How is cooperative marketing beneficial to individual farmers?

Question

Accepted Answer

Cooperative marketing is a measure to ensure a fair price to farmers. It links rural credit, farming and marketing processes to the best advantage of the farmers.

1. Member farmers sell their surplus to the cooperative society, which substitutes collective bargaining in place of individual bargaining, thereby improving their bargaining power.

2. Cooperative marketing societies satisfy the immediate cash requirements of farmers by providing them credit.

3. As cooperative societies often have storage facilities, farmers are not in a hurry to sell their produce and can wait for better prices.

4. The facility of bulk transportation of agricultural produce is often cheaper and easier.