Types of Cooperative Societies:
Various types of cooperative societies based on the nature of their operations are described below:
Consumer’s cooperative societies:
- Consumer cooperative societies are formed to protect the interests of consumers. The members comprise consumers desirous of obtaining good quality products at reasonable prices.
- The society aims at eliminating middlemen to achieve economy in operations. It purchases goods in bulk directly from the wholesalers and sells goods to the members, thereby eliminating the middlemen.
Producer’s cooperative societies:
- These societies are set up to protect the interest of small producers. The members comprise producers desirous of procuring inputs for the production of goods to meet the demands of consumers.
- The society aims to fight against the big capitalists and enhance the bargaining power of the small producers. It supplies raw materials, equipment and other inputs to the members and also buys their output for sale.
Marketing cooperative societies:
- Such societies are established to help small producers in selling their products. The members consist of producers who wish to obtain reasonable prices for their output.
- The society aims to eliminate middlemen and improve competitive position of its members by securing a favourable market for the products.
- It pools the output of individual members and performs marketing functions like transportation, warehousing, packaging, etc., to sell the output at the best possible price.
Credit cooperative societies:
- Credit cooperative societies are established for providing easy credit on reasonable terms to the members.
- The members comprise persons who seek financial help in the form of loans. The aim of such societies is to protect the members from the exploitation of lenders who charge high rates of interest on loans.
- Such societies provide loans to members out of the amounts collected as capital and deposits from the members and charge low rates of interest.
Cooperative housing societies:
- Cooperative housing societies are established to help people with limited income to construct houses at reasonable costs.
- The members of these societies consist of people who are desirous of procuring residential accommodation at lower costs.
- The aim is to solve the housing problems of the members by constructing houses and giving them the option of paying in instalments.
- These societies construct flats or provide plots to members on which the members themselves can construct the houses as per their choice.
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