Page 102 - economic review

AGRICULTURE AND ALLIED SECTORS74

Societies out of which 11270 are working, 2688 are dormant and 644 are under threat of liquidation.
Financial unviability, poor governance and management, lack of professionalism, operational
inefficiency and obsolete infrastructure could be probable reasons for dormancy and loss positions
of the cooperatives . Also, out of the 14602 soceities 28 are apex/federal societies, 3512 are credit
societies /banks, 4687 are consumer societies, 567 are marketing societies and 3257 soceities come
under miscellaneous societies ,1106 are women cooperatives, and 832 are SC/ST cooperatives.
Details are given Appendix 2.70.

2.146 In the Annual Plan 2013-14, majority of the outlay was assigned for credit cooperatives
(26.6 per cent), followed by miscellaneous cooperatives (16 per cent), marketing Cooperatives (5.67
per cent ) ,SC ST Cooperatives (5.33 per cent), establishment of Farmer Service Center (13.3 per
cent) and Assistance to Cooperative Academy of Professional Education (9.33 per cent). On the
expenditure front, Expenditure for marketing Cooperatives and consumer cooperatives have been
low at 40 and 52 per cent respectively and for processing cooperatives it has been nil. The major
physical achievements in the sector during 2014 are shown in Appendix 2.71.

Primary Agricultural Credit Soceities.

2.147 The Cooperative credit structure comprises of short term and long term. The short and medium
term co-operative credit structure comprises of a three tier system with the State Co-op. bank at the
apex, 14 District Co-operative Banks and 1602 Primary Agricultural Credit Societies at the grass root
level. Kerala State Co-operative Agricultural and Rural Development Bank along with 63 Primary
Co-op. Agricultural and Rural Development Banks operating at the Taluk level constitute long term
co-op. credit structure.

2.148 Among the short term credit structure, Primary agricultural credit societies are the most
important. As on 31.03.2014, there were 1638 PACS out of which 606 were running under loss,33
dormant and and 34 societies were under threat of liquidation. The PACS are functioning with a
paid up share capital of ` 1473.80 crores and reserves of ` 2088.27 crores.

2.149 The performances of PACs during the year under report were encouraging. The total loan
disbursed during 2013-14 was ` 94881 crores against that of ` 82410 crores in 2012-13 Compared
to the previous year, there was an increase in the disbursement of short term and medium term
loans but the long term loan declined. With regard to performance of the cooperatives in disbursing
agricultural loan, it is unfortunate to note that out of the total disbursement of ` 94881.88 crores, mere
12.37 per cent was for agricultural purposes. What is even more unfortunate is that out of this only `
170.38 crores (1.45 per cent) was meted out for long term agricultural purposes.

2.150 The Selected indicators of the credit operations of the Primary Agricultural Credit Societies
show that, deposits of the societies increased to ` 67785 crores in 2013-14 as against ` 56942.33
crores a in 2012-13. The average working capital position of the societies increased to ` 90245.74
crores from ` 70500.91 crores. Selected indicators and credit operations of PACS are given in
Appendix 2.72 and Appendix 2.73.

2.151 The Integrated Co-operative Development Project (ICDP) was successfully implemented in all
districts and the second phase of ICDP in Wayanad district was completed in March2013 and action
is being taken to implement the second phase of ICDP in Idukki, Palakkad and Trichur districts.

Kerala State Planning Board