National Conference of Agriculture and Rural Development Banks: Union Minister of Home and Cooperation Amit Shah says Cooperative sector can convert 70 crore po
When Agriculture and
Rural Development Banks were established nine decades ago, agriculture was
based on nature and luck, agriculture and rural development banks transformed
agriculture making it based on hard work rather than luck
We do not have a unified
database on the cooperative sector, and unless there is a database, one cannot
think of expansion of this sector and expansion can happen only when you know
where to expand, Ministry of Cooperation under the guidance of Narendra
Modi is creating a database of the cooperative sector
Under the leadership of Narendra
Modi, the Ministry of Cooperation is working towards making PACS
multidimensional, and we have also shared Model Bye-Laws with the States for
discussion
Increasing the expanse
of cooperatives, we are adding new activities in PACS by changing 70-80 years
old laws
The Cooperative sector
can only convert 70 crore poor of the country into partners in the process of
inclusive development
Many banks undertook
reforms but those reforms remained limited to banks, their benefit was not
available to the entire sector, bank specific reforms cannot change the sector,
if reforms are established in this sector, then the cooperative sector will
automatically be strong
Agriculture and Rural
Development Banks should not only work for banking, but it should also be their
goal to supplement/reimburse, the purpose for which banks were created
Members of all banks who
are attending this conference should also discuss the sector’s best practices,
if any reforms or changes are needed to bring about new diversification within
the banking sector, the doors of the Ministry of Cooperation are open for you
24x7
Do not limit yourselves
to banking, it is also the responsibility of ARDBs to communicate with farmers
in villages and make them aware on how to expand agriculture, increase yield,
make agriculture comfortable and make the farmer prosperous
The objectives of NABARD
can be fulfilled only when every single penny with them is utilised for finance
and refinance in rural development and agriculture and this cannot be possible
unless we promote long-term finance, infrastructure and micro irrigation within
the agriculture sector
After independence, 64
lakh hectares of land became cultivable in 70 years, but under the Pradhan
Mantri Krishi Sinchayee Yojana, 64 lakh hectares of agricultural land increased
in the last 8 years, agricultural exports have crossed US $50 billion for the
first time, it is the empathy of the government under the leadership of Narendra
Modi towards farmers’ welfare
India ranks second in
the world in agricultural activities with 394 million acres of land, and if we
connect this land with the irrigation system, then our farmers can fulfil the
food supply requirements of the country as well as the world
If we revive the spirit
of cooperatives and our goals and remain dedicated to these goals, make efforts
to achieve the target, then surely in the coming days, cooperatives will have a
huge role in fulfilling Narendra Modi's dream of a US $5 trillion dollar
economy
The Union Home and Cooperation Minister, Amit Shah
attended the National Conference of Agriculture and Rural Development Banks
(ARDBs) as the Chief Guest, in New Delhi today. On this occasion, the Union
Minister of State for Cooperation and North Eastern Affairs BL Verma,
Secretary, Ministry of Cooperation, President of NCUI and Chairman of
IFFCO Dileep Sanghani, President of International Cooperative Alliance -
Asia-Pacific Region and Chairman of KRIBHCO Dr Chandra Pal Singh Yadav and many
other dignitaries were present.
On this occasion, the country's first Union Minister of
Cooperation said the dimension of cooperatives is very important for
agricultural development and without this we cannot fulfil Prime Minister
Narendra Modi's vision of doubling farmers' income. The history of Agriculture
and Rural Development Banks in India is almost nine decades old. Agricultural
credit has two pillars, short term and long term. Before 1920, the agricultural
sector was completely based on aerial farming, when rains came, there was a
good harvest. In the 1920s, the introduction of long-term loans to the farmer
began, which led to the realization of the farmer's dream of creating
infrastructure for agriculture in his farm. Only and only the Agriculture and
Rural Development Banks worked to change the country's agriculture from being luck
based to becoming labour based.
