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GOVERNMENT OF ODISHA

ANNUAL ACTIVITY REPORT

2017-18

COOPERATION DEPARTMENT

CONTENTS

Chapter Subject Page

I Functions and Organizational Structure 1

II Plan Outlay and Expenditure 5

III Agricultural Credit & activities of other

Cooperative Sectors under Administrative

Control of Cooperation Department

6

IV Revitalization of Short Term Credit

Cooperative Sector

23

V Crop Insurance 30

VI Cooperative Education & Training 33

VII Storage (Godown) capacity 34

VIII Agricultural Marketing 36

IX Activities of MARKFED, Odisha 43

X Directorate of Cooperative Audit 47

XI Odisha State Warehousing Corporation 49

XII State Cooperative Election Commission 53

XIII Cooperative Tribunal 57

XIV New Initiatives 58

Annexure

ANNUAL ACTIVITY REPORT-2017-18

1

CHAPTER-I

FUNCTIONS AND ORGANIZATIONAL STRUCTURE

1. INTRODUCTION

1.1 The Cooperation Department was created with the basic objective of strengthening

the Cooperative movement in the State. Initially, the Co-operation Department remained a

part of one of the development Department. In the year 1991, the Cooperation Department

came into being as an independent Department of Government of Orissa after being

bifurcated from the erstwhile Agriculture and Cooperation Department vide G.A. Department

Resolution No.270-RB dated 02.01.1991.

1.2 Some of the important functions discharged by the Co-operation Department are

briefly indicated below:

Providing timely and adequate credit to farmers for financing their agricultural

and allied activities

Supply of inputs such as fertilizers, pesticides and seeds to the farmers

Administering the Crop Insurance Scheme to provide relief to farmers in the

event of crop failure

Providing marketing support to farmers by way of bringing about the integrated

development of marketing of agricultural produce to safeguard the economic

interests of the farming community

Providing infrastructure for storage of agricultural produce through organizations

like the Orissa State Warehousing Corporation (OSWC) and the Orissa State

Marketing Federation (MARKFED)

Imparting Cooperative education and training to office bearers and members of

Cooperative societies for strengthening the Cooperative movement in the State

2. ORGANISATIONAL STRUCTURE

Heads of Department

2.1 There are five Directorates functioning under the administrative control of the

Cooperation Department, namely, the Registrar of Cooperative Societies, the Directorate of

Cooperative Audit, the Directorate of Agricultural Marketing, Cooperative Tribunal and

Odisha State Cooperative Election Commission. The functions of the Directorates are given

below.

2.2 Registrar, Cooperative Societies: Under the Directorate of the Registrar of

Cooperative Societies, there are 19 Cooperative Divisions - one each at the headquarters of

the 13 erstwhile undivided Revenue Districts headed by a Deputy Registrar of Cooperative


2

Societies and 58 Cooperative Circles, each headed by an Assistant Registrar of

Cooperative Societies. This Directorate is entrusted with the responsibility of

implementation of policies and programmes of the Central and State Governments for the

benefit of farmers and other economically weaker sections through Cooperative s and for

strengthening the Cooperative movement. To achieve these objectives, the Directorate

looks after administration, supervision, monitoring and regulation of the Cooperative

societies functioning in the State in various sectors such as handloom, fisheries, dairy etc.

and the Cooperative credit societies.

2.3. Directorate of Cooperative Audit: The Auditor General of Cooperative Societies

heads this Directorate. There are 16 Audit Circles in this Directorate each under an

Assistant Auditor General of Cooperative Societies. The Directorate is responsible for

conducting the audit of all Cooperative Societies and taking follow-up action on the Audit

Reports.

2.4. Directorate of Agricultural Marketing: The Directorate of Agricultural Marketing is

headed by the Director of Agricultural Marketing and has six Marketing Regions each

headed by a Regional Marketing Officer. The Directorate implements the schemes /

programmes of the Government of India / State Government for providing marketing

support to farmers for marketing of their produce, creating and strengthening of

infrastructure for marketing of agricultural produce for increasing market efficiency thus

enhancing farmers’ incomes.

2.5. Cooperative Tribunal: The Member, Cooperative Tribunal has been accorded the

status of a Head of Department. The Cooperative Tribunal is the Appellate Court for

expeditious disposal of Appeal Cases as provided under the Orissa Cooperative Societies

Act, 1962.

2.6. Odisha State Cooperative Election Commission

The State Cooperative Election Commission, Odisha is created under section 28 AA

of OCS Act 1962 & functioning w.e.f. 18.02.2013. The superintendence, direction and

control of the preparation of the electoral role for, and conduct of all election to a

Cooperative Societies shall vest in the State Cooperative Election Commission, Odisha as

provided under Section 28 AA of the OCS Act 1962.

3. Other Organizations

3.1. Orissa State Warehousing Corporation: This is the only Public Sector Undertaking

under the Cooperation Department and provides infrastructure for storage of foodgrains and

fertilizers and pesticides through its warehouses and godowns located in different parts of

the State.


3

3.2. Orissa State Agricultural Marketing (OSAM) Board:

The OSAM Board is a statutory Board constituted under the Orissa Agricultural Produce

Markets Act, 1956 for exercising superintendence and control over the working of present

66 Regulated Market Committees constituted under the Act with the intention of regulating

the sale and purchase of agricultural produce in the State.

3.3. There are 9(nine) Apex Cooperative societies functioning under the administrative

control of the Cooperation Department which are:

(i) Orissa State Cooperative Union (OSCU)

(ii) Orissa State Cooperative Bank (OSCB)

(iii) Orissa State Cooperative Marketing Federation (MARKFED)

(iv) Orissa Cooperative Housing Corporation (OCHC)

(v) Orissa Consumer Cooperative Federation (OCCF)

(vi) Orissa State Cooperative Agriculture and Rural Development Bank (OSCARD

Bank)

(vii) Orissa Cotton Growers’ Cooperative Marketing Federation (COTFED)

(viii) Odisha Federation of Urban Cooperative Banks & Credit C.S Ltd.

(ix) Odisha Federation of Labour & Construction Cooperative Ltd.

Besides, at present there are other categories of Primary & Central

Cooperative Societies functioning under the administrative control of Cooperation

Department including 17 Central Cooperative Banks (CCBs), 11 Urban Cooperative

Banks, 51 Regional Cooperative Marketing Societies (RCMs), 45 Cooperative

Agricultural Rural Development Banks (CARD Bank), 3 Cooperative Sugar Mills, 18

Cooperative Cold Storages & 2708 Primary Agricultural Cooperative Societies (PACS)

including 2488 Service Cooperative Societies (SCS) + 214 Large Sized Adivasi

Multipurpose Cooperative Societies (LMPCS) + 6 Farmers’ Service Cooperative

Societies (FSCS).


4

LIST OF COOPERATIVE SOCIETIES REGISTERED IN ODISHA UNDER THE

ORISSA COOPERATIVE SOCIETIES ACT-1962.

Sl No

Heads of Department Primary Central Apex Total

1 RCS(O) 4297 116 09 4422(including 2708 PACS)

2 Dir-Textile 1133 - 03 1136

3 Handicraft& Cottage Industries

182 - 01 183

4 Fisheries 1082 02 01 1085

5 A.H.&VS 2060 12 02 2074

6 Industries 117 04 02 123

7 SC&ST 151 04 03 158

8 W&CD - - 01 01

9 Agriculture - - 01 01

Total 9022 138 23 9183

LIST OF COOPERATIVE SOCIETIES FUNCTIONING UNDER RCS ODISHA

Category of Coop. Societies No. of Coop. Societies

Apex Coop. Societies 09

Central Coop. Societies 116 (CCB,RCMS and Whole sale store)

PACS 2708 (2488 SCS+214 LAMPS+6 FSCS) (Out of which 1133 PACS are in profit)

Other Primary Coop. Societies 1589

Total 4422

Break up of other primary Cooperative Societies (1589)

Category of Coop. Societies No. of Coop. Societies

CARD Banks 45

Urban Coop. Banks 11

Empl. C. S. & Credit C. S. 427

Consumer Coop. Societies 176

Marketing Societies 82

Agro processing 4

Housing 135

Others 709

(Women MPCS,MPCS,Labour contract CS,Canteen CS etc))

Total 1589


5

CHAPTER-II

PLAN OUTLAYS AND EXPENDITURE

The State Govt. is extending financial support to the Cooperative Societies and

other organization from the State budget to

i) Augment of resources

ii) Build up capacities

iii) Ensure better service delivery and

iv) Develop agriculture marketing

A. Outlay and Expenditure during 2017-18

1. During the financial year 2017-18, a plan outlay of Rs.91610.33 lakh was originally

allocated to this Department for expenditure on various State Plan schemes. However, the

provision was augmented by Rs.444.00 lakh in the 1st Supplementary Budget raising the

Revised Estimates to Rs.92054.33 lakh. By the end of March 2018, an amount of

Rs.7779.692 lakh has been released which works out to be 84.51% of the total budget

provision in comparison to last year expenditure of 82.21% . The scheme wise details of the

expenditure out of the budget provisioned for the financial year 2017-18 are indicated in

Annexure-I.

B. Budget Estimates for 2018-19

The Annual Plan 2018-19 is proposed to implement 28 Schemes with an Plan outlay

of Rs.103961.33 lakhs for different activities as under, as against last year out lay of

Rs.92054.33 lakhs for Cooperation Department. Out of this total amount provided, funds to

the extent of Rs.99.44 lakh for the Scheme” Financial Support to Cooperative Institutions for

infrastructure Development”, Rs.300.00 lakh for “Providing free Mobile Phones to farmers to

access market information”, Rs.700.00 lakhs for assistance to Cooperative Sugar Mills”,

Rs.0.03 lakh for “creation of Warehousing facilities under RIDF”, Rs.40000.00 lakh towards

Scheme “Pradhanmantri Fasal Bima Yojana”, Rs.235 lakh for “Grants to Odisha State

Cooperative Union”, Rs.45386.06 lakh for “Interest Subsidy/ Subvention to the Cooperative

Banks/ PACS for providing Crop loan at 5% interest to farmers” and Rs.1500.00 lakh

Interest subvention to Commercial Banks / RRBs to provide crop loan at 5% interest.

Rs.400.00 lakh for “construction of New Office Buildings for Division and circles”, Rs.100.00

lakh for “Construction of Residential Building for Division/ Circle”, Rs.4200.00 lakh for

“Share capital investment in Cooperative credit institutions”.Rs.100 lakhs for “IT

infrastructure, Computerization & e-Governance”, Rs.10000.00 lakhs for “Corpus fund for

procurement operation by MARKFED, Rs.500.50 lakh for “Construction of Office Building of

PACS/LAMPCS”, Rs.20.00 lakh for “Information, Education & Communication”, Rs.300.00

lakh for “Strengthening & Development of Agricultural Marketing Infrastructure”, Rs.100.00

lakh for Financial Assistance for financial restructuring of MARKFED, Rs.20.00 lakh for

training personnel.The scheme wise details of the proposed budget provision for the

financial year 2018-19 is indicated in Annexure-II.


6

CHAPTER-III

AGRICULTURAL CREDIT

SHORT TERM CREDIT:

Introduction:

The Cooperative Credit Structure (CCS) has a unique position in the rural credit

delivery system of India. The Cooperative banking sector has made significant strides in the

field of rural credit through its short term and long term structures which continue to play a

crucial role in dispensation of credit for agricultural activities and rural development. Over

more than 100 years, the rural Cooperative banking and credit institutions have remained

the prime institutional agencies with a vast network, wide coverage and outreach extending

to the remotest rural areas in the State. Although the Commercial Banks have entered the

rural areas in a big way, the Cooperative credit institutions continue to play a crucial role in

meeting the growing credit needs of rural India with the volume of credit flowing through

these institutions increasing. These Cooperative institutions are primarily owned by farmers,

rural artisans etc. and were set up with the objective of promoting thrift and mutual help

among the members. The Cooperative credit societies at the grassroots level are intended

not only to cater to the credit requirements of the members but also to provide credit-linked

services like input supply, storage and marketing of agricultural produce etc. In view of

these special features, the role of these rural Cooperative credit institutions becomes all the

more significant.

1. Short Term Credit Structure (STCCS) :

The three-tier Short Term Cooperative Credit Structure (STCCS) in the State

consists of 2708 functional Primary Agricultural Cooperative Societies (PACS) including 214

Large-sized Adivasi Multipurpose Cooperative Societies (LAMPCS) functioning in the Tribal

Sub-Plan Areas and 6 Farmers’ Services Cooperative Societies (FSCS) at the grassroots

level, 17 District Central Cooperative Banks (DCCBs) which are licensed by RBI since 2013

with their 341 branches in the middle rung and the Orissa State Cooperative Bank (OSCB)

at Apex level ( a Scheduled Bank) with its 14 Branches at Angul, Berhampur, Bhubaneswar,

Cuttack, Paradeep, Rourkela and Sambalpur. These Cooperative credit institutions, with

their wide outreach in the rural areas and accessibility to the small land marginal farmers

and the other marginalized population, have been playing a vital role in dispensation of

agricultural credit. Around 60% of PACS are operating at breakeven level. The remaining

PACS are incurring loss in view of management expenses are not covered by interest

earning on dispensation of crop loan.


7

2. Transferring the PACS as One Stop Shop(Single Window Centre)

Primary Agricultural Cooperative Societies (PACS) as a last outlet of the STCCS ,

though the PACS do not form a part of banking industry, the government has

decided to transform the PACS as One Stop Shop (Single Window Centre) for the

farm families to meet all their requirements for farm operations including credit,

fertilizer, seeds, etc. storage facilities, linkage of credit with marketing of agriculture

produce and custom hiring of agriculture implements under one roof.

2504 PACS are prepositioning fertilizer and distributed it for kind component of the

crop loan and also for cash sale to farmers on behalf of MARKFED as the State

Level Cooperative which provides around 30% of the total fertilizer offtake in the

State around 3.00 lakh MT. Sale of fertilizer during the year 2017-18. During Khariff

2017 (upto 30.09.2017) comes to 2.04 Lakh MT, out of which sale to Cooperative

societies is almost 71% (1.43Lakh MT). Preposition of Urea fertilizer of MARKFED

during lean season (march to June) will be taken at PACS level. As per the

instruction of Department of Fertilizer, Govt. of india, the sale of fertilizer through

POS(Point of sale) device has been made mandatory w.e.f 01.02.2018 & no

dealers/retailers can sale fertilizer without POS. As on 28.02.2018.All 2708 PACS

have deployed POS after obtaining license from Agriculture Department.

2408 PACS have obtained license from Agriculture Department and prepositioning

seed, sale & the subsidy for which is credited to the farmers account directly through

DBT. During Khariff 2017 the PACS have sold certified seeds of 1,73,825 Quintal.

It has been decided that Farm mechanization services should be provided to PACS

by setting up Agro Service centres for which PACS will enable for custom hiring of

Agriculture implements to small & marginal farmers.182 nos of Agro Service Centres

are established at the PACS level under NABARD scheme. State Government is

contemplating to provide financial assistance for establishment of 100 more Agro

Service Centres at PACS level during year 2017-18 at project cost of Rs.32.00

Lakhs per unit with Harvester Combine-1 Unit, Tractor-1 Unit, Rotavetor-1 unit,

Power Sprayer-2 unit, MB Plough-1 unit, Seed cum –fertilizer drill-1 unit, Trailer-1

unit, Cultivator-1 unit etc. The funding pattern for each agro service unit is Rs.30

lakh as follows

a) loan and grant by NABARD(10% of the project cost)-Rs.17 Lakh

b) financial assistane for the State Govt.- RS. 9.00 lakh

c) Margin from PACS- Rs. 4.00 lakh

Further working capital required to run the unit is estimated Rs. 2.00 lakh.


8

During KMS 2016-17, 2558 PACS (3011 paddy procurement centres) are engaged

in paddy procurement business as agents of OSCSC, MARKFED,TDCC and

procured paddy of 43.85 Lakh MT during Khariff season of KMS 2016-17 from

7,42,678 farmers in all 30 districts and of 10.42 lakh MT paddy procured during Rabi

KMS 2016-17 from 1,04,962 farmers.

Thus in the State around 99% of total paddy are being made through PACS. The

Paddy procurement System has been fully automated under P-PAS system starting

from farmers Registration to direct payment MSP of paddy cost to the Bank account

of each farmer under DFT mode through Core Banking Solution System of OSCB.

During KMS 2016-17, Rs.8500 crores have been paid towards paddy cost to the

farmers directly to their account through DBT by OSCB.

