The Role of Co-Operative Marketing In Agriculture Sector

Indian economy is rural in character. This is evident from the fact that a very high proportion of the population is living in rural areas. Further two-thirds of its workforce is engaged in agricultural and allied activities, which contribute about 27% of India’s gross domestic product. In a predominantly agrarian country like India, rural development is a sine qua non for national development. Marketing of agricultural produce is considered as an integral part of agriculture, since an agriculturist is encouraged to make more investment and to increase production. Thus there is an increasing awareness that it is not enough to produce a crop or animal product; it must be marketed as well. A higher level of achievement could be achieved with the available natural, human, material and financial resources in the country. If the goals of rural development are to be achieved it is necessary that the rural people be organized within an institutional structure that gives them access to the national, economic, political and social system. In India, cooperatives are the most commonly found form of people’s organization.Agricultural marketing cooperatives are businesses owned by farmers, to undertake transformation, packaging, distribution, and marketing of farm products. This paper discusses the present scenario of agricultural co operative marketing and its need, importance and objectives and its role in improving both the social and economic welfare of farmers as well as overall country. It also highlights certain problems related to co operative marketing. Further this paper highlights the improvements that make the co operative marketing most effective.