Question

Explain the function of a cooperative.

Answer 1

The functions of a cooperative are as follows:

1. Direct benefit to real producers: The cooperatives strive to provide the larger benefits to the actual producers and artisans who, so far, have been the least paid in the production chain.
2. Reduction in dependency on intermediaries: The cooperatives try to reduce dependency on the intermediaries by dealing directly with market segments.
3. Mutual benefit and growth: Cooperatives are the groups of people with similar objectives and who work for mutual growth and development.
4. Procurement of raw materials: The cooperatives are responsible for getting the raw materials in bulk, for example, yarn and dye, for the weavers to weave clothes. These raw materials are then distributed among the weavers or the artisans.
5. Marketing and selling functions:The cooperatives are also involved in marketing the finished goods and selling them directly in the market.