BANKING TRADE AND COMMERCE

CO-OPERATIVE MOVEMENT

The beginning of the co-operative movement in India as also in Khandesh of which Dhulia district formed part started with the passing of the Co-operative Credit Societies Act in 1904 with a view to reducing rural indebtedness and bringing credit facilities within the reach of the agriculturists. In 1912 and again in 1928 similar Co-operative Co-operative Acts were passed which helped the organisation of Movement. different types of societies in India. The Act of 1912 was amended further abolishing the distinction between the rural and the urban societies. It classified the societies, on the basis of its liability, into limited liability and unlimited liability societies. Under the provisions of the new Act it made possible the registration of central societies, such as the Provincial and District Central Banks and Supervising Unions consisting of individuals and societies. Under the new enactment the word 'credit' was dropped so that a number of non-credit type of organisations could be registered. The Act of 1928 was made applicable to all the person having economic needs, whether their means were limited or otherwise. This Act widened the scope of the old legislation. Subsequent amendments passed thereafter gave further impetus to the growth of new societies in India.

 The earliest co-operative society to be registered in the then district of Khandesh was at Bodwad (Bhusawal taluka now in Jalgaon district) as early as 1906.

The early co-operative societies, popularly known as primaries were agricultural in character. They were organised mostly in rural areas and provided short-term and medium term credit to the agriculturists for productive and domestic purposes. The operational area of each society was generally a village (and its hamlet) whose residents were eligible for its membership. By 1963-64 there were in Dhulia district 770 agricultural credit societies with a total membership of 97,763 persons. The paid up share capital of these societies amounted to Rs. 1,27,83,967 during the same year, and the working capital Rs. 48,52,608. The following table gives the progress of the Agricultural Credit Societies in Dhulia district for the years 1957-58, 1938-59, 1962-63, 1963-64 and 1971-72.

TABLE No. 4

STATISTICS OF THE AGRICULTURAL CREDIT SOCIETIES

IN DHULIA DISTRICT

*In 1971-72 the societies advanced Rs. 4,25,08,000 and recovered Rs. 3,77,87,000 from borrowers.

The agricultural credit societies provided credit facilities to the cultivators for agricultural production. In addition most of them undertook other ancillary service activities such as supply of improved seeds, fertilisers, and other agricultural requisites including consumers' goods.

Among agricultural primaries the service co-operatives (Seva societies) numbering 647 form the largest and the most important group. The membership of these societies is universal but it prominently includes cultivators, artisans and labourers. The object of these societies is to provide credit for agricultural operations, to purchase raw materials, etc. Among other activities, these societies also pool the agricultural produce of members sometimes and arrange to sell it through marketing societies to which they are affiliated. In short, the service co-operatives cover all economic activities of the rural population so as to create a cohesive, self-reliant and prosperous village community.

Besides the service societies the agricultural primaries in Dhulia district comprise three agricultural credit and thrift and credit societies, 94 large sized multi-purpose societies, 16 small-sized multipurpose societies and 10 grain banks.

District Central Co-operative bank.

The Dhulia District Central Co-operative Bank Ltd., Dhulia, is the Central Financing Agency for the co-operative societies in Dhulia district. It was registered on 13th September, 1957. The main function of the bank is to finance agricultural co-operative societies within its area of operation (i.e. the Dhulia district). It also serves as a balancing centre in that it accepts surplus funds of one society at a reasonable rate of interest and transfers those to another which is in need of more capital than the amount it possesses. The bank has so far opened 34 branches in the district and has made available maximum credit facilities to its members. The following table shows the progress of the Dhulia District Central Co-operative Bank, during 1957-58, 1958-59, 1962-63 and 1963-64.

TABLE No. 5

STATISTICS OF THE DISTRICT CENTRAL CO-OPERATIVE BANK, DHULIA*.

*In 1971-72 the bank had 34 branches with 1,598 societies as members. The share capital of the bank was 98,02,000; reserve and other funds Rs. 33,68,000 and working capital Rs. 8,84,67,000. It advanced Rs. 6,80,98,000 as short term loans and Rs. 54,63,000 as medium term loans.

Primary Land Mortgage Bank.

