Types of Cooperative Societies

1. Producer’s Cooperative Societies:

Many small producers want to produce on a large scale, but they lack in monetary terms and cannot meet their goals. The Producer’s Cooperative Society works for those producers who want to sell products on a large scale, but do not have the required resources. In Producers’ Cooperative Societies, the members are the producers and they collectively produce the goods and meet the demands of consumers. This society is formed to fight against the capitalist section of society, which has large capital and a lot of resources. It works as a supplier and as a buyer for raw materials, overheads and other equipment. Generally, profit is distributed amongst the members according to their investment in the resources.

2. Consumer’s Cooperative Societies:

Such societies are formed for the welfare of consumers, and it comprises those members who are willing to pay reasonable prices for good quality products. It purchases products directly from the wholesalers, eliminates the middlemen, and sells the goods directly to the consumers. If there is any profit from the sales, it is distributed amongst the members according to their capital contribution or purchases made by each of the members. In simple terms, a consumer’s cooperative society protects the interests of consumers. 

3. Farmer’s Cooperative Societies:

The farmers, who are willing to produce on a large scale, form a cooperative society and jointly take up the farming activities. Anything produced in bulk would cost less. The main aim of a Farmer’s Cooperative Society is to earn a profit by increasing productivity through less cost. When different farmers join together, they get an opportunity to combine their land, which solves the problem of fragmented landholdings. These societies focus on modern methods of farming, HYV seeds, fertilizers, machinery, and other modern equipment, which help in improving the yields and return. 

4. Credit Cooperative Societies:

The Credit Cooperative Societies provide economic assistance to its members by providing loans at a low rate of interest. Its main aim is to protect loan seekers from the exploitation of money lenders, who charges a high rate of interest on the loan. These loans are provided to the members out of the amount collected by them as capital at a low rate of interest. This helps the members in getting easy credits.

5. Cooperative Housing Societies:

Cooperative Housing Society works for those who want to construct houses for themselves, but do not have the required money for such construction and procurement. It offers the members to pay the amount in installments and provide them with the desired plot or land on which the members could construct the house according to their choice. There are different types of housing societies, some build new houses, some are formed to buy existing properties, and others upgrade houses and infrastructure.

6. Marketing Cooperative Societies:

A Marketing Cooperative Society consists of producers who want to get a reasonable amount for their produce. Therefore, this society helps these small producers by pooling the amount contributed by each of the members and performing functions like warehousing, packaging, transportation, etc. The major aim of a marketing cooperative society is to remove the middlemen from the chain of distribution and improve the competitive position of the producer members. The profits earned through the sale of these products are distributed among the members of the society as per the amount contributed by them to the pool of output.