Consumer cooperative Consumer cooperatives are enterprises owned by consumers and managed democratica lly which aim at fulfilling

the needs and aspirations of their members.[1] They operate within the market system, independently of the state, as a form of mutu al aid, oriented toward service rather than pecuniary profit.[2] Consumers' coop eratives often take the form of retail outlets owned and operated by their consumers, such as f ood co-ops.[3] However, there are many types of consumers' cooperatives, operati ng in areas such as health care, insurance, housing, utilities and personal finance (includi ng credit unions). In some ties or atives, members countries, consumers' cooperatives are known as cooperative retail socie retail co-ops, though they should not be confused with retailers' cooper whose are retailers rather than consumers.

Consumers' cooperatives may, in turn, form cooperative federations. These may co me in the form of cooperative wholesale societies, through which consumers' coop eratives collectively purchase goods at wholesale prices and, in some cases, own factori es. Alternatively, they may be members of cooperative unions.[4] 1. Consumers' Cooperatives: These societies are formed by the members with an objective to provide goods and services at the cheaper rate by eliminating middlemen commission by establishin g direct relationship with the manufactures or wholesalers. They purchase bulk goods and services directly from the manufacturers or wholesalers and sell those among th e members in small lots. The profit which usually wholesalers or retailers avail are passe d on by the societies to the members in form of cheaper rate and balance as divi dend. The main advantage of this type of societies are that members of this society enjoys the steady supply of goods and services at reasonable price without compromising th e quality. natur:::::::::::::::::::::: Consumer cooperatives utilize the cooperative principle of Democratic member con trol, or one member/one vote. Most consumer cooperatives have a board of directo rs elected by and from the membership. The board is usually responsible for hiring manageme nt and ensuring that the cooperative meets its goals, both financial and otherwi se. Democratic functions, such as petitioning or recall of board members, may be co dified in the bylaws or organizing document of the cooperative. Most consumer co operatives hold regular membership meetings (often once a year). As mutually owned busines ses, each member of a society has a shareholding equal to the sum they paid in w hen they joined. Large consumers' co-ops are run much like any other business and require workers , managers, clerks, products, and customers to keep the doors open and the busin ess

running. In smaller businesses the consumer/owners are often workers as well. C onsumers' cooperatives can differ greatly in start up and also in how the co-op is run but to be true to the consumers' cooperative form of business the enterprise should fo llow the Rochdale Principles. objectives::::::::::::::::::::::::: The main objectives of the NCCF are to provide supply support to the consumer c ooperatives and other distributing agencies for distribution of consumer goods a t reasonable and affordable rates besides rendering technical guidance and assistance to the consumer cooperatives. NCCF is the spokesman of the consumer cooperative movemen t in the country, it provides the following services for strengthening the movement in t he country:NCCF Render technical guidance and assistance to its member institutions in p articular, and consumer cooperative societies in general in grading, packaging, standardization, bulk-buying, storing, pricing, account keeping, other business techniques and management methods to improve and increase their operation and management efficiency. NCCF Create and promote the formation of cadres of employees for the NCCF and member institutions and arrange for their proper training in collaboration with NCUI. NCCF Hold seminars, conferences, meetings and to undertake publicity, propaga nda and similar other activities as may help the development of consumers coopera tive movement in the country. NCCF Establish trade connections with manufacturers, their authorized distrib utors and suppliers/dealers including Government agencies and cooperative organi zation and to undertake purchase, sale and supply of:NCCF Agricultural commodities like food grains, pulses, spices, oil seeds, ph armaceutical items and other consumer goods. NCCF Manufactured and value added items, drugs, medicines, pharmaceutical ite ms and other Consumer Goods. NCCF Coal and its by products, chemicals, fertilizers, pesticides, insecticid es and other industrial goods. NCCF Undertake supply of the above items in wholesale and retail as well as t o Govt. departments/State Agencies /Cooperatives small scale industries and priv ate parties. NCCF Undertake metal scrap business as also setting up and running of warehou ses and cold storages. NCCF Establish, run or sponsor processing of agricultural commodities like fo od grains, pulses, spices, tea, oilseeds, etc., and manufacturing units for the production of consumer goods, if necessary, in collaboration with other agencies. NCCF Import and export of agricultural commodities like, foodgrains, pulses,

