chapter – i functions and organizational structure 1 ...coopodisha.in/extra/policies/activity...

CHAPTER – I

FUNCTIONS AND ORGANIZATIONAL STRUCTURE

1. INTRODUCTION

1.1. The Cooperation Department was created with the basic objective ofstrengthening the co-operative movement in the State. Initially, the Co-operationDepartment remained a part of one of the development Department. In the year1991, the Cooperation Department came into being as an independent Departmentof Government of Orissa after being bifurcated from the erstwhile Agriculture andCooperation Department vide G.A. Department Resolution No.270-RB dated02.01.1991.

1.2. Some of the important functions discharged by the Co-operation Departmentare briefly indicated below:

Providing timely and adequate credit to farmers for financing theiragricultural 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 inthe event of crop failure

Providing marketing support to farmers by way of bringing about theintegrated development of marketing of agricultural produce to safeguardthe economic interests of the farming community

Providing infrastructure for storage of agricultural produce throughorganizations like the Orissa State Warehousing Corporation (OSWC)and the Orissa State Marketing Federation (MARKFED)

Imparting co-operative education and training to office bearers andmembers of co-operative societies for strengthening the co-operativemovement in the State

2. ORGANISATIONAL STRUCTURE

Heads of Department

2.1 There are five Directorates functioning under the administrative control of theCooperation Department, namely, the Registrar of Cooperative Societies, theDirectorate of Cooperative Audit, the Directorate of Agricultural Marketing,Co-operative Tribunal and Odisha State Cooperative Election Commission. Thefunctions of the Directorates are given below.

ANNUAL ACTIVITY REPORT-2016-17

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2.2. Registrar, Cooperative Societies: Under the Directorate of the Registrar ofCooperative Societies, there are 19 Cooperative Divisions - one each at theheadquarters of the 13 erstwhile undivided Revenue Districts headed by a DeputyRegistrar of Cooperative Societies and 58 Cooperative Circles, each headed by anAssistant Registrar of Cooperative Societies. This Directorate is entrusted with theresponsibility of implementation of policies and programmes of the Central andState Governments for the benefit of farmers and other economically weakersections through cooperatives and for strengthening the cooperative movement. Toachieve these objectives, the Directorate looks after administration, supervision,monitoring and regulation of the cooperative societies functioning in the State invarious sectors such as handloom, fisheries, dairy etc. and the co-operative creditsocieties.

2.3. Directorate of Cooperative Audit: The Auditor General of Co-operativeSocieties heads this Directorate. There are 16 Audit Circles in this Directorate eachunder an Assistant Auditor General of Cooperative Societies. The Directorate isresponsible 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 AgriculturalMarketing is headed by the Director of Agricultural Marketing and has six MarketingRegions each headed by a Regional Marketing Officer. The Directorate implementsthe schemes / programmes of the Government of India / State Government forproviding marketing support to farmers for marketing of their produce, creating andstrengthening of infrastructure for marketing of agricultural produce for increasingmarket efficiency thus enhancing farmers’ incomes.

2.5. Cooperative Tribunal: The Member, Cooperative Tribunal has been accordedthe status of a Head of Department. The Cooperative Tribunal is the Appellate Courtfor expeditious disposal of Appeal Cases as provided under the Orissa Co-operativeSocieties Act, 1962.

2.6. Odisha State Cooperative Election Commission

The State Cooperative Election Commission, Odisha is created under section28 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 allelection to a Cooperative Societies shall vest in the State Cooperative ElectionCommission, 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 SectorUndertaking under the Cooperation Department and provides infrastructure for


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storage of foodgrains and fertilizers and pesticides through its warehouses andgodowns located in different parts of the State.

3.2. Orissa State Agricultural Marketing (OSAM) Board:

The OSAM Board is a statutory Board constituted under the Orissa AgriculturalProduce Markets Act, 1956 for exercising superintendence and control over theworking of present 66 Regulated Market Committees constituted under the Act withthe intention of regulating the sale and purchase of agricultural produce in the State.