The establishment of West Khandesh District Co-operative Land Mortgage Bank, Ltd., Dhulia, was made with a view to providing the long-term credit needs of the cultivators. It grants loans on the security of landed property offered by the borrowers, for (i) redemption of old debts, (ii) improvement of agricultural land and the adoption of improved methods of cultivation, (iii) installation of costly agricultural plant and machinery, etc. The bank has seven branches at important in the district. Following table shows the  progress made by it during 1957-58, 1958-59, 1962-63 and 1963-64.

TABLE No. 6

WORKING OF THE PRIMARY LAND MORTGAGE BANK, DHULIA*

*In 1971-72 this bank had 11 branches with 25,257 individe members Its share capital was 65,24,000; reserve and other funds Rs. 8,24,000; and working capital Rs. 5,07,66,000. It advanced Rs. 52,500 by way of long term loans.

Non-agricultural Credit Societies.

The non-agricultural credit societies in Dhulia district are mostly urban societies supplying credit to members who are generally traders, artisans, factory workers, salary-earners, etc. residing in towns. By 1963-64 there were 34 urban societies in the district. They included 7 full-fledged banks, 20 salary-earners societies, one factory workers' society and 6 urban credit societies.

The main function of the urban societies is to advance loans to their members on personal valuables pledged or produce hypothecated. During 1963-64 these societies provided cheap and timely credit of the order of Rs. 1,22,36,510 to middle class and low income group people including artisans, traders and employees under Government and other public and private bodies and thus helped them to meet their professional needs. The table below gives the comparative position of the working of these societies for 1957-58, 1958-59, 1962-63, 1963-64 and 1971-72.

TABLE No. 7

WORKING OF THE NON-AGRICULTURAL CO-OPERATIVE CREDIT

SOCIETIES, DHULIA DISTRICT

These societies also allow cash credits and sanction overdrafts against the securities. Besides, they undertake modern banking operations like issue of hundis and drafts and collection of cheques, hundis, drafts, etc.

Co-operative farming Societies.

The co-operative Farming Societies were organised with the following objects in view.-(1) increasing agricultural production; (2) increasing opportunities for gainful employment in agriculture as well as activities allied to agriculture, and (3) rehabilitating landless labourers. The co-operative farming movement was started in Dhulia district in 1947 with the organisation of Navari Co-operative Joint Farming Society, Ltd., at Navari in Dhulia district. Efforts were made later on to organise collective fanning societies on the Government waste land. During 1949 two co-operative collective farming societies, viz., (1) Waghapur Co-operative Collective Farming Society, and (2) Bhadne Shetki Majur Co-operative Collective Farming Society, Ltd., both in Sakri Taluka, were registered. The organisation of co-operative fanning societies got impetus only after the initiation of the First Five-Year Plan. In 1961, Dhulia taluka was selected to serve as a pilot project and ten co-operative farming societies were organised in it under the instructions of the Government of India within a period of two years. Another pilot project was undertaken in Sindkheda taluka where a target of organising ten co-operative farming societies was achieved during 1962-63. By 1964 there were 90 farming co-operatives of which 58 were Joint Farming Societies, 31 Collective Farming Societies and 1 Better Farming Society. The following table shows the working and progress of these societies in the district during 1962-63 and 1963-64.

TABLE No. 8

WORKING OF FARMING SOCIETIES IN DHULIA DISTRICT* FOR

1962-63 AND 1963-64

*Statistics of the Better Farming Society are not available.

Lift Irrigation Societies.

 Like co-operative farming societies, these societies also help to  step up agricultural production. By 1964 there were ten purely Lift Irrigation Societies [In 1971-72 there were 11 irrigation societies with 712 members; Rs. 3,51,418: as share capital and Rs. 11,75,098 as working capital.] working in the district while one service co-operative and two farming societies had also undertaken the lift irrigation scheme. These societies had undertaken different types of lift irrigation schemes. Of them eight were irrigation schemes, five were river irrigation schemes and one was a scheme for irrigation on a brook or nala. They had 352 members and an area of 2,636 acres under their command.

Gram Swarajya Societies.

The Gram Swarajya Societies were formed mostly by the Adiwasis  residing in Akrani and Akkalkuwa talukas. They are under the control of Satpuda Sarvodaya Mandal and are managed by Sarvodaya workers. By 1964 there were 28 Gram Swarajya Societies in Dhulia district, with 755 members.

Co-operative Dairy Societies.

