Abstract:
Agriculture cooperatives are considered as one of the most successful cooperatives in
the world. They are also considered as Farmer Based Organizations (FBO).
Successful FBOs are engaged in crop production and processing, value addition, and
marketing activities. Such entities provide a vast array of services to the members such
as capacity building, supply of inputs, credits, resources and extension services,
processing, value addition, marketing, welfare, disbursement of profits etc. Morawak
Korale Tea Producers Cooperative Society (MKTPCS) is the only cooperative
belonging to a tea-growing community in Sri Lanka. Studies have revealed that many
FBOs do not produce expected results. This study attempted to examine the role of
MKTPCS as a Farmer Based Organization. Data were gathered from key stakeholders
comprising of cooperative officials and its members through qualitative interviews.
They were analysed using standard qualitative methods (Coding and Thematic
analysis). Results revealed that MTPCS provides marketing facilities for the products
of the members'. It earns profits and transferred to the members in the form of bonuses
and various forms of welfare facilities. The production support system, such as the
suppling of inputs and credit operate very effectively. However, the extension service
is not in a satisfactory level in certain clusters. Due to the structural issues and lack of
legitimate power, zonal committees are unable to perform a significant role in this
system. The management is unable to link the ordinary members to the cooperative
through the zonal committees. Certain conditions in the Cooperative Societies act No.
5 of 1972 (as amended) suppress the self-reliance state of the MKTPCS as an FBO.
The members are the shareholders of the cooperative, and all the members have equal
voting rights in decision making. MTPCS processes the members' primary products
as a producers' organization, and the members strongly believed that the cooperative
activities have positively affected on their lives. It is recommended that the present
structure should be changed into the two-tiered federated structure with the
decentralization of power into Zonal Committees.
Keywords: Tea producer, FBO, Cooperative services, Marketing and welfare facilities
