BANKING TRADE AND COMMERCE

CO-OPERATIVE SOCIETIES.

In India the co-operative movement was started at the beginning of the present century. It was the result of the economic distress caused to the peasants during this period. Although the idea of forming co-operative societies was first suggested by Frederik Nicholson to solve the problem of rural indebtedness, a real beginning of the co-operative movement was made when the Co-operative Societies Act was passed in 1904. This was done with a view to encouraging thrift, self-help and co-operation amongst agriculturists, artisans and persons of limited means. Societies formed under the Act were given legal status and were authorised to raise funds and carry on business in a corporate capacity. They were classified as rural and urban; rural societies were bound to accept the principle of unlimited liability. This Act. however, was deficient in many respects.

The Act of 1912 was. therefore, passed to make good these deficiencies It regularised certain practices of doubtful legal validity and made provision for further expansion under proper safeguards. The distinction between rural and urban societies was removed and a more scientific classification based on limited or unlimited liability was adopted. Co-operative societies other than credit were allowed to be formed. Registration of unions and federal bodies like central banks was expressly legalised and a number of minor improvements were introduced. The simplicity and elasticity of the old Act were at the same time retained and a wide rule-making power was left to provinces to develop on their own lines.

Owing to its backwardness Chandrapur district made little progress in the co-operative field before Independence. The first society to get registered was of course, the agricultural co-operative credit society in the district. Other type of societies came up later. By June 1966, there were thus 1,619 Co-operative Credit Societies in the district including the co-operative industrial estate. The break-up of these societies into various types is given in the following table: -

TABLE No. 3

CO-OPERATIVE SOCIETIES IN CHANDRAPUR DISTRICT AS ON 30TH JUNE 1966.

Agricultural Co-operative Credit Societies.-The Agricultural Credit Societies among those mentioned above are the most important, covering 97 per cent of the villages in the district. They constitute the bulk of the co-operative societies. By 1966, there were 1,204 societies of this type in the district. They included 177 Primary Credit Societies, 28 large sized societies and 999 Service Co-operatives. The primaries meet only the essential credit needs of the cultivators and have little scope for their operation. Each of the other types of societies progressively cater to the larger credit requirements and offer a wider range of service to the peasant population by meeting its non-credit requirements also. There is, therefore, a growing tendency to convert the primaries or large sized societies into multi-purpose or Seva (Service) societies. By doing so these societies become viable and economically sound units on a village level with multifarious activities including supply of seeds and manures, distribution of foodgrains, supply of domestic requirements such as foodgrains, cloth, etc., and supply of agricultural implements. Their main function, however, is to advance money for agricultural purpose and redemption of old debt-short-term and medium-term (i.e., not exceeding five years) loans-to farmers within the area of their operation which is usually a village.

The following table gives the statistics and working of all the Agricultural Co-operative Credit Societies in the district during the years 1964-65 and 1965-66.

TABLE No. 4.

STATISTICS AND WORKING OF THE AGRICULTURAL CO-OPERATIVE CREDIT SOCIETIES IN CHANDRAPUR DISTRICT.

All these societies have been affiliated to the District Central Co-operative Bank, Chandrapur, through which provision of finance is made. Recently some of these societies have also undertaken distribution and marketing activities. The value of the produce marketed by them was Rs. 36,52,247 and the value of the requisites distributed (including consumers' goods) was Rs. 29,17.946 during 1965-66.

