|
POLICY NOTE ON COOPERATION DEPARTMENT
2001-2002
CHAPTER – I
AN OVERVIEW
1. INTRODUCTION
Co-operatives all over the world have become an effective and potential instrument of economic development. The Co-operative Movement in Tamil Nadu has witnessed over the decades substantial growth in diverse areas of economy. There is not a single major sphere of economic activity which has not been touched by Co-operatives. Co-operatives are also envisaged as an instrument for implementing many important policies like agricultural credit, market intervention, price support for agricultural commodities, public distribution etc.
From a small beginning, the Co-operative movement in Tamilnadu has grown in strength over the years. Opening of a village co-operative credit society in Thiroor in Thiruvallore District in 1904 marked the advent of the Co-operative movement in Tamilnadu ushering in a new era of services for the people of the state particularly the agriculturist families. From Agricultural Banks to Marketing Societies and Consumer Co-operative Stores, Co-operatives provide services to the people in various economic activities. Co-operatives also run the Public Distribution System which provides relief to each and every family in the State, covering about 1.47 crore card-holders.
PERFORMANCE AND PROJECTIONS
The prime activities of the Co-operatives are to achieve the major objectives like provision of agricultural credit, marketing of agricultural produce, distribution of fertilizers and consumer articles etc. The achievements made in the year 2000-2001 and the programme fixed for these activities for the year 2001-2002 are as follows:
S. No. |
Activity
|
Unit
|
Achieve-ment in
2000-2001 |
Programme
proposed
for
2001-2002 |
Achieve
ment upto June 2001 |
1. |
2. |
3. |
4. |
5. |
6. |
1 |
Issue of short term loans |
Rs. in
Crores |
1049.26 |
1200.00 |
261.30 |
a) Issue of Medium Term loans
|
" |
69.06
|
110.00 |
14.20 |
b) Jewel loans
|
" |
3656.21 |
5000.00 |
907.97 |
c) Produce Pledge loans
|
" |
28.53 |
35.00 |
4.96 |
3. |
Issue of Long Term
Agricultural Loans |
" |
202.17 |
250.00 |
8.46 |
4. |
Issue of loans to
Professionals by
Coop.Banks |
" |
36.81 |
140.00 |
9.09 |
5. |
Issue of Housing loans |
" |
130.30 |
125.00 |
41.72 |
6. |
Distribution of Chemical
Fertilisers |
" |
252.00 |
290.00 |
53.50 |
7. |
Value of retail sale of
Consumer goods |
" |
2166.48 |
2260.00 |
556.48 |
8. |
Value of work done by Co-op. Printing Presses |
" |
20.11 |
26.00 |
4.57 |
9. |
a) Linking of credit with marketing |
"
|
1.58 |
2.00 |
0.28 |
| |
b) Linking of marketing with Consumer Coops.
|
" |
6.37 |
10.00 |
1.34 |
10. |
Assistance to SC/ST by LAMPS |
" |
15.11 |
20.20 |
4.20 |
11. |
Utilisation of Storage
capacity |
in lakhs M.Ts. |
5.53 |
6.00 |
5.79 |
EXPENDITURE ON DEVELOPMENT SCHEMES
The total expenditure on Co-operative Development Schemes during 2000-2001, Interim Budget Estimates for 2001-2002 and Revised Budget Estimate for 2001-2002 are given below:
(Rs. in Crores)
Details of Schemes |
Expendi-ture in 2000-2001 |
Interim Budget Estimate 2001-2002 |
Revised Budget Estimate 2001-2002 |
a) State Plan Schemes
1. Direction and Administration
2. Credit Cooperatives including Crop Husbandry and investment in Agricultural financial Institutions
3. Other Cooperatives
4. Tribal Area sub plan
5. Special component plan
|
0.0494
26.3798
0.1070
0.9000
0.2500 |
0.0478
1.5992
0.0661
0.9000
0.2500 |
0.0465
1.5938
0.2661
0.9000
0.2500 |
Total |
|
2.8631 |
3.0564 |
b) Centrally sponsored and schemes shared equally between State and Centre
|
0.5550 |
0.1008 |
0.1008 |
c) Schemes financed by autonomous bodies
|
6.4163 |
3.8423 |
3.8423 |
d) Non Plan Schemes |
51.5141 |
64.0747 |
172.0059 |
Grand total |
86.1716 |
70.8809 |
179.0054 |
New Schemes for 2001-2002
(i) Margin money assistance to Consumer Cooperative Wholesale Stores:
The Cooperative Wholesale Stores which are actually involved in both controlled and non-controlled commodities do not have adequate net disposable resources to get the required cash credit from District Central Cooperative Banks for carrying on their business. Therefore, the Government provide them share capital assistance to serve as margin money to enable them to get cash credit. The newly registered Namakkal District Cooperative Wholesale Stores is in the infant stage and it will develop its business activities with the help of this assistance. Government will sanction a sum of Rs. 20 lakhs to the Namakkal District Cooperative Wholesale Stores during the year 2001-2002 for the above purpose.
(ii) Provision of office telephones to 15 Circle Deputy Registrars' Offices:
15 offices of Deputy Registrars have not been provided with telephones so far. This year telephones will be provided to these offices at a cost of Rs.5.73 lakhs.
(iii) Establishment of Kerosene Bunks:
It has been proposed to establish 500 Kerosene Bunks throughout the State during the 9th Five Year Plan period. So far 269 bunks have been established both by the Tamil Nadu Civil Supplies Corporation and the Cooperatives throughout the State. This year another 27 bunks will be established by the Cooperatives and its related proposed outlay is Rs.60.75 lakhs.
