Page 3 - Lesson Note 6

5. Excessive govt. control - it suffers from excessive rules and regulations of the govt. It
has to get its accounts audited by the auditor and has to submit a copy of its accounts

to registrar.

6. Conflict among members - The members are from different sections of society with
different viewpoints. Sometimes when some members become rigid, the result is conflict.

Link: https://www.youtube.com/watch?v=t2CieMTThF8 (merits and demerits of cooperative society)

TYPES OF CO-OPERATIVE SOCIETIES

1. Consumers co-operative Society - It formed to protect the interest of consumers. It
seeks to eliminate middleman by establishing a direct link with the producers.
Itpurchases goods of daily consumption directly from manufacturer or
wholesalers and sells them to the members at reasonable prices.

2. Producer's Co-operative Society- The main aim is to help small producers who cannot
easily collect various items of production and face some problem in marketing. These
societies purchase raw materials, tools, equipment and other items in large quantity and

provide these things to their members at reasonable price.

3. Marketing Co-operative Society - It performs various marketing function such as
transportation, warehousing, packing, grading, marketing research etc. for the benefit of
its members. The production of different members is pooled together and sold by society
at good price.

4. Farmer’s Co-operative Society – In such societies, small farmers join together and pool
their resources for cultivating their land collectively. Such societies provide better quality
seeds, fertilizers, machinery and other modern techniques for use in the cultivation of
crops. It provides the opportunity of cultivation on large scale.

5.Credit cooperative Society - Such societies protect the members from exploitation by
money lenders. They provide loans to their members at easy terms and reasonably low

rate of interest.

6. Co-operative Housing Society –The main aim is to provide houses to people with
limited income at reasonable price.The Housing cooperatives are of different types.Some
societies construct house and give them on small rent to the members.The members do
not become owners but the rent is nominal.The second type of societies acquire land and
give the plots to the members for constructing their houses themselves. The Societies
also arrange loans for their members from financial institutions and government

agencies.The third type of securities acquire land and construct houses themselves. The