Chapter- VIII Role of Cooperative Societies towards Socio-Economic Development In this chapter we shall analyse the socio-economic impact of the cooperative societies in rural areas of the district. It gives an account of total employment created in the co-operative sector, total output produced or total turnover, total number of persons directly and indirectly related to co-operatives etc. It discusses the impact of the co-operatives on the growth of agriculture, small scale industry, fisheries, social sector etc. This chapter also describes different schemes of the Dakshin Dinajpur District Central Cooperative Bank and Agricultural Land Development Bank and examines to what extent these schemes have been implemented in the district. It also states the opinions of the members, directors. Govt, officers about the functioning of the co-operatives in the district. Co-operatives have played an important role in providing agricultural credit, marketing facilities consumer goods, urban credit, housing and other important services to uplift the economic and social conditions of the rural and ruban section of the population. We have included eight types of co-operative societies, to assess their role in uplifting the socio-economic environment. These are given below. i) Primary Agricultural Cooperative Credit Societies ii) Employees' Cooperative Credit Societies iii) Weavers' Cooperative Credit Societies iv) Large-sized Agricultural Multipurpose Cooperative Credit Societies v) Engineers' Cooperative Societies vi) Labour Contract Cooperative Societies. vii) Marketing Cooperative Societies. viii) Consumers' Cooperative Societies. (93)
P rim ary A gricultural Cooperative Societies The short-term credit in the agricultural sector is made available to the individual members in the rural areas through a 3-tier system. In order to diversify their business and to achieve the objectives of self-reliance, the State Cooperative Bank, District Central Cooperative Bank and primary agricultural cooperative societies have mobilised deposits. Long-term credit to the agricultural sector is dispensed with under a two-tier structure with West Bengal State Cooperative Agricultural and Rural Development Bank Ltd. at the apex level and Primary Cooperative Agricultural and Rural Development Bank at the district level. Employees' Cooperative C redit Societies The primary objective of this type of society is to create funds for lending money to its members. Long-term financing is made through District Central Cooperative Bank. Amount of loan is extended to the members mainly for house building. Short-term loan is made out of own funds consisting of share money, reserve fund, thrift fund and deposits of members. W eavers' Cooperative C redit Societies The primary objective of this type of society is to create funds for giving shortterm loans and other industrial inputs to its members. District Central Cooperative Bank finances these types of societies. The co-operative societies so formed are assisted with different plan schemes of state and central govt, and afterwards arrangement is made to link up the societies with the co-operative banks for necessary finance required for working capital with reduced rate of interest under NABARD norms. Larged-Sized Agricultural M ultipurpose Cooperative Societies (LAMPS) These types of societies are mainly formed for the benefit of the tribal people. The members get monetary support in the form of loan in their agricultural activities. Short-term as well as mdd-term loans are provided to the members. Shortterm loans are given out of the owned sources of the co-operative societies and (94)
Dakshin Dinajpur District Central Co-operative Bank extends mid-term loan. LAMPS distribute paddy among the members in the form of 'granery loan'. LAMPS encourage formation of self-help group (SHG) amongst the rural people to generate a saving tendency for their benefits. District Central Co-operative Bank extends 4 times of saving of the members as loan to the members without any guarantee. Engineers' Cooperative Societies These types of cooperative societies are formed by unemployeda) degree holders in any branch of engineering, technology, science, commerce, arts or agriculture, or b) diploma holders in any branch of engineering, technology or agriculture, or c) certificate holders in any industrial trade, for their exclusive benefit, the percentage of degree or diploma holders in any branch of engineering or technology in the membership of the co-operative society being not less than sixty percent. Labour Contract Cooperative Societies These types of societies ensure work to the poor labourers after getting work order. District Central Co-operative Bank finances these societies against the work order. After completion and getting final payment these societies repay the amount of loan. Here interests of labour are fully protected. Marketing Cooperative Societies These types of societies are mainly engaged in extending all round cooperation to the members or non-member agriculturists by selling fertilisers (retail and wholesale), cement, G.C. Sheet (tin), G.R Sheet (Matka), sugar, rice, jute (J.C.I.) paddy (BENFED), potatoes, seed potatoes, potato bags,stationary goods, diesel etc., at nominal rate. The common people can get the above mentioned facilities at comparatively lower rate than the market. (95)
