RESUME OF PUNJAB COOPERATIVES

• The Department of Cooperation has accelerated Cooperative Movement in Punjab during the last four years, 1997-2001.
  

• Over 22,000 Cooperatives in Punjab have transacted business of over Rs.1,25,000 crores in 2000 showing an increase of Rs.50,000 crore over the year 1996. Own funds of these Cooperatives have increased by Rs.520.00 crore and deposits by Rs.2500.00 crore during the last four years, 1997-2001.
  

• The Department has initiated comprehensive measures to revamp and revitalize administration of Cooperatives in the State. These measures include downsizing and dispersal of bureaucracy to improve efficiency and delivery of services. Restructuring of Staffing of major Cooperatives, Sugarfed, WEAVCO, PSCADB, Milkfed has been completed. For Markfed and PSCB, staffing is currently being restructured.
  

• The Department has submitted a proposal to amend existing Punjab Cooperative Societies Act, 1961 for approval of Council of Ministers. The proposal is aimed at structural reforms in Cooperative Sector.
  

• The Department has also prepared a revised code for election to Cooperatives to introduce electoral reforms in the Cooperative Sector.
  

Achievements of Cooperatives in Punjab

Source: Department of Cooperation & Puncofed, 2000.

• The Department has also prepared a revised code for elections to Cooperatives to introduce electoral reforms in the Cooperative Sector.
  

• The Department has re-oriented its policies and program during the last four years, 1997-2001 to enhance professional competence, encourage adoption of modern methods of management and to introduce structural, administrative and techno-legal reforms in Cooperatives to meet the challenges of economic liberalization and globalization.
  

• In a major policy shift, the Department has decided to provide need-based assistance to those Cooperatives, which are executing Government policies and programs and dis-invest from other Cooperatives. Greater thrust is being given on dis-investment from Sugar and Spinning Cooperatives. Dis-investment from four Cooperative Spinning Mills at Mansa, Kot Kapura, Malout and Tappa and one Cooperative Sugar Mills at Budhlada is currently underway.
  

• One of the major achievements of the Department has been to finalize one-time settlement of overdue term loans of three Cooperative Spinning Mills at Abohar, Goindwal & Barnala and eight Cooperative Sugar Mills at Ajnala, Faridkot, Jagraon, Zira, Patiala, Tarn Taran, Gurdaspur and Faridkot towards Financial Institutions, IDBI, ICICI & IFCI, cooperative Banks. The settlement has been achieved on payment of principal amount plus 10% of simple interest. This has saved nearly Rs.163.23 crore to the government and the Mills.
  

• In its endeavor to liberalize Cooperative Credit, the Department has introduced a Cash Credit Scheme for farmers to ensure timely availability introduced a Cash Credit Scheme for farmers to ensure timely availability to adequate cash to them. It has reduced rate of interest from 17 to 15-15.5% and penal interest from 3 to 1.5% . The Cooperative Banks have sanctioned Rs.638.88 Crore to the farmers under the Revolving Cash Credit Scheme during the last two and half years.
  

• Cooperative credit to the farmers of Punjab has substantially increased during the last four years. The cooperative Banks have provided Rs.6989.92 crore as short-term agricultural loans to the farmers during 1997-2001 as against Rs.4396.97 crore provided during 1992-97.
  

• To provide relief to the farming community rate of interest have been revised to 14.5% w.e.f 1.4.2000. Rate of penal interest has also been reduced from #% to 1.5%. Compounding of interest has been dispensed with.
  

• Punjab State Cooperative Agricultural Development Banks has provided Rs.1270.00 Crore during the last four years, 1997-2001 as against Rs.780.00 crore provided during 1992-97. It envisages to provide Rs.1364.00 crore as Medium, and Long-term loans to the farmers in the next two years, 2000-2002.
  

• 110 new branches of Central Cooperative Banks have been opened during last four years, 1997-2001 as against 35 opened in 1992-97. In addition 12 PADBS have also been opened during the lat 4 years.
  

• The Cooperative Banks have introduced a new Sehkari Bank Beema Yojna from 1999. Under this scheme, every depositor who opens a saving Bank account for Rs.1100/- or more is provided personal accident insurance cover for Rs.1.00 lakh. More than 1,25,000 depositors have so far been covered under the scheme.
  

