FINANCE

AGRICULTURAL CREDIT SOCIETIES

Agricultural Co-operative Credit Societies.-These societies, constituting the bulk of the co-operative credit societies, supply short term and intermediate term (not exceeding five years) finance to agriculturists. Each society has usually only a single village as its area of operation, but in some cases hamlets and smaller villages in the neighbourhood for which it is not possible to organise separate societies are also included in its jurisdiction. Membership is open to all residents of that area who satisfy certain conditions laid down in the bye-laws.

Funds.

Funds are raised in any or by all of the following ways, viz.,

(a) entrance fees, (b) issue of shares, (c) receiving deposits from (i) members, and (ii) non-members residing within a radius of five miles from the village where the society is located, (d) raising loans and overdrafts from other co-operative credit societies or from financing institutions, and (3) donations. The societies accept saving deposits and fixed deposits of not less than six months duration. Savings deposits are accepted from members only on conditions laid down in the bye-laws. The rate of interest on deposits is fixed by the managing committee, with the previous approval of the financing agency.

TABLE No. 5.

STATISTICS OF WORKING OF AGRICULTURAL CREDIT SOCIETIES (UNLIMITED) IN THE RATNAGIRI DISTRICT.

(Excluding land mortgage banks).

TABLE Ho. 5-contd.

TABLE Ho. 5-contd.

TABLE No. 6.

STATISTICS OF WORKING OF AGRICULTURAL CREDIT SOCIETIES LTD. IN THE RATNAGIRI DISTRICT (1951-52 to 1956-57).

TABLE No. 6-contd

TABLE No. 6-contd

TABLE No. 7.

STATISTICS OF WORKING OF NON-AGRICULTURAL CREDIT SOCIETIES (UNLIMITED) IN THE RATNAGIRI DISTRICT.

continued..

continued..

TABLE NO 8.

 STATISTICS OF WORKING OF NON-AGRICULTURAL CREDIT SOCIETIES IN THE RATNAGIRI DISTRICT.

continued..

¹ Including banks.

² Figures are for both limited and unlimited Non-Agricultural Credit Societies.

TABLE No. 8-contd.

TABLE No. 8-contd.

*Interest rate on borrowing and lending not available.

Loans are granted for agricultural and domestic purposes. They may be for a short term (not exceeding one year) or for an intermediate term (not exceeding three and, in some cases, five years). Short term loans are granted for purposes of meeting expenses on seed, manure, weeding, etc. Intermediate term loans are granted for two purposes, viz., (i) purchase of bullock-carts, iron implements, etc., and ceremonial expenses (the period of the loan being three years) and (2) payment of old debts and works of land improvement (the period of the loan being five years.).

Normal credit limits are fixed for each member and loans beyond this limit are not advanced. The total outstandings by way of loans cannot, in the case of any member exceed ten times the amount of shares standing to his credit in the society. Loans are given mostly on the personal security of the borrower supplemented by two good sureties who are members of the society. The society may also take mortgage of immovable property or of crops as collateral security. Loans are given in cash, but where the purpose of the loan permits and a suitable organisation exists loans are advanced in kind.

The rate of interest charged by agricultural co-operative credit societies depends upon their financial position as also on the rate at which they borrow from the financing agency. They have taken steps to reduce the rate of interest without loss to themselves. Government also offered various facilities by way of subsidies to meet certain expenses of the societies.

The number of Agricultural Credit and Thrift and Credit Societies (including Multipurpose societies) in 1956-57 was 378, while the number of members during this period was 43,410. In 1957-58, however, the total number of these societies increased to 424 with a membership of 49,144. This increase was due mainly to the registration of as many as 25 grain societies during the year. These societies cover 1,165 villages out of 1,515 villages in the District, i.e., 78.2 per cent, of the villages have been brought within the sphere of the agricultural credit movement. In terms of population the co-operative movement has embraced 13.14 per cent, of the rural population of the district. The borrowings from the central financing agencies and the Government have increased considerably on account of efforts made to enhance the rate of advance to the agriculturist members and the registration of the Grain Banks which have been granted Government loan.

The movement in respect of the expansion of agricultural credit in this district is steadily getting momentum and is meeting the financial needs of the agriculturists in rural areas as far as possible. The first object behind expansion and improvement in the working of the Agricultural Credit Societies is ultimately to bring all the villages within the ambit of the movement. The realisation of this objective is nearing fruition as 78.2 per cent, of the total number of villages have been brought under co-operative movement. The second object of the movement, that of bringing a larger percentage of population under its fold has not been a success, as, so far only 16.05 per cent, of the rural population has been covered by the movement.

The rural primary societies are granted subsidies to meet the secretarial cost on the conditions laid down by the Government in accordance with the recommendations of the " Nanawati Committee".

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