Consumers' Cooperative Societies Consumers' cooperative society means a cooperative society, the primary objective of which is to supply consumer goods and to render such other services to its members as may be required in the matter of supply and production of consumer goods. It supplies consumer goods at nominal prices. Role of Different lypes of Cooperative Societies Role of different types of cooperative societies in total employment created in the cooperative sector, total output produced/total turnover, total number of persons directly and indirectly related to cooperatives total amount of loan to the members for a particular year (2003-04) are given below : Table 8.1 Role of Primary Agricultural Cooperative Credit Societies (Rupees in lakh; Total No. of Total No.of Amount of No. of Deposit Year Societies Members loan extended Employees 2003-04 122 49305 2101.56 313 1778.23 Total number of societies operating in the district are one hundred and twenty two and forty-nine thousand three hundred and five members are directly involved in the process of primary agricultural co-operative credit societies as members. Three hundred and thirteen paid employees are engaged in its activities. Financial assistance in the shape of short-term and long-term loan amounting to Rs. 2101.56 lakh are extended to the members for purchasing agricultural inputs i.e. to purchase seeds, fertilisers, tractors and other agricultural instruments etc. Periodical loans are provided to the farmers to produce seasonal crops. Total deposits made by members (49305) to the societies is Rs. 1778.23 lakh which is Rs..036 lakh (1778.23/49305) per member on an average. (96)
Table 8.2 Role of Large-sized Agricultural M ultipurpose Cooperative Societies Total No. of Total No.of Amount of (Rupees No. of in lakh) Deposit Year Societies Members loan extended Employees 2003-04 13 15834 95.66 48 40.32 The district has 13 LAMPS consisting of 15834 members. These members are mostly from tribal community. Monetary support in the shape of loan amounting to Rs. 95.66 lakh has been extended to the members for their livelihood. Members use the loan mainly for agriculture, fisheries and housing construction. On an average Rs..006 lakh per member is extended as monetary support. It signifies that marginal amount of loan is granted for their betterment. Due to low margin of their land holding the members do not have enough opportunity to get huge amount of loan. They are so poor that granary loan are extended during the month of August and September for their subsistence. Forty eight paid employees are involved for the smooth functioning of the LAMPS. Table 8.3 Role of Employees' Cooperative Credit Societies (Rupees in lakh) Total No. of Total No.of Amount of No. of Deposit Year Societies Members loan extended Employees 2003-04 65 5921 2532.45 02 140.68 Source ; ARCS office, Balurghat These types of societies are functioning in schools, colleges and in different govt, and semi-govt, institutions. Amount of loan is extended for the benefit of the members concerned. Total amount of loan extended is Rs. 2532.45 lakh which is Rs. 0.43 lakh (2532.45/ 5921) per member on an average. These societies encourage deposits on behalf of members which is Rs. 0.02 lakh (140.68/ 5921) per member on an average. Both fixed/ term and saving deposit facilities are provided to the members. Some societies are so self sufficient that they are able even to grant long term loans to the members from their own resources. (97)
Table 8.4 Role of W eavers' Cooperative Credit Societies (Ruppes in lakh) Total No. of Total No. Total amount People Year societies of weavers of loan engaged 2003-04 30 3500 2210 30,000 Total number of 3500 weavers are directly involved in 30 societies and 30000 employment are offered in weaving activities in this district. These societies are assisted with state and central financial schemes with considerable amount of subsidy. On an average Rs. 73.66 lakh (2210/ 30) per society has been provided for their functioning. Mostly handloom products are produced in these societies. These types of societies have enough opportunities to generate employment opportunities in the district. Year Table 8.5 Role of Engineers' Cooperative Societies Total No. of societies Total No. of members Work allotted Borrwing from bank Bill received 2003-04 23 220 584.24 51.00 17.90 Twenty three engineers' cooperative societies are functioning with 220 members from general caste people. Work order amounting to Rs. 584.24 lakh was allotted to these societies. It signifies that average work order of Rs. 25.40 lakh (584.24/23) per society was allotted in the district which is not remarkable. Due to lower volume of work allotment members are less interested to involve themselves further. Generally 20% to 25% of the Govt, work order should go to these societies. This criterion is not properly followed. (98)
