Vijayawada: Warning against political interference in financial activities, Chief Minister YS Jagan Mohan Reddy asked DCC banks to lend loans in a fair manner.
Chairing a review meeting on the reorganization of cooperative sector, Chief Minister YS Jagan Mohan Reddy said the planning of disbursement of loans should support the programmes of RBKs and food processing MSME units.
During the meeting, discussions were held on the recommendations of NABCONS (NABARD Consultancy Services-NABCON) on Management methods to strengthen the co-operative services and run them efficiently. It was suggested to digitize APCOB, DCCBs, and PACS for comprehensive banking services. It was suggested that the PACS should offer non-credit services along with credit services and extend its network.
Proposals were made for setting up one PACS for every three RBKs and to appoint professionals in Agriculture, Banking, Finance, and Accountancy as directors in the one-third ratio in Boards of APCOB and DCC banks. It was also recommended to amend the APCS Act to allow half of the board to retire every two and a half years. It was also recommended to bring professionals in one-third ratio in PACS including Agriculture assistants working in Village Secretariats.
The Chief Minister agreed to the recommendations and to amend the act. It was decided to audit PACS regularly and the Chief Minister directed to prepare an action plan on irregularities and suggested that the investigation should be done through third party agencies.
The Chief Minister said DCC banks should lend loans in a fair manner and there should be definite procedures on the disbursement of loans. He made it clear that the officials should work subject to these procedures.
Recommendations were made to ensure DCC banks support the programmes being implemented by the government in Agriculture and allied sectors. It was decided to increase the market share of Cooperative banks up to 20 percent and the planning of disbursement of loans should support the programmes of RBKs and food processing MSME units.
He said the negative opinion on DCC banks among people should go away and they should get confidence in them and added that the banks should deliver quality services and they should follow standards in the disbursement of loans. He warned against political interference in financial activities.
He said the cooperative services should be transparent and there should be no scope for corruption in the sector and directed to ensure the efficiency of DCC banks is increased and good management practices are followed. Digitization of Primary Agriculture Cooperative Societies should be completed in specific timelines. The action plan for digitization would be completed within three months and the work would be completed by March of next year. The Chief Minister directed to focus on the production of Ethanol in Sugar factories so that they would get some relief.
The Chief Minister also reviewed on multipurpose facility centers which would bring revolutionary changes in Agriculture and allied sectors. The action plan has been prepared for completion of construction of warehouses in a year for which the tenders will be finalized by April 15. The Government will spend around Rs 12,000 crore for warehouses, drying yards, cold rooms, crop collection centers, other farm equipment and other machinery.
Reviewing on Palavelluva Programme, the officials said the farmers are getting fair price due to the implementation of schemes of Government and added that the project has been extended to other districts also. They said the cost of buffalo milk in YSR Kadapa district is Rs 44.31 earlier and it's 53.95 now and farmers have been gaining Rs 9.64. They are getting an additional profit of Rs 7.80 on Cow's milk as the price has been increased from Rs 25 to Rs 32.80.
In Chittor district, price of buffalo milk has increased from Rs 43.25 to Rs 52. Farmers are getting an additional profit of Rs 8.13 on Cow's milk as the price has been increased from Rs 26 to Rs 34.13. In Prakasam district, buffalo milk is selling at Rs 59.15. Earlier it was selling at Rs 45. Farmers are getting an additional profit of Rs 8.78 on Cow's milk as the price has been increased from Rs 24 to Rs 32.78.
Earlier, the officials informed the Chief Minister that DCCBs of Kadapa, Kurnool, Anantapur and Eluru are in poor condition and their license can be cancelled soon. The said 45 percent of Primary Agriculture Cooperative Societies (PACS) are running in loss and 49 percent of mandals are not linked with DCC banks network. They said DCC banks are lending only crop loans and not disbursing adequate loans, corruption is prevalent and there is no usage of technology.