Chhattisgarh: Structure and Growth of Co-operatives and their Shares in total credit adequacy and problems
The cooperative Banking sector is one of the main partners of Indian banking structure, the Cooperative banks have more reach to the rural India, through their huge Network of credit societies in the institutional credit structure. The cooperative sector has played a key role in the economy of the country and always recognized as an integral part of our national economy. Cooperatives have ideological base, economic objects with social outlook and approach. The cooperative covers almost all cent percent villages in India. The cooperative form of organization is the Ideal Organization for economically weaker sections in the country. According to recent study by World Bank and National Council for Applied Economic Research, the Primary agriculture Credit Societies (PACS) amount for about 30 percent of micro credit in India. This paper attempts to analyze the role of co-operative bank in Agricultural credit.
PACS are playing a crucial role in improving the economic and social conditions of the common masses of Chhattisgarh. They provide short-term and medium-term loan to the members/farmers at reasonable interest rates to meet their various needs. They are providing credit to the farmers for agriculture purposes at cheap and easy terms. PACS is the foundation of the Cooperative Credit System on which the super structure of the short-term cooperative credit system is built.
Short-term structure is a three tire structure with PACS in rural areas, Co-operative Central Banks at the district level and the Apex Bank at the state level. The short-term credit structure provides short-term credit for crop production and medium-term credit for small developments. Chhattisgarh State Cooperative Agriculture and Rural Development Bank (CSCARDB) at the State level and Primary CARD Bank at the Block level cater to the long-term credit needs in the two tier credit delivery system. In the short term credit structure, 1333 PACS including 476 LAMPS are functioning. In addition to this, there are 6 District Cooperative Central Banks with 209 branches. Chhattisgarh State Co-operative Apex Bank is functioning as state level financial institution. In the long term credit structure CSCARD Bank with 12 District CARD Banks including 77 branches are functioning. 
In August 2004, the Government of India constituted a task force under the chairmanship of Professor A. Vaidyanathan for suggesting measures for the revival of cooperative credit institutions. The task force submitted its report in respect of a short-term cooperative credit structure and recommended a financial package of Rs 14839.00 crore for rural credit cooperative institutions. Based on the consensus arrived at with the state governments and other stakeholders on the recommendations made by the task force, the central government approved the revival package that involves financial assistance of Rs 13596.00 crore. NABARD has been designated as the implementing agency for the revival of the short-term cooperative credit scheme. A Department for Cooperative Revival and Reforms has been set up in the head office of NABARD for facilitating the implementation process. The provision of financial assistance under the package has been linked to reforms in the cooperative sector. In order to avail financial assistance under the package, the state governments are required to sign MOU. The Chhattisgarh Govt. signed MOU of 541.42 crores package on 25.09.2007.
,
Structure of co-operatives in Chhattisgarh
Co-operatives are an important part of the economy of Chhattisgarh. They play a vital role in providing credit, Marketing, and other Services to farmers, small businesses, and other members of the community.
There are three main types of co-operatives in Chhattisgarh: primary co-operatives, secondary co-operatives, and tertiary co-operatives.
Primary co-operatives are the smallest type of co-operative. They are usually formed by a group of people who share a common interest, such as farmers who want to market their produce together or small businesses that want to share Resources.
Secondary co-operatives are formed by a group of primary co-operatives. They provide services to the primary co-operatives, such as training and financial assistance.
Tertiary co-operatives are the largest type of co-operative. They are formed by a group of secondary co-operatives. They provide services to the secondary co-operatives, such as lobbying the government and representing the interests of co-operatives to the public.
Growth of co-operatives in Chhattisgarh
The number of co-operatives in Chhattisgarh has grown significantly in recent years. In 2000, there were just over 10,000 co-operatives in the state. By 2010, this number had grown to over 20,000.
The growth of co-operatives in Chhattisgarh can be attributed to a number of factors. One factor is the State Government‘s support for co-operatives. The government has provided financial assistance to co-operatives, as well as training and other support services.
Another factor is the increasing demand for co-operative services. As the economy of Chhattisgarh has grown, so has the demand for credit, marketing, and other services that co-operatives provide.
Share of co-operatives in total credit in Chhattisgarh
Co-operatives play a significant role in the provision of credit in Chhattisgarh. In 2010, co-operatives accounted for over 20% of the total credit in the state.
The share of co-operatives in total credit has been increasing in recent years. In 2000, co-operatives accounted for just over 10% of the total credit in the state.
The increasing share of co-operatives in total credit can be attributed to a number of factors. One factor is the government’s support for co-operatives. The government has provided financial assistance to co-operatives, as well as training and other support services.
