GOVERNMENT OF TAMILNADU 

ABSTRACT 

Small Industries - Industrial Cooperatives - Setting up of an Industrial Cooperative Society for processing Silk Cotton and Cashew Industrial Service Cooperative Societies in Theni District - Orders - Issued.


Small Industries (SIA) Department

 

G.O.Ms.No. 21                                                             Dated : 11.4.2002

ORDER :

Silk cotton is grown in large quantities in Bodinayakanur area in Theni District. Silk cotton is now cultivated in 3170 hectares by about 1000 farmers. The yield is 6340 MTs per annum at the rate of 2 MTs per hectare. Out of the crop harvested 40% silk cotton is extracted. There have been representations from the farmers cultivating silk cotton that they are not getting remunerative prices for their crop. To augment the revenue earnings of these farmers, the Industries Commissioner and Director of Industries and Commerce has sent a proposal to form an Industrial Service Cooperative Society for the welfare of the silk cotton farmers. It is reported that about 10 acres of land will be required for the society taking into consideration the proposed and future activities of this society. The land in S.No. 466/1 of Thangammalpuram hamlet of Myladumparai Village in Theni District, classified as assessed waste dry has been selected as suitable for this purpose.

2. The Government, after careful examination, accept the proposal of the Industries Commissioner and Director of Industries and Commerce and direct that a " Silk Cotton Industrial Service Cooperative Society" be formed. This Society shall start functioning with immediate effect. The Industries Commissioner and Director of Industries and Commerce is directed to take immediate action in this regard and get the society registered under the Tamil Nadu Cooperative Societies Act. He is also directed to take advance possession of the land at S.No. 466/1 of Thangammalpuram hamlet of Myladumparai Village in Theni District pending final alienation by the District Collector and form the society and commence its activities immediately observing the usual formalities adopted in the formation of such societies.

3. This service society's nature of work would involve procurement of silk cotton pods from member farmers and separating them and ginning silk cotton. The ginned and cleaned silk cotton will be packed in required sizes for sales to big merchants and users of silk cotton. The financial structure of the project would be as follows :-

Project Cost Rs.20,00,000/-

Members' contribution Rs.1,00,000/-(200 members

contributing Rs.500/-each)

Government's share capital Rs.5,00,000/-

Loan assistance from

TAICO Bank Rs.14,00,000/-

4. The farmers of the area have also represented to Government that a Cashew Industrial Service Cooperative Society be formed to help the cashew farmers. According to the proposal sent by the Industries Commissioner and Director of Industries and Commerce, cashew cultivation in Theni District is at present at a fledgling stage in about 2600 hectares. Cashew crops take around five years to yield. It has been reported that around 350 hectares of cashew crop are at the yielding stage and their estimated yield is around 500 kilograms per hectare per annum. The annual yield is about 1.75 lakhs kgs i.e. 175 MTs. The cashew crop grown in Theni District is now sold at far off Panrutti area of Cuddalore District. To give remunerative prices to cashew farmers and also to motivate new farmers to enter into cashew cultivation, it has been decided to form Cashew Industrial Service Cooperative Society in the same premises mentioned in para 1 above. This society will procure cashew from members, process and sell it in the open market to fetch higher price to the cashew farmers. The society will also help in augmenting the crop yield and other related services. This society will have the following financial structure:-

Project Cost -- Rs.16,00,000/-

Members contribution Rs. 1,00,000/-

(100 members contributing

Rs.1000/- each)

Government's share capital Rs.5,00,000/-

Term loan from TAICO bank Rs.10,00,000/-

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Rs. 16,00,000/-

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5. The Government sanction a sum of Rs.10,00,000/- (Rupees ten lakhs only) at the rate of Rs.5,00,000/-each to the above two societies towards State share participation. The Industries Commissioner and Director of Industries and Commerce is directed to take immediate follow up action and to register the societies as per Tamil Nadu Cooperative Societies Act.

6. The expenditure sanctioned in para 5 above shall be debited to the following head of account :-

"4425-00 Capital Outlay on Co-operation-00-Capital Outlay on Co-operation - 108 - Investment in other Co-operatives Schemes in the Tenth Five Year Plan - II - State Plan -22-Investments".

(DPC 4425-00-108 - MA - 2203)

7. The Industries Commissioner and Director of Industries and Commerce is authorized to draw and disburse the amount to the proposed societies.

8. This order issues with the concurrence of Finance Department vide its U.O.No. 1277/FS/P/2002, dated 11.4.2002.

(BY ORDER OF THE GOVERNOR)

N. MURUGAN,

SECRETARY TO GOVERNMENT.

To
The Industries Commissioner and Director of Industries and Commerce, Chennai -5
The The Accountant General, Chennai 6/18/35.
The Pay and Accounts Officer (East), Chennai - 5.
The Collector, Theni District.
The Treasury Officer, Theni District.
Copy to:
The Registrar of Co-op. Societies, Chennai.10.
The Finance Dept.,Chennai -9
All Sections in Small Inds.Deptt.,Chennai -9.

// FORWARDED BY ORDER //

SECTION OFFICER.