They are voluntary associations of producers formed with the objective of ensuring a steady market for the output of members. Marketing Co-operatives are especially suitable for marketing of agricultural products.
They seek to protect producers from being exploited by the middlemen. The output of the members is pooled together, the products are processed and sold at the best possible price. The members are assured of correct weight and measurement and fair prices for their produce. The sale proceeds are distributed among the members according to their contribution to the pool. They also provide credit, storage facilities, information about market price, demand and supply etc.