Question
Lalitha Devi did her post-graduation from Manipur University, Imphal. She had
offers to join some reputed firms in metropolitan cities like Delhi and Mumbai. Instead of joining any of these firms she decided to do some creative work in Imphal. She observed that a special type of chilli is grown by the farmers in most of the villages in Imphal. This chilli has a distinct flavour and pickle made from this chilli has a taste which may be liked by people from the rest of the country. But the farmers were neither trained for this kind of farming of this kind of chilli on a large scale nor was there a secured market for their produce. Lalitha Devi met 18 like-minded women of the area and formed an organisation for doing the business of pickle manufacturing. Each of them contributed ₹20,000 each towards its capital and were equally responsible for its management. On one hand they assured the farmers to purchase their chilli and on the other hand, the organisation with the help of local agriculture department arranged for the training of the farmers. They also employed 10 local unemployed graduate girls for doing the various operations of pickle making.
On the basis of the given information, answer the following questions:
(a) Identify the kind of organisation that was formed by Lalitha Devi.
(b) Explain the type of the kind of organisation that was formed by Lalitha Devi.

Answer

(a) The kind of organisation formed by Lalitha Devi is Cooperative Society.
(b) Producer's Cooperative Societies: These societies are set up to protect the interest of small producers. The members comprise of producers desirous of procuring inputs for production of goods to meet the demands of consumers. The society aims to fight against the big capitalists and enhance the bargaining power of the small producers. It supplies raw materials, equipment and other inputs to the members and also buys their output for sale. Profits among the members are generally distributed on the basis of their contributions to the total pool of goods produced or sold by the society.

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