• To provide relief to non-willful chronic defaulters of the Cooperative Banks the Department has introduced a Special Settlement Scheme from 1.2.2000. The scheme aims at settlement of old outstanding loans of the farmers at mutually agreed terms. The scheme was envisaged to provide relief of about Rs.30-35 crore to over 50000 farmers in the state. Old loans of 33,338 eligible borrowers amounting to Rs.52.00 crores have been settled for Rs.29.61 crores as on 31/01/2001. The scheme has now been extended upto 30/06/2001 so that more borrowers may avail benefit under the scheme.
  

• A new scheme namely Kisan Credit Card Scheme has been implemented by the Cooperative Banks. The scheme has liberalised existing scheme of S.T Agricultural Loans. Under the revised scheme a farmer can avail revolving short term agriculture loan upto Rs.85,000/- per crop. The previous limit was Rs.70,000/- per crop.
  

• Another new scheme the Jeevan Raksha Pension cum Gratuity Scheme has been launched for the benefit of rural old farmers who can enjoy pension facility in their old age by depositing Rs.500/- p.m for 10 years and will get pension of Rs.650/- per month.
  

• The Cooperative Banks in the State have introduced major structural and administrative reforms with a view to improve their delivery. These reforms, are aimed at development of infrastructure, development of human resources, computerization of operations and records and streamlining of procedures and strengthening of systems. In pursuance of these requirements, it is envisaged that 813 branches of Cooperative Banks and 84 PADBs in the State would be computerized over the next two years. They would also have systematically planned and developed building infrastructure with adequate trained and motivated staff.
  

• In pursuance of the process of simplification of procedures to facilitate easy and quick delivery of loans to the farmers , SADB has started making direct payment to the farmers upto Rs.2.00 lakh whereas the CCBs have dispensed with the requirement of renewing loan documents on yearly basis under its various loan schemes. It has now introduced a system of renewal of loan documents after every three years.
  

• In a great leap forward, Markfed has increased its turnover by Rs.1300 crore during the last four years. During 1999-2000, it has provided Rs.33.00 crore as distribution margins to 3800 PACS.
  

• Markfed has installed a new Sugar Mill at Malout with an estimate investment of about Rs.40.00 crore. The estimated capacity of the Mills is 1750 TCD. The Mills has started crushing of cane from 2000-2001.
  

• Markfed has established six ultra-modern Korean Rice Mills at Batala, Tarn Taran, Goniana, Jaitu, Patti and Gidderbaha during the year.
  

• Markfed has launched a Bio-tech Project for marketing of fresh fruits and vegetables in December, 2000. It aims at providing marketing outlet for vegetable growers in the State as also easy availability of good quality, hygienically packed vegetables and fruits at competitive prices to the consumers.
  

• During the last 4 years, 1997-2001 the number of Milk Producers' Cooperative Societies have gone up by 900, whereas turnover of Milkfed and its 11 Milk Unions has increased by Rs.200.00 crore.
  

• Milkfed has prepared a Milk Vision Plan 2004, which envisages enhancement of milk procurement from 6.92 lakh litre per day in March 1999 to 15.30 lakh litre per day by the end of March 2004.
  

• Cooperative Sugar Mills have implemented a 'Registered Cane Growers Scheme'. In this scheme, farmers are assured of lifting of their sugarcane.
  

• Housefed has provided loans worth Rs.200.12 crore to its members during the last four year, 1997-2001 as against about Rs.92.00 crore provided during the year 1992-1997. The net profit of Housefed has also increased from 54.19 lakh in 1997 to Rs.6.26 crore in 2000.
  

• In continuation of its efforts, the Department aims to finalize the proposal of structural and administrative reforms, including amendments to the Punjab Cooperative Societies, Act, 1961 during the coming budget session of Vidhan Sabha.
  

• With a view to liberalize and dis-invest from sick and weak Cooperatives, the Department intends to pursue dis-investment from Cooperative Spinning and Sugar Mills with greater vigor and priority.
  

• In order to liberalize Cooperative marketing in agricultural sector, the Department is embarking upon a policy to allow direct sale and purchase of agro-chemicals and other agricultural inputs to PACS. As step towards the same, the Department has designated 45 PACS and CMS as nodal points for independent procurement and supply of fertilizers and agro-chemicals.
  

• To ensure convergence of services and improved infrastructure facilities, the Department has operationalised the scheme of development of "Sehkarta Bhawans' at district levels to accommodate all offices of the Department and Cooperatives.
  

• With a view to modernize, strengthen and diversify Cooperative credit, the department intends to give greater thrust on computerisation of operation and records of the bank, human resource development through intense training and upgradation of skills and intensive application of information technology. It also intends to further liberalize Cooperative Credit by increasing direct finance to the farmers, with gradual abolition of B-component of short-term agricultural loans.

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