Co-operatives and Agricultural Marketing in India : Structure, Progress and Functional Dimensions

In the era of liberalization and globalization, the challenges posed before the co-operative marketing societies will further aggravate as the post-WTO trade order is likely to put increasing pressure on the agricultural marketing system and trade practices of various agricultural commodities. The Government of India, recognizing the need for evolving an efficient marketing system, which forms the core of agricultural growth, recently constituted an Expert Committee on “Strengthening and Developing of Agricultural Marketing (June, 2001)”. This expert committee has categorically emphasized upon the need to formulate strategies that are required to handle the increased quantities of marketed surplus, which are expected to be large in view of available projections of production and marketed surplus as well as marketed surplus-output ratios of various commodities. Since the performance of cooperative marketing in India is not very impressive and as they are yet to show their presence in several areas encompassing marketing of agricultural produce, a number of measures need to be initiated to truly exploit their potential for which they have been established. The suggested measures encompass strengthening of existing societies, diversification drive for their various activities, development of multi-purpose societies, restriction imposed on membership, minimum government interference, inculcation of cooperative ideology among members and staff associated with the societies, representation of small and marginal farmers, dependence on well educated and trained personnel, provision of some minimum facilities at the base level, etc