1. Increases bargaining strength of the farmers: If the farmers join hands and form a cooperative society, they will be able to increase their bargaining strength because their produce will now be marketed by single agency.
2. Direct dealings with final buyers: It outcast an intermediaries which eliminates the exploiters and ensures fair prices to both, the producers and the consumers.
3. Provision of credit: The marketing cooperative societies provide credit to the farmers to save them from the necessity of selling their produce immediately after harvesting. This ensures better returns to the farmers.
4. Easier and cheaper transport: This reduces the cost and botheration of transporting produce to the market.
5. Storage facilities: The cooperative marketing societies generally have storage facilities. Thus, the farmers can wait for better prices; also there is no danger to their crop from rains, rodents and thefts.
6. Grading and standardization: This task can be done more easily for a cooperative agency than for an individual farmer. For this purpose they can seek assistance from the government or can even evolve their own grading arrangements.
7. Market intelligence: The cooperatives can arrange to obtain data on market prices, demand and supply and other related information from the markets on a regular basis and can plan their activities accordingly.
8. Influencing market prices: While previously the market prices were determined by the
intermediaries and merchants and the helpless farmers were mere spectators forced to accept
whatever was offered to them, the cooperative societies have changed the entire complexion of the game.
9. Provision of inputs and consumer goods: The Cooperative marketing societies can easily arrange for bulk purchase of agricultural inputs like seeds, manures, fertilisers, pesticides, etc., and consumer goods at relatively lower prices and can then distribute them to the members.
10. Processing of agricultural produce: The Cooperative societies can undertake processing activities like crushing oil seeds, ginning and pressing of cotton, etc.