certain criterion earlier agreed upon.
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My Study of Types of Co-operative Societies In Business Study
3. Marketing Co-operatives. The marketing co-operatives are associations of producers for selling their products at remunerative prices. The production of different members is pooled and the society undertakes to sell these products by eliminating middlemen. These societies also provide services like grading, warehousing, transportation, insurance and financing etc. The goods are sold when the market is favorable. The individual producers may not be able to wait for longer periods because of their limited resources. The societies provide some advance money to the members for helping them in meeting their urgent needs. The proceeds of sales are shared among members supply it to the producers for their benefit.
My Study of Types of Co-operative Societies In Business Study
their own houses for want of money. Housing co-operative societies help people to own their houses. The housing co-operatives are of different types. Some societies construct houses and give them on small rent to the members. The members do not become owners but the rent is nominal. These societies are not popular because the instinct to own a house is not satisfied. The second type of  societies acquire land and give the plots to the members for constructing their houses themselves.
The societies also arrange loans for their members from financial institutions and government agencies. These societies are helpful in arranging cheap plots and loans for the members. The loans are advanced against the security of the houses. This type of societies are very popular in most of the states in India. Third type of societies acquire land and construct houses themselves. The constructed houses are handed over to the members who pay the price in easy instalments spread over a longer period. These societies economize by purchasing construction materials in bulk. These societies are popular among poor families.
My Study of Types of Co-operative Societies In Business Study
The purpose of all these societies is to help their members in purchasing land and constructing houses. In addition to housing co-operatives, many government agencies like State Housing Boards help economically weaker sections of society in owning their houses and pay the price in easy instalments.
My Study of Types of Co-operative Societies In Business Study
5. Credit Co-operatives. The credit co-operative societies are formed to give financial help to small farmers and other poor sections of the society. The village money-lenders charge exorbitant interest rates and exploit innocent poor people. The credit co-operative societies may be distinguished as follows:
(a) Rural credit co-operative societies (b) Urban credit co-operative societies,
The rural credit co-operatives can be formed with at least 10 members. The members purchase shares of the society so as to raise capital. These societies get loans from State Co-operative Banks These societies provide only short term loans. The rate of interest charged is very low. The loans are recovered from the members after every six months or one year and the loans from the Co-operative Banks are returned.
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My Study of Types of Co-operative Societies In Business Study
This procedure is repeated every time. The area of the society is generally one village. At present multi-purpose societies are working for helping villagers in different spheres. The societies are also arranging agricultural inputs like fertilizers, seeds etc. for the members. These societies are also entrusted with the jobs of arranging commodities like salt, sugar, tea, matches, dals, etc. The object of these societies is “better farming and better living”.
My Study of Types of Co-operative Societies In Business Study
The Urban Co-operative Credit Societies or Urban Banks are run on Schulze-Delitz model. The idea of these societies is to help small traders, workers, artisans and other middle class people. The members are provided with short-term loans on lower rates of interest. The capital is contributed by the members and financial help is sought from government agencies too. The liability of members is limited only to the extent of shares held by them.
6. Co-operative Farming Societies. Co-operative farming societies are voluntary associations of farmers formed to reap the benefits of large scale farming on scientific lines. Better farming increases production and improves the economic position of members. Small farmers will not be able to use improved technology for want of resources and small holdings. The land is pooled to take advantage of agricultural technology. The farming co-operatives may be of the following types:
My Study of Types of Co-operative Societies In Business Study
(a) Co-operative Better Farming Societies. These societies are formed to improve methods of farming and to arrange facilities connected with the use of machinery, harvesting of crops and marketing of the products. The members cultivate their lands independently. The society provides only services. The members pay charges for the service rendered by the society,
(b) Co-operative Joint Farming Societies. The land of members is pooled in these societies. The ownership rights of the land are retained by the individual members. The members are paid wages for their work on the land. The produce is sold by the society and profits are divided according to wages earned by members. Some interest is also paid to members on the basis of their land values. The members have a right to withdraw their lands from the society.
My Study of Types of Co-operative Societies In Business Study
(c) Tenant Farming Societies. These societies are formed to help tenants. The society acquires land on leasehold basis and also on freehold basis. The land is distributed to the members for independent cultivation. The society also arranges various inputs like seeds, fertilizers, etc. Financial help is arranged for the members. The members pay rent for the use of land, the produce belongs to the tenants and not to the society. So these societies are formed to help small tenants.
My Study of Types of Co-operative Societies In Business Study
(d) Collective Farming Societies. The land is owned by the society and members work collectively on the land. No member has ownership right of the land. The members are paid daily wages for their labor. The profits are distributed among members in proportion to their wages. The land ownership in these societies is collective.
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All these societies are formed with a view to help small farmers and tenants to use advanced farm technology for raising their produce. These societies endeavor to raise economic position of their members.
My Study of Types of Co-operative Societies In Business Study