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Concept and types of Co-operative Society

Concept and types of Co-operative Society

There are certain organizations which undertake business activities with the prime objective of providing service to the members. Although some amount of profit is essential to survive in the market, their main intention is not to generate profit and grow. They pool available resources from the members, utilize the same in the best possible manner and the benefits are shared by the members.

Meaning of Co-operative Society

The term co-operation is derived from the Latin word co-operari, where the word co means ‘with’ and operari means ‘to work’. Thus, co-operation means working together. So those who want to work together with some common economic objective can form a society which is termed as “co-operative society”. It is a voluntary association of persons who work together to promote their economic interest. It works on the principle of self-help as well as mutual help. The main objective is to provide support to the members. Nobody joins a cooperative society to earn profit. People come forward as a group, pool their individual resources, utilise them in the best possible manner, and derive some common benefit out of it.

Types of Co-operative Societies

Although all types of cooperative societies work on the same principle, they differ with regard to the nature of activities they perform. Followings are different types of co-operative societies that exist in our country.

·         Consumers’ Co-operative Society:

These societies are formed to protect the interest of general consumers by making consumer goods available at a reasonable price. They buy goods directly from the producers or manufacturers and thereby eliminate the middlemen in the process of distribution. Kendriya Bhandar, Apna Bazar and Sahkari Bhandar are examples of consumers’ co-operative society.

·         Producers’ Co-operative Society:

These societies are formed to protect the interest of small producers by making available items of their need for production like raw materials, tools and equipments, machinery, etc. Handloom societies like APPCO, Bayanika, Haryana Handloom, etc., are examples of producers’ co-operative society.

·         Co-operative Marketing Society:

These societies are formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual members and takes the responsibility of selling those products in the market. Gujarat Co-operative Milk Marketing Federation that sells AMUL milk products is an example of marketing co-operative society.

·         Co-operative Credit Society:

These societies are formed to provide financial support to the members. The society accepts deposits from members and grants them loans at reasonable rates of interest in times of need. Village Service Co-operative Society and Urban Cooperative Banks are examples of co-operative credit society.

·         Co-operative Farming Society:

These societies are formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming. Lift-irrigation cooperative societies and pani-panchayats are some of the examples of co-operative farming society.

·         Housing Co-operative Society: 

These societies are formed to provide residential houses to members. They purchase land, develop it and construct houses or flats and allot the same to members. Some societies also provide loans at low rate of interest to members to construct their own houses. The Employees’ Housing Societies and Metropolitan Housing Co-operative Society are examples of housing co-operative society.

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 Akpan Iberedem J. February 5, 2011
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 Nakul Kumar Palai February 17, 2011
what is the difference between co-operative society ltd. and co-operative society ?
 pradeep February 20, 2011
please send a What is mean by co operative society?
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Ajayi oluwagbenga john  February 23, 2012
Thanks so much.wit dis info have been able to acquire more knowledge about cooperative society,more than wat my lecturer thought me.Thank God 4 dis.Remain bless.
Bhuiyan Md. Alamgir Hossain April 10, 2012
thnx a lot. '''everybody will gets best information abt. mentioned matter.
Aditi Nath June 1, 2012
What is the difference between a cooperative society and an NGO?
A.Q.K. Lyngdoh September 14, 2012
Please send the meaning and concept of Non.Credit Cooperative Societies.
rahma muha October 8, 2012
Tnxx u rily save me tnnx alot
MEHUL METAI  December 2, 2012
ThankZzz a lot dis info helped me in doing my project..........:)
roheyata njie February 27, 2013
thanks so much but m looking for is westfield use to call co-operative
rohey njie February 27, 2013
thanks so much for helping me to do my home but if can send me why was westfield later call co-operative
Ify March 27, 2013
10ks a lot. But there's still one more thing. I want 2 knw d types of cooperatives that exists in scandinavian countries.
hisham June 24, 2013
I am verry happy to say that its helped to continue my study
hisham June 24, 2013
I am verry happy to say that its helped to continue my study
RAVI KUMAR SHARMA September 12, 2013
The co-operative societies in j&k is a total failure in itself. No ground level business is being done in Rajouri &Reasi Distt. of J&K particularly. Still there is lot outstanding loan recovery of long term loan.
JASWINDER SINGH August 31, 2014
How a cooperative society is organized?
Lallan January 13, 2015
Thanks for shaignr. Always good to find a real expert.
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