explain the functioning of an agriculture cooperative society with examples..

1)  Besides banks, other major sources of cheap credit in rural areas are cooperative societies or the cooperatives. The members of a cooperative society join together their resources for support and cooperation in certain specific areas

2)  For example, there are number of cooperatives like weavers’ cooperatives, industrial workers’ cooperatives farmers cooperatives etc.

3)  In a farmer cooperative society there are 2300 members as farmers and this society accepts deposits from its members. With these deposits as collateral, they obtain large loans from banks

4)  These funds are in turn used to provide loans to members and once these loans are repaid another set of lending take place and this is cyclical

5)  This society provides loans for purchase of agricultural implements, loans for cultivation and agricultural trade, fishery loans, loans for construction of houses, etc