Sanctioning of crop loans hit

Absence of Board of Directors has caused difficulties to the cooperative societies

Absence of Board of Directors, in the wake of impasse over the declaration of results to the cooperative polls following writ petitions in the court, has caused difficulties for the Primary Agricultural Cooperative Credit Societies in sanctioning crop loan to farmers in the district.

As per the standard procedures, the Board of Directors of Cooperative Societies pass resolutions on loan applications of farmers, based on norms of the State government. The applications would then be sent to the Central Cooperative Bank Circle Supervisor for approval.

According to officials sources, the State government has fixed crop loan target to the tune of ₹317 crore for the current year. It was ₹276 crore in 2017-18. But, the district could not achieve the target in 2017-18. It had disbursed crop loan to the tune of ₹200 crore due to various reasons.

Farmers raise apprehension that the target may not be achieved this year too due to impasse over the declaration of results to cooperative polls. Except a few societies that had managed to declare results before the writ petitions were filed in the Madras High Court against the alleged malpractices in the cooperative polls, most of the primary agricultural cooperative credit societies have no Board of Directors, thereby causing practical difficulties in sanctioning loans over the last few months to the farmers. In some places, farmers alleged that the society officials were reluctant to entertain loan applications, citing practical difficulties in sanctioning loans. They say that the delay will pose problem to them in raising paddy in 'kuruvai' season, which has already begun.

While refusing to entertain loan applications, it is learnt that officials of co-operative societies had asked the farmers to open accounts in Central Cooperative Banks to avail loan.

“Several farmers have started agricultural operations in the district mainly due to favourable condition for raising paddy and horticultural crops. But, we have not been able to avail crop loan. Loan applications are piling up in cooperative societies,” says P. Viswanathan, State president, Tamilaga Eri and Atruppasana Vyvasayigal Sangam, Tiruchi.

When contacted K. C. Ravichandran, Joint Registrar of Cooperatives, told The Hindu that a sum of ₹20 crore loan had been disbursed to farmers so far. The Registrar of Cooperative Societies had authorised the Central Bank Circle Supervisor to clear crop loan applications as per the Section 181 of the Tamil Nadu Cooperative Societies Act 1981 Tamil Nadu. The PACCS officials had been asked to process the applications and forward them to the Central Bank Circle Supervisor for approval. The loan disbursal would gain momentum in a few weeks from now.