Question

Give a note on the role of co-operatives in food distribution system.

Answer 1

Cooperative societies in India are playing a significant role in ensuring food security and are more active in western and southern regions of the country. In Tamil Nadu, around 94% of all fair price shops run under the Public Distribution System are managed by cooperatives.
Mother Dairy is a cooperative that sells milk and vegetables at fixed rates decided by the Delhi government.
Anand Milk Union Limited (Amul) is one of the most successful cooperatives in India. Amul gave a tremendous boost to milk production leading to the white revolution in India. Amul not only encourages dairy farming, but also provides a variety of milk products to consumers all over the country.
The Academy of Development Studies in Maharashtra is a society devoted to welfare of tribals and rural communities. ADS has set up grain banks in tribal and rural areas with the help of local NGOs to food security.
A grain bank functions like a normal bank. The members can make deposits of surplus grain after harvest and make withdrawals during lean periods. Grain bank members can also take loans in the form of grain and repay the loans with interest at the time of the next harvest.