During KMS 2017-18 (Khariff Season) 2589 PACS have participated in

Farmer registration and have registered 11,20,253 farmers. As on 30.03.2018, 2485

PACS have procured 37,000,93.718 MT paddy on behalf of OSCSC, MARKFED

and TDCC.The OSCB is transferring the paddy cost directly to the farmers account

through P-PAS system linked with CBS of OSCB.

Storage godown facility at PACS Level is required for storage of inputs, seeds &

Agriculture produce & smooth operation of Paddy procurement in order to extent

required services to firm families.Godown under various schemes have been added

to the infrastructure (godown) capacity of the PACS. Under RKVY the PACS have

taken up construction of 298 godowns of 300 MT capacity each with total project

cost of RS.44.92 crore out of which 290 Godowns having total capacity of 87000 MT

has been completed. In addition, PACS have also taken up construction of 353

godowns under RIDF scheme of NABARD, out of sanction 398 Godowns with

project cost Rs.198.10 crore for creation of additional storage capacity of 1.74 Lakh

MT. In the meantime construction of 333 Godowns at PACS level having capacity of

150060 MT under RIDF have been completed. At present total godown capacity

available at PACS level comes to 3.57 lakh MT. Besides under ICDP in Angul and

Dhenkanal district construction of 122 godown of 15500 MT are going to be

completed shortly.

2.1 ENROLMENT OF MEMBERS BY PRIMARY AGRICULTURE COOPERATIVE

SOCIETIES(PACS /LAMPCS/FSCS):-

The Short Term Credit Structure (STCCS) in Odisha comprises 2708 PACS including

214 LAMPCS & 6 FSCS are functioning at the grass root level, 17 CCBs at Middle Tier and

OSCB at the Apex level primarily to provide agricultural credits and input to farmer members.

With a view to rendering meaningful services, to the members Primary Agriculture

COOPERATIVE Societies (PACS/LAMPCS/FSCS) in the State, Member Contact Drive

known as “COOPERATIVE at Your Door Steps” was launched during the year 2010 and


9

from 14th November to 30th November-2011. During the Member contact campaign, the

survey of Agricultural families in the State was conducted and at least one member of each

Agril. family have been motivated to become member of PACS and to avail KCC for

effectively use for availing Crop Loan, opening No Frill Account, etc. As per survey

conducted by PACS during 2010-11 there are 55.22 Agricultural families in the State.

From Out of About 55.22 lakh Agricultural families, 55.01 lakh family have been

enrolled as Cooperative member of PACS as on 30.09.2017 taking the coverage of 99.62%.

The details are as under

(Fig in Lakhs)

However, multiple memberships exist as the OCS ACT provides facility for

enrolment of 3 members from a family.

3. ISSUE OF KISAN CREDIT CARDS

PACS at the grass root level provide farm and non-farm credit to farmers members.

With a view to simplifying the procedure of disbursement of farm credit to farmers, Kisan

Credit Card Scheme has been introduced in 1998-99 by PACS through its affiliated DCCBs.

The scheme aimed at providing instant credit to the farmers by the PACS through the

Branches of the DCCBs to ensure timely & adequate credit on the basis of their land holding,

cropping pattern and scale of finance. Under the scheme, Credit limits for farmers are

prepared and sanctioned, Crop / area-wise, the same remains valid for 3 years unless

modified by the farmers. The farmers members are supplied with Pass Book & Cheque

Books to avail instant credit by drawal of cash from Branches of DCCBs at the time of their

need and repay the same at PACS or Branches of DCCBs as per their convenience & within

Crop seasonal displine period. Dispensation of credit through KCC has enabled the PACS/

Coop. Banks to disbursed production credit. PACS have played a crucial role in issue of

KCC to farmer as compared to the Commercial Bank and commanded a stake of about 73

% of the total KCC issued in the State. Achievement in distribution of KCC by Cooperative

Sector during last four years is furnished below:

Year No. of Agricultural Families.

Member enrolled.

% of Enrolment

2010-11 54.22 44.98 81.87

2011-12 55.22 50.95 92.26

2012-13 55.22 52.07 94.67

2013-14 55.22 53.70 96.36

2014-15 55.22 54.66 99.38

2015-16 55.22 54.89 99.40

2016-17 55.22 55.01 99.62


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MARKET SHARE OF COOPERATIVE IN ISSUE OF KCC as on 28.02.2018

No of KCC

KCC issued by COOPERATIVE Bank/PACS 45.59 Lakhs

KCC issued by Commercial Bank and RRBs 16.99 Lakhs

62.58 Lakhs

However, around 32 lakh farmers are availing crop loan (khariff and Rabi) from the

PACS/Cooperative Banks

4. FINANCING SHORT TERM CREDIT FOR SEASONAL AGRICULTURAL OPERATION:

Dispensation of Crop Loans

In a agriculture- driven economy like Odisha, agricultural credit is one of the major

drivers of agricultural production. In Odisha, around 79% of the population depend on

agriculture and allied activities for their livelihood, but the average land holding size is 1.25

Ha. Most of the farmers are small and marginal share croppers and oral lessees and they

require institutional credit for their seasonal agricultural operations with the objective of

making credit available to farmers at cheaper rate, the Govt. has been fixing targets for flow

of credit to agriculture by the banking sector every year in which, the major portion of total

target is given to Cooperative Banks particularly during the natural hazards affects crops

conditions, accordingly to compensate crops loss in next crop season. The Cooperative

credit structure with its vast network, wise coverage and extensive outreach has made

significant strides in the field of rural credit delivery through its short terms and schematic

agricultural loan dispensation system. To provide hassle free and timely credit to farmers the

Cooperative Banks have been issued Kisan Credit Cards (KCC) of 45.59 lakh as compared

to 16.99 lakh KCC provided by the Commercial Banks / RRBs, thereby making the market

share of Cooperatives about 73% in the State in issue of KCCs. In spite of continuous

decline in the market share of deposits mobilized in the State by Cooperative Banks, which

remained around at about 4% only, the short term Cooperative Credit structure continue to

retain market share around to 65 % of the Crop loans dispensation and 50 % of the total

agricultural credit disbursed in the State under the leadership of OSCB when the market

share of Cooperative Banks in the country has reduced to the level of around 20% and 17%.

Now it is decided to computerize 2600 PACS in 1st phase in the State to strengthen

and streamline service delivery to the members and conversion of Kisan Credit Cards to

Smart Rupay Cards to provide ATM & POS facility of all the Banks to the KCC holders under

the National Payment Corporation of India network. Steps has already been taken for Direct

Benefit Transfer (DBT) of paddy procurement proceeds, agricultural inputs, other subsidy /

incentive, crop Insurance, indemnity claims directly to farmers accounts through on-line

registration. Now paddy procurement proceeds are transferred to farmers account directly


11

from the OSCB trough the Core Banking Solution (CBS) system in case of all PACS coming

under 294 P-PAS Blocks during KMS 2016-17 which is perhaps 1st in India

For crop loans, NABARD provide around 45% of the Grass roots Level credit (GLC)

as refinance whereas, the OSCB provides 30 % and DCCBs 25% from their own resources.

The NABARD refinance are made available at rate 4.5% from 2010-11 onwards, thus only

0.5% margin is available on interest on refinance to all the 3-tiers.

The Short Term Cooperative Credit Sector comprising of PACS and LAMPCSs

command a Stake of around 65% of total farm credit disbursed in the State for Seasonal

Agricultural Operation.

The interest margin allowed to 0.50% for OSCB, 1.25% for the DCCBs and 2.25% for

the PACS on crop loan finance. Details of achievements are as follows:

(Rs.in Crores)

Year Disbursement of Loan Market Share

By Coop. By Com

Bank &

RRB.

Total By Coop.

(in %)

By Com

Bank&

RRB. (in %)

2010-11 3396.39 1877.52 5273.64 64.40 35.60

2011-12 4415.89 2270.31 6686.20 66.04 33.06

2012-13 5426.49 3175.67 8602.16 63.00 37.00

2013-14 7096.64 3103.86 10200.50 70.00 30.00

2014-15 8351.11 4590.89 12942.00 65.00 35.00

2015-16 9572.22 6520.90 16093.12 59.48 40.52

2016-17 10203.79 5330.44 15534.23 65.68 34.32

2017-18(as on

30.03.2018)

10912.5 3626.37

(As on

30.09.2017)

14538.87

--

--


12

Disbursement by Cooperative Bank

(Amount in Rs. Crores and No. in Lakhs)

Target Plan for Crop loan dispensation by Coop. Bank / PACS for 2017-18 is

Rs.12000 crores out of which Khariff is Rs 7000 crore and Rabi for 2017-18 is Rs 5000

crore.

5. IMPLEMENTATION OF INTEREST SUBVENTION SCHEME ON CROP LOANS BY

COOPERATIVE BANKS & COMMERCIAL BANKS / RRBs FOR REDUCTION IN COST

OF CREDIT TO FARMERS:-

The ST Credit Cooperative Sector have been implementing the Interest Subvention

Scheme announced by the Government of India since 2006-07(01.04.2006) and providing

finance under ST-SAO to farmer members @ 7% rate of interest in Khariff-2008 as per

NABARD guidelines. But as per State Government decision from Rabi 2008-

09(01.10.2008), ST-SAO have been was provided to farmers member by ST Credit

Cooperative sector & @ 5% interest and this rate of interest applicable to Coop. Banks /

RRBs i.e. @5% for crop loan dispensation to farmers from the year 2013-14. The

Government of Odisha has been compensating the interest loss on account of investment

at a less rate vis-à-vis the cost of fund. Besides the Govt. of India has declared 3%

incentive to farmers in case of timely repayment of loan. Thus, the effective rate of interest

on Coop loan in case of farmer members of PACS is 2%. Again State Government has

Year. Khariff. Rabi Total Growth

(%)

No. Amt No Amt No Amt.

2010-11 11.26 1811.09 9.10 1585.30 20.36 3396.39 26.62

2011-12 13.07 2381.37 10.39 2034.52 23.46 4415.89 30.00

2012-13 13.66 2902.75 11.41 2523.74 25.07 5426.49 22.88

2013-14 15.26 3624.29 13.52 3472.35 28.78 7098.64 30.81

2014-15 16.21 4394.34 14.14 3956.77 30.35 8351.11 17.64

2015-16 17.35 5077.41 14.62 4494.81 31.97 9572.22 14.60

2016-17

16.49 5303.84 15.02 4899.96 31.51 10203.8 6.59

2017-18(as

on

30.03.2018)

15.98 5646.78 14.62 5265.72 30.6 10912.5 6.94


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decided to provide crop loans to the farmers borrowing up to Rs.50,000/- at 4% rate of

interest in place of existing 5% interest with effect from 01.10.2015 (Rabi 2015-16 crop

season) for which additional interest subvention of 1% would be provided. After providing

additional interest subvention of 1% per annum and after getting the interest incentive of

3% from the Govt. of India on timely repayment by the farmers, the effective rate would be

1% interest for crop loan financed up to Rs.50,000. The farmers availing crop loans above

Rs.50,000/- would be charged interest at 5%, which would be reduced to effective rate of

interest at 2% in respect of prompt paying farmers. These rates of interest are applicable

to both Cooperative Sector & Commercial Banks / RRBs under ST-SAO to farmers in the

State. This has impacted the quality of life of the farm families by reducing the cost of

credit substantially.

NABARD refinance on crop loans is limited to 45% of the GLC, which is exerting

tremendous pressure on the own resources of the OSCB and DCCBs and also higher

interest subvention at Govt. level (interest subvention on crop loans is 3.75% in NABARD

refinance portion and 5.50% in case of own resources of OSCB and DCCBs at a flat rate

to compensate the loss sustained by STCCS in crop loan dispensation. The State Govt. is

also providing additional interest subvention of 2% on crop loans to the commercial Banks

including RRBs.

Amount Released from State Govt. to the OSCB (Coop. Banks) towards interest

subvention is furnished below:

(Rs in Crores)

Crop loan financed

during the year

Released by

State Govt.

No. of farmer

(Number in lakh)

Amount

financed

2008-09 21.00 11.69 1489.46

2009-10 69.12 18.32 2682.17

2010-11 98.70 20.36 3396.39

2011-12 198.70 23.46 4415.89

2012-13 215.90 25.07 5426.49

2013-14 301.74 28.78 7098.64

2014-15 323.38 30.35 8351.11

2015-16 386.43 31.97 9572.22

2016-17 416.58 31.51 10203.79

Besides State Government was released Rs.90.00 crore to SLBC during the year

2013-14 towards interest subsidy / subvention to Commercial Banks & RRBs for

dispensation of Crop loan @ 5% to farmers and again during the F.Y. 2016-17 and 2017-18


14

the State Govt. has released Rs.40.00 crore and Rs.15.00 crore the SLBC for the above

purpose.

6. Financing of oral lessees/ Share croppers through group approach (Joint

Liability Groups)

In order to empower the landless farmers / oral lessees / share croppers and farmers

with small land holding to access hassle free credit, Joint Liability Groups (JLG) are

organized and provided agricultural credit by the Banks without insisting on any

security.

PACS and DCCB have taken proactive initiative in promotion and credit linkage of

JLGs and NABARD is providing financial support to Banks for financing JLGs.

The JLGs credit linked during 2013-14, 2014-15, 2015-16 and 2016-17 along with the

cumulative position as on 30.12.2017 is given below :

(Rs. in crores)

Year During the year Cumulative

Coop. Banks Commercial Bank

Coop. Banks Commercial Bank

No Amt. No Amt. No. Amt. No Amt.

2013-14 8140 55.74 5816 50.29 50009 226.53 17237 144.75

2014-15 14280 82.40 9590 140.32 53132 268.66 25441 480.74

2015-16 18881 101.58 60849 585.97 63711 331.87 96448 703.25

2016-17 13620 82.02 14807 202.60 67715 394.40 69911 785.88

2017-18 9597(as on 30.12.2017)

64.66 26138 376.09 68979 438.56 84324

(as on 30.12.2017)

1109.26

For the current year, target has been fixed for organization and credit linkage of

50,000 JLGs.

7. FINANCING FOR CAPITAL INVESTMENT IN AGRICULTURAL AND ALLIED

ACTIVITIES AND SCHEMATIC LOANS (Agriculture Term Loans)

For sustainable growth in production & productivity, delivery of term loans for creation

of agricultural infrastructure, farm-mechanization and improved agricultural practices needs

to be scaled by providing agriculture term loans at cheaper rates. But adequate steps have

not been taken to diversify into agricultural term loans for capital investment in agriculture in

compare to financing crop loans. Unless this portfolio improves substantially, the profitability

and sustainability of the farm activities will be at serious stake.


15

The term loans advanced by the banks for agriculture and allied activities by all the

banks in the State was around 30% of the crop loans disbursed in the State over the years.

Since term loans are meant for capital investment in agriculture, loans advanced by the

banks for this purpose should be increased to a level of at least 40% of the crop loans

provided. The commercial banks have been the principal financiers for agriculture term loans

over the years.

The farmers have to pay at the rate of 12-14% on agricultural term loan availed for

asset creation depending on the quantum and period of loan. In order to increase the off-

take of agricultural term loans in the State, State Govt. is providing interest subvention /

subsidy of 3% of the interest rate charged on agricultural term loans and subvention of

further 2% on timely repayment agril. Loans by the farmers, which financed by Cooperative

as well as Commercial Banks. These banks are providing loan to farmers for Capital

investment in agriculture and allied activities like improvement of land, lift irrigation, farm

mechanisation, horticulture, pisciculture, orchards, Animal Husbandry etc.

The financing by Cooperative Banks / DCCBs for farm sector and non-farm sector

during last 8 years is given as follows:

During the current year, a target of Rs.1000 crores has been fixed for providing

agriculture term loans by the Cooperative Banks.

Year Commercial Banks Cooperative Banks Grand

Total

Market Share in

O/o

Agriculture Allied Total Agriculture Allied Total Comm.

Banks

Coop.

Banks

2009-10 1105.34 208.66 1,314.00 76.73 76.73 104.58 1,418.58 93 7

2010-11 639.66 377.64 1,017.30 161.80 161.80 285.72 1,303.02 78 22

2011-12 1008.09 490.26 1,498.35 113.19 113.19 169.41 1,667.76 90 10

2012-13 1436.48 420.00 1,856.48 96.58 96.58 140.64 1,997.12 93 7

2013-14 2317.60 692.29 3,009.89 31.36 31.36 101.25 3,111.14 97 3

2014-15 2727.34 866.42 3293.76 30.57 30.57 108.23 3401.99 97 3

2015-16 2570.34 1450.20 4020.54 49.89 49.89 143.71 4164.25 97 3

2016-17 2439.99 1733.91 4173.90 40.58 40.58 112.18 4286.08 97 3

2017-18(as

on

30.09.2017)

390.72 829.13 1219.85 16.17 16.17 19.36 1239.21 98 2


16

LONG TERM CREDIT

1. Structure

The Orissa State Cooperative Agricultural & Rural Development (OSCARD) Bank as

the Apex Bank at the State level and 45 Primary Cooperative Agricultural and Rural

Development (CARD) Banks (previously these were nomenclatured as Primary Land

Development Bank). located at the Revenue Sub-Divisional level have been functioning

since 1938 and constitute the Long Term Credit Structure in the State. This Bank was

providing Long Term Credit for both farm and non-farm activities to individual member-

farmers through the Primary CARD Banks. The main areas of financing covered by these

Banks include Minor Irrigation schemes, Pisciculture, Horticulture and Plantation, Animal

Husbandry, Farm Mechanisation, Diesel and Electrical Pump sets etc.