At that time,
this dimension of the cooperative sector made a major start in the direction of
making the farmer self-reliant. Shah said that if we look at this journey of
the last 90 years, then we see that we have not been able to reach the
bottom most level of the agriculture and farming system. He said there are many
obstacles but unless and until long-term financing is not increased,
agricultural development is not possible according to the vision of the Prime
Minister. There are many large States where banks have collapsed and this
aspect also needs to be considered. Diverting surplus funds towards
non-agricultural use does not serve the purpose. The objectives of NABARD are
fulfilled only when all available money is spent on rural development and
agriculture. But this is not possible unless we promote long term finance,
infrastructure and micro-irrigation in agriculture.
Amit Shah said the job of agriculture and rural
development banks is not just to finance, but to expand activities. Whatever
obstacles are there in expansion of work, we have to find ways and then only
will we be able to achieve the goal of agricultural development. He said that
we should not only run banks but also try to work towards the fulfilment of the
objectives of banking. Co-operatives were set up to achieve the objective of long
term finance. By creating new cooperative societies, medium and long term loans
have to be provided to farmers.
The Union Home and Cooperation Minister said speedy loans
will also have to be provided as well as recovery of loans.
Services will also have to be expanded, dialogue will have to be undertaken to
increase the percentage of irrigated land, yield, production, make farmers
prosperous and bring awareness amongst farmers. He said that it is not enough
just to hold a position in an institution in cooperatives, but it is necessary
to worry about what one can do during ones tenure, to achieve the purpose for
which these services have been started since 1924. He said these banks have
financed more than three lakh tractors, but there are more than 8 crore
tractors in the country. We have given medium and long term finance to about
5.2 lakh farmers out of 13 crore farmers. Many new reforms have been undertaken
by banks which are welcome but reforms must not be bank specific, they should
be for the entire sector. If a bank does a good job, then it is the job of the
federation to inform all banks about this and take it forward.
Bank specific
reforms cannot change the sector, but if reforms take place in the sector, then
the sector will automatically change and if the sector changes, then the
cooperative will become very strong. Many areas like wells, pump sets,
tractors, land development, horticulture, poultry, fisheries are included in
the work cooperatives undertake, but it is our responsibility to expand them
and we have to move them forward, then the purpose with which a cooperative
unit was established for will be achieved. Members of all banks who are
attending this conference today, should also discuss best practices of the
sector, if any reforms or changes are needed to bring in new
diversification within the banking sector, the doors of the Ministry of Cooperation
are open for you 24x7.
Amit Shah said that especially in agriculture finance,
whether short-term or long-term, the country has become paralyzed in a way. In
many places the activity goes on very well, but in many States it is very
scattered. We have to revive it and the helpless farmer who has become the
victim of inadequacy has to be taken on the path of economic development
through proper handholding by the cooperative sector. There is no dearth of
capital but our financing system and our infrastructure have collapsed, they
have to be revived and every state bank will have to identify such areas in
their State. He said that I would like that NABARD should also form a wing of
extension and expansion in this direction, so that farmers who want medium and
long term finance can get such finance.
The need of
the hour is to make institutional coverage adequate. He said long term finance
should always be more than short term finance; only then will the sector
develop. The higher the long term finance, the better the system will be and
the short term finance will automatically increase. 25 years back we had 50
percent of long term finance and after 25 years this share has come down to 25
percent, we should worry about this development. In Assam, Maharashtra, Madhya
Pradesh, Orissa, the entire infrastructure has collapsed. At present, only 13
States have agricultural and rural development banks running relatively in line
with the expectations of the government.
The Union Cooperation Minister said the country is
seventh in the world in the availability of agricultural land and in terms of
agricultural activity we are second only to America. That is why NABARD
was established. If we make 39.4 crore acres of land completely irrigated, then
the Indian farmer will be able eradicate hunger not only in the country, but
also in the world. But if it has to be irrigated and there is a shortage
of water, then we have to go towards the micro irrigation system and if
holdings have become small, then we have to irrigate them by taking help of
cooperative societies. He request that banks should be revived and the
government, NABARD and the Federation should work on this. In the coming days,
I am also going to convene a joint meeting of NABARD, the Federation and the
Department of Cooperation on how to create a strong system of long term
finance in each State. For this the federation will also have to play its role.
