Functional Deficiencies of Agribusiness Cooperatives in Maharashtra: Synthesis of an Unsuccessful Case

The present study, carried out in the state of Maharashtra of India during 2003-04, has its focus on assessing the functional dimensions of agribusiness cooperatives and identifying the reasons for their unsuccessful functioning. The study is based on a case of agribusiness cooperative dealing with the marketing of mainly fruit with its spectrum spread over various other marketing activities. The study has evaluated the performance of Khanapur Group Fruit Sale Co-operative Society (KFCS) which is located about 15 km from Raver taluka of the Jalgaon district in Maharashtra. Though it mainly deals with the marketing of banana, its functional dimensions also encompass input marketing and various other welfare activities. The evaluation of KFCS has revealed several deficiencies in its functioning, the major ones being its poor grasp of studying the market forces, its own internal drawbacks in terms of managing the Society, its own personal interests involved in the functioning of Society, and its failure to generate allies for lobbying to safeguard as well as promote interests of the Society or its members. Since the existence of internal interest-cum-entrepreneurial group in providing dedicated and efficient leadership stands very low as the members of the Board are reported to be self-centered with lack of motivation in terms of growth of the Society, there has been adverse impact on the working of this Society. The study has also revealed that because of lack of funds and losses incurred by the Society, coupled with selfish nature of the management, the memberfarmers have started diverting their produce to private traders. All these factors have led to some adverse implications insofar as the functioning of the society is concerned. The study has concluded that any agribusiness cooperative marked with such deficiencies will end-up with a similar fate as has been noticed in the case of KFCS.