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The marketing sector is of two tier system.

At the state level the Karnataka state

cooperative marketing federation is functioning at the Apex institution and Taluk
Agricultural Produce Co-operative Marketing societies at the taluk levels are functioning
as primaries. All the taluks in the states are covered by these primary marketing
cooperatives. Besides, there are other commodity-wise marketing societies. The
marketing societies undertake prominent of food grains on behalf of the Government and
the Karnataka food and civil supplies corporation by opening purchase points at village
level. They are also entrusted with the vital activity of rural distribution system.

The Karnataka State Co-operative Marketing Federation Ltd,.

It plays a major role in supplying chemical fertilizers, pesticides, seeds, Agricultural

implements and other agricultural inputs to the farmers. It is also engaged in marketing
certain consumer articles.

1. What type of societies can be registered under Societies Registration Act 1960?

Non Profit organisations such as charity organizations, societies for promotion of

education , Science Literature, or social activities and welfare associations, and clubs etc.,
can be registered under this Act.

2. What are the basic requirements for the registration of a society?

Name, objectives, Registered office, atleast 7 members are required for registering a

3. Whether Trusts can be registered under this Act?

No. Trusts cannot be registered under this Act.

4. How many societies / organizations have been registered in the State so far?

Nearly around 2 lakhs different types of societies have been registered in the state of
which nearly 40,000 of them in Bangalore Urban District alone.

5. What is the amount of fees for Registration of societies and amendment of rules?

For Registering a new society fee is Rs. 1000/- in Bangalore and Rs. 500/- in other
places of the State (50% concession in fees is allowed in respect of women and SC/ST
societies). For registration of amendment of rules - fee is Rs 250/-
6.What is the fee for filing Annual returns under this Act?

For every one lakh rupees of income and expenditure of the society or part there of Rs
100/- has to be remitted as fee to the government.

7. Whether the society has to file the documents with the Registrar every year?

Yes. Each year within 14 days of Annual General body meeting , the society has to file
with the Registrar, details of Committee members, Balance sheet, income and
expenditure and auditors report issued by chartered Accountant.

8. What happens if a society does not file the above details with the registrar ?

As per section 13 of the Societies Registration Act 1960, every society has to
compulsorily file the above details every year. If it fails to do so, for a consecutive period
of 5 years , then the Registrar may after giving an opportunity, cancel the registration of
such society.

9. Can the Registrar condone the delay in filing the returns?

If the Registrar is satisfied that the reason for delay in filing annual returns is bonafide,
then he may condone the delay and permit the society to file such records with fine of Rs
100/ for each belated year.

10.What is the minimum no. of members required for forming a society under this

(Min of 7 members above the age of 18 years.

11. Can a society be registered with undesirable names?

No. No society shall be registered with a name which is identical with, or too nearly
resembles or with name which is already registered.

12. If the Registrar refuses to register a society, where one has to go for an appeal?

Karnataka Appellate Tribunal.

13. Can Societies registered under this Act be converted in to Trust?

Societies registered under this Act cannot be converted into a Trust.

14. Whether individual members are entitled to receive any profit of the society?

Basically as these are non-profit social organizations, no individual member is entitled

to receive any profit of the society.
A proper system of marketing of agricultural produce in the best interests of the cultivator
envisages a simultaneous growth of regulated markets and marketing co-operatives. The long
chain of middlemen adversely affects the hard earnings of the producer. To enable him to earn his
due share in the produce. regulated markets and marketing co-operatives are thought to be the
best remedies.

Marketing soeiet.ies purchase and sell various commodities. Co-operative purchase and sale
societies sell the produce of members and non-members on commission basis. Co-operative
marketing of the agricultural produce was recently introduced in Amravati district. Prior to that the
Taluka Agricultural Associations were dealing in agricultural implements, cement, iron and steel
and fertilisers. They also dealt in foodgrains during the World War II. In villages multi-purpose co-
operative societies were organised chiefly to deal in controlled foodgrains. The taluka and village
societies were not interconnected except for the fact that the Amravati Taiuka Agricultural
Association acted as a wholesaler in the district for cloth brought from Bombay and Ahmedabad.
With decontrol of foodgrains the village co-operatives have been liquidated. After the
reorganisation of States in 1956 the Taluka Agricultural Associations have adopted the bye-laws of
purchase and sale unions and are undertaking marketing activities. To ensure the withholding
capacity of the agriculturist the necessity for properly linking co-operative marketing with finance
was keenly felt. Primary credit societies were thus established in the district to make finance
available to the agriculturists. These societies have now been converted into seva societies and
some of them have started dealing in non-credit activities also.

