 |
FINANCE
|
 |
CROP FINANCE
The Government instituted the system of crop or seasonal
finance when it was found that there was shortage of credit in the rural areas. The system is intended to fill in the vacuum in the credit facilities caused mainly by legislation relating to debt relief, money-lending and land tenure passed during the last few years.
The advances by way of crop or seasonal finance are secured by the crops given by debtors. The advances are essentially short term in character and their chief object is to finance at reasonable rate of interest agricultural operations connected with the raising of crops. The principal agencies recognised for grant of crop or seasonal finance are the following: —
(i) Co-operative societies.
(ii) Revenue Department (Tagai Loans),
(iii) Grain Depots.
(iv) Persons authorised under section 54 of the Bombay' Agricultural Debtors' Relief Act. 1947.
Among all these agencies the Government policy is to advance finance as far as possible through the co-operative societies. The following statement shows the position as regards advances of crop or seasonal finance through co-operative societies in the district during the years from 1946 to 1948: —
TABLE No. 2
WORKING OF THE BOMBAY AGRICULTURAL DEBTORS' RELIEF ACT IN JALGAON (EAST KHANDESH) DISTRICT
DURING THE PERIOD FROM 1946 TO 1958.
|
Period |
Number of applications disposed of | |
On preliminary issues |
By adjudicating debtors as insolvents |
By passing awards |
For other reasons |
|
(1) |
(2-a) |
(2-b) |
(2-c) |
(2-d) |
1st July 1946 to 30th June 1950. |
2,757 |
134 |
9,123 |
14,570 |
1950-51 |
2,455 |
271 |
9,429 |
9,621 |
continued..
|
Period |
Amount involved in applications shown in column (2) |
Amounts by which debts are reduced |
Awards taken by mortgage Banks |
|
(3-a) |
(3-b) |
(3-c) |
(3-d) |
|
(1) |
(4) |
(5) |
| |
Rs. |
Rs. |
Rs. |
Rs. |
Rs: |
No. |
Rs. |
1st July 1946 to 30th June 1950. |
11,83,903 |
60,328 |
67,91,511 |
44,97,002 |
36,16,246 |
-- |
-- |
1950-51 |
21,15,011 |
1,35,832 |
36,13,834 |
33,73,938 |
39,50,516 |
-- |
-- |
The table reveals that to a very large extent the requirements of crop finance are met by the co-operative societies. This can be seen from the figures of the amount applied for and the amounts advanced [columns (2) and (3) in the figures]. The state of recoveries is, however, quite unsatisfactory during all these years. The result is an increase in the extent of overdues. Every year a certain number of applications for crop finance had to be rejected. This was done because the applicants could not provide particulars regarding their lands or failed to repay the last year's dues or because they did not cultivate their own lands personally and some of them did not possess any land at all.
The figures of crop loans also show that the agency of co-operative societies played a prominent part in providing crop loans to the adjusted debtors in the district.
|
