Success story of

Mulkanoor Co-operative Rural Bank and Marketing Society Ltd.,

Presentation by-

A. Praveen Reddy Ex. MLA President, MCRBMS Director, IFFCO

Out here, in the interiors....

14 villages surrounded by

and Dried Canals

Craggy Hillocks,

Dried Tanks,

You will meet poor farmers…

Who really put in honest toil,

Ploughing

Harvesting

Sowing

Weeding

Growing

Maize Ground Nut

Cotton Paddy

and smiles of prosperity…

Because, they are farmers and not supposed to

live on some one else's dole...

that their grandfathers built

a temple of trust,

a hand that helps.

a Co-operative,

This is not a story about the Co-operative.

But of the farmers

without whom there would be no Co-operative.

Tribute to the man

who made it happen

Late Sri. A. K. Vishwanatha Reddy

Founder President

(1926-1986)

Prevailed Conditions

Prior to formation of MCRBMS

Poor Soils

Lack of power supply Lack of communication

Exploitation by money lenders

Poverty Stage Dignified Life

Vision

by uplifting Socio-Economic Status

Mission

“ Voluntary, Democratic, Accountable, Self Reliant

Cooperative to ensure farmer control over

Agricultural Production & Marketing ”

a farmer from

Cooperative Ensures

Membership is voluntary

Democratic approach

Surplus distributed equitably

Work with other like organisations

Participation in social activities

Progress

Several Cooperatives were formed in 1950’s in rural India

This cooperative too was formed in 1956

1956 2017

Members 373 7404

Shares Rs. 2,300 Rs. 15.85 Crores

Thrift Deposit ---- Rs. 26.89 Crores

Employees 1 138

Storage Capacity ---- 38,078 M T

SC ST BC OC Total

Male 874 477 4076 1023 6450

Female 156 44 551 203 954

Total 1030 521 4627 1226 7404

Marginal Less than 1 Hectare

Small 1 Ha – 2 Ha

Big More than 2 Ha

Total

No. of Members 3795 2723 886 7404

Percentage 51% 37% 12%

Membership Pattern

Services

Loaning

Seasonal Crop Loan

Medium Term Loan

Long Term Loan

Normal Crop Loan

Savings

Shares

Thrift Deposits

Fixed Deposits

Saving Deposits

Current Deposits

Economic

Consumer

Cloth Shop

Food Grains Shop

Petrol Pump

Cooking Gas (LPG)

Welfare Services

Funeral Expenses

Drinking Water

Scholarships to Students

Animal Health Camps

Member Health Camps

Social

Inputs

Fertilizers

Pesticides

Seeds

Technical Support

Marketing

Agri. Produce Procurement

Value Added Services

Sale of Products

Paddy Seed

Rice

Cotton Bales

Agriculture

Seasonal Crop Loan

Financial Services

Paddy Cotton

Amount Rs. 28,000 / Acre

Interest Rate 7% p.a

on repayment in

time

7% Int. Rebate upto Rs. 1 Lakh

4 % int Rebate Rs. 1-3 Lakh

Maize Ground Nut

Medium Term Loan

Agri. Implements Agri.

Machinery

Allied Activities Welfare

Activities

Digging Well

Power Sprayer

Poultry

Toilets

Electric Motor

Power Tiller

Dairy

Solar Inverter

Pipe Line

Rotavator

Sheep

LPG Gas

Sprinklers

Tractor Trailer

Horticulture

Drip Irrigation

Maize Sheller

Medium Term Loan Interest Rate 12% p.a

Loan Amount as per unit cost Repayment in 3 Years i.e. 6 Installments /

Each season as one Instl

Long Term Loan

Financial Services

Harvester Tractor

Citrus Mango

Repayment in 7 Years / 14 Installments / Each season as one Instl.

5 Years gestation period for Orchards

Interest Rate 12% p.a

Loan Amount as per unit cost

Normal Loan

Financial Services Int. Rate 12% p.a

Marriages Chronic Diseases

Higher / Technical Education

Agriculture Development

Particulars Amount Disbursed

FY 2014 – 2015

Rs

FY 2015 – 2016

Rs

FY 2016 – 2017

Rs

Crop Loan 49,41,19,560 76,05,88,454 92,14,51,778

Medium Term Loan 3,07,20,410 7,95,32,050 4,50,87,840

Long Term Loan 1,76,64,887 1,26,72,794 2,53,83,017

Normal Loan 64,49,69,800 89,84,71,000 90,53,42,100

Total

118,74,74,657

175,12,64,298

189,72,64,735

Loans Disbursed to farmers

Rs. 189 Crores of credit has been facilitated to farmer members

Resources Rate of Interest

per annum

Financial Services

SHARE CAPITAL 15% Dividend

THRIFT DEPOSITS 8%

FIXED DEPOSITS 7%

SAVING DEPOSITS 4%

CURRENT DEPOSITS --

State Bank of India

NCDC – National Cooperative Development Corporation

Financing Institutions

Agriculture Inputs Service

Fertilizers Pesticides Seeds

Electric Motors Sprayers Agri. Impli.

Farmers Training Agri. Tech. Services Field Training

Supply of Agriculture Inputs

FY 2014 – 2015

Rs.

FY 2015 – 2016

Rs.

FY 2016 – 2017

Rs.