Besides improving the withholding capacity of the agriculturist, it is also necessary to increase
his bargaining capacity. Government assistance is, therefore, granted to the co-operative societies
for construction of godowns. Twenty societies in the district have been granted loans and subsidies
for constructing medium and small-sized godowns. They have constructed 13 godowns so far. The
members of the co-operative societies take advantage of the Central Warehouse at Amravati,
State Warehouse at Dhamangaon and godowns constructed by various co-operative societies.

There are in all seven purchase and sale societies working in the district. They-

(i) distribute seeds, fertilisers, iron and steel, cement, food-grains and sugar,

(ii) grant advances to agriculturists,

(iii) manage grain and cotton markets,

(iv) work as commission agents and conduct cotton and groundnut pools.

(v) sell or lend agricultural implements, oil engines, pumps, etc.. and

(vi) arrange to sell the agricultural produce and thus effect recoveries of loans



The CAMPCO was registered in 1973 under the K.C.S. Act, with the objective of
arranging procurement, processing and conducting sale of arecanut and cocoa.
This institution was registered again in 1988 under the Multi-state Cooperative
Act, which extends its jurisdiction to Karnataka and Kerala State. However, for
the purpose of purchase, processing and the sale of Arecanut and Cocoa and
establishment of allied industries and Marketing of their products there are no
restrictions of area of jurisdiction.
For Marketing of Chocolates, it has its own marketing team and has entered into
an agreement with MIS, NESTLE India Ltd., for the manufacture and supply in
bulk quantity of cocoa products.

The institution has a mobile procurement unit at Thirthahalli for extending service
at the door steps of the farmers where there is no adequate transportation facility.
It has opened a Research and Development wing for price behaviour analysis.

Business Transaction As on 31-3-2010

Sl.No Details Rs in Lakhs

1 Paid up share Capital 1932.58
2 Number of Branches 84
3 Number of Individual Members 109435
4 Number of Member Co-operatives 544
5 Deposit 3955.18
6 Working Capital 20492.52
7 Trade Profit 5460.78
8 Profit (Tentative upto) 1401.83
9 Annual Turnover 59260.75
Qty.(Qtls) Value

1) Arecanut

2) Cocoa 53938 49766.67

(including direct
10 purchase) 2036 2719.01


1) Arecanut 50314 48702.30

2) Cocoa 2087 2869.49

Copper Sulphate

11 1) Production 89 100.17

2) Sales 88 98.14
12 Chocolate

6000 7200.00
1. 1) Production

1. 2) Sales 6447 9590.52

There are other Areca Marketing and Processing Cooperative Societies in the Areca
growing Districts of the State and they are:-

• The Totagars Cooperative Sale Society Ltd., Sirsi.

• The Malnad Areca marketing Cooperative Society Ltd., Shimoga.
• The Areca Processing and Sales Cooperative Society Ltd., Sagar.
• Tota utpannagala Marata Sahakari Sangha Niyamitha, Channagiri.

