☆Role of Cooperatives and mention their importance too¿
Answers
☆
Cooperative society is an organization of group of people with collective responsibilities and thoughts for the development of needy, especially under privileged.
Answer:
❤❤❤❤
Cooperative societies play a vital role in ensuring that the nation’s economic progress confirms to the requirements of democratic planning. The institution of a cooperative society provides support and sustainability to rural economic activities.
The poorly equipped rural folk struggling to cope up with rural indebtedness and the evils of usury, need resources.
Small and marginal farmers need support in the form of inputs, harvesting, storage facilities, distribution channels and a network of market information system. Technical guidance is required to help agriculturists in processing their produce and reap benefits through value addition. The village artisan faced with competition from the organised sector finds it difficult to maintain his traditional employment.
Through pooling of experience, knowledge and by helping one another, cooperative societies help members to find solutions to their problems. These are local institutions addressing the local needs by using local talent.
The importance of cooperative societies in the rural areas is mainly due to the fact that, they provide sustainable development to the agriculturists. This is done through developing infrastructure and support facilities.
- Farming cooperatives help farmers to pool their small and fragmented land holdings. This facilitates improvements on the land. It paves the way for intensive cultivation by using modern technology.
- Agricultural processing cooperatives provide support towards paddy milling, oil seed crushing, processing fruits, vegetables and so on. The farmers, gain through value addition to their produce.
- Agricultural marketing societies enable farmers to benefit from increased bargaining strength. By removing intermediaries they help farmers to have a direct interaction with the consumer. The National Agricultural Cooperative Marketing Federation of India (NAFED) is an example.
- Agricultural service cooperatives are instrumental in arranging cheaper transportation, storage facilities and similar such services.
The financial support to the rural sector is provided through National Bank for Agriculture and Rural Development (NABARD). NABARD provides funds to State Cooperative Banks(SCBs) which in turn, indirectly finances the rural sector. The bulk of the credit goes to the agricultural sector through the District Cooperative Banks and the Primary Agricultural Credit Societies.
All the above indicates that cooperative societies have a significant impact on the development of rural sectors. Krishak Bharathi Cooperative Ltd.(KRIBHCO) and the Kaira District Cooperative Milk Producers Union Ltd. that markets its products under the brand name Amul, are a few examples of cooperatives that provide support to farmers in improving their livelihood.