The idea is to help them generate income from diversified activities
The National Bank for Agriculture and Rural Development (NABARD) will be converting 500 to 700 out of nearly 2,700 Primary Agricultural Cooperative Societies (PACS) in Andhra Pradesh into Multi-Service Cooperative Societies (MSCS), which will take up commercially viable activities to eventually grow into self-sustained business entities in the year ahead.
The idea is to help PACS generate income from diversified activities instead of being entirely dependent on interest accrued on credit extended by them. The concept has already caught the fancy of farmers in Kerala, Tamil Nadu and some other States.
In Andhra Pradesh, a beginning has been made in four to five districts and things are being speeded up.
The larger goal is to expand the ambit of PACS to that of service-oriented organisations rather than confining them to giving loans to farmers, said NABARD Chief General Manager (A.P) K.R. Nair at a meeting of the newly-elected Board of Directors of Guntur District Cooperative Central Bank Limited (DCCB) here on Wednesday.
On the occasion, Mr. Nair said PACS were viewed as meeting the credit requirements of its members only while there was growing need to provide services to farmers. Hence PACS are being encouraged to use latest technologies for increasing their production, store their produce in a way that minimises storage losses and also provide pledge loans to bridge credit gap. NABARD is giving accreditation to warehouses owned by PACS and financial assistance for construction of such facilities in rural areas.
Mr. Nair said Andhra Pradesh has got the highest allocation of Rs 1.09 lakh crore under NABARD’s Potential Linked Credit Plan for 2013-14 (it was around Rs 85,000 crore last year).
DCCB Chairman M. Venkata Subbaiah said farmers were in dire need of quick and affordable credit for which they looked to NABARD in these times of agrarian distress. He expressed regret that the requirements of farmerswere completely neglected by financial institutions, which virtually rolled out the red carpet to industries at the cost of farm sector. DCCB Vice-Chairman K. Subba Reddy, CEO B. Viswanadham and others were present.
NABARD is giving accreditation to warehouses owned by PACS ‘State has got Rs. 1.09 lakh crore under NABARD credit plan for 2013-14’
NABARD is giving accreditation to warehouses owned by PACS
‘State has got Rs. 1.09 lakh crore under NABARD credit plan for 2013-14’