Tamil Nadu - Erode   

Cooperatives in Erode district function profitably: Minister

Staff Reporter

`As interest rate is reduced, farmers repay crop loans promptly'

ERODE: In the last four years, the State Government has waived Rs. 1,243 crores interest on crop loans obtained by farmers, due to drought in the State, said Food and Cooperation Minister Pollachi V. Jayaraman here on Friday.

He was distributing shields to the best cooperatives, in connection with the 52nd All India Cooperative Week Celebrations.

The Minister said that all the cooperatives in Erode district such as Cooperative Banks, Cooperative Milk Producers Union, Cooperative Supermarket and Weavers Cooperatives were functioning profitably.

With the people patronising cooperatives, the Erode District Central Cooperative Bank, Cooperative Urban Banks and the Primary Agricultural Cooperative Banks (PACBs) in the district now had a total deposit of Rs, 6.99 crores. They were also advancing liberally for various sectors.

Some years back, nationalised banks and other commercial banks were reluctant to allow the Self-Help Groups (SHGs) to open an account.

As per the instruction of the Chief Minister, cooperative banks granted loans to the SHGs and the recovery percentage was 99. Noticing this, now all the other banks were granting loans to the SHGs. Mr. Jayaraman said that as the interest rate for crop loans was reduced to 9 per cent, farmers were repaying the loans promptly.

Defaulters warned

During the DMK regime, elected boards of various PACBs misused the bank funds. Many who obtained loans had not paid the arrears.

The Minister told such persons to repay the loans immediately failing which severe action would be taken against them by arresting them and attaching their properties.

Inaugurating an exhibition on Cooperative Department, Hindu Religious and Charitable Endowments Minister P.C. Ramasamy said in Erode district alone, the interest waiver granted to the farmers was Rs. 14 crores.

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Cooperatives in Erode district function profitably: Minister

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