CHAPTER II
ELECTION TO COOPERATIVE SOCIETIES
In G.O.Ms.No.204, Cooperation, Food and Consumer Protection Department dated 25.5.2001, the Government have issued the notification restricting the extended term of office of the members of the Boards of the Primary Cooperative Societies whose terms of office have already expired and who are on extended term of office as per section 33(10) (aa) of the Tamil Nadu Cooperative Societies Act 1983 and their term of office shall expire on the date of publication of the notification in the Tamil Nadu Government Gazette i.e, on 25.5.2001. Pursuant to the said notification special officers have been appointed under section 89(1) to 7844 Primary Cooperative Societies under the control of Registrar of Cooperative Societies, pending constitution of the boards to be newly elected. Consequently special officers have been appointed to 124 Central Societies and 6 Apex Societies under the control of Registrar of Cooperative Societies.
It has been proposed to conduct the elections to Primary Cooperatives in two phases and to complete the election by December, 2001. After completion of elections to Primary Cooperative Societies, elections to Central Societies and Apex Societies will be held.
CHAPTER – III
CO-OPERATIVE CREDIT
SHORT TERM AND MEDIUM TERM CREDITS
Credit Structure
The Short Term and Medium Term Co-operative Credit Structure operates in three tiers viz. Tamil Nadu State Apex Co-operative Bank at the State Level, Central Co-operative Banks at the District Level (excluding Chennai Central Co-operative Bank which does not undertake agricultural finance) and Primary Agricultural Co-operative Banks at the Village level.
Tamil Nadu State Apex Co-operative Bank, Chennai
The Tamil Nadu State Apex Co-operative Bank, which is the Federation of the Central Co-operative Banks has been disbursing credit through its affiliates for both agricultural and non-agricultural purposes since 1905. It channelises the funds provided by NABARD towards short term loans, medium term loans etc. for agricultural purposes and provides cash credit from its own resources to the District Central Cooperative Banks to enable them to finance their affiliates.
The Bank has been providing term finance to spinning mills/sugar mills and direct financial assistance to other Apex Co-operative Institutions in the State.
A Fund called, "The Primary Co-operative Development Fund", is maintained by the Apex Bank to strengthen the primaries in the State. As on 31.3.2001, a sum of Rs.689.25 lakhs is available under this Fund.
As on 31.3.2001, the Tamil Nadu State Apex Co-operative Bank has share capital of Rs. 28.25 Crores (including Government share capital of Rs.0.26 crores), reserves of Rs.193.23 crores and the deposits of Rs.2744.58 crores. During the year 2000-2001, upto 31.3.2001, this Bank has disbursed loans to the tune of Rs.1718.69 crores.
Central Co-operative Banks
There are 23 District Central Co-operative Banks functioning in the state, with branches mostly in rural areas to serve the affiliates and the rural public. The District Central Cooperative Banks are financing the Primary Agricultural Cooperative Banks from their own reserves and also by availing credit from the NABARD for agricultural purposes. They are also financing Primary Handloom Weavers Cooperative Societies by availing credit from the NABARD.
These banks also sanction loans for non-agricultural purposes like purchase of lorries and buses, bulldozers, earth movers, construction, establishment of clinics/service centres by doctors/engineers, and for pursuing professional courses by wards of members etc.
As on 31.3.2001, the share capital of the District Central Co-operative Banks was Rs.253.20 crores which includes Government share capital of Rs.63.81 crores, reserves of Rs.584.81 crores and the deposit of Rs.6317.25 crores. Their working capital stood at Rs.8967.27 crores.
Primary Agricultural Co-operative Banks
As on date 4589 Primary Agricultural Co-operative Banks are functioning in the State which provide short term loan to the farmers repayable within 15 months towards cultivation purposes and medium term loans repayable within 3 to 5 years for undertaking subsidiary occupations such as dairying, sheep rearing, poultry farming etc. Nearly 65 percent of the medium term loans are issued to the identified beneficiaries under IRDP. The cultivation loans are provided on personal surety based on the scales of finance upto 10 acres for registered sugarcane crop and other crops, while loans upto Rs.45,000/- are provided for other crops like paddy, cotton, groundnut, turmeric, flowers and fruits.
As on 31.3.2001 the Primary Agricultural Co-operative Banks had mobilised a deposit of Rs.3196.99 crores.
These banks issue loans for other agricultural purposes like purchase of agricultural lands, tractors, power tillers and other agricultural implements. These banks have also been permitted to utilise their deposit funds for issue of loans for purchase of consumer durables, two wheelers, tempos, trucks, tractors, power tillers, buses, cars, jeeps, construction and repair of houses and for starting of service centres by engineers and doctors.
The progress in Credit Supply
The quantum of short term and medium term loans issued during 1997-98, 1998-99,1999-2000 and 2000-2001 in the 9th Five Year Plan are given below:
Short term Cultivation Loans |
Medium term agricultural loans for subsidiary occupations |
Target |
Achieve-ment |
Target |
Achieve-ment |
1. |
2. |
3. |
4. |
5. |
6. |
1997-1998 |
800.00 |
697.99 |
70.00 |
100.74 |
798.73 |
1998-1999 |
925.00 |
732.12 |
100.00 |
117.13 |
949.25 |
1999-2000 |
1050.00 |
879.04 |
100.00 |
111.73 |
990.77 |
2000-2001 |
1200.00 |
1049.26 |
110.00 |
69.06 |
1118.32 |
It is significant to note that the issue of agricultural loans during the above years has been steadily increasing. Considering the credit requirements for agriculture, it has been programmed to issue loans to the extent of Rs.1200.00 crores under the short term and Rs.110 crores under the medium term during the year 2001-2002.