Grain Banks.-Grain banks were organised to facilitate easy credit of grains to the agriculturists who used to borrow grains for productive and consumption purposes from local money-lenders. These banks flourished during the period of control on foodgrains and the levy system. After 1956 these controls were removed and a number of grain banks were found either defunct or dormant. There is. therefore, a move to liquidate them. By 1965, 27 grain banks with 621 members were working in the district. The following statement gives the details of their working:-

Land Development Bank.-There is only one Land Development Bank in this district situated at Chandrapur. It caters to the long term credit needs of the agriculturists by granting them loans for purchase of oil engines and for the construction of new wells and repairs to old wells. By 1965-66, it had 8 societies, and 5,158 individuals as its members. The statistics about the working of this bank is given below: -

Non-agricultural Co-operative Societies.-These are mainly urban banks or societies formed by traders, salary-earners or factory-workers residing in towns which is usually their area or operations. Their membership is open to all those residing in this area. The liability of members is, however, limited. The societies advance loans to their members either on personal societies or on mortgage of property. In 1965-66 there were in all 26 non-agricultural credit societies in the district which included an Urban Co-operative Bank situated in Chandrapur, an Urban Credit Society, a mill-hand society at Ballarpur and three Thrift Credit Societies. The progress of these societies can be gauged from the following table: -

TABLE No. 5

STATISTICS AND WORKING OF NON-AGRICULTURAL CREDIT SOCIETIES
IN CHANDRAPUR DISTRICT.

Of the above societies, the salary-earners' societies form a bulk. Their account is given separately below: -

Chandrapur District Central Co-operative Bank, Ltd. . -This Central Co-operative Bank is the central financing agency as almost all the finance required by the various co- operative institutions in the district is channelised through it. TO finance the agricultural co-operative credit societies in the district is the main function of the hank. But it also undertakes such banking business as collection and discounting of bills, opening up of current accounts, purchase and sale of securities, issue of cheques and drafts, etc. The bank also makes advances to co-operative societies in the form of cash credit (clean, hypothecation and pledge) medium-term loans to industrial societies and loans for agricultural purposes, especially for crops. In places where multi-purpose or sale societies cannot be organised or worked efficiently. the Central Co-operative Bank makes arrangements for the sale of agricultural produce especially of those cultivators who come within the purview of the Bombay Agricultural Debtors' Relief Act and those who are allowed to become members for obtaining crop finance. The following table gives the details of operation of the bank: -

TABLE No. 6.

STATISTICS AND WORKING OF THE DISTRICT CENTRAL CO-OPERATIVE BANK, CHANDRAPUR.

* There were 25 branches in 1970.

Co-operative Marketing Societies.-Marketing of agricultural produce is one of the important problems that an agriculturist has to face. Unless the cultivator gets a profitable price for his produce there will be no incentive for him to produce more. The orderly marketing of the produce after each harvest at remunerative or profitable prices is, therefore, very important from the point of view of production and the welfare of the cultivators. Co-operative marketing to a very great extent fills this gap by providing the cultivator all the marketing facilities and obtaining for him better prices and returns. As such, these societies form supply to their members such agricultural requisites as fertilisrs, improved seeds, farm implements, etc. These societies form a bridge between the primary credit societies and the District Central Cooperative Bank and are, therefore, utilised for implementing the scheme of the supply of credit in kind and recovery of loans from the members through the sale-proceeds of the produce. The marketing societies are thus playing a very useful role in strengthening the bargaining position of the cultivators and linking credit with marketing. In the Co-operative Development Plan Scheme, the development of co-operative marketing is. therefore, given a very high priority. A programme of enrolling the service co-operative societies (which were not members) as members of primary marketing societies was envisaged. It was also made compulsory for each agricultural credit society to invest at least 2 per cent of its own share capital in the shares of the marketing society to which it is affiliated. With a view to building up the share capital base of the Apex Marketing Society a condition was made that each marketing and processing society should invest five per cent of the share capital sanctioned for it in the share capital of the Apex Marketing Society.

The District Purchase and Sale Society.-For the first time a District Marketing Society, viz., the Chandrapur Zilla Sahakari Kharedi Vikri Sangh Ltd., Chandrapur, was organised in the district on 28th February 1965, By June 1966, the society had a membership of 90. The paid-up share capital as well as the working capital amounted to Rs. 1,49,000 out of which Rs. 1.00.000 was Government paid-up capital sanctioned in 1965-66.

