Cooperatives can play a significant role on economic development, especially in rural areas where absence of large spending power does not attractive private investment to harness local skills and resources that can uplift the local economy living standards besides exporting produce to distant customer locations in cities. Cooperatives of farmers enable consolidation of fragmented land, investment in mechanization and irrigation, better bargaining power to buy seeds and fertilisers cheaply, arrange for proper common storage and greater bargaining power in selling farm produce to traders as also make banks comfortable in providing agricultural credit, thereby improving the productivity of agriculture and improving the incomes of farmer members of the cooperatives.