Similarly, the quantum of loans issued to the non-farm activities/small scale industries during 1997-98, 1998-99, 1999-2000 and 2000-2001 is given below:
(Rs. in Crores)
It has been programmed to issue loans to non farm sector/small road transport operators to the tune of Rs.200.00 crores during 2001-2002.
Credit Supply to Weaker Sections
The Primary Agricultural Co-operative Banks are paying due attention to meet the credit needs of weaker sections in the State. As per the guidelines of NABARD, not less than 20% of short term lending by the Co-operatives shall go to the small farmers, i.e. those owning or cultivating 5 acres or less of wet or dry lands. However, it has been programmed to issue 67% of short term loans and 95% of the medium term loans to weaker sections.
The quantum of Short term and Medium term loans issued to the weaker sections during 1997-98, 1998-99, 1999-2000 and 2000-2001 is given below:
(Rs. in crores)
Achievement |
Amount of loans issued to weaker section |
Percentage to the total loans |
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
1. |
Short term loans
|
1997-1998
1998-1999
1999-2000
2000-2001 |
67
67
67
67 |
429.47
461.13
554.14
652.01 |
61.5
63.0
63.0
62.1 |
2. |
Medium Term Loans |
1997-98
1998-99
1999-2000
2000-2001 |
95
95
95
95 |
89.97
99.52
90.48
54.37 |
89.3
85.0
81.0
78.7 |
The programme for issue of loans to the members belonging to the Scheduled Castes/ Scheduled Tribes for 2000-2001 is 14% under short term and 30 % under medium term loans, against which the achievement upto March, 2001 is 8.8% and 17.5 % respectively. It has been proposed to issue 14 % of the short-term loans and 30 % of medium term loans to the SC/ST members during the year 2001-2002.
Kisan Credit Card Scheme
Government accorded permission to implement the Kisan Credit Card Scheme formulated by the NABARD through District Central Cooperative Banks and Primary Agricultural Cooperative Banks. The District Central Cooperative Banks and Primary Agricultural Cooperative Banks are now implementing the Kisan Credit Card Scheme. As on 30.4.2001 the Primary Agricultural Cooperative Banks have issued Kisan Credit Cards to 518425 farmer members and credit limit to the extent of Rs.101328.90 lakhs has been sanctioned against the above said Credit Cards.
Coverage of Scheduled Caste members
(a) The Government have been implementing a scheme since 1981-82 to enroll atleast one member from each family belonging to the scheduled caste to the membership of Primary Agricultural Co-operative Banks to enable them to avail short term and medium term loans to improve their economic condition. A subsidy of Rs.100 is provided to each member towards the share capital to be paid by them to the society. 1,10,000 persons were enrolled as members with government subsidy of Rs.110.00 lakhs under this scheme.This scheme of assistance was taken over by the Government of India in 1988-89 and till 1998-99 the Government of India have sanctioned a subsidy of Rs.125.092 lakhs to enroll 1,25,092 persons. So far 2,35,092 Scheduled Caste members have been assisted under State/Central Schemes. From the year 2000-2001, this scheme is shared between State and Centre, and a sum of Rs.22.20 lakhs was sanctioned to 11,100 persons.
(b) Special Scheme implemented with assistance from Government
A sum of Rs.250/- is provided as interest-free share capital loan to each of the identified scheduled caste members of the Primary Agricultural Cooperative Banks so as to increase their borrowing power. The loan amount is recoverable in five equal annual instalments. Under this scheme, 80,000 scheduled caste members of Primary Agricultural Cooperative Banks were assisted to the extent of Rs.2.00 Crores during the period from 1992-93 to 2000-2001. It has been proposed to raise this loan from Rs.250/- to Rs.500/- with effect from 2001.
Implementation of Development Action Plan to strengthen the Credit Structure
Pursuant to the policy decision of the Government of India, that both the short term and long term credit structures should be strengthened in order to enable smooth flow of rural credit, the NABARD has issued guidelines for implementation of a time bound action programme. Based on these guidelines, Development Action Plans were prepared by the Co-operative Banks from 1994-95 to 1998-99 in respect of short term credit structure and from 1994-95 to 1997-98 in respect of long term credit structure.
With a view to ensure satisfactory compliance with all the Action Plans in their entirety and for continued financial and other support from NABARD, the State Government along with the Tamil Nadu State Apex Co-operative Bank and Tamil Nadu Co-operative State Agriculture and Rural Development Bank have entered into a Memorandum of Understanding with the NABARD. In the State Level Monitoring and Review Committee meetings, the implementation of action points in the MoU have been reviewed and action completed in most of the Action Plans. As the period of Memorandum of Understanding expired on 31.3.99, annual Memorandum of Understanding has been entered into between the Apex Bank and the NABARD on the instructions of Government for the Short Term Credit Structure.
The objective under the Memorandum of Understanding is to make all the Primary Agricultural Co-operative Banks viable. With a view to evolve viability package, Task Force Committees have been constituted for each region under the chairmanship of regional joint registrars. These committees have identified 118 Primary Agricultural Co-operative Banks as non-viable and suggested for amalgamation with other banks/liquidation on case to case basis. Their performance was monitored individually in order to finalise their action plan in future. Of the 118 non-viable Primary Agricultural Co-operative Banks, 14 Primary Agricultural Co-operative Banks have already been liquidated and 15 Primary Agricultural Co-operative Banks have attained viability. As on 31.3.2001, there are 89 non-viable Primary Agricultural Co-operative Banks only. Steps have been initiated to strengthen the above non-viable Primary Agricultural Co-operative Banks.
