BANKING TRADE AND COMMERCE

CO-OPERATIVE MARKETING

Prior to the introduction of co-operative marketing in a purposeful manner, the cotton growers followed the simple pattern of marketing which was in vogue for many years in the four districts of Berar. The small agriculturists preferred to sell their produce through an agent of the purchaser either at the village level or at tahsil places. Sometimes, when the quantity of produce was more, they preferred to take their carts in the cotton market to sell their produce through the adatya or dalal. Most of the trading concerns supplying cotton to the mills at Bombay, Nagpur and Amravati preferred to purchase the cotton through their adatyas in the district. The adatyas advanced small amounts to the agriculturist prior to the harvesting of crops and the farmers were made to sell their produce to the adatyas at a very low price determined by the merchants which the agriculturists were forced to accept under the prevailing circumstances. The extent of these advances could not be ascertained as the transactions were completed under secrecy. The payment was generally delayed and the advances were recovered from the sale-proceeds and a heavy rate of interest was charged. The agriculturists, by and large, were not organised and could not command the desired price for their produce. Although there were regulated markets in the district they did very little for the betterment of the farmers in getting competitive prices for the cotton grown by them as the farmers had no bargaining and waiting capacity.

Against this background of marketing of cotton, the cooperative movement had to work very steadily. Determined efforts were also required to be made to develop marketing to the best possible advantage of the cotton growers. Initially, there were only four purchase and sale unions working in the district at Wani, Yeotmal, Digras and Pusad. Now the whole district has been covered by a network of marketing societies. Every block headquarters has a co-operative marketing society with its area of operation extending over the area of the block.

The organisation of marketing societies at all the 14 blocks, viz., Yeotmal, Kalamb, Babulgaon, Pandharkawda, Ghatanji, Ralegaon, Wani, Maregaon, Darwha, Digras, Ner, Pusad, Mahagaon and Umarkhed was not enough to solve the problem of co-operative marketing. The linking of credit with marketing was the main problem and engaged the attention of eminent co-operators as well as of the department for some time past. The main function of these marketing societies is to sell agricultural produce and to secure reasonable prices for the cultivators. In addition, they distributed improved seeds, cement, iron, fertilizers, insecticides, agricultural implements required for agricultural purposes and supply consumer goods, such as sugar, grains, cloth, kerosene, etc.

The following table gives the position of marketing societies in the district from 1963-64 to 1965-66:—

TABLE No. 21

 POSITION OF MARKETING SOCIETIES IN YEOTMAL DISTRICT

Co-operative marketing was introduced in this district from 1959-60. Some attempts were made prior to this but they were not quite fruitful having regard to the achievements. The table below gives the total arrivals of cotton in the various markets of the district from 1959-60 to 1965-66:—

TABLE No. 22

 ARRIVALS OF COTTON IN VARIOUS MARKETS IN YEOTMAL DISTRICT

The above figures reveal an upward trend in the percentage handled by co-operatives as against the total arrivals in the market. This indicates that the cotton growers are gradually being attracted by co-operative marketing and their number is on the increase.

Storage facilities.

The problem of storage arrangements is of significance for the successful working of co-operative marketing. During the 2nd and 3rd Five-Year Plan periods efforts were made to achieve the target of maximum number of godowns in the co-operative sector. Till the end of the 3rd Five-Year Plan financial assistance in the form of loan and subsidy was sanctioned for the construction of 100 godowns which consisted of 2 large size, 17 medium size and 81 small size godowns. The progress of construction of rural godowns (small size) and marketing godowns (medium size and large size) in co-operative sector is as follows:—

Moreover Central Warehousing facility is available at Yeotmal and State warehousing facility is available at Wani.

A special feature of co-operative marketing programme is that almost every society at the Mandi centre is conducting the cotton pool business, and the pools have become very popular as they fetch better prices than the prevailing market rates.

A second feature of the marketing programme is the linking of credit with marketing. The recoveries effected through marketing societies from the agriculturist members in the repayment of loan advanced by the primary co-operative societies as compared to the total recoveries from 1963-64 to 1965-66 are as under:—

This recovery was directly made from the sale-proceeds of the produce of the cultivators concerned. In addition to cash recovery the bank has introduced a new system of recovery known as Advances Price System since 1965-66. Special arrangement has been made in the sale and purchase unions to receive sale-proceeds on one counter and to repay the loans of primary societies on another. In order to enable the marketing societies to recover the loan more promptly and easily, the marketing societies have been authorised to work as recovery agents of the District Central Co-operative Bank, and commission is allowed to the sale and purchase unions at 12 paise per Rs. 100. This arrangement has helped the cultivators not only to repay the loans but also to secure them incentive finance which is allowed by the Bank at comparatively lower rates. The demand lists of all the societies are supplied to the marketing societies from which it can easily be ascertained as to how much amount is due from a particular member by way of principal and interest.

Thirdly, problem of seed procurement and distribution has been solved to a large extent as a result of the system of cotton pool conducted every year. The improved strain of seed would be available from the cotton pools after ginning, and the marketing societies could procure seed for distribution next year. This in turn will bring more cotton in the pools in the succeeding year.

Fourthly, successful implementation of the marketing programme has created a sense of confidence amongst the co-operators and has also made the farmers realise the necessity of having processing factories of their own, so that they may have still better prices for their produce.

Fifthly, since the introduction of co-operative marketing these markets are governed by a competitive price. Formerly the cotton purchasers or their adatyas dictated the price in the market which the cultivators were obliged to accept out of compulsion as there was no other agency to come to their help. In fact the entry of the marketing and processing societies in the market has helped the elimination of private adatyas as some of them have abandoned their business due to shrinkage of profits.

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