Ram Singh Meena

Present Madhya Pradesh government has made all the efforts to ensure democratic setup in cooperatives in the state. Important amendments have been made to Madhya Pradesh Cooperative Societies Act 1960. Now Members of Assembly and Members of Parliament cannot become office-bearers of a cooperative society. No one can remain president or vice president of a cooperative society for more than 11 years. Implementing this rule elections were conducted for cooperative societies’ directors and chairmen of District Cooperative Banks. The present state government has also taken keen interest in ensuring and improving democratic setup in cooperative movement.

Recently, elections for the posts of cooperative banks’ presidents were also conducted and the newly-elected presidents have assumed their charge with a firm conviction and dreams to take their banks as well as the district on the path of development and progress.

Chief Minister Shri Shivraj Singh Chouhan and Cooperative Minister Shri Gopal Bhargava have shown a firm resolve to turn agriculture into a profit-making business. Now farmers are being given short-term loans through these banks at the rate of 7 percent instead of 16.5 per cent. The member strength of cooperative banks’ board of directors has been reduced to 15 only. An amendment is under consideration of the state government to provide autonomy to district cooperative banks and agriculture credit societies as per recommendations of Vaidyanathan Committee. The Primary Agriculture Credit Societies provided to farmers short-term loans to the tune of Rs 1700 crore for Rabi season in 2006 and Rs 850 crore for 2007 Rabi season. Thus, during the year 2006-07 loans amounting to Rs 2550 crore were distributed. Stamp duty on agricultural loans of over Rs 10 lakh has been abolished. No-dues Certificates are being easily issued to farmers.

It is a matter of pride for Madhya Pradesh that 74 percent of Kisan Credit Cards have been issued through cooperative bodies. The Madhya Pradesh State Cooperative and Rural Development Bank has reduced the interest rate on short-term loans to farmers upto Rs 50,000 and now only 9 percent interest is being charged on such loan advances.

After talks with NABARD, the interest rate on the recoverable loans released earlier by the bank has been reduced from 17.5 percent to 12.5 percent. The state government has also made effort to effectively implement its scheme to double up the quantum of loans during the last three years. In the year 2003-04 loans worth Rs 1273 crore were released. The figure increased considerably to Rs 17632 crore in the year 2004-05. The target of Rs 1200 crore short-term loans was fixed for Kharif season in 2005-06 against which Rs 1291 crore loans were released.

The present government has taken the decision to implement many recommendations made for reviving Short-term Credit Structure by the task force constituted under the chairmanship of Prof A Vaidyanathan. As a result, action is being taken to strengthen Agriculture Cooperative Credit Societies. A scheme has been introduced to issue Kisan Credit Cards to cent percent members of such societies so that they can avail of the loan facility easily. So far Kisan Credit Cards have been issued to 27 lakh farmers. Seven out of 38 District Cooperative Banks are now able to implement District Bank Section 11(1).

An agreement has been signed between the state government and NABARD on November 7, 2006 for economic revival of state’s short-term credit societies, District Cooperative Central Banks and Madhya Pradesh State Cooperative Bank as per recommendations of Vaidyanathan Committee. Under the agreement first installment of the package for economically reviving short-term agriculture credit societies has been received. The total package amount is Rs 2567 crore out of which Rs 2019 crore would be given to primary cooperative credit societies, Rs 305 crore to District Cooperative Central Banks and Rs 243 crore to Madhya Pradesh State Cooperative Bank. Rs 2136 crore burden of this amount is to be borne by the Union government, Rs 383.27 crore by the state government and Rs 47.74 crore by the cooperative societies. The state government has made necessary budgetary allocation for this in its 2007-08 budget. These initiatives would decrease political interference in cooperative societies and their internal democracy would be restored. For this purpose necessary amendments are being made to Madhya Pradesh Cooperative Society Act, 1960. It is expected that following this amendment the short-term agricultural societies in Madhya Pradesh would be able to carve out their own identity at the national level.

With a view to provide good profit to farmers in the state, gram, linseed and paddy is being purchased from them at good support prices through cooperative societies. Madhya Pradesh Seed Producing and Marketing Federation Ltd has been constituted for supplying high quality seeds to farmers. In the year 2006-07, the federation produced 2.04 lakh tonnes of seeds and distributed them among farmers. The Seed Committees also distributed one lakh 32 thousand seeds for Kharif season of 2007-08. During the last two years the quantum of cooperative societies’ participation in seed distribution has risen to 40 percent.

Twelve new unified cooperative development schemes has been started by the state government with the sponsorship from National Cooperative Development Corporation. Under this scheme, cooperative societies in selected districts are provided capital loans, margin money and grants for developing infrastructure and making them more viable economically. This would lead to strengthening of job-oriented schemes, village industry, small industry and production of general consumer goods and industrial production in the rural areas. It would usher in development in the rural areas. Rs 2228.128 lakh has been released by Madhya Pradesh government for six such projects during the year 2006-07. Transactions of Madhya Pradesh State Consumers Federation stood at Rs 56 crore 31 lakh in the year 2004-05 but were increased to Rs 86 crore in 2006-07. Thus, a 55 percent increase in transaction was witnessed during only two years which is greatest figure in the history of the federation.

Ambitious projects have been started in Madhya Pradesh for doubling up farm production. For this short-term loans amounting to Rs 2006 crore 25 lakh were distributed which were 57 per cent more than the base year of the scheme for doubling up agricultural loans. In 2006-07, short-term loans worth Rs 2518 crore 79 lakh were distributed which were 43 percent more than the preceding year. For the year 2007-08 a target of distributing short-term loans amounting to Rs 3060 crore had been fixed which registered a 21.50 percent rise as compared to the last financial year. Reserve Bank of India had signed an MoU with the state government for improving the economic condition of Nagrik Sahkari Banks in Madhya Pradesh. The state government implemented that MoU on January 6, 2006 following which Reserve Bank of India constituted a state-level task force.

As many as 15 thousand 538 fare price shops in urban areas and 3 thousand 456 fare price shops in the rural areas are being run by cooperative societies under public distribution system. Intensive campaigns and inspections are undertaken from time to time to ensure better conduct of these fare price shops.

With a view to strengthening cooperative movement efforts were undertaken to ensure member-oriented, self-reliant cooperatives through cooperative purging campaign. These efforts have now started showing good results and these achievements are making state’s cooperative movement stronger.