Co-operative institutions in Maharashtra
As per the lines of the Central Government, Maharashtra Government has also identified the importance of the co-operative movement as the best source through which to apply it for rural development, people’s empowerment and poverty alleviation programme. The basic nature of the co-operative societies is to encourage the ‘values of self-help, democracy, equality, and solidarity. Co-operative members believe in the ethical values of honesty, openness, and social responsibility and caring for others. The movement was welcomed with great enthusiasm, the movement teaches the ordinary farmers, downtrodden community and landless laborers to live with prestige and selfconfidence. Co-operative movement helps in all round development of the rural areas, which can possible through unity, trustworthiness and consistency of membership. The government hopes that the revival is successful co-operative societies could well become the biggest employer in the country and will create new employment opportunities for the people, especially, in rural areas.
The co-operative movement in Maharashtra has played a significant role in the social and economic development of the state particularly in the rural areas. Initially, this movement was confined mainly to the fields of agricultural credit. Later it rapidly spread to other fields like agro-processing, agro-marketing, rural industries, consumer stores, social services, etc. Progress of co-operative movement in the last four decades showed increase more than four times. The co-operatives in Maharashtra have a political, historical, social and cultural heritage. It is particularly strong in Western Maharashtra as the independent movement and the leaders from Pune, Mumbai and Ahmednagar initiated social reforms. Due to favorable climate conditions, soil and the development of irrigation facilities Maharashtra made good progress in sugarcane and sugar production through the help of co-operative sugar factories. The Pravara Sugar Co-operative Factory Ltd., established in 1949, made a success.
Agriculture is the leading activity of the rural area of the Maharashtra. Agriculture occupies main location for survival of the largest population of Maharashtra State. Informal credit market of Maharashtra which is dominated by moneylenders is quite more active in rural areas. With the commercialization of agriculture, rural indebtedness further increased and by the end of the nineteenth century, the agricultural and artisans became almost totally subjected to the control of usurious moneylenders. In the State of Maharashtra agriculturists faces several problems- small holding, indebtedness, lack of irrigation facilities, low productivity, etc. During the early days the rural credit societies could not satisfy the needs of the farmers. They did not have enough funds or facilities to offer to the farmers. Thus the farmers continued to rely on the money lenders and suffer.
Money lender not only lends money for his seeds, fertilizers, insecticides etc. but also provides him credit for his household needs and when the crops are harvested the trader also markets the crops at low rate. In fact, moneylenders proved to be the most common and easy source of loans for the farmer (28.4%), followed by loans procured by relatives (22.93%) while only (3.94%) turned to land development banks. Co-operatives played a crucial role to fulfill these needs of the farmers. Co-operative societies support for purchase of seeds, fertilizers, insecticides etc. they also provide several services such as marketing, processing, storage, credit, transport etc. Co-operatives in fact supports to the poor and marginal farmers. However, due to small size of the co-operative societies they could not provide adequate services to their members. The Government therefore gave financial assistance to these societies and thus increased their borrowing capacity. Crop Loan System has also been introduced. The government has introduced various schemes to improve the economic conditions at the rural level i.e. subsidy to agricultural credit stabilization fund, contribution to risk fund, share capital contribution, loans to cooperative credit societies for the conversion of loans from short term to medium term and crop production incentive to agriculturists.
Types of cooperative societies in maharashtra
Maharashtra State Co-operative Bank (Apex Bank)
The State Co-operative Bank, which is at the top of the credit structure, is also called as the Apex bank. Its functions are to co-ordinate and to guide the working of the Central Co-operative Banks and to arrange re-finance facilities for them. The Maharashtra State Co-operative Bank thus acts like a supervisory body at the top of the structure and create an atmosphere to spread the cooperative movement on large.
District Central Co-operative Banks
There are 31 District Central Co-op. Banks in Maharashtra working with primary object to provide credit requirements to Primary Credit societies. The first such secondary level co-operative was registered in Mumbai in 1911 under the Government of India Act, 1904. Since then these Central Banks have laid the firm financial infrastructure for the co-operative movement in Maharashtra. District Central Co-operative Banks operates as the intermediate between State Co-operative Bank and Primary Agricultural Co-operative Societies.
Primary Agricultural Credit Societies (PACS)
At the grass-root level there are Primary Agricultural Co-operative Credit Societies are working for the uplift of the rural poor people. PACS play a prominent role in disbursement of short term agricultural credits mainly for seasonal agricultural operations. These institutions gives strengthen to the various agricultural operations through necessary input instruments like credit for seeds, pesticides, fertilizers, etc. The co-operative institutions are the backbone of the Indian rural society.
Urban Co-operative Banks in Maharashtra
Co-operative movement spread not only in rural areas but also in urban areas too. It provides loans to the small traders, artisans, self-employment, etc. The following table shows the progress of the Primary Co-operative Banks in Maharashtra.
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