spices, oilseeds etc; horticultural products, fresh vegetables and fruits, consu mer goods and any other item permissible under import and export policy as when necessary. NCCF Secure from the Government or other sources requisite facilities, assist ance and financial aid, both for self and for its member-institutions. NCCF Acquire land, building, warehouse, vehicles, factories, workshops, machi nery and equipment for its activities. NCCF Coordinate the working of its member institutions with other national le vel cooperative institutions. NCCF Collect and disseminate necessary marketing intelligence for the benefit of its member s institutions in particular and consumer cooperative societies in general and to undertake research work and study in connection with the consumer s cooperative movement. NCCF Do all such things and take such steps as are incidental or conducive to the attainment of any or all the objects, in collaboration with other cooperati ves, public sector undertaking and other Agencies, if necessary, within and outside the cou ntry. NCCF Establish testing laboratories for testing of consumer goods in general and making such services available for consumers cooperatives in particular. NCCF To act as agents of Central/State Government or undertaking/corporation or cooperative institutions or any business enterprises for the purpose of sale, storage and distribution of consumer goods approved by the Board of Directors from time to time entrusted by Central/State Governments. NCCF To subscribe to the share capital of other cooperative institution as we ll as other public sector enterprises as and when considered necessary for fulfi lling the objectives of NCCF. NCCF To enter into collaboration with International Agency(s) or Body(s) for undertaking international trade of aforesaid commodities/items and setting up of agricultural & consumer industries. NCCF Arrange supplies of various items required by the Central/State Governme nt, Public Sector Undertaking/Cooperative Organizations and others and to undert ake job work including infra-structure development like Housing Projects and any ot her construction work. Laying of roads, transportation, packaging work etc. entr usted by them. NCCF To act as C&F Agent of various organizations/companies.

NCCF To organize cooperative education programmes for Members, Directors and employees and to provide funds for this purpose. NCCF To arrange providing of products related services to the domestic as wel l as foreign buyers and consumers including setting up of hospitals, hotels and collaborating

with the enterprises in joint ventures in the service sector. NCCF To solicit/procure insurance business as a corporate agent and/or in ass ociation of any insurance company/joint venture insurance company in the country .

Consumer cooperatives are businesses which belong to the people who use them. A merica s first successful co-op was formed by Benjamin Franklin to provide insuran ce for homes. Today, more than 100 million Americans participate in cooperatives. Cooperatives are successful because they provide valuable services and save cons umers money. Since the primary goal of cooperatives is to meet needs, not genera te profits, they can serve their members at low cost. Cooperatives often provide services to their communities that are not readily av ailable from for-profit businesses. In other cases, cooperatives enhance the lev el of competition in the marketplace by providing consumers with an alternative source of product s and services. The central principle of consumer cooperatives is member control and participati on. These member/owners meet periodically to establish policy and elect director s. Directors , in turn, hire managers to administer the cooperative on a day-to-day basis. Members control the business and provide capital for a strong and efficient oper ation. And, members receive all net savings left after money is set aside for op erations and improvements. Consumer cooperatives provide most important products or services a person might need. Here are examples of some types of consumer cooperatives:

Consumer Cooperatives Consumer Cooperatives are formed by consumers in obtaining various goods at reasonable prices and guarantee standard. It is a legal body, registere d under the Cooperative Act, with its members as its shareholders. Members voluntarily co-invest in their cooperative stores to fulfill their purchasing ne eds in away that will sustain their economic well-being. Background The first cooperative store in Thailand was established in 1937 at a village in Sena district, Ayuthaya province. Later on, it was spread all over th e country. Objective of Establishment

