Question

explain the types of cooperative society. long ans

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Answer 1

Answer:

Some of the major types of cooperative societies are as follows: (1) Credit Cooperative Societies (2) Consumers Societies (3) Producers Societies.

Credit society was the first type of cooperatives. Its objective was to provide credit to the members of the society. Later on, with the in­crease in the needs of the peasant people, the cooperatives took different forms. If a categorisation of different forms of societies is made today, it would make a long list.

However, on the basis of its functioning, the cooperatives may be divided into three types:

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(1) Credit societies,

(2) Consumers societies, and

(3) Producers society.

These three basic types are further divided into several types. For in­stance, there is a society of the peasants. This is sub-divided into cotton grower’s society, sugarcane society, wheat producer society and so on and so forth. In the similar way there are sub-types of consumer’s cooperatives and producer’s cooperatives.

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We shall discuss the three major types of cooperatives below:

(1) Credit Cooperative Societies:

Credit societies are voluntary and mutual aid associations. The major function of this type of society is to provide credit on personal security or on the basis of nominal secu­rity to its members, who are either cultivators, workmen or lower middle class people.

They are of two types, viz., of unlimited liability and of liability. The difference between the two is with regard to li­ability of members, size of shares, territorial scope, division of profits, management, reserve fund, and their business and moral aspect.

(2) Consumers Societies:

The membership of these societies consists of agricultural workers and the middle class people who organise a consumer store. The members of the society earn their independent living and they are not supposed to depend on the consumer society.

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The society only helps them in the better utilisation of their income. And, thus lowering their cost of living, correct weighment, quality goods and reasonable prices are the chief aims of consumer’s society. These societies were originally started in England where the first store of this kind was launched in 1844.

(3) Producers Societies:

A producer’s society is organised for the production of goods and services based upon common ownership and management by a group of workers to eliminate the employee-employer relationship.

In our country, the above three types of cooperatives have taken a mixed form. A single society could be a credit, consumer and produc­tion society at the same time. Later, we shall have opportunity to discuss this mixed type of cooperative society.