Types of Cooperative Societies
Types of Cooperative Societies There are number of cooperative societies which have been started in the capitalist countries all over the world. All types of cooperative societies work on the same principle, they differ with regard to the nature of activities they perform. Followings are different types of co-operative societies that exist in our country.
1. Producer Cooperative Societies:
When the members of the society combine their services and resources for the production of goods and services, such societies are known as production societies or producer’s societies. The persons having skills but small resources, they cannot separately produce the goods and services more effectively as they can do with the combined efforts. So they combine their resources and works themselves as employees and managers and produce goods and services at lower cost for the members of the society. The goods produced by the society are distributed among its members at cost price and there are any surplus goods that are sold at profit to the outsiders. Types of Cooperative Societies
2.Consumers Societies:
When the ordinary persons combine their resources to purchase the goods in bulk at wholesale price and distribute it among its members at reasonable price to eliminate the services and cost of middlemen in the distribution channels, such societies are known as consumer’s societies. Every person who purchase one share of the society can becomes its member. A person manages it or a committee elected by its members among themselves. The main purchase of this society is the provisions of necessities of life to its members at cheaper rate. If any profit is earned by the society, it is divided among its members according to the amount of purchases made by them.
3. Credit Cooperative Society:
When the cooperative society is created to grant loans to its members and others on favorable conditions and at a reasonable rate of interest, such society is known as credit cooperative society, This society collects the funds from the membership fee, sale of society’s shares deposits of the members and loans from the government. It provides short-term credit facilities to its desiring members and other persons on favorable conditions in order to promote the economic welfare of the general public and especially to its own members.
4. Housing Cooperative Society:
The housing society is formed to overcome the difficulties of residence of its members The persons of low and middle income group having no housing facilities can form a society which may provide financial assistance to build their houses or purchase land and distribute it among its members or it may build houses and provide them to their members on reasonable price and conditions. Sometimes, it purchases the building material in bulk and provides it to its members at low prices
5. Marketing Cooperative Society:
The marketing cooperative society is voluntary association of small producers, which make arrangements for the sale of goods to its members at a reasonable profit. It also provides the financial assistance and technical services to its members to make their products market oriented The producers transfer their output to the society and society often sells their goods without the help of the wholesalers and retailers to earn high profit. The profit earned by the society is distributed among its members according to their output.
6.Farming Cooperative Society:
This society is formed to increase the agricultural product for its members as well as for the country by providing financial assistance and technical services to its members who are related to agricultural field. The persons having small pieces of land and limited resources cannot cultivate the land on mechanized manner with advanced technology. As a result of this, they cannot grow proper crops and their average production per hectare is also low. So the farming society assists its members by introducing improved methods of production. It also provides machinery, financial assistance and consultancy services to its member farmers.
7. Transportation Cooperative Society:
The cooperative society which is established to provide better transportation to its members and others is known as transportation cooperative society. It collects capital from its members and purchases buses and other conveyance facilities and operates them on a declared route it provides the traveling facilities to its members at concessional rates. It may issue concessional passes to regular travelers.
8. Insurance Cooperative Society:
The Insurance Cooperative society is formed to provide group insurance facility to its members. This society makes contract with the other insurance companies and purchase group insurance policy for its members at concessional premium. It gets premium from its members and a lesser amount is paid to the other insurance companies. Sometimes, the society may issue the insurance policies to the general public. It reinsures its policyholders at lower premium and in between earns the profit
9. Dairy Farming Cooperative Societies:
The people linked with dairies can set up their society. The dairy owners keep cows and buffalos. They make arrangement for their fodder. They try to sell milk and milk make products. (There are more than twenty societies working in Pakistan. The maximum numbers of societies afe working in Punjab
10. Labour Cooperative Societies:
Labour cooperative societies are for the encouragement of unskilled labourers. These poor and unskilled jointly offer their services to the employer or contractor. This labor force is used for the construction of buildings road, and dams. An individual labour is poor and has no bargaining power. These societies protect the rights of poor labours.)
11. Storage Cooperative Societies:
provide grading and distribution services to its members.
12. Tube. Well Cooperative Societies:
(These societies are formed for the provision of storage facilities to its members for perishable and non perishable goods at lower rates. These societies also
The societies are formed to supply water to the farmers. In arid areas the crops depend upon rains. With the help of these types of societies farmers can install tube-well to cultivate their land. The water can be used for irrigation of crops. There are more than four hundred societies in Pakistan.
13. Miscellaneous Cooperative Societies:
The cooperative societies may also be formed for some other fields of life like earned profit but the welfare of its members Types of Cooperative Societies
Conclusion;
fisheries, poultry farming, etc. These societies provide financial assistance and technical services to its members in their specific field of life. Dfa ho The main purpose of all these cooperative societies is to promote economic and social welfare to its members. (There are a number of Cooperative societies which have been started in all over the world. The fundamental purpose of all these types of societies is not to