Primary Marketing Societies.-By 1966, there were 16 Primary Marketing Societies working in the district. The following table gives the working and statistics of these societies in the district: -

TABLE No. 7

STATISTICS REGARDING THE WORKING OF THE PRIMARY PURCHASE
AND SALE SOCIETIES IN CHANDRAPUR DISTRICT.

Consumers' Co-operatives.- Consumers' co-operatives were primarily formed in urban areas. They are essentially the product of the post-war period when the essential consumers' goods became scarce and their prices rose steeply. The consumers' co-operatives work in the spirit of service. Their main function is to make a proper distribution of consumers goods at reasonable prices and undertake similar activities through which they can to a certain extent check the rising trend of prices and their fluctuations.

By 1965-66, there was one wholesale consumers' store and 28 Primary Consumers Stores in the district. Of these the former used to sell to the latter a number of commodities including articles of daily use through its branches or through affiliated primary societies. The following table gives the progress made by these societies in the district:-

TABLE No. 8

STATISTICS AND WORKING OF THE CONSUMERS' CO-OPERATIVES IN
CHANDRAPUR DISTRICT.

Agricultural Processing Societies.-These societies undertake the work of processing agricultural produce which formerly was the monopoly of private firms and individuals. By doing so they not only derive more profit but also establish a co-operative link between production and distribution. The Government encourages their formation and offers incentives for undertaking processing work. By June 1966 there were 18 societies of this type in the district. Out of them 16 were rice mills, one was a cotton ginning and processing society and the other a poha-making society. Of the 16 rice mills, 9 rice mills were establish-ed during 1965-66 and were given share capital by the Government to the tune of Rs. 1,80,000. The following table gives the details of the working of all the agricultural processing societies in the district as on 30-6-1966:-

TABLE No. 9

STATISTICS AND WORKING OF THE AGRICULTURAL PROCESSING
SOCIETIES IN CHANDRAPUR DISTRICT.

Tobacco Marketing Society.-There was only one Tobacco Marketing Society at Ankisa in Sironcha tahsil of this district in 1965-66. It had a membership of 74 during this year and its paid-up and working capital amounted to Rs. 47.325 and Rs. 58,465, respectively. Its other funds were Rs. 3,792 during this period.

Co-operative Farming Societies.-The idea to organise co-operative farming societies was mooted in 1946-48 to rehabilitate the ex-soldiers and to decide the allied land tenure and land utilisation problems. To-day the main objects of the farming scheme are to increase agricultural production, create opportunities for gainful employment and rehabilitate landless labour on Government land. The farming societies, however, can also achieve consolidation of scattered and fragmented holdings and bring about improvement of fallow and waste lands through soil conservation, reclamation and development.

There were 35 co-operative farming societies in Chandrapur district during 1965-66. Of these 32 were Collective Farming Societies and the rest Joint Farming Societies. The following table indicates the position of all the co-operative farming societies in Chanda district during 1965-66:-

TABLE No. 10

STATISTICS AND WORKING OF THE CO-OPERATIVE FARMING SOCIETIES
IN CHANDRAPUR DISTRICT

During 1965-66 these societies received Rs. 1,100 from the Government as contribution towards their share capital. The total financial assistance rendered by the Government to these societies is given below: -

Out of Rs. 24,000 given as loans to farming societies in pilot area, Rs. 22,250 were given for construction of new wells or repairs to old wells, and out of the Rs. 49,000 given to the societies outside the pilot areas, Rs. 45,000 were given for the for the same purpose.

Lift Irrigation Societies.-There were three Lift Irrigation Societies in this district during 1965-66. They had a membership of 132. Their paid-up and working capital during that year were Rs. 15,615 and Rs. 16,585, respectively. These societies had not started their working till June 1966.

Dairy Societies.-Dairy serves as a subsidiary means of liveli-hood to a number of agriculturists. In Chandrapur district there was only one dairy society at Brahmapuri prior to 1965. It went into liquidation in 1965-66. During the same year, however, a new dairy society at Rajura was organised. It had 11 members and its paid-up and working capital were Rs. 600 and Rs. 611, respectively. The society being a new one did not start its work.