Since the commencement of Development Action Plan in 1994-95, the Government have contributed to the share capital of the District Central Co-operative Banks, Primary Agricultural Banks and Primary Agriculture and Rural Development Banks by availing loan assistance from National Rural Credit (Long Term Operation) Fund of NABARD as detailed below:
Central Cooperative Banks |
Primary Agricultural Banks |
Primary Agriculture and Rural Development Banks |
No. of Insti-tutions |
Amount
sancti-
oned
(Rs. in Crores) |
No. of Institu-tions |
Amount
sancti-
oned
(Rs. in Crores) |
No. of
Institu-tions |
Amount
sancti-
oned
(Rs. in Crores) |
1994-1995 |
8 |
4.71 |
705 |
4.76 |
- |
- |
1995-1996 |
5 |
2.65 |
1640 |
15.25 |
79 |
3.96 |
1996-1997 |
16 |
8.23 |
851 |
3.27 |
51 |
3.33 |
1997-1998 |
5 |
3.61 |
922 |
3.52 |
52 |
4.02 |
1998-1999 |
10 |
7.91 |
973 |
4.27 |
20 |
1.81 |
1999-2000 |
- |
- |
- |
- |
- |
- |
2000-2001 |
- |
- |
42 |
0.19 |
- |
- |
Deposit Guarantee scheme in Primary Agricultural Co-operative Banks
Since 1.4.1992, Deposit Guarantee Scheme has been implemented in the Primary Agricultural Co-operative Banks. Under the scheme, the deposits mobilized by the Primary Agricultural Cooperative Banks are being guaranteed by the District Central Co-operative Banks with a view to mobilise deposits at larger scale by infusing confidence among depositors.
For the purpose of maintaining the Accounts of the Bank and for refunding the deposits, a Corpus Fund of Guarantee Fee has been created at each Central Co-operative Bank with the following contributions.
(a) Primary Agricultural Co-operative Banks .. 0.15%
(b) District Central Co-operative Banks .. 0.10%
(c) State Co-operative Bank .. 0.05%
The deposit position since 1.4.1994 is given below:
As on |
Amount of deposit
(Rs. in Crores) |
Growth rate |
31.3.1994 |
465.69 |
30% |
31.3.1995 |
598.60 |
29% |
31.3.1996 |
827.84 |
38% |
31.3.1997 |
1180.75 |
43% |
31.3.1998 |
1645.85 |
39% |
31.3.1999 |
2045.47 |
24% |
31.3.2000 |
2764.46 |
35% |
31.3.2001 |
3196.99 |
16% |
Recovery of loans
The primary responsibility of any co-operative credit institution is to recover the loans on the due dates. Their financial stability has a direct bearing to the extent of collection of loans before they become overdue. While reasonable levels of overdues are inevitable in credit dispensation schemes, no credit institution can afford to have a persistently high level of overdues. If the overdues are not kept under control , they will have a crippling effect of curtailing the ability of the Co-operatives to recycle the funds and expand their business. This calls for a radical change in the attitude of the borrowers of the Co-operative Banks to repay the loans on due dates so that they can avail of further credit for continuing their seasonal agricultural operations. Therefore the District Central Co-operative Banks are taking efforts to intensify their collection drive and bring down the level of overdues to enable them to avail refinance to the full extent from NABARD. All the District Collectors have been requested to make an appeal to the farmers in local dailies to repay the loan dues to Cooperative Institutions.
The details of overdues in respect of Primary Agricultural Co-operative Banks during the last ten years are as follows:
(Rs. in Crores)
At the Primary Agricultural Cooperative Bank level |
Amount outstanding |
Amount overdues
|
Percentage of overdues to the demand |
30.6.1992 |
1114.32 |
444.06 |
41.4 |
30.6.1993 |
1435.79 |
398.71 |
31.8 |
30.6.1994 |
1533.63 |
397.62 |
27.5 |
30.6.1995 |
1719.94 |
418.80 |
24.8 |
30.6.1996 |
2048.95 |
576.30 |
29.8 |
30.6.1997 |
2236.74 |
653.69 |
28.7 |
30.6.1998 |
2982.01 |
835.83 |
32.4 |
30.6.1999 |
3382.94 |
905.77 |
32.2 |
30.6.2000 |
3985.15 |
974.99 |
28.8 |
30.6.2001 |
4443.05 |
1157.70 |
31.4 |
Relief to farmers on interest and penal interest scheme, 2001
During the year 1992, when this Government took over, the Honourable Chief Minister announced a bonus scheme for the benefit of the farmers.
Based on the scheme prevailed during 1992, after assuming charge of the present Government, Honourable Chief Minister has announced the scheme of waiver of interest and penal interest scheme, 2001. According to this scheme, Government have announced the following benefit to the farmers.
Borrowers who availed Short Term, Medium Term, Medium Term Conversion loans in Cooperative Banks for agriculture and allied activities will be given a concession of waiver of interest and penal interest, provided the borrowers repay before 30.9.2001, the overdue principal as on 30.6.2000 either in full or in monthly instalments in July, August and September, 2001 before 30.9.2001 and also the amounts which become due for payment during the period from 1.7.2000 to 31.8.2001.