1.1. Present Status

The 68-year old Long Term Cooperative Credit Sector in the State has, in the past,

played a vital role in purveying long term credit through its affiliated Primary CARD Banks

mainly for farm activities. The Sector became weak owing to financial and administrative

mismanagement over the years which have led to huge accumulated losses and non-

repayment of loans to NABARD and to the State Government.

1.2. Owing to the precarious financial position of the OSCARD Bank, NABARD has

closed the line of credit for the Bank since October-2003.

1.3 During the year 2014-15, it has been proposed for merger of LTCCS with STCCS.

Accordingly a Committee has been constituted under the Chairmanship of RCS, Odisha to

examine the proposal for merger of Long Term Cooperative Credit Structure (LTCCS) with

Short Term Cooperative Credit Structure (STCCS) and Committee has been submitted a

report to Govt. for consideration at Govt. level. But the Finance Department has asked for

examination & information on viability aspect of LTCCS. Now the proposal of

implementation of VRS Scheme to employees of CARD Bank is under consideration at P.E

Department.

2. URBAN COOPERATIVE BANKING

Financing for Self- Employment by the Urban Cooperative Banks

At present 9 Urban Cooperative Banks (UCBs) functioning in the State are providing

finances for Self-employment to the unemployed youths and other minimum banking

services like acceptance of deposit etc. in urban and sub-urban areas. The name of the

UCB are (i) UCB Cuttack, (2) UCB Puri, (3) UCB Berhampur, (4) UCB Jaypore, (5) UCB

Kendrapada, (6) UCB Balasore (7) Utkal Cooperative Banking Society Ltd., Bhubaneswar,

(8) UCB Rourkela, (9) UCB Paralakhemundi


17

The Task Force for Urban Cooperative Banks has recommended for computerization

of the Urban Cooperative Banks to modernize the operations (automation) of the UCBs

sector. In addition to the computerization of PACS & DCCBs the OSCB has been entrusted

with computerization of 9 UCBs by the Government assistance. For which, one integrated

Core Banking Solution (CBS) Project has envisaged comprising establishment of one Data

Centre at OSCB level, connectivity of all retail outlets of the UCBs under one roof to host the

data base with connectivity. For this purpose the Govt. have provided Rs.11.00 crore for

implementation of CBS in UCBs. Out of 9 UCBs, UCB like Balasore, Kendrapara, Rourkela,

Puri, Jeypore are now CBs compliant. The CBs in Berhampur UCB & Paralakhemundi &

UCB Cuttack are under progress. It is expected that all UCBs will be CBs compliant soon.

Achievement in this sector is furnished below.

(Rs.in cores)

Year Deposit Mobilised Amount financed

2009-10 944.48 566.21

2010-11 992.92 533.11

2011-12 953.80 542.41

2012-13 1149.96 597.66

2013-14 1167.97 604.31

2014-15 1256.34 676.87

2015-16 1054.21 662.16

2016-17 1130.17 624.14

During the year 2015, 3 UCBs namely Bhubaneswar UCB, Chhatrapur Cooperative

Bank Ltd & Baripada Urban Cooperative Bank has been liquidated in pursuance of the

direction of the RBI in view of cancellation of banking licence. But Hon’ble High Court has

been stayed on execution of Liquidator order by RCS(o) in case of Baripada Urban

Cooperative Bank.

3. COOPERATIVE COLD STORAGE

i. There are 18 nos. of Cooperative Cold Storages with an aggregate capacity of

35830 MT are under the administrative control of Registrar of Cooperative

Societies , Odisha , out of which 05 nos. are in operational stage with capacity of

18500 M.T and remaining 13 Cold storage with storage capacity 17330 M.T are

defunct.


18

The details functional Cooperative Cold Storages are as under below:-

Sl.

No

Name of the Cooperative Cold

Storages

Management Year of Functioning

Capacity Remarks

1 Bhubaneswar Multi Commodity Coop. Cold Storages at Patia, Bhubaneswar

MARKFED 2003 5000 MT Leased out

2 Jagatpur Coop. Cold Storages at Jagatpur,Cuttack

MARKFED 1985 4000 MT Leased out

3 Rayagada Multi Commodities Coop. Cold Storages, at Rayagada

MARKFED 2013(Working condition but not function)

5000 MT Under repair by TDCCOL

4 Nimapara MCS & MCS Ltd, at Nimapara, District –Puri

Nimapara MCS & MCS Ltd,

2010 2500 MT Collector, Puri is in management in charge

5 Uttanayani PGS & MCS Ltd, at Satsankha, District-Puri

Uttanayani PGS & MCS Ltd

1962 2000 MT Elected Management

ii. Out of the 13 defunct Cold Storages(leaving Jagatsingpur, Bonai & Hindol) , 10 nos.

of Cold Storages at Bayalish Mouza PGS & MCS , Athagarh PGS & MCS ,

Bapuji PGS & MCS, Banki PGS & MCS , Lakheswar Sital Bhandar and Banijya

Samabaya Samiti , Jharsuguda PGS & MCS , G. Udayagiri Cooperative Cold

Storage Ltd. , Jeypore Coop. Cold Storage , Barapali Cooperative Cold Storage Ltd

and Berhampur Multipurpose Cooperative Cold Storage Ltd. are proposed to be

modernized / revived by inviting Expression of Interest from parties to run through

PPP mode. However, after repeated tender process it was not succeeded.

iii. Under RKVY during 2015-16, funds has been provided for modernization /

renovation of Cooperative Cold Storage as mentioned below :-

1. Uttarayani PGCS & MCS Ltd., Satasankha, Puri … Rs.45.30 lakh

2. Rayagada Cold Storage, Rayagada of MARKFED … Rs.61.86 lakh

4. COOPERATIVE HOUSING SECTOR:

Housing Cooperative sector has a two tier structure with Odisha Coop. Housing

Corporation Ltd. (OCHC) at the apex at Bhubaneswar functioning in the year of 1955 and at

present 108 Primary House Building Cooperative Societies. The Prime objective of the

Corporation provide long term loan to members for construction and purchase of residential

houses, flats and core houses. To fulfil above objects, the Corporation raise funds by way of

loan & advances from LIC of India HUDCO and the State Govt. The Corporation has


19

provided loan to through its affiliated 71 HBCS to the tune of Rs.102.54 crore in respect of

28604 beneficiaries over the preceding years. Since the year 2004-05 funding support was

not available to the Corporation from the major funding Agencies i.e. LIC & HUDCO. The

OCHC Ltd has so far borrowed Rs.11102.41 lakh from State Govt. & Financing Agencies

and its balance position is Rs.2593.55 lakhs as on 28.02.2017. The corporation has

financed 28604 housing units with loan Rs.10253.87 lakh out of which 24359 units (12696

(LIC) + 7387 (HUDCO) + 4276 (Govt. subsides) have been completed. In the year 2004-05,

the Odisha Coop. Housing Corporation was entrusted with the responsibility for

implementation of credit cum subsidy scheme of Panchayati Raj Deptt. Under this scheme

loan of Rs.40,000/- has been given to each identified beneficiary for construction of low cost

house. Subsidy of Rs 10,000/- is provided after completion of construction in phases, Rs

5,000/- each after construction up to plinth level and Rs.10,000/- after root level. Loan

assistance or Rs 12.82 crores has been provided to 7073 beneficiaries, out of which 4276

housing units have been completed. The Government of Odisha have provided loan of

Rs.808.57 lakhs to OCHC in the year 2015-16 supplementary budget to repay the principal

amount of HUDCO to facilitate OTS of loan availed from HUDCO. The OCHC in turn,

extended OTS benefits to the concern 8501 beneficiaries through Primary HBCS. Earlier

the OCHC was taken plotting Scheme namely Lingipur Project, Bhubaneswar (Ac.35,076),

Kalinga Vihar Project, Puri (Ac.110.281) & Dhoulinager Plotted Scheme (Ac.50.169) and

Shyaampur Project, BBSR (Ac.8.825 dec), Old town Housing Project, Bhubaneswar

(Ac.0.754 dec) in joint venture etc. Presently the OCHC has taken up one Multi Storied

Residential complex over Ac. 0.783 Decimal land (34,000 sq. feet) at Tomando(Dhauli

Hights) in the year 2012.Besides the OCHC has launched two plotted scheme project

under joint venture mode with M/s Tirumala Infra. Dev. Pvt. Ltd. at Kunarpur mouza (Niali)

(Ac 12.00) and Olatput Mouza(Ac 60.00) under Cuttack district.. Besides, the Govt. of

Odisha has allotted a patch of land of area A.c 4.22 dec. at Paradeep for implementation of

low cost housing project. The Corporation has multi storied building of its own at Unit – III,

Bhubaneswar measuring 61239 Sqft and has been let out to different Banks / Office

Complex purpose. Besides, the Corporation has 73 nos of quarters at Unit- III. From out of

which Rs.21.28 lakhs of rent revenue per month has been generated from office complex &

quarters.

5. COOPERATIVE SUGAR INDUSTRIES:

At present three Cooperative Sugar Industries namely (i) Aska Cooperative Sugar

Industries Ltd., Aska functioning from year 1961 with one Distillary unit established in the

year 1977 for production of rectified spirit from mollases and country spirit for human

consumption in the State, (ii) Baragarh Cooperative Sugar Mill Ltd., Bargarh functioning

from year 1972 and (iii) Bijayananda Cooperative Sugar Mills Ltd. Sagarpalli, (Deogan),

Bolangir functioning from 2005 help cane growers by providing marketing infrastructures ,

good remunerative prices for their cane and providing employment opportunity directly and


20

indirectly to the people .Besides, these Sugar Industries provide high yielding varieties of

seeds to the farmers and fertilisers and arrange credit support from Cooperative and other

Banks under tie-up arrangement.

Crushing performance of these three Sugar Industries is furnished below:

Sugar Industries

2014-2015 2015-16 2016-17

Crushed

(MT)

Sugar produced (Qntl)

Recovery (%)

Crushed

(MT)


Recovery (%)

Crushed

(MT)


Recovery (%)

Aska Coop Sugar Industry

98082 83260 8.4 10,9295 85,475 07.83 77238 60846 7.94

Bargarh Coop Sugar Mill

34991 27220 8.01 23000 17985 7.89 13428 6040 5.08

Bijayananda Coop Sugar Mill

The Mill has been stopped its crushing operation after 2013-14 season.

Sugar Industries Crushing Season 2017-18

Crushed

(MT)

Sugar produced (Qntl) Recovery (%)

Aska Coop Sugar Industry 73770 58000 7.88

Bargarh Coop Sugar Mill Nil Nil Nil

Bijayananda Coop Sugar Mill Nil Nil Nil

Bijayananda Cooperative Sugar Mill was registered under Odisha Self–Help

Cooperative Act, 2001. After repeal of the OSHC Act2001 in 2013, the Cooperative Sugar

Mill have been vested with Registrar of Cooperative societies, Odisha and Collector,

Bolangir has been nominated as management in Charge. This Sugar Mill has ceased to

function after the crushing season 2013-14 in view of this mill has been taken over by

Odisha State Cooperative Bank (OSCB) as per court order for processing realization of its

bank dues. Divestment process of Bijayananda Coop. Sugar Mills is under progress by

OSCB. During the last crushing Season 2013-14, 36627.198 M.T Sugarcane was crushed

by the Bijayananda Coop. Sugar Mill.

Each year State Govt. is providing Govt. Guarantee for availing cash credit loan

from banks for immediate payment of cane dues of the farmers.For the crushing season

2017-18 the Govt. has provided Government gurantee for rs.15.00 crore in favour of Aska

Cooperative Sugar Industries Ltd, Aska for availing Bank loan for payment of care dues to

farmers in time.


21

The Cooperative Sugar Mills Aska & Bargarh have been regularly assisted through

financial assistance through State Budget route for modernization / renovation of their plant

& Machineries. However the both bills have started including continuous huge losses due to

low capacity utilization and the financial position has come to doldrums for which the

National Sugar Institute, Kanpur of Ministry of Consumer Affairs, GOI has been engaged as

consultancy services to study on possibility of revival and financial outlay for revamping of

the Bargarh Coop. Sugar Mill. They have visited the Bargarh sugar Factory during February

2017. Steps are being taken for revamping of both Cooperative sugar Mills.

During the year 2017-18, state Govt. has provided one time Financial assistance in

favour of Bargarh Cooperative Sugar Mills Ltd. to repay outstanding bank loan amounting to

Rs.205.00 lakh and Rs.219.00 lakh for payment of outstanding cane dues of farmers for

crushing season 2016-17.

6. Regional Cooperative Marketing Societies (RCMS)

These Cooperative Societies are middle tire structures with MARKFED the Apex

Cooperative organization. The objective of RCMs are to provide inputs like fertilizer and

pesticides to the farmers through PACS and to process the agricultural produce of farmer

by established rice Mills & oil extraction Mills from prior to the year 1984 the RCMs was the

focal point for supply of fertilizer to farmers of PACS. But from the year 1984, MARKFED

made direct supply of fertilizer to PACS and the RCMS were taken out of the fertilizer

supply chain. Due to down fall of business and sustaining continuous loss, the RCMS are

became unviable unit and for want of support from Govt. on procurement of paddy the

Rice Mills of RCMS are became defunct, for which out of total 65 RCMS, only 51 are now

functioning and rest 14 are liquidated. Now in the RCMs have few staff and managing their

establishment cost from the Godown rent and other consumer like Cement, iron, Asbestos,

Kerosene business. RCMS have Godown capacity of 90,000 MT but these are in

dilapidated condition & needs repair.

Out of 51 RCMS, 28 RCMS are distributing fertilisers, Kerosene and other essential

commodities to the members in remote area out of 37 RCMS Rice Mills, 13 Rice Mills have

been sold as plant and machineries have been obsolete.05 Rice Mills have been leased out

to private parties and 19 Rice Mills are not functioning and in defunct stage. Now in spite of

drastic reduce in their business turnover, out of 51 RCMS, 27 RCMS are running in profit for

last three years, through the profit margin is merger one. Steps are being taken for revival of

all these RCMS by utilizing their valuable land, infrastructure set up and properties as these

RCMS are located in Town area and prime location & by accessing local demands of

consumer goods, proper rent from own godowns & Market complex and marketing of

surplus agriculture produce available in their locality. For which reputed consultancy firms

will be engaged to study and prepare DPRS for consideration at Government level.


22

7. Odisha Consumer’s Cooperative Federation (OCCF) Ltd.

The Odisha Consumers Cooperative Federation (OCCF) Ltd, Kharvel Nagar,

Bhubaneswar is an apex organization in the consumer Cooperative Society bearing

registration No.43KH dt. 03.03.1965 and functioning since 23.04.1965 which makes

wholesale supply of Consumer goods & officials stationaries through its member

consumer Cooperative Societies and others for sale through its 13 branches in

different places out of which 10 are wholeselling branch at Baripada, Jeypore,

Malgodown(Cuttack), Rourkela, Dhenkanal, Berhampur, Sambalpur, Phulbani,

Kesinga, and 4 nos are in the name and style of “Sahojaga Super Bazar” at Puri, &

“Bhanjaprabha” at Cuttack, Bhubaneswar (HO Campus) and Bhubaneswar ID

Market branch Besides OCCF has one mini press and one Food processing unit in

its Head office premises at Bhubaneswar.

The OCCF is supplying Amulspray on being appointed as distributor of

Gujurat Mill Marketing Federation, Anand and with the name of Bhanjaprabaha” with

branches are making supply to esteemed institutions like Shri Jagannath Temple,

Sainik Schook, Navodaya Vidyalaya (Phulbani, Berhampur), Raj Bhawan and many

other Govt. & Private institutions. The Business turnover of OCCF during 2017-18 is

Rs.3152.78 lakhs as on Nov. 2017.