Amit Shah said that under the
leadership of Prime Minister Narendra Modi, the Ministry of Cooperation Department has
taken many steps. A very big step has just been taken that all PACS will be
computerized at a cost of Rs. 2,500 crore. PACS, District Cooperative
Banks, State Cooperative Banks and NABARD will go online for accounting and
this will help in running PACS with transparency. It will be of great benefit.
We have also taken an in-principle decision to set up a cooperative university
in terms of training as well. At present, all units with a turnover of more
than Rs. 100 crore will be able to buy on the GEM platform. With this our
procurement will also be cheap, there will be transparency and corruption will be
stopped.
There is no
cooperative database in the country and unless there is a database, one cannot
think of expansion. We do not have any database of how many coastal States do
not have fishermen's cooperative societies. We do not have any database on how
many cooperatives are working in the country. There is also no database of how
many villages are deprived of the benefits of PACS. We have also started the
work of creating this database and it is going to be a huge benefit. Expansion
can happen only when one knows where expansion is to be done. Basic work has
also been started by the Ministry of Cooperation, Government of India. The
government has sent model bye laws of PACS and I request all the activists
associated with the cooperative movement that you must send us your suggestions
with your practical experience for the preparation of the model bye laws of
PACS.
We want to
make PACS multi-functional. They can take the work of gas distribution,
storage, can take shops for cheaper grains, can also take petrol pumps, can
also become FPOs, can also become communication centres, can also distribute
water from taps. When computerized, then a system will also be created to
include all these dimensions. But if it has to be made multi-dimensional,
multipurpose, then the model bye laws made 70-80 years ago will have to be
changed. We do not have to reduce the element of cooperatives in them, but we
have worked to add the new activities that can be added to PACS.
The Union
Cooperation Minister said Amul is also doing primary work for marketing of
natural farming products. We have also thought of forming a multi-state
cooperative for marketing of handicrafts. IFFCO and KRIBHCO have been given
responsibility for seed reform, a multistate cooperative export house will also
be established for export and the Government of India is taking an initiative
and before August 15, we will work to take it to the ground. Shri Narendra Modi
has also approved a large increase in the budgetary allocation of the
Cooperation Ministry.
Amit Shah said the government led by Narendra Modi has
done a lot of work in agriculture. Out of these, I definitely want to speak
about MSP. Paddy procurement has increased by about 8 percent, earlier in
2013-14, 475 lakh metric tonnes of paddy was procured, today 896 lakh metric
tonnes of paddy is procured and beneficiary farmers have increased from
76 lakhs to 1.31 crore. Wheat procurement has increased by 72 percent, earlier
used to buy 251 lakh metric tonnes and today it is 433 lakh metric
tonnes. Kisan Credit Card, promotion of organic farming, promotion of
natural farming, export of agriculture has crossed US $ 50 billion for the
first time, 64 lakh hectares of land has been increased in just 8 years under
Pradhan Mantri Krishi Sinchai Yojana compared to the earlier 64 lakh hectare in
last 70 years. As the government's investment in agriculture infrastructure
increases, so does the potential of cooperatives, especially cooperatives
in agriculture finance. Mechanization of agriculture has also started, a budget
of about Rs. 6,800 crore has been spent on 10,000 FPOs and digital transactions
have also increased to a large extent in mandis.
The Union Cooperation Minister said the government cannot
expand the cooperative sector, but only cooperatives can expand the sector. The
government can provide facilities, but to revive the spirit of cooperatives and
keep this spirit growing into the future, it is our responsibility to establish
this type of cooperative sector. No matter how much money government puts in,
cooperatives will not grow, but if we revive the spirit of cooperation and
remain dedicated to the goals, make efforts to achieve the goals, then
surely cooperatives will have a bigger role in the realization of Narendra
Modi’s vision of a US $ 5 trillion economy. He said if there is any sector
which can make 70 crore poor of the country a partner in the process of
inclusive development, then it is the cooperative sector.