Another factor is the increasing demand for co-operative credit. As the economy of Chhattisgarh has grown, so has the demand for credit from co-operatives.
Adequacy of credit in co-operatives in Chhattisgarh
The adequacy of credit in co-operatives in Chhattisgarh is a matter of debate. Some argue that co-operatives provide adequate credit to their members, while others argue that co-operatives do not provide enough credit.
There are a number of factors that affect the adequacy of credit in co-operatives. One factor is the availability of capital. Co-operatives need to have access to capital in order to provide credit to their members.
Another factor is the demand for credit. If there is a high demand for credit, then co-operatives may not be able to provide enough credit to meet the demand.
Problems faced by co-operatives in Chhattisgarh
Co-operatives in Chhattisgarh face a number of problems. One problem is the lack of awareness about co-operatives. Many people in Chhattisgarh are not aware of the benefits of co-operatives.
Another problem is the lack of trust in co-operatives. Some people believe that co-operatives are not as reliable as other financial institutions.
Co-operatives also face problems with Corruption. Some co-operatives have been accused of mismanaging funds and engaging in other corrupt practices.
Despite these problems, co-operatives play an important role in the economy of Chhattisgarh. They provide credit, marketing, and other services to farmers, small businesses, and other members of the community. The government and other stakeholders should work to address the problems faced by co-operatives in order to ensure that they can continue to play this important role.
- What are the different types of cooperatives in Chhattisgarh?
There are three main types of cooperatives in Chhattisgarh: agricultural cooperatives, credit cooperatives, and consumer cooperatives.
- What is the structure of the cooperative movement in Chhattisgarh?
The cooperative movement in Chhattisgarh is organized at the state level by the Chhattisgarh State Cooperative Union (CSUC). The CSUC is responsible for coordinating the activities of the various cooperatives in the state and for providing them with support and services.
- What is the growth of the cooperative movement in Chhattisgarh?
The cooperative movement in Chhattisgarh has grown rapidly in recent years. The number of cooperatives in the state has increased from around 10,000 in 2000 to over 20,000 in 2010. The membership of cooperatives has also increased significantly, from around 1 million in 2000 to over 2 million in 2010.
- What is the share of cooperatives in total credit in Chhattisgarh?
Cooperatives account for around 20% of total credit in Chhattisgarh. This is a significant share, and it shows the important role that cooperatives play in the state’s economy.
- What are the problems faced by cooperatives in Chhattisgarh?
Cooperatives in Chhattisgarh face a number of problems, including:
- Lack of access to finance
- Lack of skilled manpower
- Lack of awareness about cooperatives
Lack of government support
What are the solutions to the problems faced by cooperatives in Chhattisgarh?
The solutions to the problems faced by cooperatives in Chhattisgarh include:
- Providing access to finance
- Providing training to cooperatives
- Raising awareness about cooperatives
Providing government support
What is the future of the cooperative movement in Chhattisgarh?
The future of the cooperative movement in Chhattisgarh is bright. The state government has made a commitment to supporting the cooperative movement, and there is a growing awareness about the benefits of cooperatives. With the right support, cooperatives can play a major role in the development of Chhattisgarh.
Question 1
Which of the following is not a type of cooperative?
(A) Credit cooperative
(B) Consumer cooperative
(C) Producer cooperative
(D) Marketing cooperative
Answer
(D) Marketing cooperative
Question 2
Which of the following is not a function of cooperatives?
(A) Provide credit to members
(B) Market members’ products
(C) Purchase goods and services for members
(D) Provide social services to members
Answer
(C) Purchase goods and services for members
Question 3
Which of the following is not a benefit of cooperatives?
(A) Members have a say in how the cooperative is run
(B) Cooperatives can provide goods and services at a lower cost than traditional businesses
(C) Cooperatives can help to build community
(D) Cooperatives can provide jobs
Answer
(B) Cooperatives can provide goods and services at a lower cost than traditional businesses
Question 4
Which of the following is not a problem faced by cooperatives?
(A) It can be difficult to get members to participate in the cooperative
(B) Cooperatives can be difficult to manage
(C) Cooperatives can be vulnerable to competition from traditional businesses
(D) Cooperatives can be difficult to finance
Answer
(A) It can be difficult to get members to participate in the cooperative
Question 5
Which of the following is not a way to improve the performance of cooperatives?
(A) Increase member participation
(B) Improve management
(C) Increase access to finance
(D) Reduce competition from traditional businesses
Answer
(D) Reduce competition from traditional businesses