The Business turnover of OCCF for last five years is as under:

(Rs. in lakhs)

Year 2012-13 2013-14 2014-15 2015-16 2016-17

Business turn over 3099.46 4879.97 7743.16 6151.18 5243.41

Profit / loss (+)0.90 (+)10.73 (+)69.91 (+)2.62 (+)2.99


23

CHAPTER-IV

Revitalization of Short Term Credit Cooperative Sector:

1. Share Capital Investment in Short Term Cooperative Credit

institution:-

The objective of the scheme is to provide share capital Assistance to the Short Term

Cooperative Credit Institution (OSCB+CCBs+PACS) to strengthen their equity base for

enhancing their borrowing power and there by enable them to provide required agricultural

credit to the farmers of the state. As per Vaidyanathan Committee recommendations, the

state Govt. shareholding is capped at 25% of the total share holding of Banks/PACS. A sum

of Rs.800.00 lakhs was provided during the year 2017-18 to 350 PACS towards Govt. share

capital investment at PACS level like previous year Rs.800.00 lakhs for the purpose.

The State Government entered into Memorandum of Understanding (MoU) with

NABARD and Government of India for revival and restructuring of Cooperative Credit

Structure (CCS) on the basis of recommendations of the Prof. A. Vaidyanathan Committee

Report on 16.11.2006. As per the assessment by the special Audit the Govt. of India and

the State govt. have released their share towards recapitalization assistance of Rs. 710.64

crores and rs. 83.78 Crores respectively in favour of the PACS and DCCBs.A State Level

Implementing & Monitoring Committee (SLIMC) was constituted by the Government under

Chairmanship of the Development Commission on the basis of the MoU to oversee

implementations of the Vaidyanathan Committee Recommendations.

Similar committee DLIMC (District Level Implementing and Monitoring Committee) in

each District has been constituted with the Collector of the District as the Chairman and the

DRCS, the NABARD representative and Secretary, DCCBs to review implementation of

Vaidyanathan Committee recommendation on the basis of the MOU.

In spite of infusion of capital to the short-term Cooperative Credit Structure by way of

implementation of Vaidyananthan Committee. Recommendations, the expected turnaround

could not be achieved. Large number of PACS are continued to be loss marking units. But

after participation in paddy procurement system in the State since 2009-10 season at

present, by large number of PACS (around 2558 PACS) as commission agents have

started earning sizable income and simultaneously improving their financial parameters. All

17 CCBs have got Banking License by RBI with the diluted criteria, under the revised

guidelines, they have to achieve their Capital to Risk-Weightage Assets Ratio (CRAR) to

7% by 31.3.2015 and 9% by 31.03.2017. Non-achievement of CRAR level will warrant

review of licensing by RBI. For which during the year 2016-17, the State Govt. provided

Rs.21,25,72,000 to OSCB and Rs.1,83,46,000 credit and Rs.2,63,09,000 to Bolangir DCCB

and Mayurbhanj CCB respectively in shape of Govt. share capital investment to achieve

CRAR 9% by 31.03.2017.It is proposed to release Rs. 34.00 crore to OSCB during the


24

financial Year 2017-18 towards Govt. share capital investment to achieve its CRAR to 10%

to enable NEFT facilities to OSCB, which is under consideration of Reserve Bank of India.

2. CORE BANKING SOLUTIONS IN OSCB & DCCBs

In the year 2013 the OSCB has taken the lead to implement Core Banking Solution

(CBS) to automate its operations together with the affiliated Central Cooperative Banks.

Urban Cooperative Banks with Date Centre at OSCB level connectivity of all the retail out

lets of the OSCB, CCBs and Urban Coop. Banks under one roof to host the data base with

connectivity.

The status of the CBS is given below.

The State Govt. has provided financial assistance of Rs.44.00 crores for CBS

platform.

A State of the Art Core Banking Data Management Centre is instituted in the OSCB

to implement the integrated computerization project of OSCB, DCCBs, UCBs and

PACs.

The Core Banking solution has been grounded successfully in all 355 branches of

Odisha State Cooperative Bank (14) and the affiliated DCCBs (341) including

construction of Data Management Centre and connectivity to the CBS platform.

BSNL have provided connectivity to 314 units whereas, the remaining 41 units have

been connected through VSAT.

The Disaster Recovery Centre is hosted in the BSNL Data Centre at Faridabad.

The OSCB has taken direct membership of National Payment Corporations of India

(NPCI) and has issued of Ru-pay Debit Cards to its and DCCBs customers with

accessibility to ATM of all Banks across the Country with effect from 29.09.2015 and

all the 17 Central Cooperative Banks are being taken as Sub-member of OSCB at

NPCI level.

OSCB has acquired National Automated Clearing House (NACH).

OSCB has installed 14 nos. of New ATM in its Branches. Besides, the all 17 DCCBs

have installed ATM in their Head office & sadar Branches.

OSCB has obtained membership of Real Time Gross Settlement (RTGS) w.e.f.

2012. The CCBs are being provided Sub-membership of RTGS.

The OSCB has prepared an interface for direct transfer of paddy procurement

proceeds to the farmers accounts from OSCB through the CBS System and

implemented this system at 100 percent success during KMS 2016-17 in 294 P-PAS

Blocks and made payment directly to the farmers accounts through DBT towards


25

cost of paddy procured during KMS 2016-17.by PACS on behalf of OSCSC,

MARKFED & TDCC.

NEFT facilities to OSCB are under consideration of Reserve Bank of India.

3. Computerization of Primary Agriculture Cooperative Societies (PACS)

State Government has decided to computerize 2600 PACS in 1st phase with a view

to strengthening and to bring transparency in service delivery to the member farmers and

conversion of Kisan Credit Cards to Rupay Kisan Cards. It has been decided to develop the

computerization of PACS level with connectivity to the Data Centre established at OSCB

level to get real time data from the Societies. In order to provide hassle free credit to the

farmer’s members of PACS, the existing CBS software to OSCB shall be extended to the

PACS through computerization, so that the KCC holders can use the system and the

records of the PACS shall be maintained in the Common Accounting System prescribed by

NABARD. Since PACS do not form a part of the Banking industry, the transactions through

digitized KCC Cards will be reflected on the PACS Software and the same will be mirrored

in the CBS software of OSCB, which would facilitate issue of digitized Ru-pay Kisan Cards

through which the farmers can access their credit limits through ATM and PoS networks in

the National payment gateway of NPCI. This will be implemented simultaneously with

implementation of the PACS Computerization Project by 31.03.2018. The work is entrusted

to Odisha State Cooperative Bank Ltd., Bhubaneswar. Government has provided financial

assistance Rs.48.77 crores for computerization of 2600 PACS.

A road map is drawn for this purpose to review data capturing, site preparation and

other issues so as to complete the computerization programme at 2600 PACS level in 1st

phase by the end of 30.06.2018.

Progress of PACS computerisation as on 30.03.2018

a) No of PACS to be computerized - 2600

b) No of PACS data already migrated to CBS- 2517

c) Back dated voucher entry going on- 2457

d) Ready to go online - 1919

e) PACS already online- 1750

This computerization project covering all the PACS in the State of Odisha will be a

unique and 1st example in the Country. However, in around 581 PACS connectivity is not

available which has posed serious problems for computerization of PACS. Proposal has

been submitted for installation of Solar VSAT in 581/PACS at the cost of Rs.12.65 crores

under RKVY. The Hon’ble Chief Minister Odisha has inaugurated the PACS

computerization and launched distribution of Rupay Kisan Cards on 01.07.2017.


26

4. Conversion of Kisan Credit Cards to Rupay Kisan Cards

The State Government took the decision to convert all the Kisan Credit Cards into

Ru-Pay Kisan Cards to empower the farmers members of PACS to access their sanctioned

credit during Khariff & Rabi season through the ATM of all other bank, micro ATM & PoS

network through National Payment Corporation of India network by 31.03.2018. The network

is entrusted to OSCB for which Government is providing financial assistance through

Budget/ RKVY source. As on 30.03.2018, 17,12,680 Rupay kisan Cards have been

distributed as against target of 21.44 lakh.

5. Establishment of Common Service Centres at PACS Level:

With a view to implementing National e-Governance Programme and providing

essential services including Government to citizens and business to citizens services, the

Cooperation Department in collaboration with the Information Technology Department have

launched a programme to establish Common Services Centres at PACS level. So far,

Common Services Centres have been established at 373 PACS which will be expended to

1000 PACS by 2018-19. This has enabled PACS not only to render services to the people

at remote places but also generate income for their sustenance. Besides literacy centres

(FLSC) are also set up at the services to the farmer members.

6. Integration of Bhulekh of Farm Families with dispensation of crop loan

As a corollary to the computerization of PACS, it has been decided to integrate the

data base with regard to land details of farmer Members of PACS with the Bhulekh, the land

data base of the Revenue Deptt. to ensure transparency in dispensation of credit in relation

to the land holding, crops cultivated, scale of finance of various crops, the capacities of the

farmer to sale surplus produce through the Paddy procurement system. Integration of land

detail with State Bhulekh portal is yet to be done.

7. Aadhaar seeding to all the accounts of PACS

Aadhaar seeding of all the loan accounts of the farmer member of PACS is going

on. As on 30.03.2018, 1050181 accounts from out of 49,99,342 have been seeded through

an App developed for the purpose.

8. Construction of office building of PACS (those are functioning in rented

building)

The Primary Agricultural Cooperative Societies (PACS) is functioning as One Shop

Centre by catering to the needs of the farm families in the rural areas. Besides, credit

dispensation, they have been providing multi-services like providing fertilizers, pesticides,

seeds to the farmers and around 97% of the Paddy procured under MSP is only through the

PACS as commission agents. In order to bring transparency in their working and to provide

effective services to the farmers, the Govt. has assisted computerization of the 2600 PACS.


27

Out of 2708 PACS/LAMPCS functioning in the State, 759 PACS have no office building of

their own. Steps have been taken for construction of 113 numbers of office building in 1st

phase, accordingly in the year 2015-16 financial assistance amounting to Rs.3,95,50,000/-

was released and during the F.Y 2016-17, Rs.689.50 lakh was released for construction

further 197 office building of PACS in the State of Rs.3.50 lakh per PACS. During F.Y 2017-

18, Rs. 4.95 crores was released to 99 PACS for the purpose.

9. PACS Development Cell in CCBs (PDC)

NABARD has provided financial assistance for constitution of PACS Development

Cell (PDC) in the 9 Central Cooperative Banks with the objective of providing assistance to

the Societies in the following areas, Business planning, Resources Planning, Profit

Planning, Development of Financial products and services, Developing Non-Financial

Services, Designing Systems and Procedures, liaison with CCB for effective functioning of

PACS; Handholding PACS in its relationship with other stakeholders, Documentation of

best practices in PACS, Providing performance feedback in CCB.

The PDC are now are functional in Angul, Balasore, Bolangir, Boudh, Keonjhar,

Koraput, Sambalpur, Puri & Mayurbhanja CCB.

The cost of each of the PDC have been stipulated by NABARD at Rs.44.40 lakh of

which, NABARD assistance has been fixed at Rs.36.00 lakh and the CCB are bearing

Rs.8.40 lakh per PDC.

As all the DCCBs are not covered under the PDC project, the State Govt. has

provided financial assistance amounting to Rs.150 lakh for setting up PACS Development

Cell (PDC) in rest 8 CCBs during 2016-17.

10. Bank on Wheels

Odisha is charaterised by hilly and inaccessible terrain in tribal infested

areas. With a view to providing minimum Banking and financial services to the

people in these areas, the Odisha under leadership of OSCB is the pioneer State in

introducing mobile banking facilities in the inaccessible areas and hill tracks 20 nos

of Blocks have been identified where the people residing in these area are far away

from accessing banking facilities. The Govt of India and the State Government have

come forward to assist Rs.6.00 crores under RkVY fund for this purpose and

according 20 nos Bank on wheels having ATM and KKOSK facility have already

rolled out in above 20 identified Blocks in 10 tribal districts under banner and direct

control of concerned District Central Coop. Bank as their Bank branch. These Bank

on wheels shall be embedded with ATMS linked to the payment gateway of National

Payments Corporation India (NPCI) through which all transactions in respect of DBT

can be effected.


28

11. Integrated Cooperative Development Project: (ICDP)

About the Project :

The Scheme Integrated Cooperative Development Project (ICDP) was

introduced in the Seventh Five Year Plan for promotion of various economic

activities through cooperatives in the sphere of agriculture and allied sectors like

Fishery, Poultry, Dairy, Handloom and Rural Industries etc. in the selected districts.

This scheme of the Corporation has an integrated area based approach taking into

account the local needs and resources. The Scheme aims at development of

cooperatives in agriculture and allied sectors, transforming cooperative as multi-

purpose entities and promoting horizontal & vertical functional linkages so as to

enable the cooperatives to cater to the overall needs of rural community. The

scheme is funded by the National Cooperative Development Corporation (NCDC).

Funding Pattern :

The NCDC-assisted ICDP Scheme, presently, has a funding pattern for

cooperatively under developed states like Orissa where 20% subsidy is available for

creation of infrastructural facilities and also for margin money assistance for

business development programme under the restructured central sector scheme. As

per NCDC norms, the State Govt. is to provide 50% as loan, 20% as subsidy and

balance 30% as share capital totalling to 100% to the PIA towards various activities

at the level of the cooperative societies.

ICDP Angul and Dhenkanal :

After completion of two ICDP projects namely ICDP Koraput and ICDP

Malkangiri. NCDC has funded two project namely ICDP Angul and Dhenkanal under

Angul United Central Cooperative Bank which envisaged project cost of Rs.13.32

crores and Rs.12.62 crores respectively and NCDC has allowed to complete these

projects by 30.06.2016. As some of items works of the above projects are not

completed . Now NCDC has allowed to extend the project period upto 31.03.2018.

Under ICDP Schemes financial assistance to the PACS have been provided

for repair of Godowns, construction of new Godowns ,Paddy Procurement Platform

,Deposit Counters, Boundary wall etc.


29

The details of project as under

ICDP Angul ICDP Dhenkanal

Date of Sanction of Project 31.01.2011 02.02.2011

Amount Sanctioned 12.61 Crore 13.32 crore

Completion of the Project 30.06.2016

(Now extended)

30.06.2016 (Now extended)

Total Release of Fund Rs.25,32,45,000.00

(for both ICDP projects)

These two ICDP projects will be completed by 31.03.2018

It is now proposed to implement new 10 ICDP projects in 1st phase under

NCDC & RKVY assistance in tribal infested district and cyclone prone district such

as Kalahandi, Nabarangpur, Nuapada, Sundargarh, Rayagada, Mayurbhanj,

Ganjam, Puri ,Cuttack & Jagatsinghpur for development of infrastructural facilities of

the PACS of these districts. Financial assistance so provided is reimbursed by the

PACS excluding the State share & NCDC share. These scheme will be covered all

26 district (except koraput, Malkangiri, Dhenkanal & Angul District).

12. Business Correspondents of Banks:-

It is proposed, 100 PACS to be selected on a pilot basis to work as business

correspondents for DBT facilities for commercial Banks in addition to the Central

Cooperative Banks concerned.


30

CHAPTER-V

CROP INSURANCE

Crop Insurance Scheme is one of the instruments that protect farmers from

production risks, mainly arises from the vagaries of weather. The State Government is

implementing the broad-based scheme for Crop Insurance introduced by the Govt. of India.

Gram Pancyhayat as unit of area of Crop Insurance for assessment of yield loss for paddy

have been adopted from Rabi 2010-11 Crop Season.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

The Government of India, Ministry of Agriculture & Farmers Welfare have launched

a new crop insurance scheme “Pradhan Mantri Fasal Bima Yojana (PMFBY)” for

implementation in the country from Kharif 2016 in place of National Agricultural Insurance

Scheme (NAIS). While NAIS covered only standing crops, the PMFBY covers prevented

sowing/ planting risk, post-harvest losses and localized calamities apart from standing crops

to widen the scope of crop insurance. The actuarial premium is followed in the scheme so

that the farmers will pay 2% of premium of the sum insured in Kharif and 1.5% in Rabi and

5% for horticulture crops. The differential amount between actuarial premium and the fixed

premium collected from farmers will be borne by the Central Government and State

Government on 50 : 50 basis. The premium rates are decided by inviting bid from the

empanelled Insurance Companies. It covers both loanee and non-loanee farmers but it is

compulsory for loanee farmers.

The Government of Odisha have implemented the scheme from Kharif 2016 season.

As per the operational guidelines of PMFBY 30 districts of the State have been grouped into

clusters for smooth implementation of the scheme by insurance companies selected

through bidding process.

The notified crops for insurance in the State under PMFBY during Kharif are Paddy,

Groundnut, Cotton, Turmeric and Ginger whereas notified crops for Rabi 2016-17 are

Paddy, Groundnut, Mustard, Potato, Blackgram and Greengram.

