Industrial cooperatives are formed by industrialists. They can decide to work together to increase marketing possibilities. This helps to protect themselves and solve their problems. Examples : Matchbox factories, chemical industries and crackers industries.

When various farmers in a village pool their land together and agree to treat the pooled piece of land as one big farm for the purpose of cultivation, purchase the necessary inputs for the cultivation, and market the crops jointly, they are assumed to have formed a cooperative farming society.

(i) Producer co-operatives are established and operated by producers.
(ii) Producers can decide to work together or as separate entities to help increase marketing possibilities and production efficiency.

(i) These co-operative housing societies are meant to provide residential accommodation to their members on ownership basis or on rent.
(ii) People who intend to build houses of their own join together and form housing societies.

Benefit to rural rich:
Co-operatives, have benefited the rural rich and not the rural poor.
Inadequate rural credit:
Co-operative societies give loans only for productive purposes and not for personal or family expenses.
Lack of managerial skills:
Co-operative societies are managed by the managing committee elected by its members. The members of the managing committee may not have the required qualification, skill or experience.