Question

Name the type of cooperative society set up:
(a) To help the small producers in selling their products.
(b) To provide easy credit on reasonable terms to the members.
Also, distinguish between the two on the basis of:
(i) Members (ii) Aim.
(a) Producer Cooperative (b) Credit Cooperative

Answer 1

Basis	Producer's Co-operative Societies	Credit Co-operative Societies
Members	members may be farmers, landowners, owners of the fishing operations. Producers are the member of this society.	member-owned financial cooperatives.
Aim.	To increase the marketing possibilities and production efficiency

(a)- Producer's Co-operative Societies These societies are comprised to protect the interest of small producers and are set up to provide the supplying of raw materials equipment and other Inputs to the members and buying their output for sale Profits among the members are distributed on the basis of their contributions to the society.

(b)- Credit Co-operative Societies- Credit co-operative societies are formed for providing easy credit on reasonable terms to the members These societies provide loans at low rates to members out of the amounts collected as capital and deposits from the members thereby eliminating exploitation by moneylenders.