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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.

      In Karnataka there are 179 Taluk Agriculture Produce Co-operative Marketing Societies. Apart from these societies there are five specialized marketing societies dealing with Commercial Crops like arecanut etc, In order to achieve various objectives of such societies effectively and to restructure the marketing system, District Cooperative Marketing Unions at District level in the Districts of Belgaum, Bijapur, Bellary, Raichur, Mandya, Haveri, Mysore, Gulbarga, Shimoga, Hassan, Bidar and Bagalkot have been established.


1) The Karnataka State Co-operative Marketing Federation Ltd,.

      The Karnataka State Co-operative Marketing Federation was registered on 11-11-1943 under the Karnataka co-operative societies Act. In the initial years the Federation was involved in the distribution of coffee seeds, sugar, clothes, cement and other consumer items. In the subsequent years the Federation has involved itself in procuring and distributing of agricultural inputs essential to the farmers such as fertilizers and insecticides and also purchase of agricultural produce from the farmers. 

      The major activities of the Federation are supplying fertilizers and pesticides necessary to the farmers through co-operative societies, under the minimum price support scheme of the Govt, and purchase of agricultural produce from the farmers as per Market Intervention Scheme and its own funds and construction of godowns in important centers of the State and thereby providing storing facility for the agricultural produce. 

      In order to ensure timely supply of fertilizers to the farmers, the Government has implemented the Fertilizer Buffer Stock Scheme from the year 2008-09 through the Karnataka State Co-operative Marketing Federation. Upto 2019 the Federation has distributed 79.65 lakhs MT of Fertilizer to the tune of Rs.5563 crores. By implementing this scheme the financial position of the Federation improved gradually. The Government stands guarantee to the loan obtained by the Federation through Bank’s to the tune of 400 crores during 2018-19. 

      The Federation has 451 co-operative societies as its members with total share capital of Rs.684.33 lakhs and working capital of Rs. 357837.16 lakhs. During the year 2018-19 the turnover in respect of sale of fertilizer is Rs.33786.14lakhs and that of agricultural produce purchase is Rs97425.00 lakhs. 

2) Agricultural Produce Co-operative Marketing Societies.

      There are 179 Taluk Agriculture produce Co-operative Marketing Societies working in the State. The area of operation of these societies extends to a taluk and they function at the taluk headquarters. The main objectives of these societies are to procure agricultural produce from the farmers and enable marketing of these produce thereby ensuring right price for the agricultural produce, construction of godowns for storage of these agricultural produce, along with this implementation of the food ration scheme of the Govt., distribution of ration to hostels/ prisons and marketing of fertilizers, insecticides, agricultural implements. 

      As at the end of 2018-19, these 179 co-operative societies have 4451 co-operative societies and 307945 individuals as its members. The total share capital is Rs.3221.48lakhs, (of which Government Share capital is Rs.1513.37 lakhs, it has working capital of Rs.75158.78lakhs and business turnover is Rs.147173.72lakhs. 



Last Updated: 30-05-2023 11:41 AM Updated By: Admin

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