Extensive use of technology for assessment of loss such as remote sensing, drone,

mobile technology shall be used for accurate and quick assessment of losses.


31

Premium Rates

The rate of Insurance Charges payable by the farmer will be as follows:

Season Crops Maximum Insurance Charges payable

by farmers (% of Sum Insured)

Kharif All foodgrain and oilseeds crops (all cereals, millets, pulses and oilseed crops).

2.0% of Sum Insured (SI) or Actuarial rate, whichever is less

Rabi All foodgrain and oilseeds crops (all cereals, millets, pulses and oilseed crops).

1.5% of Sum Insured (SI) or Actuarial rate, whichever is less

Kharif & Rabi Annual commercial/ annual horticultural crops

5% of Sum Insured (SI) or Actuarial rate, whichever is less

Coverage of Risks

The following stages of the crops and risks leading to crop loss are covered under

the Scheme.

(a) Standing Crop (Post-Sowing to Harvesting): Comprehensive risk insurance shall be

provided to cover yield losses due to non- preventable risks, viz. Drought, Dry spells, Flood,

Inundation, Pests and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm,

Cyclone, Typhoon, Tempest, Hurricane and Tornado.

(b) Post-Harvest Losses

Coverage shall be available only upto maximum period of two weeks from

harvesting for paddy in case of occurrence of cyclone, cyclonic rains and unseasonal rains.

(c) Localized Calamities: Loss/ damage resulting from occurrence of identified

localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified

area.

(d) On Account Payment of Claims due to Mid-Season Adversity

Insured farmers shall be provided immediate relief in case of adverse seasonal

conditions during the crop season viz. floods, prolonged dry spells, severe drought etc.,

wherein expected yield during the season is likely to be less than 50% of Threshold yield.

Achievement Under PMFBY Scheme:-

1763578 nos. of farmers have been covered in Khariff 2016 under PMFBY with

farmers premium collected of Rs.134.70 crores and the State share of premium comes to

Rs.197.39 crores. During Rabi 2016-17, 61837 no. of farmers have been insured under

PMFBY with farmer premiums collected of Rs.6.12 crores and state share of premium


32

Rs.0.82 crores The insurance claims amounting to Rs. 426.15 crore to 1,67,115 no of

farmers has been settled for Kharif crop season 2016. The claims of the crops for Rabi

2016-17 is Rs.2.10 crores and 2055 Nos. of farmers have received compensation amount.

During Khariff 2017, 1763831 farmers are insured under PMFBY with premium collected

Rs. 161.98 crore from farmers and state Govt. released premium to the tune of Rs.173.86

crores (50%).During current Rabi 2017-18 season 61,837 farmers have been covered. The

assessment of the claim for Khariff 2017 is under process.However payment of claims due

to Mid-season adversity during khariff-2017 (paddy) has given to 7825 farmers of Angul

District with amount Rs. 2.55 crores and Rs. 6.50 lakhs to 63 farmers of cuttack District.


33

CHAPTER-VI

COOPERATIVE EDUCATION AND TRAINING

Member education and dissemination of information is one of the fundamental

principles of Cooperative as enshrined in the principle of the Cooperative s by the

International Cooperative Alliance. The Odisha State Cooperative Union Ltd.(OSCU) an

apex organisation of the State Cooperative movement registered on 09.07.1948 having 5

nos of training centres i.e at Bargarh, Baripada, Koraput, Gopalpur-on-sea &

Headquarter(Bhubaneswar). 18 District Cooperative Unions , Agricultural Cooperative Staff

Training Institute (ACSTI) Bhubaneswar of Odisha State Coop Bank(OSCB) and the

Madhusudan Institute of Cooperative management (MICM), Bhubaneswar under National

Council for Cooperative Training provides training and orientation to members and

employees of the Cooperative s. They also organise work shop and seminars to sensitise

the members and inculcate the Cooperative spirit and values. The constitution (Ninety

Seventh Amendment) Act, 2011 provides that the promotion of Education and Training of

members of Cooperative Societies will be the responsibility / obligation of respective State

Government.

All the primary,Central & Apex Cooperative Societies of the state are the member of

the OSCU by virtue of statutory provision in OCS Act,1962 under Sec-17 and read with

Rule-19 of OCS Rules,1965 except Short Term Credit Cooperative societies(STCCS). After

implementation of Vaidyanathan Committee Report and amendment of OCS Act, the

STCCS are discontinued as the members of the union. The total Membership of the Union

as on 28.02.2017 is 1263.

The activities of the OSCU is comprising of Cooperative Education,training,Publicity

& Propaganda.The OSCU Union has been taken up total 63 nos of Education programme

with 2539 nos. participants.70 nos. of training programme with 4184 participants,two

workshop/seminar with 886 participants as on Dec-2017.For information activities,Union is

bringing out a fortnightly News Letter “The Samabaya samachar” and one quarterly

Magazine “The kalyani”. A state Level function also organised in every during the All India

Cooperative Week from 14th-20th November where the best working Cooperative societies

in different sectors are brought to limelight for their outstanding and all round achievement

by awarding prizes which imbiling them with the spirit of competition to achieve the best with

their continued efforts.


34

CHAPTER-VII

STORAGE (GODOWN) CAPACITY

• Storage godowns is an important infrastructure in Agricultural Marketing Sector at

present. Storage is a major problem in the State of agriculture produce for which farmers

are facing post-harvest loss and poor price discovery.

• The warehousing infrastructure in different institution/ organization under

Cooperation Department are available mainly for storage of paddy, seeds, other agricultural

produce, fertilizer, agricultural implements and cements etc.

• Cooperation Department is being facilitated the storage (godown) availability at

PACS, MARKFED, RCMS, RMC and OSWC level by their own sources and under different

financial assistance from Budget/ RKVY/ RIDF of NABARD scheme and Private

Entrepreneurs Guarantee (PEG) scheme etc..

• There is a wide gap between requirement of godown space and availability in the

State. It is proposed for providing storage facilities at least one godown for storing of

fertilizer stocks and one for storage of agriculture produce of farmers at PACS level under

different financial assistance scheme of NABARD/ RKVY/ own funds where there is no

adequate storage facility available particularly in hilly and remote areas in order to extend

required services to firm families under one roof.

• The Cooperation Department is being taken responsibility and supporting private

sector investors to investment in large modern agri-warehousing sector in the State to

provide scientific storage facilities for commodities like maize, pulses, oilseeds, potato,

onion, cotton and spices by providing Government support in form of Business Guarantee

for a limited period by introducing a new scheme “Private Entrepreneur Business Guarantee

(PEBG)” .

(A) Existing Storage (Godown) Capacity in different institutions/ organizations under

Cooperation Department (As on 30.03.2018) as under;

(Capacity in MT)

Sl. No.

Name of the Institution/Organisation

No. of Go down Capacity in MT

1 PACS/LAMPCS 1662 including 290 under RKVY 206300

2. PACS/LAMPCS 333 RIDF godowns 150630

Total 3,56,930

3. MARKFED 212(including hired of 46 nos. go downs) 1,33,340

4. RMCS 600 2,79,720

5. Odisha State Warehousing Corporation

65 (including hired Go down 18400 MT) 5,15,950

6. RCMS/Sugar Mills 590 93,710

Grand Total 13,79,650 M.T


35

(B) Besides, Scheme wise additional storage capacity (godown) proposed for

creation within 2018-19 in different organization under Cooperation

Department are as detailed below:

(Capacity in MT)

Sl. No.

Name of the Institution/organization No. of Go down Capacity in MT.

1. PACS/LAMPCS 16 under RIDF assistance

5575

2. MARKFED 40 (RKVY fund) 25500

3 RMC (Regulated Market Committee) 27 (own fund) 13750

4. OSWC 04(own fund) 23000

Total 76 67825


36

CHAPTER-VIII

AGRICULTURAL MARKETING

Introduction

Agricultural Marketing System of Odisha focuses more on promotion of private

investment, contract framing and direct marketing with an accent on free play of market

forces than on a strict control regime of a Regulated Marketing Mechanism. Government

has established 66 RMCs across the state with the State Agricultural Marketing Board as

Apex organisation to strengthen agricultural marketing mechanism in the state. There is no

monopoly of markets owned by agricultural produce market committees in the State.

Besides RMC markets, there is a network of Municipal / Panchayat / Private markets

operating in the State catering to the agricultural marketing needs. However, the marketing

apparatus of the State has got infrastructure, system and process in place to implement

good marketing practices for different commodities, creating marketing interest for

agricultural produce, enhancing competitiveness in markets, dissemination of Real Time

market information with an objective to safeguard of interest of the producer, seller and

ensure optimum price realisation. The agricultural marketing system is governed under the

Odisha Agricultural Produce Markets Acts-1956 and Rules,1958.

The Agricultural Marketing sector of the State comprises the Directorate of

Agricultural Marketing (DAM), The Odisha State Agricultural Marketing Board (OSAM

Board) and 66 Regulated Market Committees (RMCs) spread across 56 Revenue Sub-

Divisions of the State.

Directorate of Agricultural Marketing:

The Directorate of Agricultural Marketing is headed by the Director of Agricultural

Marketing and has six Marketing Regions each headed by a Regional Marketing Officer.

The Directorate implements the schemes / programmes of the Government of India / State

Government for providing marketing support to farmers for marketing of their produce,

creating and strengthening of infrastructure for marketing of agricultural produce for

increasing market efficiency thus enhancing farmers’ incomes.

ODISHA STATE AGRICULTURAL MARKETING BOARD (OSAM BOARD)

OSAM Board is the Apex Statutory organisation of all RMCs to take up all round

development of Agricultural Marketing in the State in a systematic manner in consonance

with the provision of OAPM Act & Rules. The OSAM Board was established in the year

1984 and functions as an superintending and controlling body of the RMCs in promotion of

organised markets, approval of budgets, execution of works and provide any other

assistance to increase efficiency of marketing of agricultural produce. The OSAM Board is


37

headed by Hon’ble Minister Cooperation, Odisha as chairman of the Board and Director,

Agricultural Marketing, Odisha is acting as Member Secretary of the OSAM Board.

So far 66 RMCs with 54 principal market yard and 412 sub market yard including

130 GP markets have been developed under the RMCs for orderly marketing of Agricultural

produces. Besides the RMCs are also playing a key role in the M.S.P operation of Paddy,

Groundnut, Maize and Cotton in order to encourage Direct marketing of vegetables to the

consumers by the farmers 41 nos. of Krushak Bazar in the pattern of ” APNI MANDI” in

Andhra Pradesh have been established in the State in the year 2000-2001.

The Regulated Market Committee (RMC) is a democratically elected body and

consists of 17 representatives of different interest groups like farmers (8), traders (4), Gram

panchayat Representatives (1), Municipality/ NAC representative (1) and Govt. nominee (3)

which includes chairman. The chairman of the RMC is Collectors/ADMs/Sub-Collectors.

Specialized Commodity Marketing:

Cotton Marketing:

Odisha has now emerged as a major producing State of high quality cotton. In order

to streamline the marketing by way of providing better marketing facilities to the cotton

growers, Nine Nos. modernised cotton market yards have been developed under

Technology Mission on Cotton (TMC) project, which are now rendering, Yeomen service to

the farmers in realising competitive prices over the years. These Cotton Market Yards are at

Jogimunda (Kantabanji R.M.C.), Karlapada (Bhawanipatna R.M.C.), Utkela (Kesinga

R.M.C.), Gunupur, Ramnaguda and Muniguda (Gunupur R.M.C.), Rayagada under

Rayagada R.M.C., Digapahandi (Digapahandi R.M.C.) and Parlakhemundi (Parlakhemundi

R.M.C.) established under Technology Mission on Cotton. The facilities provided in the

Market Yards are Godowns, Drying Platforms, covered Platforms, Parking area, Farmers

Information Centers, Farmers Rest Shed, Grading Laboratory, Fire Fighting arrangement,

overhead tank, water supply arrangements, weigh bridge, weighing scale, sanitary facilities,

concrete road, drainage facilities and compound wall etc. For orderly market of cotton a

detail guideline has been issued vide to all concerned by the Govt. and the procurement is

smoothly going on, in the RMC Market yards. Now there are 11 cotton markets with LAB

facilities.

Cotton Market : During Market year 2014-15 (November to October) 898904 qntl.

and during the year 2015-16 marketing year, 9,15,572 qntls. and during the year 2016-17,

9,53,342 qntls of cotton has been marketed through different RMC of the State mostly in 10

RMCs i.e Gunupur, Rayagada, Khariar Road, Kesinga, Bhawanipatna, Digapahandi,

Paralakhemundi, Patnagarh, Kantabanji and Bolangir RMC.


38

MAIZE MARKETING

In order to ensure competitive prices to the maize farmers by linking them to

processors and bulk buyers inside and outside the State, Government has approved a

proposal for establishment of Farmers’ Facilitation Centres (FFC) in Nabarangpur and

Gajapati districts for marketing of maize through e-auction with Technical and Market

Access Support services by NCDEX e Markets Ltd (NeML). As per the proposal, RMCs will

provide all physical facilities and manpower for farmers registration, receiving grading,

receipt/storage/release of maize, security etc at FFCs while NeML will provide training to the

personnel in charge of manning the FFCs, “Online COMLIVE” software and training on

“COMLIVE” software and comprehensive online e-marketing platform (CeMP) including

membership registration, trade fulfillment including clearing and settlement function for the

farmer deposits and sale of Maize through the online e-Auction Platform.

Accordingly, a Memorandum of Agreement has been signed between OSAM Board

and NeML on 15-12-2015 for marketing of maize in Nabarangpur and Gajapati district and

on pilot basis established 4 nos. of Farmers Facilitation Centres for marketing of maize

through e-auction.

Maize Market : There has been a phenomenal increase in production of maize in this

State & Nawarangapur & Gajapati districts are in the lead. During Market year 2014-15

(November to October), 28,71,415 qntl and during 2015-16 (November to October)

21,23,850 qntl. And during 2016-17, 25,43,356 qntls of maize has been marketed through

different RMCs of the State.

COCONUT AUCTION AND MARKETING

RMC Sakhigopal is the hub of coconut trading in Odisha. Since 1979, the RMC has

enforced regulation and price discovery mechanism through competitive auction of coconut.

During 2015-16 marketing year 1,53,23,011 nuts have been transacted in RMC Sakhigopal

through proper grading and auction.

DEVELOPMENT OF LIVE STOCK MARKETING

There are 106 live stock market yards functioning under different RMCs. For proper

management of live stock markets in the state, a livestock marketing cell is formed and is

taking expeditions steps for enforcement of the provision under “Prevention of cruelty to

animals Act,1960 “ in the RMCs live stock market yards. Steps are being taken up to

develop the live stock markets with the required infrastructure facilities for accelerating the

marketing activities of livestock and livestock products.


39

UPGRADING THE MANDIS / DIGITAL MANDIS

(A) Upgrading the Mandis of Regulated Market Committees (RMCs) in the State.

The OSAM Board has already chalked out a roadmap for upgrading the Mandis /

Market Yards under RMCs for facilitating paddy procurement operation by utilizing the

surplus fund of RMCs. Followings are the areas on which he OSAM Board has focused its

attention.

1. Construction of Concrete Threshing Floors – As per priority areas of the Govt. it

has been decided to construct at least one concrete threshing floor in each G.P.

there is a target of construction of 5003 nos of concrete threshing floors in the year

2016-17 and 2017-18 as per Joint Action Plan with Agriculture & F.E Department.

Out of which the OSAM Board has chalked out to construct 1941 nos of threshing

floor by different RMCs. The RMCs are taken up construction of 1033 threshing

floors works and till date 992 nos have been completed. As per decision taken the

OSAM Board has handed over the construction works of 902 nos of threshing floor

to Panchayati Raj Department out of target 1941 nos. The state Govt. has provided

financial assistance of Rs.70 crores to different RMCs for the purpose in the year

2016-17.

2. Construction of Godowns – The Board is also focusing its attention for creation of

godowns to supplement the storage deficit, as experienced in the past during the

time of paddy procurement operation. The RMCs are now having 750 godowns with

a total capacity of 3.70 lakh M.T. Further construction of 11 nos godowns with total

capacity of 39,500 M.T. are under progress, which will cater to the storage

requirement of farmers and paddy procurement operation after completion. The

Board is also insisting the RMCs to take up construction of onion storage godowns

to handle the perishable commodities on priority basis.