3.3. There are 9(nine) Apex Cooperative societies functioning under theadministrative 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 Co-operative 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 & CentralCooperative Societies functioning under the administrative control ofCooperation Department including 17 Central Cooperative Banks (CCBs), 9Urban Cooperative Banks, 51 Regional Cooperative Marketing Societies(RCMs), 46 Cooperative Agricultural Rural Development Banks (CARD Bank), 3Cooperative Sugar Mills, 18 Cooperative Cold Storages & 2708 PrimaryAgricultural Cooperative Societies (PACS) including 2488 Service CooperativeSocieties (SCS) + 214 Larged Sized Adivasi Multipurpose CooperativeSocieties (LMPCS) + 6 Farmers’ Service Cooperative Societies (FSCS)

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NUMBER OF COOPERATIVE SOCIETIES FUNCTIONING IN ODISHAREGISTERED UNDER THE ORISSA COOPERATIVE SOCIETIES ACT-1962.

SlNo

Heads ofDepartment

Primary Central Apex Total PACS/LAMPCS/

FSCS

1 RCS(O) 4229 116 09 4354 2708

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 8954 138 23 9115 2708

Besides, 1649 Numbers of Self-Help Cooperative Societies have beenregistered under Orissa Self-Help Cooperative Act-2001 consequent upon repeal ofthe Orissa Self-Help Cooperative Act in the Year 2013 these cooperatives aredeemed to have been registered under Orissa Cooperative Societies Act-1962.


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CHAPTER –II

PLAN OUTLAYS AND EXPENDITURE

The State Govt. is extending financial support to the Cooperative Societiesand 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 2016-17

1. During the financial year 2016-17, a plan outlay of Rs.171983.34 lakh wasoriginally allocated to this Department for expenditure on various State Planschemes. However, the provision was augmented by Rs.11559.87 lakh in the 1stSupplementary Budget raising the Revised Estimates to Rs.183543.21 lakh. By theend of February 2017, an amount of Rs.126178.07 lakh has been expended whichworks out to be 68.75% of the total budget provision.

1.1 An amount of Rs.80000.00 lakh was provided in the budget estimate for theyear 2016-17 towards the Scheme “Indemnity for crop Insurance” to meet stateshare insurance claim under NAIS and Rs.30000.00 lakh was provided in the BE for2016-17 towards the Scheme “Pradhanmantri Fasal Bima Yojana” towards premiumsubsidy. An amount of Rs. 42642.77 lakh was provided under the Scheme “InterestSubsidy / Subvention to the CCBs/ PACS and Commercial Banks / RRBs to providecrop loan at 5% of interest to farmers” in the Budget estimate for 2016-17, out ofwhich Rs.38642.77 lakh was sanctioned to Cooperative Banks / PACS to enablethem to lend crop loans to farmers at the rate of 5% interest which gets furtherreduced to 2% in case of timely repayment of loans for which Govt. of India providesthe required interest incentives as against the GoI announcement of providing croploans at 7% interest. Further, an amount of Rs.10000.00 lakhs was provided underthe scheme “ Corpus fund for procurement operation by MARKFED (the state levelSupporter) to involve in procurement of agricultural produce (Non-paddy crops) withpartnered with NAFED/ FCI at MS rates in the State under Price Support Scheme(PSS) operation of Govt. of India. The scheme wise details of the expenditure out ofthe budget provisioned for the F.Y. 2016-17 are indicated in Annexure – I.

B. Budget Estimates for 2017-18

The Annual Plan 2017-18 is proposed to implement 30 Schemes including 1

new Schemes with a Plan outlay of Rs.91610.33 lakhs for different activities as


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under, as against last year out lay of Rs.183543.21 lakhs for Cooperation

Department. Out of this total amount provided, funds to the extent of Rs.0.03 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.699.38.00 lakhs for assistance to Cooperative Sugar

Mills”, Rs.4500.00 lakh for “creation of Warehousing facilities under RIDF”,

Rs.26500.00 lakh towards Scheme “Pradhanmantri Fasal Bima Yojana”, Rs.80.00

lakh for “Grants to Odisha State Cooperative Union”, Rs.42000.03 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” Out of which an amount of Rs.3500.00

lakh was provided for equity to OSCB. 300 lakhs for “IT infrastructure,

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

procurement operation by MARKFED”, Rs.200.00 lakh for “Private Entrepreneurs

Business Guarantee (PEBG)”, Rs.500.50 lakh for “Construction of Office Building of

PACS/LAMPCS”, Rs.10.00 lakh for “Education Research & Training”, Rs.300.03

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

Besides, during the F.Y 2017-18, 1 new schemes has been proposed for

implementation. Accordingly, it is proposed in the Budget an amount of Rs.20.00

lakh for “Information, Education & Communication The Scheme wise details of the

proposed budget provision for the year 2017-18 are indicated in Annexure – II.