As on 31.8.2001, Rs.70.23 crores interest and penal interest have been waived to 2,29,859 farmers. The interest and penal interest waived by this scheme will be compensated. Provisions have been made to extend this relief to all the farmers who continue to repay the overdue principal amount.
Jewel Loans
The Cooperatives are providing jewel loans to meet the urgent needs of the weaker sections, particularly in rural areas with a view to prevent them from falling into the hands of unscrupulous private money lenders. During the year 2000-2001, as against a target of Rs.4,400.00 crores, the Cooperatives have issued jewel loans to the tune of Rs.3656.21 crores. It has been programmed to issue jewel loans to the tune of Rs.5000.00 crores during the year 2001-2002.
14. Savings Linked Micro Credit to Women for Small Business
Under this scheme, women doing small business like selling flowers, vegetables, fruits, running petty shops etc. can avail loan in the range of Rs.100/-, Rs.200/-, Rs.500/- Rs.1,500/- upto a maximum of Rs.5,000/- according to their business requirements. Loans will be given daily either in the morning or in the evening according to the requirement of the beneficiaries. The beneficiaries need to pay Re.1/- only for a loan of Rs.100/- per day. Out of this one rupee paid by them every day, eighty five paise will be credited to their savings account. Out of the remaining 15 paise, 10 paise will be credited to the banks towards service charges and 5 paise towards interest. Collection of service charge of 10 paise is now left to the discretion of the banks implementing the scheme. If the bank decides not to collect service charges, then the service charge of 10 paise will also be credited to the savings bank account of the beneficiaries. After six months, the beneficiaries are free to withdraw their savings with interest.
The beneficiaries under this scheme availing of loan facilities may stand surety for each other and take the responsibility to repay the loan. The beneficiaries, according to their convenience, themselves, may choose to repay the loan due directly at the bank or make payments to the bank official in their business area.
Upto 31.7.2001, a sum of Rs.27.89 crores has been issued to 1,91,779 beneficiaries under Micro Credit Scheme in the Corporations, Municipalities and Town Panchayat areas in Tamil Nadu. The Micro Credit scheme implemented in Urban areas has been extended to Rural areas also. The Primary Agricultural Cooperative Banks having deposit of Rs.25/- lakhs and above are implementing this scheme. Under the scheme 20,378 Women beneficiaries have been given loans to the extent of Rs.2.88 crores upto 31.7.2001. The Micro Credit Scheme for self help groups is being extended to rural areas in coordination with Tamil Nadu Corporation for Women Development. Government have permitted to admit the Self Help Groups as members in the Primary Agricultural Cooperative Banks. These Banks have admitted 15,259 members of Self Help Groups as members and issued loans to the extent of Rs.7.85 Crores to 1852 Women Self Help Groups which have completed six months period as members.
In order to ensure that more people are benefitted by this scheme, Government have issued orders permitting Self Helf Groups to be admitted as associate members in all the District Central Cooperative Banks and Urban Cooperative Banks also and avail credit facilities.
In order to overcome the difficulties in implementing the scheme and to benefit more number of women beneficiaries, the Government have proposed to revamp the scheme.
15. National Agricultural Insurance Scheme
The Government of India introduced a new scheme called "National Agricultural Insurance Scheme (NAIS)" for Crop Insurance from Rabi 1999-2000. However, in Tamil Nadu the scheme was implemented only from Khariff 2000. Under the scheme, food crops like paddy, ragi, cholam, oil-seed crops like groundnut, gingelly and commercial crops like cotton and potato are covered. The sum insured will be upto 100% value of the threshold yield on normal coverage and upto 150% on additional coverage. Moreover, apart from the loanee farmers, non-loanee farmers are also covered under this scheme.
The details of number of blocks and the crops notified till date, for insurance, under the new scheme are as follows:-
DETAILS OF NUMBER OF BLOCKS AND THE CROPS NOTIFIED TILL DATE, FOR INSURANCE UNDER THE NAIS
Season |
Crop |
No. of Blocks covered |
1.Paddy-I
(Kar/Kuruvai/ Sornavari 2000) |
Paddy |
136 |
2.Khariff-2000
(Other Crops) |
a) Cholam
b) Kambu
c) Ragi
d) Ground-nut
e) Gingelly
f) Cotton
g) Potato(Summer) |
79
44
32
141
41
9
1 |
3.Paddy-II
(Samba/Thaladi/ Pishanam) |
Paddy |
237 |
4.Cotton
(1.8.2000 - 30.11.2000) |
Cotton(Irrigated) |
24 |
5.Rabi 2000-2001
(Paddy - III Navarai/Kodai) |
Paddy-III |
65 |
6.Rabi 2000-2001
Other Crops. |
Ragi (Irrigated) |
25 |
| |
Cholam -do- |
5 |
| |
Cumbu -do- |
10 |
| |
Groundnut -do- |
137 |
| |
Black Gram |
15 |
| |
Horse Gram |
3 |
| |
Potato |
1 |
| |
Rice Fallow Cotton |
11 |
Khariff 2001 |
Paddy - I |
137 |
| |
Cholam (UnIrrigated) |
79 |
| |
Cumbu (UnIrrigated) |
44 |
| |
Ragi (UnIrrigated) |
32 |
| |
Gingelly (UnIrrigated) |
41 |
| |
Groundnut (UnIrrigated) |
14 |
| |
Cotton (UnIrrigated) |
9 |
| |
Cotton (Irrigated) |
24 |
| |
|
Districts Notified |
Horticulture Crop. |
Potato |
Ooty |
| |
Chillies |
Thoothukudi |
| |
Turmeric |
Erode |
| |
Onion |
Namakkal |
The small and marginal farmers insuring their crop are given 50% of premium as subsidy under this scheme, which is shared by the Government of India and the State Government on 1:1 basis.
