Cooperative credit societies are not effective: Ansari

Vice President Hamid Ansari on Friday said the cooperative credit societies had not been effective in providing adequate and affordable credit to the small-scale farming sector.

Noting that the cooperative sector in India was the biggest in the world, he blamed its failings on “overbearing role and intervention by the government, politicisation of cooperative leadership, small size of agricultural credit societies and lack of professional management”.

He was addressing the foundation day function of Nagpur Nagarik Sahakari Bank here.

Our founding fathers saw the cooperative movement as an important tool in carrying forward the policy of rapid and equitable economic development, the Vice President noted.

The cooperative movement in India is the largest in the world, and the sector has played a pivotal role in the economy, especially in primary sector production, he added.

Union Transport Minister Nitin Gadkari, Union Minister of State for Home Hansraj Ahir and Maharashtra Energy Minister Chandrashekhar Bawankule were also present on the occasion.

Given the role of agriculture in India’s economy, cooperatives remain an important plank in our approach to equitable development and as an important conduit for delivery of goods and services in areas not serviced by Government or private channels, Ansari said.

He cited the examples of dairy cooperatives in Gujarat, the Indian Farmers Fertiliser Cooperative, etc., as success stories in the sector.

Gadkari in his speech called on the bank to adopt an socio-economic policy which can create employment opportunities.

Source: The Statesman

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