Question

Name the type of cooperative society set up :
(a) to help the small producers in selling their products .
(b) to provide easy credit on reasonable terms to the members .
Also , distinguish between the two on the basis of :
(i) members `" "` (ii) activities `" "` (iii) aim.

Answer 1

a) Producer Cooperative society.
b) Credit unions/Credit cooperative society
Difference between them
-1.MEMBERS- In both minimum 10 memebers are required and maximum can vary.
2-ACTIVITIES-Producer cooperative -They perform several activities like processing, marketing & distributing their own products. This helps in lower costs and strains in each area with a mutual benefit to each producer.
-CREDIT UNIONS-They provide credit and financial services to the members at competitive prices. Each and every depositor has the right to become a member. Members attend the annual meeting and are given rights to elect a board of directors.
3.AIM-Producer cooperative society-To protect the interest of small producers, these societies are set up. The co-operative society members may be farmers, landowners, owners of the fishing operations. To increase the marketing possibilities and production efficiency, producers decide to work together or as separate entities.
CREDIT UNIONS-Credit unions are generally member-owned financial cooperatives. Their principle is of people helping people. They provide credit and financial services to the members at competitive prices.