B. LONG TERM CREDIT STRUCTURE
The Long Term Cooperative Credit Structure consists of the Tamil Nadu Cooperative State Agriculture and Rural Development Bank at the State level and 181 Cooperative Primary Agriculture and Rural Development Banks at the Taluk/Block level. These credit institutions are providing credit to the members for agricultural and allied activities like minor irrigation, cultivation of horticulture and plantation crops, poultry, dairying, sheep breeding, tyre carts, sericulture etc. on schematic basis. They are also providing long term credit under normal lending programme for repairs to wells, laying of pipelines, purchase of tractors, power tillers, construction of cattle sheds, farm house, etc. The period of repayment of such loans ranges from 5 to 15 years.
Tamil Nadu Co-operative State Agriculture and Rural Development Bank
The Tamil Nadu Cooperative State Agriculture and Rural Development Bank raises the needed funds for its loaning operations through floatation of Ordinary and Special Development Debentures. The Ordinary debentures are subscribed by State and Central Governments, Life Insurance Corporation of India, State Bank of India and its groups, commercial banks, Tamil Nadu State Apex Cooperative Bank and other State Agriculture and Rural Development banks. The Special Development Debentures are subscribed by NABARD, State and Central Governments.
Automatic refinance facility available from 1995-96 upto Rs.10.00 lakhs has been increased to Rs.15.00 lakhs by NABARD. Hence, NABARD’s prior sanction is necessary only when NABARD’s refinance exceeds Rs.15.00 lakhs and in respect of innovative schemes only. Details of schemes formulated by Tamil Nadu Cooperative State Agriculture and Rural Development Bank and sanctioned by NABARD are given below:
S. No. |
Year |
No. of
schemes |
Amount
involved
(Rs. in crores) |
No.of schemes sanc-tioned by
NABARD |
Amount
sanctioned
(Rs. in crores) |
1 |
1997-1998 |
6 |
0.83 |
3 |
0.40 |
2 |
1998-1999 |
14 |
4.37 |
13 |
4.33 |
3 |
1999-2000 |
6 |
0.71 |
4 |
0.64 |
4. |
2000-2001 |
3 |
0.70 |
2 |
0.24 |
The internal resources of the bank was Rs.228.68 crores as on 31.3.2001 as detailed below:
(Rs.in crores)
1. |
Share Capital |
37.90 |
2. |
Statutory Reserve |
5.65 |
3. |
Other Reserves (including overdues) |
185.13 |
| |
Total |
228.68 |
The bank is maintaining a Debenture Redemption Fund for effecting redemption of ordinary debentures on the maturity period of each series and the sum outstanding under this Fund as on 31.3.2001 stood at Rs.27.43 crores.
The Monitoring and Evaluation Cell in the Apex Bank studies the problems in the implementation of various schemes and evaluates the benefits that accrue to farmers. 436 monitoring and evaluation studies have been conducted upto 31.3.2001.
Cooperative Primary Agriculture and Rural Development Banks
The needed funds for the long term credit of Primary Agriculture and Rural Development Banks are being channelised by the apex institution, viz. The Tamil Nadu Cooperative State Agriculture and Rural Development bank.
The details of long term loans issued by Primary Agriculture and Rural Development Banks during 9th Plan period are given below:
(Rs. in crores)
It has been programmed to issue Long Term Loans under the scheme to the extent of Rs.250.00 crores during 2001-2002.
In tune with the changing trend in providing credit by financial institutions, the Primary Agriculture and Rural Development Banks have been permitted to undertake financing in the following sectors also:-
(i)Financing in Non-Farm Sector
Since 1990-91, the scheme of financing of rural artisans, craftsmen, small scale entrepreneurs etc. is implemented by the Primary Agriculture and Rural Development Banks. Under such financing, the rural people are benefitted to a great extent in augmenting their income through gainful employment. The NABARD provides 100% refinance under this scheme without reference to the lending eligibility criteria of the Primary Agriculture and Rural Development Banks. The maximum individual credit limit under the scheme is fixed at Rs.2.00 lakhs under composite loan and Rs.15.00 lakhs under integrated loan.
The details of loans issued by the Primary Agriculture and Rural Development Banks under Non-Farm Sector for the previous 4 years and programme for 2001-2002 are given below:-
Year |
Loans issued
(Rs. in crores) |
1997-98 |
75.54 |
1998-99 |
83.07 |
1999-2000 |
75.57 |
2000-2001 |
61.09 |
2001-2002 (Programmed) |
80.32 |
(ii) Issue of loans to small road transport operators in rural areas
The Primary Agriculture and Rural Development Banks provide loans for purchase of mini lorries, pick-up vans, passenger vans, cars and auto-rickshaws. Under this scheme, 85% of the cost of the vehicle will be given as loan.
