BANKING TRADE AND COMMERCE

CO-OPERATIVE MOVEMENT

Co-operative movement: Economic development and social change are a dire necessity in an under-developed country like ours, and co-operation is an important means by which a process of momentous growth and transformation of the present economic set-up can be accelerated by raising productivity of agriculture and rural crafts. Cooperation has become a principal basis of organisation in many branches of economic life, notably agriculture, agricultural marketing, sugar industry, supply of rationed articles and housing in the district.

The co-operative movement made an humble beginning in the district in 1909, and showed signs of gradual and steady progress till 1947. Real momentum was however gained only after Independence. Since the introduction of the Five-Year Plans with an emphasis on rural development, the co-operative movement advanced with a rapid pace. Ahmadnagar district has made remarkable progress in the field of co-operation. In fact a bulk of economic development in this traditionally famine-stricken district is attributable to the growth of co-operative sugar factories and many other processing industries. The growth of sugar factories in turn benefited the agriculturists, who get a substantial income from sugarcane cultivation. The reverberating development of the areas around Shrirampur, Kopargaon, Rahuri, Sangamner and Ahmadnagar is mainly due to the benefits accruing from the co-operative movement.

Detailed information regarding all types of co-operative societies and banks in the district is furnished below.

District Central Co-operative Bank: The District Central Cooperative Bank was established at Ahmadnagar in 1958. It has been working as a federal central financing agency catering to the requirements of all the primary credit societies in the district. Since 1962, the Zilla Parishad also transacts its financial business through this bank. There were fifty branches of the bank excluding head office in the district during 1968-69 which rose to 68 in 1971-72. The bank gives assistance to the primary agricultural societies for improving productivity of land. The bank also gives loans to industrial societies for increasing production. Table No. 2 shows the working of the bank in 1967-68, 1969-70 and 1971-72.

District Central Urban Co-operative Bank Limited: The bank was established at Ahmadnagar in 1910 and has now extended its area of operation over the entire district. There are 15 branches of the bank in the district and two branches outside the district, one at Parli Vaijanath in Bid district and the other at Jalna in Aurangabad district. The bank gives loans to credit societies, salary-earners' societies, weavers' societies, industrial societies and individuals. In the following statement is given the position of the society in 1966-67 and 1967-68: —

Land Development Bank: The District Land Mortgage Bank was established at Ahmadnagar in 1960 with a view to provide long-term finance to cultivators. It was re-named subsequently as District Land Development Bank. It had a net-work of 14 branches in 1971-72 through which it granted long-term loans to the cultivators for construction of new wells, repairing of old wells, purchase of pumping sets, land improvement and irrigation. Table No. 3 shows the progress of the bank during 1967-68, 1969-70 and 1971-72.

Agricultural Credit Societies: There were in all 1,081 agricultural credit societies in 1967-68, which number rose to 1,090 during 1971-72. These societies provide long and medium term loans to their members. They also give aid to agriculturists in the form of tractors and oil-engines. Some of the societies collect agricultural produce from their members and sell through sale and purchase societies while some also deal in controlled rationed articles. The progress of these societies can be judged from table No. 4.

TABLE No. 1—NUMBER OF REGISTERED MONEY-LENDERS AND LOANS ADVANCED BY THEM IN AHMADNAGAR DISTRICT DURING 1965-66 AND 1971-72

TABLE No. 2—CO-OPERATIVE BANKS, AHMADNAGAR DISTRICT

N.A. =Not available

TABLE No. 3—PROGRESS OF LAND DEVELOPMENT BANK

N.A. = Not available.

TABLE No. 4—AGRICULTURAL CREDIT SOCIETIES, AHMADNAGAR DISTRICT

N.A. = Not available.

