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FINANCE
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CROP FINANCE.
Vacuum was thus created in the rural credit structure. Government took a serious view of the situation and instituted the system of crop or seasonal finance. The principal agencies which have been recognised for grant of crop or seasonal finance are the following:-
(1) Co-operative Societies;
(2) Revenue Department (Tagavi Loans);
(3) Grain Depots;
(4) Persons authorised under section 54 of the Bombay
Agricultural Debtors' Relief Act, 1947.
As far as possible, crop or seasonal finance is advanced through co-operative societies to persons who are parties to the proceedings or awards under the Bombay Agricultural Debtors' Relief Act. Advances made through agencies other than cooperatives are not, therefore, very large. The advances are secured by crops grown by them. They are essentially short term in character and their chief object is to finance at reasonable rates of interest, agricultural operations connected with the raising of crops. Societies have been advised to keep a watch over the crops and to effect prompt recoveries. Inspite of this provision, there have been defaults in many cases.
The following table shows the position as regards advances of crop or seasonal finance through the co-operative societies in Kolhapur district in the years 1949-50 to 1955-56:-
TABLE No. 4.
STATEMENT SHOWING ADVANCES OF CROP OR SEASONAL FINANCE THROUGH CO-OPERATIVE SOCIETIES
DURING THE YEARS 1949-50 TO 1955-56.
|
Year. |
No. of applications received. |
Amount of finance applied for. |
Amount advanced. |
Amount recovered. |
|
1 |
2 |
3 |
4 |
5 |
|
|
Rs. |
Rs. |
Rs. |
1949-50 |
2,378 |
6,29,359 |
1,76,161 |
-- |
1950-51 |
4,505 |
17,31,419 |
8,89,498 |
1,49,781 |
1951-52 |
4,985 |
22,66,720 |
6,00,815 |
3,65,354 |
1952-53 |
10,079 |
19,93,064 |
8,58,445 |
12,63,653 |
1953-54 |
4,262 |
33,69,657 |
8,36,205 |
7,47,346 |
1954-55 |
13,719 |
N. A. |
10,68,711 |
8,09,315 |
1955-56 |
12,540 |
N. A. |
9,98,868 |
8,04,005 |
continued.
|
Year. |
Amount outstanding at the end of the year. |
Amount of overdues. |
Amount of government guarantee. |
|
Authorised. |
Unauthorised. |
|
1 |
6 |
7 |
8 |
9 |
|
Rs. |
Rs. |
Rs. |
Rs. |
1949-50 |
1,71,161 |
1,71,161 |
-- |
-- |
1950-51 |
9,13,878 |
7,28,827 |
1,85,051 |
-- |
1951-52 |
5,82,595 |
24,402 |
5,58,193 |
-- |
1952-53 |
4,36,043 |
2,40,257 |
1,95,786 |
-- |
1953-54 |
5,24,902 |
-- |
67,230 |
-- |
1954-55 |
7,84,297 |
57,827 |
5,13,485 |
967 |
1955-56 |
8,79,160 |
94,702 |
3,63,770 |
-- |
The table indicates that co-operative societies have not been able to meet fully the requirements of the agriculturists. The amount actually advanced always fell short of the amount applied for. The state of recoveries was unsatisfactory throughout as is evidenced by the increasing amounts of outstandings and overdues at the end of every year from 1949-50 to 1955-56. The table also reveals the fact that more and more people have begun to avail themselves of this kind of financial assistance. In 1949-50, for example, only 2,378 agriculturists had applied for crop finance and the amount advanced to them was Rs. 1,76,161. As against this in 1955-56 as many as 12,540 had applied and they were assisted to the tune of Rs. 9,98,868. This clearly indicates the increasingly greater role played by co-operative societies in matters of crop finance during recent years. |