3. Basic amenities in the Market Yards – The RMCs have provided basic amenities

like farmers rest shed, permanent drinking water supply arrangements and

sanitary facilities in almost all RMC Market Yards in the State. All RMCs have

categorically instructed to facilitate the basic amenities in the Market Yards for

smooth operation of paddy procurement such as auction platform (161),open

platforms(304), covered platforms (227),farmer information centres (99),Farmers

Rest Shades(66), Cotton Markets with LAB facilities(11), maize Markets(4), Flower

Market(1), Fish Market(2), Cold Chamber for Perishables (22).

4. Available of Grading Equipment in the Market Yards – The RMCs in the

State have been given permission to go ahead with procurement of adequate

grading equipment as per recommendation of DLPC for quality testing of paddy as

per FAQ parameters in order to get minimum support price. The RMCs are also

providing such grading equipment and Tarpaulin / Polythene to the purchase centres


40

as per their requirement for smooth management of paddy procurement operation

such as Weigh bridges (228), Electronic weighing platform (9112), Automatic

Weighing & Bagging Machine(128), Paddy Cleaner (210), Moisture meter (5062),

Minigraders (2641).

(B) Promotion of Digital Mandi

(i) e-Marketing of agricultural produce through e-NAM (National Agriculture

Market)

Government of India has launched a new Central Sector Scheme ‘Agri-Tech

Infrastructure Fund” for providing assistance to States for setting up e-platform in important

markets for trading of agriculture produce in important markets and their integration to

National Agriculture Market (NAM) on 14th April 2016 to provide wider access to the

producers to larger markets across the Country and realize optimum competitive price for

the produce.

NAM is a virtual market but it has a physical market at the back end and it is

envisaged a PAN India electronic trading portal, with seeks to networks the existing

assembling market yards to create a Unified National Market for agricultural produce.

Ten(10) important markets have been accorded for setting up e-platform under the

scheme National Agriculture Market(e-NAM) w.e.f 01.04.2017. List of the markets along

with targeted commodities for marketing through e-platform is as follows.

List of Markets identified for integration with NAM

Sl. No. Name of the Markets Name of the District Proposed Commodity

1 Nawarangpur Nawarangpur Maize

2 Tikabali Kandhamal Turmeric

3 Rayagada Rayagada Cotton

4 Parlakemundi Gajapati Cashew, Maize

5 Kendupatna Cuttack Pulses

6 Nayagarh Nayagarh Pulses

7 Kuchinda Sambalpur Chillies

8 Sakhigopal Puri Coconut

9 Kantabanji Bolangir Onion

10 Koraput Koraput Ginger, Cashew

All the above markets have gone live for e-Trading of identified commodities since

01.04.2017. The total trade made by these above Mandis under e-NAM as on 31.03.2018.

Quantity in MT Value in crore

1673.28 65.5

Cocunut-201045 nos.

To comply the mandatory stipulation of Govt. of India to make marketing reforms by

amending OAPM Act on three aspects such as to make provision of (a) allowing electronic

marketing (b) single point levy of market fee in any market area of the state (c) unified trade


41

license valid across all the market of the state in relation to any agricultural produce, the

state legislature has passed the above amendments in OAPM Act,1956 on 13.09.2017

called, “the Odisha Agricultural Produce Markets (Amendment) Act, 2017” and having been

assented to by the H.E the Governor on 16th October 2017 has been published for general

information vide Odisha Gazette notification No-1674, Dt.17.10.2017.

Steps are being taken to include another 47 mandis under e-NAM for

promotion of e-Marketing. Meanwhile the Govt. has sanctioned Rs.3.00 crores

under state plan for creating basic infrastructure.

(ii) Implementation of Market Access Project (MAP) for online marketing of

agricultural produce by selected RMCs in collaboration with NCDEX-e Markets

Ltd (NeML) through OSAM Board

In order to provide better market access and competitive price to the farmers

through e-auction of agricultural produce with technical support from NCDEX e-Markets Ltd.

(NeML), it has been decided to set up e-platform in seven selected markets under RMCs in

the first phase. These e-platforms will help in optimum price discovery and ensure

marketing of agricultural produce in most competitive price in a transparent manner thereby

benefiting the farmer. The list of markets which have been identified to be covered under

the project is as follows.

Markets and Commodities proposed for online marketing under MAP

RMC Market Yard Commodity

Patnagarh Jogimunda Cotton

Bhawanipatna Karlapada Cotton

Kesinga Kesinga Cotton

Dhenkanal Mahishapat Sweet Potato

Nabarangapur Raighar Maize

Nabarangapur Umerkote Maize

Paralakhemundi Luhagudi Maize

Govt. has been constituted a District Level Monitoring Committee under

Chairmanship of Collector & D.M of concerned District vide No.677/Coop dt. 25.01.2017 for

successful implementation of “Market Access Project (MAP)” in the above selected markets

of Regulated Market Committees (RMCs) of the State.

Memorandum of Understanding (MoU) was signed by OSAM Board on 04.09.2017

with NeML for online trading of the selected commodities in selected markets under RMCs

in the state.


42

Modern Wholesale Markets

It is proposed to establish four modern wholesale markets at Mahura near

Bhubaneswar, Balughat at Rourkela and Berhampur (Haladipadar) and at Baripada by

concerned area RMC with State of the Art facilities like cold chamber, marketing, platform,

commodity wise price display board, transportation, garbage disposal facilities etc. for

wholesale trading of fruits, vegetables, cereals, pulses, fish etc. To frame design, a reputed

Consultancy Agency is being entrusted for the above modern wholesale markets to cope

with demands of Bhubaneswar and Rourkela Smart City.

Besides three modern fruits and vegetable market are functioning at Banki, kunduli

and Sambalpur.

Distribution of free mobile Phones to farmers to access Market information

For empowerment of farmers through easy availability of marketing information to

stimulate the bargaining power of the farmers on finger tips, the project, “digital mandi for

Indian Kisaan”, so developed by IIT Kanpur has launched in the year 2013 in the state.

Financial assistance were provided from the state budget under the above scheme, 18,000

free mobile phones have been distributed among farmers through RMCs in the year 2013-

14. During the year 2016-17 free mobile were distributed to 41282 nos of women KCC

holders to access market information. A provision of Rs. 3 crores is made for the year 2017-

18 for the above purpose.


43

CHAPTER-IX

MARKFED – ODISHA

AIMS & OBJECTIVES:

The Orissa State Cooperative Marketing Federation Ltd.(OSCMF) otherwise known

as MARKFED-Odisha, is the Apex Cooperative Institution was registered under Bihar-

Orissa Cooperative Societies Act’1935. It started functioning since 11.06.1949 with

mandated to provide qualitative service in the following fields like Market / distribute

chemical fertilizer, pesticides and agricultural implements to the farmers of the State,

Procurement of paddy as State Agency & Procurement of Surplus Agricultural commodities

as State Level Supporter under Price Support Scheme(PSS) to help farmers get fair price of

their produce. The paid up share capital of MARKFED is Rs.208.29 crores out of which

Govt. share is Rs. 205.39 crores (98.6%).

Manpower position:-

MARKFED has 126 units. But, the present staff strength is only 241 against

sanctioned strength of 371by RCS(o), Bhubaneswar .

Out of the above, 130 are ministerial staff. As such, there is acute shortage of quality

staff.

Sales Turnover

Year Turnover ( in crore of Rs.)

2014-15 682.07

2015-16 845.17

2016-17 619.20

MARKFED is making working profit for last 3 years.

year Working profit (Rs. In crores)

2012-13 5.11 (audited)

2014-15 6.68 (unaudited)

2015-16 3.20 -do-

2016-17 5.13 -do-

Computerization of the activities of MARKFED:-

Computerization / automation of activities of MARKFED have been entrusted to NIC,

Bhubaneswar. NIC completed the system study and required inputs have also been

transmitted to them for development of software. Although, the proposal was moved for

automation of the entire activities of MARKFED but, fertilizer monitoring system will be

developed in the first phase and likely to be implemented by March 2018.


44

Business scenario of MARKFED-Odisha:-

A) Fertilizer transaction :-

i) Sale Of Chemical Fertilizers :- Primary business of MARKFED is

distribution of chemical fertilizer to the farmers through the Cooperative

societies and private dealers having fertilizer license and contribution of

MARKFED for total sale of fertilizer of the state is about 30-35%.

The percentage of achievement in sale of fertilizers during last 2 years is given

below:

Year Target fixed

(in MT)

Total achievement

(in MT)

2015-16 3,54,000 2,95,664

2016-17 3,86,000 2,52,381

2017-18 ( As on 28.02.2018)

3,86,000 2,24,445

The sale position of fertilizers (Kharif & Rabi wise) of last 2 years is given below ;

Year Kharif (in MT)

Rabi (in MT)

Total (in MT) ‘B’ Comp. sale (%)

Turnover (in crore of Rs.)

2015-16 2,60,099 36,565 2,95,664 57 359.90

2016-17

2,22,950 29,431 2,52,381 61 349.06

2017-18 (as on

28.02.2018)

2,03,919 20526 2,24,445 67 250.26

The total target for 2016-17 is fixed to 3.86 lakh MT i.e. ( kharif - 3.25+Rabi-0.61)

lakh MT. Out of which Kharif sale is 2,22,950.465 MT ( B’-Comp: 1,47,641.600 &

Cash sale : 75,308.865) & sale during Rabi,2016-17 is 29,430.870 MT , out of which

(B’-Comp:- 7090.050 MT & Cash sale : 22,340.820 MT . Total Sale comes to

2,52,381.335 MT ( B’ Comp.- 1,54,731.650 MT + Cash Sale: – 97,649.685 MT) .

During the khariff 2017-18 (upto 30.09.2017) the MARKFED has supplied 1,43,932

MT to PACS under B component and cash sale 60,086 MT. Thus total sale comes

to 2,03,919 MT. During Rabi 2017-18 total sale as on 28.02.2018 comes to 20526

MT.

Consumption of fertilizer by MARKFED during 2017-18 (upto 28.02.2018) comes to

27 % of the State consumption. The detailed report regarding State consumption

vrs achievement of MARKFED is as under;


45

State Consumption

Year / State consumption

Kharif (in MT)

Rabi (in MT)

Total State consumption

(in MT)

MARKFED Achievement

% of Achievement

2014-15 7,61,124 3,18,340 10,79,464 2,89,991 27

2015-16 7,79,239 2,70,268 10,49,507 2,95,664 28

2016-17 7,12,402 3,60,000 10,72,402 2,52,381 23

2017-18 (upto 28.02.2018)

8.09 lakh MT

3 lakh 11.00 lakh MT 2.24 lakh MT 25

B) PADDY PROCUREMENT OPERATION: -

State Government have allotted a procurement target of 1,07,342 MT of paddy

equivalent to nearly of 72,500 MT CMR during KMS, 2017-18(Khariff) from 4 districts to

MARKFED. However, as against the above target, MARKFED have procured 96,161.24

M.T paddy (from 25556 farmers) equivalent to 64951.711 MT of rice and delivered

37,069.301 MT rice to FCI as on 31.03.2018.

Sl. No.

KMS Years Nos. of

Districts allotted

No of mandis

Target alloted in terms of

rice

Achievement in terms of rice

Qty.

( in MT) Value (in crore

of Rs.) % of

achievement

1 2014-15 7 99 94762 94762 217.26 100

2 2015-16 8 90

114279 114279 283.02 100

3 2016-17 4 71 99000 80845 213.79 82

4 2017-18 (as on

31.03.2018) 4

61(PACS) 72500 64951.711 149.05 89.58

(i) MARKET INTERVENTION:-

MARKFED-Odisha has participated in procurement of Groundnut pods/ Sunflower

seeds since 2013 under P.S.S operation of Govt. of India as state level supporter through

NAFED to save the farmers from distress sale and exploitation of middlemen.

MARKFED has been engaged in its procurement operation on MSP rate by utilizing

its existing manpower / funds borrowed from OSCB on Govt. guarantee during 2014-

15.However, to overcome the working capital constraints, (payment to farmers), the Govt.

of Odisha has sanctioned corpus fund of Rs.100.00 crore for procurement operation by

MARKFED since in procurement season 2016-17 on MSP rate from farmers under PSS

scheme.


46

The year wise achievement on procurement of Groundnut pods/ Sunflower

seeds/Moong(pulses) is indicated below.

Year Product Quantity Procured (in MT)

Value in Crores. District

2014 i) Groundnut shell 6,229.805 Rs.25.00 Crore

Puri, Jagatsinghpur, Balasore, Jajpur, Baripada &

Ganjam

ii) Sunflower seeds 338.750 Rs. 1.26 Crore Bhadrak

2015 i) Sunflower Seeds 76.019 Rs.0.30 Crore Bhadrak

2016 i) Sunflower Seeds 164.560 Rs.0.68 Crore Bhadrak

2017 Green gram

(Moong) 1405.880 Rs.7.66 crore

Puri,Cuttack,Jagatsingpur, Kendrapada.

Groundnut shell 947.765 Rs.4.00 crore Jajpur & Mayurbhanj

Sunflower seeds 177.000 Rs.0.70 crore Bhadrak

Action Plan for 2017-18 (Rabi) under PSS operation:-

Target for procurement Sun flower seeds - 500MT

Ground nut - 10000MT

Pulses - 5000 MT

Godowns:- MARKFED has 1.00 lakh MT capacity godowns (142) of its own for

conducting fertilizer & paddy business. MARKFED has taken up steps for additional storage

capacity of 52,500 MT with grant of financial assistance to the tune of Rs.39.16 crore under

RKVY, out of which construction of 24 number of godowns having capacity of 20,000 MT

has been completed and construction of 5 nos of godowns having capacity of 3,500 MT are

going on. Besides MARKFED has taken hired of 46 nos of godowns from RCMS and others

with capacity 13,340 MT. Thus at present total 212 godowns are available with capacity of

1,33,340 MT out of which fertilizers stored in 159 godown with capacity 86,735 MT.

COLD STORAGES:- MARKFED has 3 no. of multi-community cold storages at

Bhubaneswar(Patia), Rayagada, Jagatpur of 5000 MT, 5000 MT & 4000 MT capacity

respectively. The cold storage at Bhubaneswar & Jagatpur has been leased out to private

parties @ Rs.50,000/- and Rs.45,000/- per month respectively. Funds have been provided

under RKVY for renovation of 5000 MT multi-commodity cold storage at Rayagada and

installation of conveyor belt therein by TDCCOL.


47

CHAPTER-X

DIRECTORATE OF COOPERATIVE AUDIT

The Directorate of Cooperative Audit was set up in July, 1999 pursuant to

amendment made in the OCS Act in 1991 with a view to ensuring impartiality and quality in

audit of Cooperative institutions in the State registered under OCS Act, 1962 functioning

under the administrative control of different directorates and follow up action on audit

findings.

The Directorate of Coop. Audit headed by Auditor General of Cooperative societies

is working under the administrative control of Cooperation Department, Govt. of Odisha at

the field level there are 16 audit circles covering all the 30 revenue districts and each circle

is headed by an Assistant Auditor General of Cooperative Societies.

ACHIEVEMENTS :

Since its creation, this Directorate has taken various measures for qualitative

improvement in audit of societies functioning under Cooperative fold. The yardstick for audit

of different type of societies has been prescribed basing on which annual audit programme

is being made. Audit reports of priority societies like Cooperative banks (CCBs & UCBs),

PACS, HBCS, RCMS, WCC store, WCS, credit Coop. Societies etc. have been

standardised, which reveal complete picture of overall functioning of the concerned

societies. Efforts have been made to improve audit standards of the auditors through

conduct of several training programmes on “internal /con-current audit of Coop. Banks” and

‘ audit of PACS’ in collaboration with GIZ, NABARD and COOPERATIVE training

institutions. Con-current audit of State Coop. Bank, Central Coop. Banks, Urban Coop.

Banks and Apex Coop. Institutions is being conducted through the departmental auditors,

which facilitates maintenance of accounts by the concerned institutions and completion of

annual audit in time as well. The statutory audit of CCBs, UCBs and OSCB is being

completed within the timeline stipulated under B.R. Act, 1949.

The activities containing achievements of Directorate of Coop. Audit for the year

2016-17 and 2017-18 (up to 28.02.2018)is given here under :-

1. Audit of Coop. Societies

Due to acute shortage of auditors, audit of important Cooperative institutions like

Cooperative Banks, PACS and Weaver Cooperative Societies are being conducted in

priority basis with the available audit resources. During the year 2016-17, this Directorate

was completed audit of 1308 number of Societies for 2477 years of accounts. This includes

completion of audit of 17 DCCBs having 344 branches, 09 UCBs having 34 branches, State

Coop. Bank having 15 branches, 1110 nos. of PACS, 5 RCMs, 4 CARD Banks and 30

arrear years of Weaver Cooperative Societies. Further, concurrent audit in 10 percent of the


48

total 2708 PACS has been introduced during the year 2016-17 and the same is being

conducted by the Departmental auditors.

