Definition of Purchasing Cooperative Society
Cooperative is the collectiveness of few people to attain general objectives. Raw materials and other elements must be needed to purchase to continue agricultural, small and cottage industries. The cooperative society is established to purchase fertilizer, seeds, and other essential tools for agriculture, raw materials, and instruments for cottage industries is called purchasing Cooperative society.
It is a type of cooperative arrangement, often among businesses, to agree to aggregate demand to get lower prices from selected suppliers. Retailers’ cooperatives are a form of purchasing cooperative. It is often used by government agencies to reduce costs of procurement. The instruments relate to agriculture and cottage industry combined purchase with the assistance of this cooperative. As a result, standard instruments can be purchased instead of fewer quality instruments. Peasants and owners of small industries are benefited by this cooperative society.