Performance of primary agricultural cooperative credit societies in Haryana and Karnataka
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Date
2008
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Publisher
CCSHAU
Abstract
The present study was undertaken based on secondary data pertaining
to Haryana and Karnataka states for the period of ten years i.e. 1996-1997 to
2005-06. The specific objectives of the study were:
1. To examine the size of operations, pace of deposit mobilization and functional
structure of loans in PACS
2. To study the loan delinquencies and unit transaction /administrative cost of
PACS.
3. To identify the factors responsible for loan overdues in PACS.
For the study, the relevant data was obtained from various publications
of different cooperative institutions, NABARD and RBI publications including
Statistical Statements Related to Cooperative Movement in India, Part-I. The data
related to other aspects of the study like factors affecting overdues etc. were also
collected from various issues of Statistical Abstracts of Haryana and Karnataka sates,
other published and unpublished sources. Tabular analysis was carried out to analyse
the data. Simple statistical tools such as averages, percentages, correlation and
regression analysis and compound growth rate, multiple regression were used used to
bring the outline conclusions for the said objectives.
The study revealed that the number of membership, paid up share
capital, owned capital, deposit mobilization, borrowings, working capital, loans
outstanding, loans advanced, loan recovery, overdues and cost of management
increased over the study period for both the states and the compound growth rates
(CGRs.) of the these variables were found significant at five per cent level of
probability. The paid up share capital constituted more share from individuals than
government and borrowings constituted the major share of working capital in both the
states, over study period.
It is clear from the study that out of the total loan advanced more than
85 per cent and 70 per cent of the loan was that of agriculture in Haryana and
Karnataka respectively. Major portion of short term and medium term loans were
given for seasonal agricultural operations.
For Haryana, Agricultural Production Sub-System (APS) share was
between 93.14 per cent to 97.76 per cent, while Agricultural Produce Marketing and
Processing Sub-System (AMPS) loans occupied second place in the total loans
advanced and Agricultural Inputs Distribution Sub-System (AIS) remained meager.
Out of the APS loans, Current Production Growth and Stability (CPGS) occupied
maximum share of 93.05 per cent to 97.60 per cent which was followed by Current
Production Diversificaton and Growth (CPDG) and lastly the loan for Current
Production Loss Minimization (CPLM) was also found to be which was very meager.
The order of loan lending was same for Karnataka but, share of each category of loan
differs. Percentage of APS ranged between 92.03 per cent to 98.38 per cent. GPGS
covered most part of APS to the tune of 86.68 per cent to 96.18 per cent.
The study further revealed that among the variables which have
shown significant association with the dependent variable are the amount of loans
outstanding which has indicated the highest association followed by amount of loans
advanced, percentage of cash crops to gross cultivated area, percentage of loanee
members to total cultivating families and the area under high yielding varieties in
case of Haryana and factors affecting overdues in Karnataka state were cropping
intensity in addition to the above factors.
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Keywords
Credit, Cooperation,Cooperative credit, Capital, Agricultural cooperatives, Manpower, Costs, Biological development, Crops, working capital