Question

Which of the following statement/s is/are not correct?

(a) Rural Co-operative societies provide agricultural products with loans.

(b) India becomes the world's largest milk producing country due to rural co-operative societies.

(c) The purpose of rural Co-operative societies is only economic development.

1. Only (a)
2. Only (c)
3. (a) and (c)
4. (b) and (c)

Answer 1

Correct Answer - Option 2 : Only (c)

The correct answer is Only (c).

• The central motive of rural co-operative societies is to serve the needs of underprivileged and rural sections of the community.
  • Rural co-operative society in rural areas follows the principle of mutual help and self-help to attain the objective of rural development.
  • It is like a non-profit organization where every member joins a co-operative society to provide support instead of earning profits.
  • An essential role of co-operative society’s contribution lies in the advancement of villages.
• The co-operative societies cover about 95% of villages in India, hence sharing a crucial part in enlarging the overall economy.
• Rural co-operative societies provide short and medium-term loans to promote savings habits among members to supply agricultural inputs like fertilizers, seeds, insecticides, and implements.
• About 37 million liters per day of liquid milk are sold and this milk is provided by the cooperatives.
  • These cooperatives cover almost about 15 states through new Farmer Producer Companies (FPC).
• It is easier to understand the concept of the cooperative by knowing its specific objectives. It can be summed as follows:
  • Aim to provide goods and services.
  • Aim to eliminate the unnecessary profits of middlemen in trade and commerce.
  • Seek to prevent the exploitation of the weaker members of society.
  • Aim to protect the rights of people both as producers and consumers.
  • Promote mutual understanding and education among their members and people in general.