Business cooperatives are voluntary associations formed by individuals with common economic needs who unite to achieve shared objectives through jointly owned and democratically controlled enterprises. In the agricultural sector, cooperatives play a crucial role in strengthening the bargaining power of farmers, providing access to credit, inputs, marketing facilities, processing infrastructure, and ensuring fair returns. The structure and functioning of business cooperatives are guided by principles such as open membership, democratic control, limited return on capital, patronage-based distribution of surplus, and service orientation. The structure and functioning of two major business cooperatives, namely dairy cooperatives and cooperative credit societies, illustrate how such organizations operate effectively to support farmers and rural communities. A dairy cooperative is a producer-owned organization formed by milk producers for the purpose of procuring, processing, and marketing milk and milk products. A well-known example of a successful dairy cooperative model is the Gujarat Cooperative Milk Marketing Federation, which markets products under the brand Amul. The structure of a dairy cooperative generally follows a three-tier system. At the village level, there are primary dairy cooperative societies consisting of milk producers from a particular village. These members supply milk to the society and collectively manage its operations. Each member has equal voting rights regardless of the quantity of milk supplied, reflecting the democratic principle of “one member, one vote.” The primary society is managed by an elected managing committee chosen from among the members. The committee appoints staff for daily operations such as milk collection, testing for fat content, record maintenance, and payment distribution. Milk supplied by members is tested for quality and quantity, and payments are made based on fat content and volume. This ensures transparency and fairness in transactions. The primary societies are affiliated with district-level milk unions, which are responsible for processing, packaging, and manufacturing dairy products such as butter, cheese, milk powder, and ghee. At the district level, the milk union is governed by representatives elected from the primary societies. These unions establish processing plants and cold storage facilities. They provide technical support, veterinary services, cattle feed, artificial insemination, and extension services to member societies. The unions then federate at the state level, forming a marketing federation responsible for branding, advertising, distribution, and market expansion. The federation coordinates production planning, maintains quality standards, and negotiates large-scale marketing contracts. Profits generated from sales are distributed among member societies after meeting operational expenses and creating reserves. The functioning of dairy cooperatives is