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The existing institutional structure of co-operative marketing is such that the co-operatives are
functioning at the primary level, at the secondary level (taluka or district) and at the state level. In
pursuance of a recommendation of the Dantwala Committee, efforts have been made to persuade
the state govts to divert the middle tier viz. the distrct marketing federations, of the functions
legitimately falling within the purview of the state or primary marketing societies, so that a two-tier
system can be brought into operation. The co-operatives in different states have been federated
into a central level federation viz. the National Agricultural Co-operative Marketing Federation
(NAFED). At the end of 1960-70 as many as 3335 primary cooperative marketing societies were
operating. Of these more than 500 were specialized commodity marketing societies for special
crops, cotton, fruits and vegetables. In certain states intermediate organizations at district and state
levels have also been established. At the end of 1960-70, 232 such societies were functioning.
They included some commodity federations also. At the state level 28 apex co-operative marketing
federations are functioning. They are normally handling all the commodities. There are a few apex
cooperative societies which are handling exclusively a particular commodity eg. two apex societies
in Gujarat are handling cotton, one is handling fruits and vegetables and one in Uttar Pradesh is
handling sugarcane only. In order to strengthen and develop co-operative marketing to an extent
where it may have an impact on the marketing of agricultural produce, several measures have been
initiated. Steps are also being taken to see that there is an effective co-ordination between the state
cooperative departments and their counterparts dealing with agricultural marketing. Consequently
there has been a significant expansion in the operations of marketing co-operatives. This is
exclusive of the value of agricultural requisites and consumer articles handled by the marketing
cooperatives. The main commodities marketed by the cooperatives were sugarcane, cotton,
oilseeds, fruits, vegetables and plantation crops.

In pursuance of the decision of the govt, a scheme of outright purchases of agricultural produce by
the co-operative marketing societies was launched in 1964-65 in 200 selected marketing societies.
The basic theme of this scheme has been to bring the small producers within the fold of co-
operative marketing together for such farmers. To provide the necessary financial backing the
scheme envisaged the creation of a price-fluctuation fund. The fund envisages to meet losses if
suffered by the co-operative marketing societies at different levels as a result of outright purchases
of agricultural produce.

The scheme has been operative in several states. During 1969-70 the value of the agricultural
produce purchased under the outright purchase scheme was about 34 crores. As a result of this
scheme there has been a greater involvement of cooperative societies in the marketing of
agricultural produce.

Besides this scheme has given impetus to inter-state trade by the cooperatives. They transacted
about Rs 66.55 crores worth of agricultural produce during 1969-70.

Inter state trade. The co-operative marketing societies are devoting increasing attention to inter
state trade in agricultural produce. The main commodities are wheat, pulses, plantation crops,
copra, spices, fruits and vegetables. The bulk of the transactions were made by the Punjab Apex
Federation. During 1970-71 the NAFED acted as the agency of the co-operatives of Jammu and
Kashmir for marketing their apples outside the state.

Co-operative export of agricultural produce. The export of agricultural produce by the co-
operative sector continues to be a growing activity. The bulk of the exports are made by National
Agricultural Cooperative Marketing Federation Ltd., which accounted for exports worth Rs 5.64
crores. Besides , the Gujurat State Cooperative Marketing Federation Ltd., the Khanna Cooperative
Marketing Federation Ltd., the Kerela state Cooperative Marketing Federation Ltd., the Jalgaon
district fruit sales societies and the coconut oil millers society also cooperated to exports to
countries like Kuwait, Malaysia, Ceylon, Singapore, Bahrain, Doha, Dubai, Iran ,Muscat. The
Khanna Solvent Extraction Plant in the Punjab State exported de-oiled cake worth Rs 35 lakhs
during 1969-70. The main commodities exported by the cooperatives were pulses, chillies, onions,
pepper, de-oiled cake, potatoes and kardi extraction meal. The exports were mainly made to
Ceylon and other important markets were Mauritius, Kuwait, Doha, Bahrain, Hong Kong, the USSR,
the UK , Iran, Czechoslovakia and France. Some of the traditional items of export have been
marketed in non traditional areas. Pulses were exported to Cuba and onions to Malaysia and
Singapore. The cooperatives also assisted various agencies to export agricultural commodities. In
this connection exports of coffee and raw sugar were made.

During 1970-71 , NAFED exported agricultural produce worth Rs 5.26 crores. The Jalgaon District
Fruit Sale Societies Cooperative Marketing Federation Ltd., directly exported bananas worth Rs. 34
lakhs to Kuwait and Bahrain Islands.