Loans to Weaker Sections of Society
The details of loans issued in the 9th Plan period are as follows:
(Rs. in crores)
Year of issue |
Total loans issued |
Loans issued to
weaker sections |
Percentage of loans
issued to weaker
sections to total
loans issued |
1. |
2. |
3. |
4. |
1997-98 |
191.60 |
36.83 |
19.2% |
1998-99 |
212.51 |
41.83 |
19.7% |
1999-2000 |
202.17 |
48.44 |
24.0% |
2000-2001 |
202.17 |
49.86 |
25.0% |
4. Recovery of loans
The lending eligibility of Primary Agriculture and Rural Development Banks is linked to their recovery performance. Unless the Primary Agriculture and Rural Development Banks collect a minimum of 65% of their demand as on 30th June, there is no scope to attain unrestricted lending eligibility. However, the NABARD has refixed cut-off recovery points by enhancing the percentage of recovery to 70% for 2001-2002.
The collection of overdues to the maximum level is also necessary to attain profitability and ultimately sustainable viability of the Primary Agriculture and Rural Development Banks. However, the occurrence of natural calamities, such as drought, floods etc., and the lack of interest among the borrowers for repaying loans in due time are the principal factors responsible for the accumulation of overdues. Therefore, the Primary Agriculture and Rural Development Banks have to collect their loan dues through intensive persuasion and personal contacts.
The percentage of recovery at the level of Primary Agriculture and Rural Development Banks for the year 1999-2000 was only 46.9%. The adverse seasonal conditions that prevailed in many parts of the state have affected the recovery performance of the Primary Agriculture and Rural Development Banks during this year. A proposal for postponing the current demand of Rs.30.29 crores of the borrowers affected by the natural calamities during the year 1998-99 was submitted to NABARD for approval. But, the NABARD has not accepted the request. The percentage of recovery to demand as on 31.3.2001 is 21.7% only.
The details of recovery of overdues at Primary Agriculture and Rural Development Banks level for the last five years are indicated below:-
(Rupees in Crores)
As on |
Loan amount
outstanding |
Amount of
overdues |
Percentage of overdues to demand |
1. |
2. |
3. |
4. |
30th June 1997 |
694.43 |
150.51 |
53.0% |
30th June 1998 |
786.05 |
201.65 |
56.5% |
30th June 1999 |
907.31 |
233.46 |
53.0% |
30th June 2000 |
998.34 |
278.63 |
53.1% |
30th June 2001 |
1068.38 |
353.11 |
62.9% |
5. Assistance from the Failed Wells Compensation Fund Scheme
A scheme called "Failed Wells Compensation Fund Scheme" was under implementation in this State with effect from 1.7.1986. Under this scheme, the small farmers, marginal farmers, farmers belonging to scheduled castes/scheduled tribes who take up sinking of wells with loan assistance from Primary Agriculture and Rural Development Banks, Commercial Banks and Regional Rural Banks are eligible for 100% subsidy from the Failed Wells Compensation Fund if such wells have failed. The principal subsidy will be shared equally by the State and Central Governments and the interest is to be shared equally by the financing bank and the NABARD in respect of schematic lendings. In respect of non-schematic lendings, interest has to be waived by the financing bank from its own funds. From 1993-94 onwards, the Central Government have stopped assistance towards this scheme. Assistance has been given under the scheme to the extent of Rs. 56.13 lakhs for 366 failed wells.
(C) URBAN CREDIT
At present 128 Urban Cooperative Banks are functioning in the state. They mobilise deposits from the middle and lower income groups and utilise the same for provision of credit facilities to small traders, artisans and persons belonging to middle income group for purposes, such as extension/repairs of their houses, establishment of small and cottage industries etc. to the people living in the urban areas. They have issued short term and medium term loans to the extent of Rs.1738.12 crores during the period from 1.4.2000 to 31.3.2001 to the urban and semi-urban population. Their deposits as on 31.3.2001 stood at Rs.2760.40 crores. According to Reserve Bank of India guidelines, the Urban Cooperative banks are required to issue not less than 60% of their total lending to priority sector and atleast 25% of priority sector advances to the weaker sections of the community.
2. Special Scheme implemented with assistance from Government
A sum of Rs.500/- is provided as interest free share capital loan to each of the identified scheduled caste members of the Urban Cooperative Banks so as to increase their borrowing power. The loan amount is recoverable in five equal annual instalments. Under the scheme, 16017 scheduled caste members of Urban Cooperative Banks were assisted to the extent of Rs.80.00 lakhs during the period from 1992-93 to 2000-2001.
Similarly, a sum of Rs.500/- is provided as interest free share capital loan to each of the identified women members of Urban Cooperative Banks to increase their borrowing power. The loan amount is recoverable in five equal annual instalments.
Under this scheme, a sum of Rs.5.00 lakhs has been sanctioned during 2000-2001 for issue of loan to 1000 women members.
3. Non-Farm Sector loan by Urban Cooperative Banks
The Urban Cooperative Banks are issuing non-farm sector loan to the cottage and small scale industries. As against the target of Rs.90.00 crores, a sum of Rs.150.73 crores has been disbursed during the year 2000-2001 as non farm sector loan to small scale and cottage industries benefitting 72387 persons.
CHAPTER – I V
INTEGRATED COOPERATIVE DEVELOPMENT PROJECT IN SELECTED DISTRICTS IN TAMIL NADU
Integrated Cooperative Development project, with an objective of diversification and to increase the volume of business of the primary cooperatives in agricultural and allied sectors, is being implemented in the state with the financial assistance from National Cooperative Development Corporation, New Delhi. The aim of the scheme is to achieve area based development rather than society based. It also aims at improving infrastructural facilities for the cooperatives in the entire area.
Under this scheme assistance is provided mainly for:
Project preparation
Creation of infrastructural facilities
Margin Money assistance for raising working capital for obtaining financial assistance from banks.
Training of elected management and paid staff.