There are 13611 nos. of Cooperative societies for 73169 year of accounts under

different Directorate of the state including 2704 nos of PACS for 5607 years of accounts is

due for audit up to year 2017-18. Due to paucity of Auditors only 1221 number of societies

for 2490 years of accounts have been programmed for audit. Against this, Directorate has

completed audit of 776 nos. of societies for 1402 years of accounts including 690 PACS,

OSCB, 17 DCCBs, 11 UCBs as on 28.02.2018.This apart, concurrent audit of 140 PACS

has been updated out of 269 PACS programmed till 28.02.2018.

Steps are being taken to engage more Chartered Accountant Firms for up to date

audit of in case of all Cooperative Societies in the State within next financial year regularly.

2. Initiation and disposal of surcharge proceedings

Apart from power to cause audit, power to initiate surcharge proceedings to recover

audit recoverable like misappropriated amount or amounts incurred in breach of trust

thereby causing deficiency to the assets of the Cooperative Society, also vests with the

Audit Directorates under Section – 67 of OCS Act, 1962 Since, creation of Directorate of

Coop. Audit, 20435 surcharge proceedings involving Rs. 369.37 crores have been initiated

on the basis of findings in audit, special audit, inspection and inquiry reports. Out of these

15186 proceedings involving Rs.159.25 crores have so far been disposed of till end of

February 2018.

3. Special Audit:

Since creation of the Directorate, 288 number of Special Audit of concerned

societies has been conducted so far, which detected financial irregularities to the tune of

Rs.138.10 crore. As many as 23 nos. Special Audit has been conducted during the period

2016-17.

As many as 7 nos of special audit of concerned Cooperative institutions has been

conducted by the Directorate during the current year 2017-18 through which fraud,

misappropriation and other irregularities to the tune of Rs. 7.48 crores has been detected.

4. Collection of audit fee

On completion of audit of a Coop. Society, the audit fee is levied on it by the Directorate at

the rate prescribed by Govt. Since, it is non-tax Govt. Revenue, all possible steps are taken

by this Directorate in the matter. During the current year 2016-17, an amount of Rs.177.31

lakhs audit fee has been collected. During the current year up to February 2018 an amount

of Rs. 116.66 lakh has been collected towards audit fee against the demand of Rs. 230.50

lakh.


49

CHAPTER-XI

ODISHA STATE WAREHOUSING CORPORATION (OSWC)

The Odisha State Warehousing Corporation (OSWC) was set up in 1958 under the

Agricultural Produce (Development and Warehousing) Corporations Act, 1956 which was a

Central Act. The Corporation was subsequently brought under the purview of the

Warehousing Corporations Act, 1962 – also a Central Act - by virtue of which the earlier Act

was repealed.

The OSWC is working under the administrative control of Cooperation Department,

Govt. of Odisha. The authorized share capital of OSWC is Rs.300 lakhs of which Rs.180

lakh (50%) is of state Govt. and Central Ware Housing Corporation.

2. Functions

The Warehousing Corporations Act, 1962 lays down the following functions for a

State Warehousing Corporation.

To acquire and build godowns and warehouses at such places in the State, as it

may, after consultation with the Central Warehousing Corporation determine;

To run warehouses in the State for the storage of agricultural produce, seeds,

manures, fertilizers, agricultural implements and notified commodities;

To arrange facilities for transport of agricultural produce, seeds, manures, fertilizers,

agricultural implements and notified commodities to and from warehouses;

To act as an agent of the Central Warehousing Corporation or of the Government for

the purpose of the purchase, sale, storage and distribution of agricultural produce,

seeds, manures, fertilizers, agricultural implements and notified commodities;

To enter into, with the previous approval of the State Government, joint ventures

with the Central Warehousing Corporation; and

To carry out such other functions as may be prescribed.

3. Storage capacity

The Odisha State Warehousing Corporation is now operating 65 warehouses in 30

districts of the State having a total capacity of 5,15,950 MT (owned 4,97,550 MT + hired

18,400 MT)

4. Capacity utilization

The average storage capacity and its utilization for the current year up to sept. 2017

and preceding five years are furnished below:


50

(in lakh MT)

Financial

year

Average

capacity

Average

utilization

% of

utilization

2010-11 4.11 3.87 94

2011-12 4.21 3.99 95

2012-13 4.63 4.38 95

2013-14 4.85 4.60 95

2014-15 4.88 4.45 91

2015-16 4.94 4.39 89

2016-17 5.07 4.19 83

2017-18(up

to January

2018)

5.13 4.09 80

The average percentage of utilization of space by the depositors like FCI (35%),

OSCSC Ltd (41%), other depositors including private (5%) during 2017-18.

5. Turnover & Profit

The OSWC has been making profit and the position for the current year upto

January 2018 and preceding five years is given below:

(Rs. in crore)

Year Turnover Net Profit

2010-11 38.55 7.04

2011-12 49.74 14.29

2012-13 59.57 13.38

2013-14 84.27 18.00

2014-15 105.12 20.21

2015-16 95.71 6.43

2016-17 115.69 20.71(provisional)

2017-18(up to January

2018)

84.98 33.78 (provisional)


51

* Profit on operations on the basis of actual expenditure and payments before

considering interest, depreciation and taxes

6. Payment of Dividend

The authorized share capital of the OSWC is Rs.360.00 lakh of State Govt. and

Central Warehousing Corporation (CWC) with each 50%.

The Corporation is paying dividend to its shareholders regularly. The position of

dividend for the last five years is furnished below:

(Rs. in lakh)

Year Rate of Dividend State Govt. CWC

2009-10 20% on equity 36.00 36.00

2010-11 20% on equity 36.00 36.00

2011-12 20% on profit 142.90 142.90

2012-13 20% on profit 133.67 133.67

2013-14 20% on profit 180.00 180.00

2014-15 20% on profit 202.05 202.05

2015-16 30% on profit 96.45 96.45

7. Construction of additional storage godowns under State PEG,2009 Scheme

Out of total sanctioned capacity of 1,25,000 MT under State PEG-2009 Scheme at

20 locations in 16 districts of the, the construction work for 107000 MT godowns has been

completed at 17 locations. There is target for completion of remaining 18000 MTC godown

at 03 locations within 2017-18. The Odisha State Civil Supplies Corporation Ltd. is utilizing

these godowns under six years guarantee reservation scheme of Food Corporation of India.

The other godowns under construction stage are given below:-

District Location Capacity (in MT)

Keonjhar Anandapur 10500

Puri Sakhigopal 2500

Angul Badahula 5000

TOTAL- 18000 MT

8. Signing of MoU with the Government:

In accordance with the guidelines of the Corporate Governance Manual, the

Corporation has submitted the signed copy of the Memorandum of Understanding (MoU) to

the P.E. Department for the year 2016-17 in regard to achievement of the targets fixed on

State and Dynamic parameters including general measures of the Corporation.


52

9. Preservation, Maintenance and Security of food grains stock:

Due to shortage of manpower, the OSWC has engaged M/s Origo Commodities

India Pvt. Ltd., Gurgaon during June 2015 to avail the services on preservation,

maintenance and security of food grain stock stored in 05 big warehouses (1,07,000 MT)

through tender process in order to overcome the difficulties in providing scientific storage

facilities to the depositors.

10. Implementation of online billing and other financial activities:

The OSWC has initiated action for implementation of online billing and other

financial activities of the warehouses through IDCOL Software Ltd. After implementation of

the system, the billing process and financial activities of OSWC will be streamlined.

11. Introduction warehouse stock and inventory management system:

In order to develop web based application software for warehouse stock and

inventory management system for the warehouses, the OSWC has initiated action for

implementations of the system in the warehouse. Under the system, the daily receipt and

issue position, monthly stock position and other related activities of the warehouses can be

regulated smoothly.


53

CHAPTER - XII

STATE COOPERATIVE ELECTION COMMISSION, ODISHA

In pursuance to the Constitution (Ninety Seventh Amendment) Act, 2011,

formation of Cooperative Society has been included in fundamental rights for the

citizen of India under Article 19 (1)-C of the Constitution.

Further, in Part IV of the Constitution after Article 43A one new article 43B

has been inserted which speaks “the State shall endeavour to promote voluntary

formation, autonomous functioning, democratic control and professional

management of Cooperative Societies”

In pursuance to the 97th Constitution amendment Act and as per provision

under Article 243ZK(2) which stipulates “the Superintendence, direction and control

of the preparation of Electoral rolls for, and the conduct of all elections to a

Cooperative Society shall vest in such an authority or body, as may be provided by

the Legislature of a State, By law”

Accordingly, the Government of Odisha under Section 28 AA of OCS Act,

1962 constituted a separate Commission known as Odisha State Cooperative

Election Commission consisting of a State Cooperative Election Commissioner to be

appointed by the Governor, who shall hold of office for a period of five years from

the date of his appointment or he attains the age of 65 years whichever is earlier.

The Superintendence, direction and control of the preparation of the Electoral roll

for, and conduct of all elections to a Cooperative Society shall vest in the State

Cooperative Election Commission, Odisha as provided under Section 28- AA of the

OCS Act, 1962.

The State Cooperative Election Commission, Odisha, is created and

functioning with effect from 18.02.2013. Dr. R.N. Senapati, IAS (Retired) was

appointed as first State Cooperative Election Commissioner who assumed office on

18.02.2013 and continued till 18.08.2014. There after Sri Krushna Gopal

Mohapatra, IAS, (Retired) has assumed office as State Cooperative Election

Commissioner on 19.09.2014 and continuing as such.

Election of Cooperative Societies as on 31.12.2015

The OCS (Amendment) Rule 2014 and the OCS (election to Committee)

Amendment Rules 2014 have been notified on 20.08.2014.


54

The Commission is conducting election to various categories of Cooperative

Societies functioning under 8 (eight) Heads of Departments of the State

Government.

The election of 6371 nos of Primary Cooperative Societies were completed

on the pool dates fixed ie.e. 18.01.2015 & 25.01.2015.

After completion of election of Primary Cooperative Societies, election

programme of 132 nos of Central Cooperative Societies were made fixing the

date of election to 12.04.2015 and 19.04.2015, Election of 124 nos of Central

Cooperative Societies were completed.

After completion of Primary & Central Cooperative Societies, total 17 nos of

Apex Cooperative Societies Election was conducted on 12.07.2015. Then the

election of Odisha State Cooperative Union Ltd and OBCFDC Ltd. was

conducted on 11.10.2015.

Elections of 6514 numbers of Cooperative Societies (including Primary,

Secondary & Apex) have already been completed as on 31.12.2015 as per

statement given below.

Sl No

Name of the Directorate/Department

No of Cooperative Societies where elections completed

Primary Cooperative

Societies

Central Cooperative

Societies

Apex Cooperative

Societies

Total

Registrar of C.S. 3551 106 9 3666

Textiles 534 - 2 536

Handicraft & Cottage Industries

111 - - 111

Animal & Husbandry 44 1 1 46

OMFED 1258 10 1 1269

Sericulture 85 - - 85

Fisheries 609 2 1 612

Industries 179 5 3 187

ST & SC Dev. Deptt. - - 1 2

W & CD Deptt. - - 1 1

G.Total 6371 124 19 6514


55

Conduct of election during the year 2016 & 2017

a). Election to Central Co-operative Societies:-

The election of Balasore-Bhadrak Central Co-operative Bank Ltd was

conducted on 28.02.2016.

b). Election to Primary Co-operative Societies:-

The Commission took up the election of the Primary Cooperative Societies,

where the election was disrupted or could not be completed during the first round of

election conducted in January 2015. The election of 430 numbers of such

Cooperative Societies have been conducted on 22.05.2016, 29.05.2016,

05.06.2016 and 12.06.2016 followed by election of President and Vice-President.

c). By-Election to fill up casual vacancy:-

Vacancies arising out of death, resignation or removal of any member or

President/Vice-President are being filled up by conduct of election as per the

prescribed procedure. 2016-17:- 35(Thirty Five) No of By-Elections held.

Awareness programme:-

It is also observed during last election that the Chief Executives of

Cooperative Societies and the members are not well versed about their duties,

responsibilities, rights etc after introduction of new provisions in regard to election of

Co-operative Society.

Accordingly, the State Co-operative Election Commission has taken up

Awareness Programme for the Chief Executives of PACS & LAMPCS in order to

familiarise them about their duties, responsibilities, accountability and penal

provisions of law in the election of the Co-operative Societies.

The awareness programme taken up is as follows:

Place Date No. of Chief Executives

Participated

Baripada: On 27.12.2016 Participants- 52

Banki: On 05.01.2017 Participants – 88

Phulbani: On 12.01.2017 Participants-72

Berhampur: On 19.01.2017 Participants- 106

Balasore: On 02.02.2017 Participants-249

Aska On 09.02.2017 Participants-191


56

Publication of Manual for Election of Co-operative Societies in Odisha.

The Commission has published a Manual containing the relevant provisions

of the OCS Acts, Rules and the Circulars and Instructions of this Commission

issued from time to time which would be helpful to the Officers engaged in

monitoring, supervision and conduct of election at various level.

1. Conduct of Election during the year 2017-18

a). Election to Primary Co-operative Societies:-

The commission took up the election of the Primary Cooperative societies, where

the societies are suspended under section 32 of OCS Act,1962 and where the

tenure of Preliminary Committee is completed.Total 4 (four) nos. of election

conducted where committee of the societies were suspended during 2017-18.

Likewise, 6(six) nos of elections conducted where societies were newly registered.

b). By-Election to fill up casual vacancies:-

As per provision U/S 28(6) of the OCS Act,1962, the vacancies arising out of

death,resignation or removal of any member or President/Vice-president are being

filled up by conduct of election as per the prescribed procedure. During the year

2017-18, 52 (fifty two) nos of By-elections were held.

2. Annually updating of Electoral Roll:-

Apart from the above statutory functions, the commission observed during last

election that the members are not made aware by the society about their ineligibility

U/S 16,19 & 28(3) etc, and there is no scope for them to rectify any omission or

commission regarding the status of such member well in advance and for which

many members become ineligible to vote in the election of the society. In view of the

above, instructions were issued to field functionaries for updating of electoral rolls

once in a year by the societies specifying the dates of various stages for corrections,

additions and deletion of the electoral rolls. The progress of annual updation of

electoral rolls is reviewed at Divisional and Circle level from time to time.


57

CHAPTER-XIII

COOPERATIVE TRIBUNAL

The Cooperative Tribunal was created on 01.06.1987 under provision of Sec

– 67-A of OCS Act 1962. The Tribunal is a body of authority, although not a court

having all the attributes of Court. It is vested with judicial power to adjudicate on

question of Law and / or fact in a judicial manner. It is has got appellate as well as

original jurisdiction. The Tribunal is appellate court in respect of orders passed by

Registrar, AGCS and persons concerned with the powers of Registrar & AGCS.

Accordingly the orders passed U/s 28(5), 32, 67, 70, 72, 75, 103, 105 and 112-A of

the OCS Act by the RCS, AGCS, Director of Textiles & Handloom, Director of

Fisheries, Director of Animal Husbandry & Veterinary Services, Director Indian

Medicines & Homeopathic, Director, Industries, Director, Handicraft & Cottage

Industries and their subordinate officers are applicable to Cooperative Tribunal. As

its original jurisdiction u/s 67-B(1) the Tribunal adjudicates disputes arising out of

election of office bearers of the societies and disciplinary action taken against

employees who are not workmen of all the Cooperative Societies. More-ever the

Cooperative Tribunal u/s 67-B(3) of the OCS Act may call for examine records of

proceedings in which appeal lies to it, but appeal has not been filed for the purpose

of satisfying the legality and propriety of any order of decision and may revise,

modify or annual such order, if necessary. Above all, the Cooperative Tribunal is

also vested with power to review the orders u/s 111 of OCS Act.

The achievement made i.e. the disposal of cases during the year 2018-19 up to

31.12.2017.

1. No. of cases pending as on 01.04.2017 683

2. No of cases filed during 2017-18 179

( 01.04.2017 to 31.12.2017 )

3. No of cases disposed during 2017-18 226

( 01.04.2017 to 31.12.2017 )


58

CHAPTER – XIV

NEW INITIATIVES

A. Agricultural Credit

In order to provide hassle free credit to the farmer members of PACS, the following

technological intervention has been initiated by the Cooperation Department:

Improving access of all agricultural farmers to institutional credit, hassle- free credit

for both short term and long term and providing of agricultural inputs timely.

Effective implementation of Crop Insurance scheme to achieve maximum coverage

of the farmers by sensitization of farmers by organizing farmers congregation at

Block/GP level by utilization the services of Krishivigyan Kendra.