Co-operative Sale and Purchase Unions: There were 14 sale and purchase unions in the district in 1968-69 which undertook the distribution of fertilisers, seeds, oil-engines, cement, tin, and agricultural implements to the members. They also run medical shops, cloth stores and grocery stores in rural area. Besides, there were six sale and purchase unions engaged in agricultural marketing business. These marketing unions act as general commission agents. They also undertake the work of procurement of jowar and paddy on behalf of the State Marketing Federation. The main object of these societies is to assure the agriculturist of reasonable prices for agricultural produce and to sell the produce with a reasonable profit margin. They also help the primary credit societies by recovering the loans through the sale proceeds of borrowing members. The following table shows the progress made by these societies during 1966-67, 1967-68 and 1968-69: —

TABLE No. 5—WORKING OF CO-OPERATIVE SALE AND PURCHASE UNIONS

Agricultural Processing Societies: Agricultural processing societies play an important role in the development of agro-industries which are a sine qua non for economic development of the agricultural economy. The northern part of Ahmadnagar district has made remarkable progress in this respect. In 1971.72, there were 10 agricultural processing societies in the district. They had a membership of 9,950, consisting of 9,543 individuals and 407 societies. The total share-capital of all the societies amounted to Rs. 7,94,550; reserve and other funds, Rs. 4,67,397; and working capital, Rs. 41,87,525. Agricultural processing societies have been organised in the following sectors in the district:—

(1) Tomato processing, (2) Gur and khandsari, (3) Oil-mills, (4) Rice mills, (5) Thread mill, and (6) Ginning and pressing.

Of these, the rice mill at Rajur, the thread mill at Shrirampur, the oil-mill at Ahmadnagar and the ginning and pressing factory at Shevgaon are working. The oil-mill at Sangamner is the first oil-mill in the co-operative sector in the State, but it is defunct at present.

These societies are handicapped by the lack of liquid capital essential for the purchase of raw materials.

The members of these societies are reported to be apathetic towards selling their produce to them as they cannot pay the value of the produce immediately. These factors are mainly responsible for the slow progress of these societies.

Co-operative Sugar Factories: In 1974-75, there were 13 sugar factories in the district, out of which eight are under the co-operative sector. The sugar factory at Pravaranagar is the first sugar factory in India to be established on the co-operative basis. Each of these sugar factories has an installed capacity of crushing about 1,000 tons of cane per day. Government has contributed Rs. 66.75 lakhs to their share-capital. In the following table are given the statistics about the working of the co-operative sugar factories in the district during 1966-67 and 1967-68:—

TABLE No. 6—WORKING OF CO-OPERATIVE SUGAR FACTORIES

Dairy Societies: There were 21 small-sized milk societies and two co-operative milk unions in the district in 1968-69. The unions are working at district level, while the small societies are at taluka and village levels. One union at Ahmadnagar is defunct. The milk society at Rajur supplies 7,000 litres of milk daily to the co-operative milk scheme at Nasik. The number of members of these societies was 2,578 in 1966-67, which rose to 2,699 in 1968-69. The position of these societies in the years 1966-67, 1967-68 and 1968-69 is given in the following table:—

TABLE No. 7—DAIRY SOCIETIES; AHMADNAGAR DISTRICT

In 1971-72, the value of purchase by dairy societies was Rs. 18,36,269, while the value of the dairy products sold was Rs. 20,20,948.

Consumers' Co-operative Societies: The main function of these stores is to supply the necessary articles to its members at reasonable rates. There were 29 consumers' co-operative stores in the district in 1966-67 which decreased to 19 in 1971-72. The particulars about these stores pertaining to the years 1967-68, 1969-70 and 1971-72 are given in table No. 8.

Co-operative Housing Societies: There were in all 132 co-operative housing societies in the district during 1971-72 which were classified as follows:—

(i) housing societies of flood-affected people,

(ii) backward class people housing societies, and

(iii) housing societies of other people.

The working of the housing societies of flood-affected people is not so very satisfactory. Of the 1,268 houses planned by them, they have constructed only 821. The work on the rest of the planned houses is left half done while work on some did not begin.

TABLE No. 8—PROGRESS OF CONSUMERS' CO-OPERATIVE SOCIETIES

Ten backward class housing schemes received interest-free loan to the tune of Rs. 2,89,570 and a subsidy of Rs. 1,66,605 for the construction of 169 tenements. Out of 169 tenements, 109 are already constructed and the remaining tenements are under construction.

Industrial Co-operative Societies: There were in all 101 industrial societies during 1971-72, out of which 14 were hand-loom weavers' societies and the remaining were labourers' co-operatives, oil-mill co-operatives, leather workers' societies, etc. The following statement shows the position of industrial co-operatives as it existed during 1971-72:—

These societies receive Government subsidy through the District Central Urban Co-operative Bank Limited, Ahmadnagar. The Maharashtra State Khadi and Village Industries Board also gives financial assistance to these societies.

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