A business organization can take many forms. One such form is that of a cooperative society. A producers’ cooperative is naturally operated by farmers, producers of goods, or small businesses. Farmers and producers arrange cooperatives in order to the procedure and market their goods as well as to obtain credit, equipment, and production supplies.
Objectives of Producer’s Cooperative Society
In Producers’ Cooperative Society, producer-owned and democratically-controlled organizations serve their members (who may or may not be themselves cooperatives) through cooperative marketing, support and/or purchasing. The members of this organization collect capital, render a great attempt to operate the organization with a view to earning a profit and distributing as well as. For example, members of an agricultural cooperative, such as a dairy cooperative, will combine their efforts in order to purchase equipment and supplies at a discount, procedure their milk products in a combined fashion, and then market and distribute those products as a group.
Producers’ cooperative society is the society of the producers. Some specific objectives are enclosed with this organization. These are as follows:
- To get great Production facilities to produce collectively to accumulate a small amount of capital.
- To attain large purchase facilities to purchase raw material.
- To produce the daily necessary products of the organization.
- To reduce the influence of risk, moneylenders, and middlemen.
- To ensure the usage of modern technology.
- To entertain a huge facility for the labors.
- To attain the opportunity of joint transportation and warehouse.
- To ensure the financial prosperity of the members.
- To distribute profits properly among the members.
- To supply products to the mass people at the minimum prices.
These objectives have ensured the betterment of the general members and society. That’s why the majority of the producers gather under this organization and contribute to the prosperity and development of the country.
Some other objectives and features of a Producer’s Cooperative Society
- The producer’s cooperative society works on the principle of mutual help & welfare. Hence, the principal of service dominates its working.
- It is required for the producer’s co-operative society to get registration. The co-operative society is a separate legal identity to society.
- An elected managing board has the power to take decisions. Members have the right to vote, by which they elect the members who will constitute the managing committee.
- It does not get affected by the entry or exit of its members. There is limited liability of the members of a producer’s co-operative society.