CHENNAI: The department of cooperation has disbursed Rs 68,000 crore to provide financial assistance to 87 lakh families in 2022-2023 covering 45% of households in the state. This includes the distribution of loans worth Rs 15,000 crore to 20 lakh farmers for agriculture and cattle farming. The department also undertook beautification of fair-price shops to enhance the consumer experience. Waiver of farm loans and offering new loans to farmers have helped them from falling prey to usury in rural areas, but more can be done, sources said.
P R Pandian, president, the Tamil Nadu Federation of All Farmers’ Association, said, “Delta region covers 40% of paddy cultivation in the state. But the region got only Rs 1,200 crore in loans, which was just 10% of the total crop loans given across TN. About 90% of farmers still rely on private money lenders.”
Though the union government norms suggested that every district should have a central cooperative bank, delta districts of Tiruvarur, Nagapattinam and Mayiladuthurai do not have one. Pandian said, “Given that cooperative banks are funded by its members, including farmers, its earnings should not be spent on running PDS shops. The revenue generated by cooperative credit societies should not be used to pay PDS staff salary.”
To improve farmers’ income, the department has decided to convert 4,478 village-level agriculture cooperative credit societies into multi-service centres. This will enable credit societies, which are primarily involved in providing farm credit, to extend technological, logistical and equipment support to help farmers in reducing agricultural input costs. The project to be funded through NABARD loan will entail transformation of 4,453 primary agricultural cooperative credit societies and 25 large-scale Aadivasi multi-purpose societies over the next few years.
About 2,000 multi-service centres are being planned in 2023-24. These new centres will serve as agro-service centres and provide tractors, power tillers, combine harvesters, straw-balers, multi-grain threshers, pesticide sprayers, and logistic vehicles at a low cost to farmers.
“Small farmers who don’t have equipment or whose machines are in disrepair may don’t have to make substantial investments in purchasing new equipment or renting them from private individuals. They will be able to receive support from credit societies at a minimal rate,” said Minister of cooperation K R Periyakaruppan.
The centres will also provide logistics facilities for transportation of agricultural produce and supply of pre and post-harvest equipment and machinery. Scientific storage facilities also will be established for farm produce at the centres, sources said.
As of March, NABARD had sanctioned Rs 136.86 crore for 1,622 works. Pandian said, “Most of the schemes of the department are financed by NABARD, which is regulated by RBI. The state government should provide support to the department. It remains to be seen if multi-service centres will be of help to farmers.”
PERFORMANCE IN 2022-23
Loans disbursed by TN coop banks
Waiver