The dairy societies have been found to be very useful in providing supplementary occupation to the agriculturists. They assure the farmers a steady market for milk and the consumers a good quality milk. The primary dairy co-operative societies in this district were mainly organised in Dhulia, Shirpur and Shahada talukas. By 1963-64 there were 61 societies, the feeder societies, with 2125 members in the district. [In 1971-72 there were 446 animal husbandry societies with a membership of 21,887. Their share capital was Rs. 31,01,057 and working capital Rs. 1,87,18,996.] Their paid-up and working capital was Rs. 5,58,778 and Rs. 3,98,999 respectively. During the same year, these societies supplied 23,19,180 litres of milk to the union as against 19,04,672 litres supplied to Government milk scheme.

Besides the dairy societies, talukawise milk producers' unions at Shirpur and Shahada and the District Milk Supply Union at Dhulia were also organised in this district. The main objects of a milk union are to make arrangements for disposal of milk and milk products of its members and member societies, to purchase and distribute cattle-feed to the members and to improve the quality of milk supplied to the consumers in the urban area. The following table gives the details of the co-operative unions and the feeder societies in Dhulia district during 1962-63 and 1963-64.

TABLE No. 9

Crop protection Societies.

These societies which numbered 78 in 1964 in Dhulia district helped the members in protecting their crops from the ravage of stray cattle, wild pigs, thieves etc. During 1963-64, 2,65,018 acres of area under crop was saved from loss or destruction by these societies.

Cattle Breeding Societies.

By the end of 1963 there were six cattle breeding co-operative societies in Dhulia district. They had 212 members, 100 heads of cattle and Rs. 14,375 as their share capital.

Fisheries Co-operative Societies.

As Dhulia is not a coastal district only inland fisheries have some scope for development. By 1963-64 there were three fisheries societies with 207 members and Rs. 15,959 as working capital. During the same year they sold fish valued at Rs. 7,489.

Industrial Co-operatives.

Industrial co-operatives form an important part of the co-operative movement in the district. On account of the various activities carried on by them, they provide employment to a number of artisans and labourers. Organisation of industrial co-operative societies also helps the artisans in securing better wages especially in some industries such as handloom, tanning and leather working, exploitation of forest coupes and so on. Under the First and the Second Five Year Plans, therefore, the workers in these industries were encouraged to form their societies and substantial financial assistance was given to them for the development of the industry.

By 1964 there were 173 industrial co-operatives in Dhulia district as detailed below:-

The progress made by these societies can be seen from the following tables-

TABLE No. 10

PROGRESS OF INDUSTRIAL CO-OPERATIVES IN DHULIA DISTRICT

TABLE No. 11

BREAK-UP OF THE INDUSTRIAL CO-OPERATIVES ALONG WITH THEIR

WORKING IN DHULIA DISTRICT IN 1963-64

TABLE No. 11―Contd

Of these societies the Handloom Weavers Co-operatives and the Forest Labourers and Contract Societies form an important group. In Dhulia district, Dhulia and Shahada are the two main centres of the handloom industry having 1,496 and 138 handlooms respectively.

The Handloom Development Scheme sponsored by the Government of India aims at―

(1) Organisation of Handloom weavers co-operative societies,

(2) Intensive development of the weavers co-operatives through grant of financial assistance in the form of loans, subsidies and rebates on the sale of handloom cloth.

(3) To raise the quality and quantity of the production and to make arrangement for marketing of the cloth.

(4) Ameliorating the social and economic conditions of the weavers.

There is also a scheme of converting handlooms into power-looms. Under this scheme the Shahada Taluka Weavers' Co-operative Society was given financial assistance in 1963-64 for installation of 15 powerlooms.

The other major types of societies include the Forest Labourers societies and the Labour Contract Societies. The former play an important part for the allround advancement of the Adiwasis and the jungle folk while the latter help the skilled and unskilled labourers in securing technical help and executing work in a better way. The progress made by these two types of societies is given below: —

The marketing of agricultural produce forms the crux of our rural economy. It is the co-operative marketing which strengthens the position of cultivators as sellers by providing them with all marketing facilities and securing to them better prices and better returns. Naturally, the District and Taluka purchase and sale organisations play an important part in this respect.

Co-operative Purchase and Sale Societies or Marketing Societies.

By 1964 there were 15 marketing societies in Dhulia district, of which ten were Taluka co-operative purchase and sale societies, four were fruit selling societies and one was district marketing society. In addition to marketing of agricultural product some of these societies undertake supply of fertilizers, cement, iron, steel, improved implements etc. Some of them even supply oil engines and pumping sets. During 1963-64 these societies supplied 1752 oil engines valued at Rs. 53,69,200 to the cultivators.