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CHAPTER – III

AGRICULTURAL CREDIT

A. 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 out reach 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.


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1.1 ENROLMENT OF MEMBERS BY PRIMARY AGRICULTURECOOPERATIVE SOCIETIES(PACS /LAMPCS/FSCS):-

The Short Term Credit Structure (STCCS) in Odisha comprises 2708 PACSincluding 214 LAMPCS & 6 FSCS are functioning at the grass root level, 17 CCBs atMiddle Tier and OSCB at the Apex level primarily to provide agricultural credits andinput to farmer members. With a view to rendering meaningful services, to themembers Primary Agriculture Cooperative Societies (PACS/LAMPCS/FSCS) in theState, Member Contact Drive known as “Cooperative at Your Door Steps” waslaunched during the year 2010 and from 14 th November to 30th November-2011.During the Member contact campaign, the survey of Agricultural families in the Statewas conducted and at least one member of each Agril. family have been motivatedto become member of PACS and to avail KCC for effectively use for availing CropLoan, opening No Frill Account, etc. As per survey conducted by PACS during2010-11 there are 55.22 Agricultural families in the State.

From Out of About 55.22 lakh Agricultural families, 55.01 lakh family havebeen enrolled as Cooperative member of PACS as on 28.02.2017 taking thecoverage of 99.62%. The details are as under

(Fig in Lakhs)


Year No. of AgriculturalFamilies.

Memberenrolled.

% of Enrolment

2010-11 54.22 44.98 81.872011-12 55.22 50.95 92.262012-13 55.22 52.07 94.672013-14 55.22 53.70 96.362014-15 55.22 54.66 99.382015-16 55.22 54.89 99.402016-17 (as on28.02.2017

55.22 55.01 99.62

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As there is provision for allowing enrolment of maximum three members fromeach family to become member of Cooperative Society, the Action Plan forenrolment of New Member PACS / LAMPCS during-2017-18- 2,00,000.

2. ISSUE OF KISSAN CREDIT CARDS.

PACS at the grass root level provide farm and non-farm credit to farmersmembers. With a view to simplifying the procedure of disbursement of farm credit tofarmers, Kissan Credit Card Scheme has been introduced in 1998-99 by PACSthrough its affiliated DCCBs. The scheme aimed at providing instant credit to thefarmers 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 offinance. Under the scheme, Credit limites 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 instantcredit by drawal of cash from Branches of DCCBs at the time of their need andrepay the same at PACS or Branches of DCCBs as per their convenience & withinCrop seasonal displine period. Dispensation of credit through KCC has enabled thePACS/ Coop. Banks to disbursed production credit. PACS have played a crucial rolein issue of KCC to farmer as compared to the Commercial Bank and commanded astake of about 70 % of the total KCC issued in the State. Achievement in distributionof KCC by Cooperative Sector during last four years is furnished below:

MARKET SHARE OF COOPERATIVE IN ISSUE OF KCC (AS ON 28.02.2017)

No of KCC Market Share (%)

KCC issued by Cooperative Bank/PACS 44.70 Lakhs 69%

KCC issued by Commercial Bank and RRBs 20.10 Lakhs 31%

Conversion of Kissan Credit Cards (KCCs) in to Smart Cards :

The State Government took the decision to convert all the Kissan Credit Cards intoRu-Pay Smart Cards to empower the farmers members of PACS to access theirsanctioned credit during Khariff & Rabi season through the ATM & PoS network of alltype of Banking System by 31.03.2017, around 12.50 lakh Ru-Pay, Smart KCC willbe rolled out and the remaining cards out of 44.70 lakhs shall be supplied by30.06.2017.

3. FINANCING S.T.CREDIT FOR SEASONAL AGRICULTURAL OPERATION:


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VII Storage (Godown) capacity 45

VIII Activities of MARKFED 48

IX The Odisha State WarehousingCorporation (OSWC)

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X Agricultural Marketing 57

XI Directorate of Cooperative Audit 68

XII State Cooperative Election Commission 70

XIII Cooperative Tribunal 73

XIV New Initiatives 74


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