Cattle-Breeding Societies.-There were only two cattle-breeding societies in the district by 1965-66. They had a membership of 46 and their paid-up and working capital were Rs. 1,550 and Rs. 1,573, respectively. Both the societies, however, were found dormant during the year.

Poultry Societies.-Poultry, like dairy, is a good subsidiary business especially for those agriculturists, whose income is very limited. The State Government is, therefore, giving all the encouragement to the farmers to establish co-operative poultry societies. In Chandrapur district the development of poultry societies was not very significant. By 1965-66 there was only one poultry co-operative society in the district registered at Wan- dhali in Warora tahsil with 17 members, Rs. 1,100 as paid-up capital and Rs. 1,117 as working capital. As the society was newly organised then, it had nothing to report for work.

Industrial Co-operatives.-With large and very rich forests in which it abounds, the district possesses great potentialities for industrial growth. There are, however, very few industries in the district. The main industry in the district is forestry followed by mining and weaving. Since Independence the Government has evinced a keen interest in the growth and prosperity of these industries and has chalked out a number of schemes whereby establishment of industrial societies is encouraged and they are accorded all assistance including extension of credit facilities. A number of societies, therefore, came up after Independence. By 1965-66 there were in all 160 industrial co-operatives in the district consisting of 14 weavers' societies, 55 other Industrial societies, 37 forest labourers' societies, 53 labour contract societies and one District Industrial Co-operative Association.

Handloom Weavers' Societies.-The Handloom Weavers' Societies numbered 14 in 1965-66. Of them the Society at Nagbhid had also undertaken power loom work. The following table indicates the progress of these societies in the district during 1965-66:-

TABLE No. 11

Labour Contract Societies,.-By 1965-66 there were 53 Labour Contract Societies in the district. The statistics about the working of these societies is given in the following table: -

TABLE No. 12

STATISTICS AND WORKING OF THE LABOUR CONTRACT SOCIETIES IN CHANDRAPUR DISTRICT.

Forest Labourers' Societies.-As there are very large forests in Chandrapur district, there is a great scope for the working of the forest labourers societies in this district. By June 1966 there were in all 37 forest labourers' societies. The statistics about their working is given in the following table:-

TABLE No. 13

The formation of forest labourers' societies was given an impetus by the late Shri B. G. Kher, the then Chief Minister of Maharashtra, when he announced the scheme of organising Forest Labourers' Co-operative Societies (of Adivasis) with the help of Social Workers and the policy of the Government to hand over coupes to them on reasonable terms as part of a comprehensive programme for the all-round advancement of the Adivasi people. The ideas underlying this scheme were to stop the exploitation of the forest workers, to improve their standard and to achieve their social, moral and educational uplift.

The forest labourers' societies have been mostly sponsored by recognised agencies working for their benefit. The societies are allotted forest coupes and given contracts in respect of minor forest produce. The working of coupes is done through the societies according to a specific formula under which the societies get certain percentage in the net profits on sliding scale basis depending upon the period for which the society is in existence. The societies are also given financial and other help by the Government to facilitate their operations.

Other Industrial Societies.-Of the 55 other types of Industrial Societies in the district in 1965-66, seven were village pottery societies, 3 village oil ghanis, 6 neera societies, 5 carpentry and Blacksmithy Societies, 4 Cane and Bamboo Workers' Societies, one hand-printing and dyeing society, 3 Kosa Utpadak societies, 2 soap-making societies, 18 footwear making societies, 8 bricks and tiles-making societies, one lime-making society and 7 miscellaneous societies. Of the miscellaneous type 3 were women's societies, and one each of tailoring, bidi-making, metal-working and aeronautics and medicinal plant societies. The financial position of these societies dining 1966 is given in the following table: -

TABLE No. 14

STATISTICS AND WORKING OF THE MISCELLANEOUS TYPE OF SOCIETIES.