Consumer cooperatives generally operate according to objectives as follows:1. To obtain goods and services in order to serve members; 2. To collect members' produce and products for sale in the coopera tive store; 3. To promote and disseminate cooperative education to members; 4. To promote the practice of savings, self help, and mutual help a mong members; 5. To cooperate and collaborate with other cooperative organization s within and outside the country; and 6. To undertake any other businesses consistent with the above objectives. Business Operations/methodology Following the same concept as other cooperative types, the consume r cooperative is based on the democratic controlled by members. As it is impossible for all members to manage the cooperative store, representatives are elected as Steering Committee to look after the cooperative business. The number of Steering Committee members depends on the cooperative's by-laws and what is appropriate to the cooperative which is normally ranging between 10 to 15 persons. The Steering Committee represents the members in all matters having to do with the shop, overseeing all activities according to cooperative laws and regulations, resolutions of the board of directors, and other appropria te ways to ensure good results for the cooperative store and its members. To effectively manage the cooperative store, the board of directors could hire a skilled and honest manager to operate the cooperative. His/her mandate is to effectively serve members and customers. Depending on the workload and economic need, the manager may recruit staff with the agreement of the board of directors. Consumer cooperatives strive to provide services for both members a nd non-members according to the principles of the Rochdale leaders as follows: - Selling goods at market prices or slightly lower than market pric es so as to avoid conflict with neighboring shops; - Selling high-quality goods, not low-quality ones, as required by most of the members; - Being accurate in weighing, scooping, and measuring goods; - Buying a variety of daily necessities for sale to members; and - Selling goods on cash basis to ensure a good cash flow for the sh op, ability to make purchases at reasonable cost and prevent delinque ncy among members. Working Capital The consumer cooperative accumulates working capital form the following sources: 1. share capital form members; 2. member deposits; 3. reserve funds and other accumulated fund;

4. loan funds; and 5. grants or donations of property. The cooperative store should maintain adequate working capital for buying various goods and materials in response to members' needs. An ideal situation is where most of the cooperative's capital comes from the members themselves. However, at the initial stage, shares may be collected from members to cover necessary arrangements for setting up the cooperative, with a revolving fund left over for business operations. In later stages, member savings and deposits should be also increased to allow for cooperative expansion. Benefits to Members The following are among the benefits to consumer cooperative membe rs: Members are assured of fair prices and good quality products. Annual profits are shared by members/shareholders in the form of dividends on shares and rebates of which its calculation is based on the amount of purchases made by the member over the year. This implies members can buy much cheaper products. By adopting cash purchasing, the cooperative store is assured of an adequate cash flow and the ability to purchase goods at low price. Members will also be induced to form an appropriate attitude towards money spending and saving. In view of the preceding benefits, consumer cooperative are conside red the socio-economic organizations dedicated to improve member's quality of life.

Meaning, Features and Advantages of Consumer's Co-Operative store. The societies started to help lower and middle class people and protect these se ctions from the clutches of profit-hungry businessman are called consumers co-op erative stores. A consumer's co-operative society is a combination of persons whose aim is to e conomize by buying in common and retain their profits by selling in common. Acco rding to M.C. Sukla, "A consumer co-operative store in an economic enterprise set by the consumers for the distribution of fundamental consumption goods, primarily among the shareholders to the subscriber consumers who are called members of such organiza tion and who have an equal voice in the control of the organization. Features The followings are some of the essential features of a consumer's co-operative s tore: 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 divi

dend. 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 p roxy 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. Advantages A consumer's co-operative store has the following advantages: i. It facilitates its members in getting pure and unadulterated goods at a compe titive price. ii. It develops a state of moral booster to the poor people who develop greater confidence among themselves. iii. As the societies are purchasing goods in bulk quantities from the producers , these are in a better position to supply these goods at a competitive price to its members. iv. It improves the purchasing power of the members since dividend is paid on th e basis of purchases made. v. It encourages people to save.