1. They are voluntary associations of small producers and artisans, who come together to face the competition and increase the productions.
2. Producers Co-operatives are of 2 types – (a) Industrial Service Co-operatives and (b) Manufacturing Co-operatives.
3. Such co-operatives sells the output of members in the market and then profits are distributed among the members.
4. They provide raw materials, implements tools, technical guidance to members on easy terms.