Year Table 8.6 Role of Labour C ontract Cooperative Societies Ltd. Total No.of societies Total No. of members Grant (Financial) from Govt. Work allotted Bill received 2003-04 40 2410 9.24 256.19 96.72 Average number of members directly involved per society is about 60 (2410/ 40). Volume of work allotted per society is Rs! 6.40 lakh (256.19/40) on an average which is not significant. Bill received against work allotted (256.19 lakh) is Rs. 96.72 lakh. Year Total No. of societies Table 8.7 Role of Marketing Cooperative Societies Total No. of members No. of employees Business Deposit from members 2003-04 07 392 68 5104.65 42.84 Total number of employment created in these societies is sixty eight. Volume of business transacted in the reference year is 5104.65 lakh. Business involves sale of agricultural inputs and necessary commodities. Cold storage and oil business are also included in the marketing societies' activities. Table 8.8 Role of Consumers' Cooperative Societies Total No. of Total No. of Purchase Sale Year Societies Members 2003-04 08 1882 137.15 98.41 Average number of of members involved in a particular society is 235. Total amount of purchase and sale are Rs. 137.15 lakh and 98.41 lakh respectively. Purchase and sale include consumable goods. (99)
Role of Dakshin Dinajpur District Central Co-operative Bank Dakshin Dinajpur District Central Co-operative Bank plays an important role in accelerating the activities of different co-operative societies and consequently alleviating poverty of the rural people by extending monetary support through amount of loan. District Central Co-operative Bank meets the demand of different co-operative societies fully and instantly. Table 8.9 below shows the amount of loan extended to the number of societies, number of benefitted members, amount of loan advanced and its rcovery of a particular year i.e. 2003-04. SI. No. Table 8.9 Role of Dakshin Dinajpur District Central Cooperative Bank Name of societies No. of societies benefitted No. of members benefitted Advanced (Loan) Rs. Recovery Rs. 1. Primary Agriculral Co-op. Credit Society 50 6099 360.35 344.08 2. Lamps 3 372 53.90 45.49 3. Handloom Co-op. 1 10 3.50 1.58 4. Employees Co-op. Credit Society 40 1239 1212.62 785.60 5. Engineering and Labour Co-op. society 10 69.13 52.23 6. Marketing Co-op. Credit Society 2 40.00 12.94 7. Consumer's Co-op. Credit Society 1 7.75 2.93 Source : Dakshin Dinajpur District Central Cooperative Bank. Table below explains cropwise loan, number of members given loan and amount of loan given to the members. ( 100)
Table 8.10 Year-2003-04 Role of DDDCC B ank in D ifferent C rops Production Name of crops No.of members Amount of loan benefitted extended Aman rice 4139 219.21 Sugarcane 42 2.70 Boro rice 1497 112.42 Potato 42 26.02 Total 5720 360.35 Source : Dakshin Dinajpur District Central Cooperative Bank. Role of Primary Agricultural Land Development Bank in extending loan to the different schemes, its volume and its recovery are discussed below. Table 8.11 Year 2003-04 Role of P rim ary A gricultural L and Development Bank SI. No. Name of Schemes Amount % of Recovery 1. Land Development 147.89 85.00 2. Bullock and Bullock cart 9.67 84.00 3. Fisheries 29.20 86.12 4. Betalvine 4.67 88.35 5. Agricultural Land Purchase 4.26 90.10 6. Construction of rural Godown 88.54 9120 7. Minor Irrigation 0.43 82.50 8. Farm mechanisation 14.79 87.31 9. Farm pond for irrigation 1.40 8921 10. Non-Farm activities: mini-bus, manufacturing and transport 27.62 90.00 11. Housing construction 78.61 95.16 12. Hire purchase consumption for salaried person 194.92 95iO Total 602.00 Source : Land Development Bank, Balurghat ( 101 )
Table below explains the role of Dakshin Dinajpur District Central Cooperative Bank and Raiganj Central Cooperative Bank compared to other banks operating in the district in extending monetary support. Table 8.12 Year 2003-04 Comparative Role of Cooperative Bank Bank Advanced (loan) Percentage SBI 1661.83 12.83 ALLAH 354.50 2.73 GRAMIN 3383.20 26.13 BOI 119.43.93 INDIAN 48.42.38 CBI 76.52.59 UNITED 2544.77 19.67 UCO 510.21 3.95 DDDCCB 1424.91 11.00 RCCB 1993.17 15.39 BARDB 804.40 6.21 PNB 25.19.19 TOTAL 12946.55 100.00 Source : Lead Bank (UBI), Balurghat From the above table we see that cooperative bank shares 21.60% (15.39 + 6.21) of the total monetary support to the people in the district which is significant. Administrative Set up in the Activities of Cooperative Department The Department of Cooperative, Government of West Bengal is headed by the Secretary who discharges his official duties with the assistance of a number of officers of the rank of Legal Advisor and Ex-officio Joint Secretary, Deputy Secretary, Assistant. Secretary and other officers and staff. Cooperation Directorate under the control of Cooperation Department is headed by the Registrar of cooperative societies who is assisted by a number of officers of the rank of Additional Registrar, Joint Registrar, Deputy Registrar, Assistant Registrar, Cooperative Development officer and other officers and staff. Besides, there are officers ( 102)