Processing Societies.

The scheme of organisation of processing societies contemplates to bring commodities like cotton, ground-nut. chilli, gur, etc. under the purview of co-operative processing and give financial assistance by way of share capital by establishing processing units through the co-operatives. If agricultural producers have their own co-operative processing unit, they can derive more profit. As marketing is clearly linked with processing, the development of processing through co-operative is of the utmost importance in the co-operative development plan. By 1964, there were three co-operative processing societies in the district. They included the Cotton Ginning and Pressing Society at Shirpur, the Gur and Khandsari Society at Shahada and the Oil Mill and Cotton Ginning and Pressing Society at Dondaicha. In addition, two Purchase and Sale societies have undertaken cotton ginning and pressing and oil milling work, nine agricultural multipurpose societies have undertaken oil-milling work and one agricultural multi-purpose society has undertaken rice milling. The State has liberally contributed towards the costs of the processing schemes.

Development of co-operative marketing and processing presupposes provision of adequate storage facilities. By 1964 there were 26 medium-sized and 142 small-sized and three large-sized godowns owned by the marketing and agricultural credit co-operatives with the financial assistance of the government.

Consumers' Societies.

If the co-operative marketing and co-operative processing are to develop and succeed, it is necessary that strong consumers movement is built up in every district. In the context of the present conditions, the consumers stores can play a vital role in holding the price line and in keeping a sustained flow of supplies at fair price to the consumer. By 1964 there were 24 primary consumers stores managed by 24 different types of consumers societies, with 3,680 members. They had a share capital of Rs. 1,28,170 and Reserve and other Funds to the tune of Rs. 1,43,553. Besides primary societies, there is a wholesale consumers store in the district.

Under the direction of Government of India a centrally sponsored scheme offering liberal financial assistance has been formulated for the organisation and promotion of consumers stores in cities and in towns having a population of 50,000 or above. Immediate steps were accordingly taken to enrol the members and collect initial share capital to organise a central co-operative consumers stores for Dhulia ditsrict. It was registered on 15th August, 1963, and started its activities through its 9 branches in Dhulia city. It deals in all the essential commodities except cloth. By 1963 the store had a membership of 1,263 individuals and 19 member societies and its share capital from them amounted to Rs. 52,380 and Rs. 75,000 respectively. Besides the above stores, one consumers store in one industrial establishment, viz. the New Pratap Spinning, Weaving and Manufacturing Company Ltd., has been organised for industrial workers under the scheme mentioned above. In 1963, it had 1,057 members and its share capital was Rs. 10,570.

Co-operative Housing Societies.

Several co-operative housing schemes are under implementation in Dhulia district both in rural and urban areas. By 1964, there were 88 housing societies in the district, out of which 57 were meant exclusively for backward class people. The following table gives the working and statistics of these societies.

TABLE No. 12

STATISTICS OF CO-OPERATIVE HOUSING SOCIETIES

IN DHULIA DISTRICT

     The Government has granted financial assistance to four societies in this district to    the tune  of   Rs. 1,87,225. Out of this amount Rs. 1,77,755 were given as loan and Rs. 16,470 as subsidy.

Taluka Development Boards were formed in the district to help the agriculturists get improved types of implements, seeds and manures and to advise them on matters relating to agricultural production. These Boards are also expected to carry out programmer relating to demonstration, public instruction and general welfare of the people in the district.

Taluka Development Boards.

By 1964 there were only two Taluka Development Boards working in the district. They had 145 individuals as their members. During the same year they collected a subscription of Rs. 145 from the individuals and Rs, 52 from the societies.

Taluka Co-operative Supervising Unions.

The intention behind starting the Taluka Co-operative Supervising Unions is to give direction, advice and assistance to the agricultural and multi-purpose societies in the villages after a regular and careful inspection of their work. They supervise the societies affiliated to them and make their working effective. They also help the societies to raise loans from the Central Financing Agencies and also to recover the amounts due.

During 1963-64 there were ten Taluka Co-operative Supervising Unions working in the district. They had a membership of 880. The total strength of their supervisors was ten.

The Dhulia District Supervision Committee guides and exercises control over the supervisory staff in the district.

The District Co-operative Board, Dhulia, undertakes training and education in co-operatives by conducting classes at different places in the district.