The small and marginal farmers continue to sell a major part of their produce to moneylenders to meet their credit needs and these moneylenders offer them very low prices. Therefore it is essential to form cooperatives of the small and marginal farmers to enable them to obtain fair prices for their produce. The advantages that co-operative marketing can confer on the farmer are multifarious, some of which are listed below:
Increases bargaining strength of the farmer.
Provision of credit
Easier and cheaper transport
Storage facilities
Grading and standardization
Market intelligence
Influencing marketing prices
Provision of inputs and consumer goods
Processing of agricultural produce
2 comments:
I would like to tell about similar success story in the village Bhadreswar. There the fishermen who used to take the credit from the local money lenders at the low interest but were obliged to sell their produce i.e. fish catch to the lenders at the fixed low rate. hence the effective interest was quite high.
But after the intervention by the local NGO,a Producer Company was formed, which used to provide the credit to the fishermen and took their produce at the rate at par with that of the market which eventually led to the prosperity of the fishermen. And now fishermen have also started saving so their credit requirement has reduced.
So the Co-operative or the Producer company can help to get out of the vicious circle of poverty.
Farmers in India faces many problems.one of the major problem of farmers in this era of globalization is the subsidy given by the developed nation to their farmers due to which our produce in the international market becomes less competitive.
collective action should not be restricted to the people who are economically downtrodden.we can have collective action at the international level by the developed nation to pressurize these nations from stop giving subsidy.Although the efforts are being made but a lot is still needed to be done in terms of collective effort to make it a success.
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