Other States - Rajasthan   

States asked to democratise cooperatives

JAIPUR: A two-day national cooperative conclave ended here over the weekend with an appeal to the State Governments to provide a proper environment for promotion of cooperatives as “real member-driven” business institutions instead of the “government-driven” bodies which they were at present. The cooperatives would have to adopt a “new look” by strengthening partnerships among themselves and by exploring possibilities for private-cooperative partnerships, it said.

The Jaipur Declaration, released at the end of the conclave, asked the cooperative sector to make forays into sunrise areas such as insurance, education, health, information technology and tourism as part of attempts at diversification. It suggested horticulture, floriculture, agri-business, sericulture and aquaculture as the need-based new areas the sector could try out.

NCDC Managing Director P. Umashankar, IFFCO Director G. N. Saxena, Kribhco’s State Marketing Manager J. S. Sandhu and NABARD Chief General Manager G. L. Tawate were among those present at the concluding session.

The declaration, read out by Vinod Zutshi, Principal Secretary for Cooperatives, Rajasthan, in the presence of the Cooperatives Minister Prabhu Lal Saini, underlined the need for developing a third line leadership in the sector. “While the cooperative movement has to be democratised, there is a felt need to sensitise and educate the members continuously,” he said.

The declaration noted that Government interference in fixing the rate of interest for deposits as well as advances in the cooperative sector continued despite deregulation of the interest rate structure. Short-term agricultural credit was being provided at 7 per cent interest and even less though the cost of funds was much higher.

“The Government of India should give full interest subvention instead of the 2 per cent provided at present,” the declaration said. It sought lowering of the cash reserve ratio as the upward revision was proving detrimental to the cooperative banks. It also demanded finances at reduced interest rates from NABARD for micro-financing self-help groups and income tax exemptions for cooperative banks under Section 80 (P).

“Decline in the share of cooperatives in agricultural credit as well as the problem of inadequate credit are matters of serious concern for all States,” the declaration said.

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