Member education and publicity
Incentives to the staff of Cooperatives for improved performance
Cost of project implementation and monitoring including electronic data processing system.
2. Government have so far sanctioned the implemen-tation of Integrated Cooperative Development Project in Virudhunagar, South Arcot, Coimbatore, Dharmapuri, Thiruvannamalai, Kancheepuram and Ramanathapuram Districts.
3. Government have selected 4 districts to extend the implementation of Integrated Cooperative Development Project during 2000-2001. The names of the districts will be decided soon.
CHAPTER – V
DISTRIBUTION OF AGRICULTURAL INPUTS THROUGH COOPERATIVES
The Tamil Nadu Cooperative Marketing Federation, Thanjavur Cooperative Marketing Federation and the Nilgiris Cooperative Marketing Society are distributing Chemical fertilisers and other agricultural inputs like seeds, pesticides, agricultural implements to the farmers throughout the state through 5678 retail fertiliser outlets run by 4355 Primary Agricultural Cooperative Banks and 82 Agricultural Producers Cooperative Marketing Societies, as kind portion of crop loan to members and also for cash sales to members and non-members.
2. The details of fertiliser and other inputs distributed during the year 1998-99, 1999-2000, 2000-2001 and the programme for 2001-2002 are given below:
(Rupees in crores)
Year |
Fertilisers |
Seeds |
Pesticides |
Agricultural Implements |
1998-1999 |
237.49 |
2.38 |
2.98 |
0.57 |
1999-2000 |
263.71 |
3.05 |
3.24 |
0.82 |
2000-2001 |
252.00 |
2.42 |
3.05 |
0.79 |
2001-2002
(Programmed) |
290.00 |
4.50 |
3.75 |
1.32 |
CHAPTER – VI
CO-OPERATIVE MARKETING, PROCESSING AND STORAGE
Cooperative Marketing
At present 119 Primary Co-operative Marketing Societies are functioning in Tamil Nadu. The Tamil Nadu Cooperative Marketing Federation (TANFED) started in 1959 as the apex institution is serving through Primary Cooperative Marketing Societies in all the districts in the state except Thanjavur, Thiruvarur and Nagapattinam. These districts are served by the Thanjavur Cooperative Marketing Federation Limited at Thiruvarur.
Tamil Nadu Cooperative Marketing Federation (TANFED)
The TANFED, as the wholesaler, distributes chemical fertilisers and also pesticides, through Primary Agricultural Cooperative Banks and Cooperative Marketing Societies. Its fertiliser plant at Pamini near Mannargudi in Thiruvarur district (established in 1970) produces on an average 120 tonnes of granulated NPK fertiliser mixtures per day. The Federation is also running manure mixing centres in eight places in the state. TANFED undertakes procurement of agricultural produce, such as, cotton, paddy, chillies, sunflower seeds, coriander, blackgram etc. and acts as an agent of National Agricultural Cooperative Marketing Federation of India Limited(NAFED) for undertaking price support operation in Tamil Nadu. It is operating 35 own godowns with a total capacity of 26640 M.Ts. and 36 hired godowns with a capacity of 21355 M.Ts. and two cold storage godowns, one at Basin Bridge, Chennai with 1350 M.Ts. capacity and the other with 2500 M.Ts. at Koyambedu wholesale market complex.
The details of agricultural inputs handled by the Tamil Nadu Cooperative Marketing Federaion and other marketing institutions during 2000-2001 are furnished below:
Handled by TANFED |
Handled by other institutions |
Total |
Commodity
|
Quantity
(in NPK
Tonnes) |
Value
(Rs. in
lakhs) |
Quantity
(in NPK
Tonnes) |
Value
(Rs. in
lakhs) |
Quantity (in NPK
Tonnes) |
Value
(Rs in
lakhs) |
1. |
2. |
3. |
4. |
5. |
6. |
7. |
8. |
1 |
Fertilisers |
174222 |
21696.86 |
25360 |
3501.82 |
199582 |
25198.68 |
2 |
Pamani mixtures manufactured
(in MTs) |
14578 |
1074.39 |
-
|
- |
14578 |
1074.39 |
3 |
Pamani mixtures
17:17:17 sold
(in MTs) |
14578 |
1074.39 |
-
|
- |
14578 |
1074.39 |
4 |
Pesticides distributed |
- |
65.40 |
- |
176.84 |
- |
242.24 |
5 |
Seeds distributed |
- |
23.20 |
- |
281.67 |
- |
304.87 |
6 |
Agricultural implements distributed |
- |
4.22 |
- |
75.21 |
- |
79.43 |
Marketing of Agricultural Produce
The Cooperative Marketing Societies help the member farmers in processing, storage and marketing of their agricultural produce to get reasonable price for them by eliminating middlemen. The Marketing Societies arrange for auction sale of agricultural produce and also make outright purchase from members and sell them to the consumers. The Tamil Nadu Cooperative Marketing Federation purchases agricultural commodities from Cooperative Marketing Societies and sell them to Consumer Cooperative Stores or to the merchants when the prices are favourable. The Federation markets the agricultural commodities on a large scale.
The target fixed for marketing cooperatives (including Tamil Nadu Cooperative Marketing Federation and Thanjavur Cooperative Marketing Federation) for marketing of agricultural produce for the year 2000-2001 are as follows:-
Sl. No.
|
Name of the Commodity
|
|
Target fixed for
2000-2001
|
Achievement in 2000-2001
(Rs. in lakhs) |
1. |
2. |
|
3. |
4. |
|
|