Co-operative cold stores. Co-operatives are also to facilitate the storage and marketing of
perishable commodities especially seed potatoes. By the end of the Third plan the cooperatives
had established 87 cold stores and the target for the fourth plan was set at 45 more. At the end of
December 1971 there were as many as 96 cooperative cold stores with a capacity of 1.42 lakhs


Several training courses, viz. (a)11 months Diploma Course in Agricultural Marketing in Nagpur,
(b)4 months Market Secretaries Course at Chandigarh, Lucknow and Hyderabad, (c)6 months
Diploma in Livestock Marketing at Nagpur, (d) 3 months training for grading supervisors at Nagpur
(e) 3 months Graders Course at Hubli, Lucknow, and Chandigarh, (f)4 months Training Course in
Cotton Classing Centre at Surat, (g)6 months Training Course in Tobacco Grading at Guntur, and
(h)3 weeks course at Demonstration cum training centre in animal casing at Bombay and New
Delhi are being run by the directorate of marketing and inspection. In addition short term condensed
training courses of one week duration organized for the state govt personnel in Kapas grading. As
many as 407 candidates in the 11 months Diploma course, 1596 in 4 mths course; 212 in 3 mths
course; and 76 in 3 mths grading course were trained by the end of 1972-73.

Market extension. The directorate of marketing and inspection has set up a seperate extension
wing for the dissemination of information valuable to producers as well as to consumers. The
primary aim of the scheme is to enlighten the producer seller on consumer preference and to
advise him on the proper methods of preparation for marketing, grading, storing, packaging,
handling and transporting and to improve the quality of the produce and to secure a better return to
the growers.

Since 1969, the Directorate of marketing and inspection has in collaboration with the directorate of
extension launched a series of 'Agmark' exhibitions known as 'vital link between farm and home'.
These have been held in New Delhi, Lucknow, Chandigarh, Trivandrum, Bombay, Calcutta,
Bangalore, Nagpur, Ahmedabad, Madras and Hyderabad. These have designed to educate the
general public in the field of agricultural marketing to promote quality consciousness among

Marketing intelligence. With a view to disseminating the marketing intelligence to the interested
parties the directorate of marketing and inspection publishes the following journals:
1. Agricultural Marketing--a quarterly journal
2. Marketing Newsletter-- a monthly letter
3. Agmark Statistics-- yearly
4. Commodity Intelligence Bulletins for tobacco, wool, bristles, potatoes etc.


The role of market research in the establishment of an efficient system of marketing cannot be
overemphasized. In order to be able to introduce reforms one should know the defects and
shortcomings of the prevailing system. This calls for and justifies the necessity of intensive research
and investigation. Under the third five-year plan an elaborate scheme for conducting survey, and
research in the various facets of agricultural marketing has been undertaken by the Directorate of
marketing and inspection. Particular attention is being paid to the collection of market information,
with regard to price spreads, shifts in marketing practices, consumption pattern, consumer
preferences, directional movements, packaging, assembling, transportation, distribution etc.
Authentic statisics and data are being collected so that up-to date information may be maintained in
respect of all important agricultural commodities. Besides the market surveys cover studies on the
organisational aspect of the mktg. system, problem orinted studies etc. Under the fourth five year
plan a specialized study to estimate the post harvest losses and marketable surpluses of
agricultural produce have been taken up on an all-India level.

The Research Wing of the Directorate of marketing and inspection has been further strengthened
by creating the Market Research and Planning Cell. The cell has a big component of exports in the
field of agricultural marketing research and is expected to increase the tempo of development in
this field .

Conclusion. Marketing is a multistage process. For the improvement and development of

marketing structure, a co-ordinate approach aiming at removing all the weak links of the marketing
chain is essential. A package of improved marketing services in the form of regulated markets,
grading, weighing, storing, transporting, handling services and marketing finance need to be made
available to ensure the producer a fair return from his production efforts and a better share in the
price paid by the consumer. At the same time, market research programs should be oriented to the
developing of an orderly and efficient marketing system. This is a crucial time in the development of
agricultural marketing when the country is poised to enter an ers of production surpluses. A
piecemeal approach at this stage can be disastrous and can nullify the advantages gained by the
farmer on the production