Consumer cooperative

A consumer cooperative is a cooperative business owned by its customers for their mutual benefit. It is a form of free enterprise that is oriented toward service rather than pecuniary profit. Consumers' cooperatives often take the form of retail outlets owned and operated by their consumers.

1. Consumer Cooperative
PRESENTED BY: KEYURDARJI

2. Introduction
Aconsumercooperativeisacooperativebusinessownedbyitscustomersfortheirmutual
benefit.
Itisaformoffreeenterprisethatisorientedtowardserviceratherthanmonetaryprofit.
Consumers'cooperativesoftentaketheformofretailoutletsownedandoperatedbytheir
consumers.

3. Overview
TheNCCF(NationalCooperativeConsumer’sFederation)wasestablishedin1965tofunctionas
theapexbodyofconsumercooperativesocietiesinthecountry,itisregisteredundertheMulti-
StateCo-operativeSocietiesAct.
NCCFoperatesthroughanetworkof28Regionalofficeslocatedindifferentpartsofthe
countryandheadofficeatNewDelhi.

4. Objectives
ThemainobjectivesoftheNCCFaretoprovidesupplysupporttotheconsumercooperativesand
otherdistributingagenciesfordistributionofconsumergoodsatreasonableandaffordablerates
besidesrenderingtechnicalguidanceandassistancetotheconsumercooperatives.
Agriculturalcommoditieslikefoodgrains,spices,oilseeds,pharmaceuticalitemsandother
consumergoods.
Manufacturedandvalueaddeditems,drugs,medicines,pharmaceuticalitemsandotherConsumer
Goods.
Coalanditsbyproducts,chemicals,fertilizers,pesticides,insecticidesandotherindustrialgoods.

5. History
Consumercooperativesdesigntoreputationduringtheindustrialrevolutionaspartof
thelabormovement.
Asemploymentmovedtoindustrialareasandjobsectorsdeclined,workersbeganorganizing
andcontrollingbusinessesforthemselves.
Workerscooperativewereoriginallysparkedby"criticalreactiontoindustrialcapitalismand
theindustrialrevolution."

6. Cont…
Theformationofsomeworkerscooperativesweredesignedto"copewiththeevilsof
uncheckedcapitalismandtheinsecuritiesofwagelabor".
Thefirstdocumentedconsumercooperativewasfoundedin1769,inabarelyfurnished
cottageinFenwick,EastAyrshire,whenlocalweaversmanhandledasackofoatmealintoJohn
Walker'swhitewashedfrontroomandbegansellingthecontentsatadiscount,forming
theFenwickWeavers'Society.

7. Movement
The first successful organization was theRochdale Society of Equitable Pioneers, established in
England in 1844.
The Rochdale Pioneers established the ‘Rochdale Principles’ on which they ran their cooperative.
This became the basis for the development and growth of the modern cooperative movement.
As the mechanization of the Industrial Revolution was forcing more and more skilled workers into
poverty, these tradesmen decided to band together to open their own store selling food items they
could not otherwise afford.

8. TheRochdale Society of Equitable
Pioneerswas established in 1844 and defined
the modern cooperative movement.

9. Organizational Structure

10. Features
i. There is no restriction on membership of a consumer co-operative store as any adult person can
become a member of a co-operative.
ii. The members of the consumer co-operative store and distribute capital in the form of share. A
member can purchase shares of a value of Rs. 1000 only. Beyond this, shares are not issued to
members.
iii. The surplus of a store is distributed among the members in the form of dividend. The dividend is
paid in proportion to purchases made by the members.
iv. It adopts the principles of one man one vote. A man is not allowed vote by proxy system.
v. The trading of co-operative stores is made on the basis of cash.
vi. A sale can be made to non-members on the basis of market rate.
vii. It makes bulk purchases directly from the producers and sell these goods to its members on retail
basis.

11. Functions
Supplying Office stationary articles to different Offices and organizations ,
Supply of relief materials to different districts,
Supply of food items to Indian Consumer Development Stores (ICDS) medical equipments
Supply of food item to different hospitals,
Supply of food grains to Border Security Forces,
Supply of fish and fire woods to different departments,
Make various supplies of police ration items,
Supply of certified seeds to different ZillaParishads,
Participate in various different tenders of other departments including Forest, Fire Service and supply
of Tender articles.

12. Advantages
(1) As the value of the shares of a co-operative society is limited, it attracts many people.
(2) The control and management of society is democratic.
(3) These societies lead to the elimination of middlemen.
(4) Since the control and management of the society is in the hands of the members, it ensures
better quality of goods to the members.
(5) Advertising expenses are limited.
(6) Co-operative societies are very helpful in training and developing managerial abilities among
the members.
(7) Economies of large scale purchases are availed by the societies.
(8) The societies help the members in the adjustment of their family budgets to their incomes.

13. Disadvantages
(1) The societies usually suffer from inadequacy of finances as majority of the members of the
societies are from middle class or low income group people.
(2) Most of the members do not have proper managerial ability and training, so they cannot
manage the affairs of the societies properly.
(3) The members may not be loyal and honest which adversely affects the smooth functioning of
the societies.
(4) As the capital can be withdrawn by the members at any time, this is greatly harmful during
the periods of depression and carelessness of business activities.
(5) There is lack of advertising and salesmanship which results in lesser sales.

14. Thank You