Cooperative sector industry
Topic: Manufacturing Industries of India: Location and Distribution · NCERT: Class 10, Ch 6 "Manufacturing Industries"
Meaning
A cooperative sector industry is owned and run by the people who supply its raw material, by its workers, or by both. They pool their money and resources, and they share the profits or losses in proportion to what each one put in. This model suits seasonal industries, which work only part of the year, when many farmers supply the raw material. The farmers then keep more of the gains instead of a private owner keeping them.
Example
Many sugar mills in Maharashtra are cooperatives owned by the cane farmers who supply them. Other examples are the coir industry in Kerala and Amul dairy at Anand in Gujarat.
Don't confuse with
- Joint sector industry: this is owned jointly by the government and private companies, such as Oil India. A cooperative is owned by producers or workers, not by the state.
- Public sector industry: this is owned and run by the government, such as BHEL or SAIL.