Fisheris Societies.-A general shortage of foodgrains in the country after the World War If persuaded the Government to seek alternate sources of food. Fish being a good nourishing food constitutes a working substitute for, or complementary to. the principal dietary. The State Government, therefore, has laid much emphasis in their planning schemes on the growth and development of fisheries. Chandrapur being an interior district, offers as a rule little prospects for fisheries development. There are, however, various inland expanses of water where fisheries can be grown. The co-operative societies of fishermen serve an important purpose from this point of view. By 1965-66, there were 32 fisheries societies in the district. The following table indicates the progress made by these societies in 1964-65 and 1965-66:-

TABLE No. 15

STATISTICS AND WORKING OF THE FISHERIES SOCIETIES IN
CHANDRAPUR DISTRICT.

District Industrial Co-operative Association.-The District Industrial Co-operative Association is formed to provide technical assistance to the co-operative societies and to make available to them services of trained staff to work as secretaries, account-ants, etc. They can also supervise the working of affiliated societies, undertake to supply raw materials at reasonable rates or cater for marketing facilities for the disposal of finished goods of the societies and thereby bring about co-ordination. In 1965-66, there was one Industrial Co-operative Association at Chandrapur with a membership of 79. Its paid-up share capital during that year was Rs. 20,175 and its working capital Rs. 29,082. The Association during the year had effected the sales of Rs. 1,09,818 and earned a profit of Rs. 26,800.

Supervising Union.-There was at least one Supervising Union in each of the 18 blocks in the district by 1965-66. The agricultural co-operative credit societies in the district were affiliated to this union. The total income of all the supervising unions during the year was Rs. 3,59,089 whereas their expenditure was Rs. 3,56,067.

District Co-operative Board.-This board is situated at Chandrapur, the district headquarters. Its membership during 1965-66 was 824 of which 788 were society members. The board carries out propaganda for the spread of co-operative movement. For this purpose it organises agricultural shows and displays various exhibits to rural folk to impress upon them the importance of co-operation. During 1965-66 the income of the board was Rs. 8,388 against its expenditure of Rs. 12,090 during the same year.

Housing Societies.-There were three types of Co-operative Housing Societies organised in the district, viz., the Backward Class Housing Societies, the Low Income Group Housing Societies and the Flood Affected Housing Societies. By June 1966, there were 17 societies belonging to the first type, five to the second and the remaining 21 to the third type, respectively.

The scheme for backward class was launched in 1948 with a view to helping backward class people in the construction of houses. Under the scheme the Government makes a grant of land or subsidy for the purchase of land. In addition, interest-free loan at 25 per cent of the estimated cost of construction is also given to the extent of Rs. 3.000 to Rs. 4,000 in industrial areas, Rs. 2,000 in municipal areas and less than Rs. 1,500 in the remaining areas. During 1965-66 the societies (for scheduled tribes) received Rs. 10,250 as loans from the Government.

The Low Income Group Housing Scheme is launched by the Government of India under which provision is made for the sanction of loan to the maximum of Rs. 8,000 to an individual whose annual income does not exceed Rs. 6,000. The grant of loan is made through the Co-operative Department or through the co-operative societies.

Besides these two principal schemes, loans were also granted to people affected by floods in the district.

The following table gives the statistics and working of all the housing societies in the district: -

TABLE No. 16

STATISTICS OF HOUSING SOCIETIES IN CHANDRAPUR DISTRICT

Besides the organisation of the various types of co-operative societies, federations of some of them, too, have come up in the district during the past few years. A federation of Jungle Kamgar Co-operative Societies was, for example, registered in 1964, to protect the common interest of the societies and promote co-operation between society and society. The membership of the society was 33, out of which 26 were society members and seven individual members.

Another Federation was organised at Chandrapur in I963. It had a membership of 15 by 1966. The federation had employed one supervisor.

TOP