of different ranks who are posted in different other directorates like Handloom, Cottage and small scale, Animal Resources and Fishery to look after the cooperative societies under direct control. There are range offices at District/ Subdivision level manned by officers of the rank of Assistant Registrar of Cooperative Societies. These co-operative ranges are organised into three zones which are manned by the Deputy Registrar of co-operative societies. Officers of different ranks are also deputed to the important co-operative societies all over the state who work as Managing Director, General Manager or as Chief executive officer. The short-term credit in the agricultural sector is made available to the individual members in the rural areas through a 3-tier structure i.e. the State Cooperative Bank, District Central Cooperative Banks and Primary Agricultural Cooperative Societies. Long term credit in the farm and non-farm sectors in the cooperative field is dispensed with under a two-tier structure with West Bengal State Cooperative Agricultural and Rural Development Bank Ltd. at the apex level and Primary Cooperative Agriculture and Rural Development Banks at the District level. In the consumer sector, distribution of consumer articles in rural as well as urban areas of the state is being carried out through a 3-tier structure with West Bengal Cooperative Consumers' Federation at the apex level. Wholesale.Cooperative Consumers Societies at District/ Sub-divisional level and large number of primary consumers' societies at the base level. In urban credit sector the financial needs of members are catered to by the urban co-operative bank, primary urban cooperative credit societies and employees' credit societies. In addition several women's cooperative credit societies have come up organised exclusively by women for their socio-economic upliftment. A large number of engineers' cooperative societies with the objective to provide work to the unemplyed engineers and diploma holders are functioning in the district. Large number of labour cooperative societies are also functioning to safeguard the economic interests of the unorganised labour. Primary cooperative housing societies in both rural and urban areas are working under a two-tier system with the West Bengal State Cooperative Housing Feder ( 103 )
ation Limited at the apex level and Primary Cooperative Housing Societies at the base level. The Cooperative Audit Directorate is headed by the Director of Cooperative Audit, West Bengal who, in discharging his official duties and responsibilities at the directorate level, is assisted by one Additional Director of Cooperative Audit, one Assistant Director of Cooperative Audit, three senior Auditors (Gr. I), eight senior Auditors (Gr. II), eighteen Auditors of Co-operative societies and other staff. OPINIONS OF THE MEMBERS, DIRECTORS, GOVT. OFFICERS, COOP ERATIVE INSPECTORS. FIELD SUPERVISORS (BANK): We have collected opinions of the members, directors, govt, officers, cooperative inspectors, field supervisors etc. regarding the functioning of the different co-operative societies. We sum up their opinions in the following paragraphs. Cooperative movement was started to give financial assistance to improve the socio-economic condition of the poor people. It was started to make the people self reliant and self sufficient. But the common people are not concious about the fruits of the cooperative movement. For this, influencial persons in our society are dominating most of the cooperatives in the district. The common people are not getting chance to get them involved in the cooperative management. Lack of awareness among the poor and downtrodden people is the main hindrance to achieve the success of cooperative movement. Members of the board are honorary. They are not paid for their services rendered. They think less about the functioning of the cooperatives. Even they are not well trained regarding the co-operative management. Besides, politically empowered persons are taking part in the board management to fulfil mainly their own economic vested interests. Management or secretaries of the co-operative socieities are ill-paid. For this, they are less interested to collect the amount of loan disbursed earlier from the members. Due to lack of collection the difference between amount due to the ( 104)
district central cooperative bank and amount due to the members is getting higher and higher which leads to the way of insolvency. So efficiency on the part of the management is needed for its proper functioning. Lack of continuous supervision on the part of the cooperative inspectors and field supervisors of banks is also a problem for improper utilisation of amount of loan. As a result, in some cases repayment was not made properly. So, to get the amount of loan properly utilised and repaid there should be continuous supervision on the part of the cooperative inspectors, field supervisors and co-operatives management also. Regarding labour cooperatives and engineers' cooperatives there is a standing provision that 20% of the Govt, work order should be given to those types of cooperatives. But it is not done so. The Govt, should also look after to protect the cooperatives socially and economically. ( 105)