Functional Bottlenecks of Multipurpose Cooperative Marketing Societies in India

Abstract

The present study, carried out in the state of Maharashtra during 2004-05, focuses on two cases of multipurpose cooperatives dealing mainly with the marketing of fruits but having their spectrum spread over various other marketing activities, including input and credit delivery. The synthesis of case studies shows multifarious reasons for their inefficient functioning and important among them revolve around lack of transport facility and trained staff, inefficient management, interference of private traders, excessive commission, repayment of loan, default rate, interest rate structure, attitude of private traders, lack of dedicated leadership, diversion of poor quality of produce by members, shortfall in procurement, etc. In fact, both the societies have shown poor grasp either in terms of studying the market forces or shown inefficiency because of their own internal drawbacks in terms of managing the societies or their own personal interests involved in the functioning of the society. The societies are unable to generate allies for lobbing to safeguard as well as promoting their own interests and the interests of their members. Since the existence of internal interest-cum-entrepreneurial group in providing a dedicated and efficient management stands very low, as the members of the board are reported to be self-centered with lack of motivation in terms of growth of the society, there has been adverse impact on the working of these societies. Further, because of lack of funds and losses incurred by the societies coupled with self-interests of the leaders, the member farmers are now diverting their produce to other private traders. This certainly has some adverse implications insofar as the functioning of these societies even in future is concerned. However, it is suggested that efforts should be made to rectify the deficiencies in the functioning of these cooperative societies dealing with the marketing of high value crops. Some remedial measures and strategies framed or initiated by these marketing societies, particularly in respect of recovery of their loan advances, will certainly improve their efficiency and functioning in future. Government support in this respect will have a catalytic effect in improving the overall efficacy and efficiency, as well as functioning, of various Primary Cooperative Marketing Societies (PCMS) operating in Maharashtra.