Computerisation of 2600 PACS by 31.03.2018 with connectivity to the Data Centre

established at OSCB level to get real time data from the Societies to strengthen &

streamline service delivery to the farmer-members.

21.44 lakh Kisan Credit Cards are being converted into Smart Ru-Pay Kissan Credit

Cards to provide the farmers access to the ATMs and PoS outlets of all the Banks

under the National Payment Corporation network by 30.06.2018.

Direct Benefit Transfer (DBT) of paddy procurement proceeds, agricultural inputs,

subsidy incentives, crop insurance and indemnity claims to farmers account with

NEFT facility.

In order to bring about management efficiency, the recommendation of the Malegam

Committee regarding a professional Board of Management below the Managing

Committee may be considered in Apex, DCCBs and Urban Cooperative Banks.

20 Bank on Wheels having ATM and Kiosk facility are being rolled out in 10 tribal

Districts under RKVY.

Create additional medium size Warehousing facilities & office Building (two storied

multipurpose Building) at PACS and MARKFED, RMCs level to extend scientific

storage facilities to the farmers and timely fertilizer supply in remote areas.

Integration of the land registers/ records of farmer-members of PACS with Bhulekh

by 30.06.2018 to ensure transparency in dispensation of credit and procurement

system of surplus produce.

Aadhaar seeding of all the accounts of the farmer-members of PACS by 30.06.2018.

Computerize the Urban Cooperative Banks


59

Massive survey & Farmer Awareness Programme “Cooperative at your doorsteps”

to identify different categories actual farm families farmers members such as

Horticulture, Fishery, Animal Husbandry, and agriculture sector will be take up

during 2018-19 and to sensitise them regarding the facilities available and the future

programmes of the Government.

To transform the PACS into One-Stop-Shop (Multi Service Centre) for delivery of all

agriculture related services including credit, fertilizers, seeds, storage and marketing

of agricultural produces, agro service centres etc., e-governance service etc. under

one roof.

Formation more Joint Liability groups and formulation of a scheme for the share

croppers/tenants/womens to avail loan.For crop & other activities at cheaper rates,

crop Insurance & other benefits provided by the Government in absence of tenancy

rights.So that maximum tenant farmers can be covered.

For sustainable growth in production & productivity, delivery of term loans for

creation of agricultural infrastructure, farm mechanization and improved agricultural

practices needs to be up scaled by providing agricultural allied term loans at

cheaper rates.

Farm machineries / implements need to be made available to the farmers –

especially small & marginal farmers having no resources to acquire these facilities –

on custom hiring basis by establish of 100 Agro services in selected PACS by

30.6.2018.

To constitute a State Level Committee to review agricultural rural credit and its

related issues.

B. Agricultural Marketing

• Providing marketing support to farmers by way of bringing about the integrated

development for marketing of agricultural produces.

• Effective operationalizing the National Agriculture Market (e-NAM) a Central Sector

Scheme in 10 (ten) Mandis in the State w.e.f 01.04.2017 in 1st phase and integrate

to National Agriculture Market (e-NAM).

• Agreement with National Institute of Agricultural Marketing for strengthening

Agricultural Marketing in the State.

• Preparation of a Master Plan for all RMCs in the State to utilize available funds for

development and creation market infrastructure.

• Providing free mobile phones to farmers registered under e-NAM to access market

information on agriculture produce.


60

• Establishment of Farmers’ Facilitation Centres in Gajapati and Nawarngpur districts

for marketing of maize through e-auction.

• Establishment of five wholesale markets at Mohura (Bhubaneswar), Balughat

(Rourkela), Haladiapadar (Berhampur),Takatpur(Baripada) & Banki.

• Preparation of Agricultural Marketing Policy in the State

• Engagement of a National level consultant to develop a Business Development Plan

with definite terms of reference to attract private sector players and investment for

agricultural marketing.

• Computerization of all activities of OSAM Board, RMCs, OSWC & MARKFED and

Computerization of warehouse management system through OeSL in OSWC.

• Formulation of policy of Farmers Produces Organizations (FPOs) in the State.

• Facilitation of formation of Farmers Commodity Interest Groups (100 nos) and 50

Farmers Producers Organizations (FPOs).

• Computerisation of Cotton Procurement in Mandis.

• Facilitating marketing of Mango (Angul) by FPOs and marketing of Pine Apple &

Mango (Gunupur) by tribal farmers.

• Strengthen testing / grading infrastructure for training and awareness creation on

cleaning, grading & standardization of agricultural produce / products.

• Upgrading procurement facilities of agricultural produce at the Mandis like paddy,

Maize & Cotton Crops etc.

• Ensuring payment of Minimum Support Price (MSP) rate on procuring agricultural

produce (Non-Paddy Crops) under Price Support Scheme (PSS) Operation of Govt.

of India through State Level Supporter, MARKFED, to save the farming community

from the exploitation of the middle men, thus enhance production & productivity of

crops like pulses, Oil seeds in the State. For this purpose, interest free loan (corpus

fund) is providing in each year of Rs.100.00 crore to MARKFED.

• Providing e-marketing facilities in 09 RMCs mandis of the State by establishing

project “Market Access Project (MAP)” with technical support from NCDEX-e-

Markets Ltd. (NeML) by setting up on-line comprehensive electronic platform to be

implemented through OSAM Board.

• The properties of the defunct cooperative societies like CARD Bank, RCMS and

other liquidated societies will be identified for proper utilization of the properties to

strengthen the infrastructure of working cooperatives in the State.

• Chartered Accountant Firms are being engaged to update the audit of Cooperative

Societies.


61

• Imparting cooperative education and training of the office bearers and members of

Cooperative Societies for strengthening the cooperative movement, credit

dispensation linkage with marketing system including e-trading of agriculture

produce.

• Posting of professional personnel having business management & marketing

educational qualification as Chief executive of important RMCs in the state.

• Introduction of brand in the name & style “kalinga Pure” for marketing of specialised

agri-commodities produce in the state.

***

ANNEXURE-IPROGRAMME PROVISION MADE WITHIN THE STATE BUDGET 2017-18 & PROGRAMME EXPENDITURE UP TO 31.03.2018

DEPARTMENT : COOPERATION (In TRs)

SP/ SS

OF CSP

SALA

RY(PA

Y/DP/D

A/HRA

/RC/O

A out

CS

OF

CSP/

CP

TSP

FLOW

out of

Col.5

SCP

FlOW

out of

Col.5

TSP

FLOW

out of

Col.7

SCP

FLOW

out of

Col.7

1 2 3 4 5 6 7 8 9 10 11 12

1. Cooperation

2401

1

COP16001

(OTHERS)Pradhan Mantri Fasal Bima Yojana (PMFBY) State

2650000 609500 450500

Coop

Deptt.

Expenditure SP 2650000 609500 450500

2425

2

COP13001

(OTHERS)Grants to Odisha State Co-operative Union

Code No.21125State

8000 0 0

Coop

Deptt.

Expenditure SP 8000 0 0

2425

3

COP12002

(OTHERS)Training Personnel State

1000 0 0

Coop

Deptt.


2425 4 COP12003

(OTHERS)

IT-infrastructure-Computerisation & e-

GovernanceState

30000 0 0

Coop

Deptt.


2425

5

COP12004

(OTHERS)

Fianacial Assiatance for restructuring of

MARKFEDState

3 1 1

Coop

Deptt.


2425

6

COP12005

(OTHERS)

Subsidy to Integrated Co-operative Development

Project State 3 1 1

Coop

Deptt.


2425

7

COP 12006

(OTHERS)Assistane to Co-operative Sugar Mills District 112338 0 0

Coop

Deptt.


2425

8

COP 12007

(OTHERS)Interest Subsidy/Subvention to the Cooperative

Banks / PACs for providing crop loan at 5%

interest to the farmers

District

4200003 966000 714000

Coop

Deptt.

Expenditure SP 4165800 958000 708000

2425

9

COP12008

(OTHERS)Interest Subvention on account of Conversion of

Short term Crop loan to medium term Crop loan

on Natural Calamities

District

3 1 1

Coop

Deptt.


2425

10

COP13002

(OTHERS)Interest Subvention to Commercial Banks/ RRBs

for Crop LoanDistrict

150000 34500 25500

Coop

Deptt.

Expenditure SP 150000 34500 25500

2425

11

COP13003

(OTHERS)Interest Subvention on Agricultural Term Loans

provided by Co-operative Banks and Commercial

Banks

District

3 1 1

Coop

Deptt.


2425

12

COP13005

(OTHERS)Establishment of Agro-Service Centre in PACS State

3 1 1

Coop

Deptt.


2425

13

COP13008

(OTHERS)Computerisation of PACS/UCBs/OSCB/CCBs State

3 1 1

Coop

Deptt.


2425

14

COP13009

(OTHERS)

Financial Support to Co-operative Institutions for

infrastructure developmentState

3 1 1

Coop

Deptt.


2425

15

COP14013

(OTHERS)Fianacial Assistance Merger of LTCCS with the

STCCSState

3 1 1

Coop

Deptt.


2425

16

COP17001

NEW

(OTHERS)

Information,Education and Communication State2000 0 0

Coop

Deptt.


Budget Provision

Admini

strative

Deptt.

Major

Head/

Sl.No

Deptt.

Scheme

Code/

Resource

Head

Name of the Schemes/ Plan Type

Secto

r

(Dist./

State)

SP/ SS

OF CSP

SALA

RY(PA

Y/DP/D

A/HRA

/RC/O

A out

of

Col.5

CS

OF

CSP/

CP

TSP

FLOW

out of

Col.5

SCP

FlOW

out of

Col.5

TSP

FLOW

out of

Col.7

SCP

FLOW

out of

Col.7

1 2 3 4 5 6 7 8 9 10 11 12

2435

17

COP16004

(OTHERS)

Private Entrepreneurs Business Guarantee

(PEBG)State

20000 4600 3400

Coop

Deptt.

Expenditure SP 0

2435

18

COP13012

(OTHERS)Grading and Standardization of Agricultural

ProduceState

3 1 1

Coop

Deptt.


2435

19

COP13013

(OTHERS)

Providing Free Mobile Phones to farmers to

access market informationDistrict

30000 6900 5100

Coop

Deptt.


4425

20

COP12010

(OTHERS)Construction of Office Buildings State

40000 0 0

Coop

Deptt.


4425

21

COP12011

(OTHERS)Construction of Residential Buildings State

12000 0 0

Coop

Deptt.


4425

22

COP13014

(RIDF)Creation of Warehousing facilities District

450000 103500 76500

Coop

Deptt.


4425

23

COP16005

(OTHERS)

Construction of Office Building and Godowns for

SCs/PACS /LAMPCSState

50050 11550 8750

Coop

Deptt.


4425

24

COP12012

(OTHERS)

Share Capital Investment in Co-operative Credit

InstitutionsState

420000 96600 71400

Coop

Deptt.

Expenditure SP 420000 96600 71400

4425

25

COP16006

(OTHERS)Warehousing Infrastructure Fund State

3 1 1

Coop

Deptt.


4425

26

COP120013

(OTHERS)Share Capital Investment in Integrated

Cooperative Development Projects State

3 1 1

Coop

Deptt.


4435

27

COP11006

(OTHERS)Strengthening and development of Agricultural

Marketing InfrastructureState

30003 15001 0

Coop

Deptt.


6425

28

COP120015

(OTHERS) Loans to Integrated Co-operative Development

Project State

3 1 1

Coop

Deptt.


6425

29

COP16007

(OTHERS)Interest free Loan for Procurement State 1000000 0 0

Coop

Deptt.


6425

30

COP120017

(OTHERS)Conversion of Short Term Crop loan to Medium

Term Crop loan on natural calamitiesDistrict

3 1 1

Coop

Deptt.


COOPERATION DEPARTMENT TOTAL PROVISION 9205433 1848164 1355163

TOTAL EXPENDITURE 7790395 1732001 1263900

Percentage of expenditure=84.63

Admini

strative

Deptt.

Major

Head/

Sl.No

Deptt.

Scheme

Code/

Resource

Head

Name of the Schemes/ Plan Type

Secto

r

(Dist./

State)

Budget Provision

ANNEXURE-II

Department: Cooperation (Rs. in lakh)

1 2 3 4 5 6 7 8.00 9 10 11

1 Cooperation Information, Education and Communication Others SS 20.00 20.00 0.00 0.00 0.00

2 Cooperation

Conversion of Short Term Crop loan to Medium

Term loan on account of natural calamities Others DS 0.03 0.01 0.01 0.01 0.03

3 Cooperation Computerisation of PACS/UCBs/OSCB/CCBs Others SS 0.03 0.01 0.01 0.01 0.00

4 Cooperation Subsidy to ICDP Others SS 0.03 0.01 0.01 0.01 0.00

5 Cooperation Share Capital investment in ICDP Others SS 0.03 0.01 0.01 0.01 0.03

6 Cooperation Loans to ICDP Others SS 0.03 0.01 0.01 0.01 0.03

7Agri. Mkt.

Providing Free Mobile Phones to farmers to access

market information Others DS 300.00 180.00 69.00 51.00 0.00

8Agri. Mkt

Strengthening and Development of Agricultural

Marketing Infrastructure Others SS 300.00 150.00 150.00 0.00 300.00

10 Cooperation Grants to Odisha State Cooperative Union Others SS 235.00 235.00 0.00 0.00 0.00

11 Cooperation Training Personnel Others SS 20.00 20.00 0.00 0.00 0.00 Nomenclature

12 Cooperation IT- infrastruction -Computerisation & e-Governance Others SS 100.00 100.00 0.00 0.00 0.00 Nomenclature

13 Cooperation Construction of Office Buildings Others SS 400.00 400.00 0.00 0.00 400.00

14 Cooperation Construction of Residential Buildings Others SS 100.00 100.00 0.00 0.00 100.00

15 Cooperation

Interest Subsidy/ Subvention to the Coop.

Banks/PACS for providing Crop loan at 5% interest

to the farmers Others DS 45386.06 27228.52 10440.35 7717.19 0.00

16Cooperation

Interest Subsidy/ Subvention towards conversion of

Short Term crop loan to Medium Term Crop loan on

natural calamities Others DS 0.03 0.01 0.01 0.01 0.00

17Cooperation

Interest Subvention to Commercial Banks/ RRBs to

provide crop loan Others DS 1500.00 900.00 345.00 255.00 0.00

18Cooperation

Interest Subvention on agricultural term loans

provided by Co-operative Banks and Commercial

Banks Others DS 0.03 0.01 0.01 0.01 0.00

19 Cooperation

Construction of Office Buildings and Godowns for

SCs/ PACS/ LAMPCS Others SS 500.50 297.50 115.50 87.50 500.50

20 Cooperation

Share Capital investment in Cooperative Credit

Institution Others SS 4200.00 2520.00 966.00 714.00 4200.00

21 Cooperation

Financial Support to Coop. Institutions for

infrastructure Development Others SS 99.44 59.65 22.88 16.91 0.00

22Cooperation

Financial Assistance for financial restructuring of

MARKFED Others SS 100.00 54.00 23.00 23.00 0.00

23 Cooperation Establishment of Agro-Service Centre in PACS Others SS 0.03 0.01 0.01 0.01 0.00

24Cooperation

Financial Assistance for Merger of LTCCS with the

STCCS Others SS 0.03 0.01 0.01 0.01 0.00

26 Cooperation Assistance to Sugar Mills Others DS 700.00 700.00 0.00 0.00 0.00

27 Cooperation Interest free Loan for Procurement Others SS 10000.00 10000.00 0.00 0.00 10000.00

28 Cooperation Warehousing Infrastructure Fund (WIF) Others SS 0.03 0.01 0.01 0.01 0.03

29 Cooperation Creation of Warehousing facilities under RIDF RIDF DS 0.03 0.02 0.01 0.01 0.03

30

Crop

Husbandry Pradhan Mantri Fasal Bima Yojana (PMFBY) Others SS 40000.00 24000.00 9200.00 6800.00 0.00

Total 103961.33 66964.79 21331.83 15664.71 15500.65

Proposal for State Annual Plan: 2018-19 in respect of Cooperation Department

Total

Outlay

Flow to

TASP

(Out of

col.6)

Flow to

SCSP

(Out of

col.6)

Flow to

Normal

(Out of

col. 6)

Capital

Outlay

out of

Total

RemarksSl.

No

Head of

Developme

nt

Name of the Scheme

Resour

ce

Head*

Distri

ct

Sect

or/

State

Sect

GOVERNMENT OF ODISHA

ANNUAL ACTIVITY REPORT

2017-18

COOPERATION DEPARTMENT

Cooperation Department

Government of Odisha

annual activity report 2017-18coopodisha.in/extra/policies/activity report 2017-2018.pdf · ix...

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