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of requirements to farmers like better seeds, fertilizers, technical assistance, etc.
Hence, the main motive of co-operative is to develop productivity and living
standard of its members.

ix. Mutual help: Co-operative organizations are established with the feelings of
mutual help and co-operation among its members. So, “one for all and all for
one” is the principle of these organizations.

x. Cash transaction: A co-operative organization sells goods and services to its
members and outsiders only in cash. So that expanse for cash collection and
possibility of bad debts can be eliminated and also it can perform business
successfully with limited capital.

Types of cooperative societies

a. Consumer's cooperatives: These societies are formed to protect the interest of the
consumers from improper distribution at high prices of the consumable items.
The societies make bulk purchase direct from the producers and distribute the
goods amongst members at reasonable price.
b. Producer’s cooperatives: These societies are formed to protect the interest
of small products who find it difficult to procure all inputs and to market the
finished goods. The societies supply to producers all input factors, pay them their
conversion charges and purchase the finished goods from them. Portion of profit
arising from sales is distributed among the producers. Sometimes, the cooperative
societies also arrange to supply machinery and equipment to producers.
c. Marketing cooperatives: These societies are formed to collect the production of
the members and to sell the goods without the help of intermediaries. The societies
also undertake ancillary services like grading, warehousing, transportation,
insurance, etc. A portion of the profit is distributed among the producers.

d. Multi-purpose co-operative society: The co-operative society established to fulfill
more than one purpose at a time is known as multi-purpose cooperative society.
It provides many facilities and services to its members. The main objective of
this society is to arrange agricultural inputs, sell of agricultural out puts, provide
health and education service to its members, etc.
e. Housing cooperatives: The low and middle income group housing schemes are
exempted by housing cooperatives formed by those who cannot have finance to
build houses of their own. The societies take loan from the financial institution
and government and grant advantages to the needy members.

f. Agriculture credit cooperatives: These societies are formed by farmers to obtain
the benefits of large scale farming on modern methods. These societies arrange
facilities connected with the use of machinery for cultivation and harvesting. The
members pay for the services rendered by the societies. Sometimes the societies

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