Fertilizers 11,10,34,895 7,23,67,678 9,11,50,064

Paddy Seed 1,18,50,460 77,37,260 1,29,21,206

Cotton Seed 1,31,88,242 75,94,035 64,23,520

Pesticides 75,87,478 61,14,912 85,53,029

Agri. Implements 1,08,81,989 1,36,42,929 1,79,98,544

Total 15,45,43,064 10,74,56,814 13,70,46,363

Procurement

Paddy Procurement at the Village Godown

Purchase of Paddy at market rate / MSP which ever is high

Post harvest storage risk is reduced

Risk of Transportation is reduced

Market Exploitation is Eradicated

Human Resource is saved

Saving of Rs. 100/- per quintal

Particulars FY 2014 – 2015

Quintals

FY 2015 – 2016

Quintals

FY 2016 – 2017

Quintals

Paddy 1,87,300 38,671 62,134

Paddy Seed 1,36,633 82,185 1,12,804

Cotton 44,200 87,700 62,519

Economic Benefit on Paddy Procurement – One Hectare Farmer

Particulars MCRBMS (Rs.)

Open Market (Rs.)

Difference (Rs.)

Purchase Rate 1510/- 1440/- 70

Transportation 10 40 30

Market Fee (1%) - 13 13

Trading Commission (2%) - 26 26

Weight Loss - 25 25

Bonus Amt per Quintal 85 - 85

Benefit per one quintal of Paddy 249

1 Ha, (70 Quintals X 249/-) 17,430/-

for One Quintal

In case of cotton procurement, Benefit per quintal of cotton is Rs. 703/-

Small farmer gets a yield 25 quintals / Ha. So, the farmer get economic benefit of Rs. 17,575/- (25 X 703/-) on cotton

Value Added Services

Para Boiled Rice Mill with JAPANESE Satake Technology– 4 Tons / Hr Capacity

7 Seed processing units with 18 tons / Hr

35 cotton ginning machines with bales pressing unit

Branding & Marketing- Paddy Seed

FY Area Covered

Acres

Quantity

Tons

Value

2014 - 15 3,41,074 10,232 19,21,55,690

2015 - 16 3,34,077 10,022 21,41,01,860

2016 - 17 3,66,453 10,993 25,26,63,607

Multiplication of breeder paddy seed into

Foundation seed than to truthful seed in progressive farmers fields under the supervision of our society Agriculture Officers

Varieties BPT 5204 RNR 15048 MTU 1010 MTU 1001 IR 64

Branding & Marketing - Rice

FY Raw Rice Boiled Rice Total

Qty Tons

Value Rs.

Qty Tons

Value Rs.

Value Rs.

2014 – 15 1465 4,16,16,669 593 1,38,16,900 5,54,33,569

2015 – 16 1527 5,03,91,000 625 1,45,96,743 6,49,87,743

2016 – 17 1080 4,08,07,300 - - 4,08,07,300

Varieties BPT / Sona Masoori Jai Sri Ram RNR – 15048

Opened Retailed Outlets at Mulkanoor Hanamkonda Husnabad Kothakonda Huzurabad

Branding & Marketing – Cotton Bales

Cotton Lint Cotton Seed Total

FY Quantity No. of Bales / Tons

Value

Rs.

Quantity

In Tons

Value

Rs.

Sale Value

Rs.

2014 - 15 7052 / 1199 15,69,14,523 2361 4,25,35,038 19,94,49,561

2015 - 16 8583 /1459 17,57,52,000 2874 4,36,91,108 21,94,43,108

2016 - 17 17024/ 2894 30,55,25,899 5700 11,76,67,150 42,31,93,049

Consumer Services

LPG Gas (Bharath) Petrol & Diesel Bunk

Cloth Shop Food Grains

Welfare Services … to name a few…

Society was primarily responsible for Electrification of

Villages and farms in the early years after independence

Provided drinking water by digging bore well in villages when

there was continuous drought

Conducting Eye / Physiotherapy camps to members regularly

Counseled the eligible couples for Family Planning when

there is no awareness about the family planning

Society Liaison with NGO’s to provide clean drinking water

by installing deflouride plants in the villages.

Conducting Animal Health Camps in coordination with Animal

Husbandry Department regularly

Benefits “from” & “through”

the Society … During 2016-17.

Society Welfare Schemes Rs. In Lakhs

Member

Welfare

Scheme

12.5 times on Welfare Deposit Amt. will be paid to the

Nominee/Legal Heir of the deceased member

(Min : 25000/- Max : 50000/-)

127 30.42

Funeral

Expenses

Rs. 7,500/- and 100 kg. Fine Rice on demise of Member /

Member Spouse

160 9.92

Professional

Degree

Scholarships

Paid to Children of the member admitted in to

Professional Degree Courses (B.TECH, B.PHARMACY, BSC AGRICULTURE, BSC VETERNARY –

@ Rs.10,000/- , MBBS @ Rs. 12,500/-)

78 7.90

Animal Health

Camps

Camps are conducted in all the villages regularly

- 3.00

Members

Health Camps

Eye camps / Physiotherapy / Neuro / Cardio camps are

conducted in the society premises

- 3.00

Vision Centre Cataract Operations done to our members / spouse 188 9.95

Total 64.19

Economic Benefits “from” & “through”

the Society … During 2016-17.

No. Of Members

2016 – 17

Rs.

ST Corporation 1 29,100

Nabard – Dairy 338 37,57,000

Total 288 37,86,100

from Govt. Agencies

Benefits “from” & “through”

the Society … During 2016-17

Rs. In Lakhs

Insurances Schemes with society funds Premium

Paid

Claims

Received

Life Insurance linked with crop loan (Premium Paid to LIC under Janashree Bima Yojana & Group Insurance Scheme)

33.40 -

LIC paid to deceased members to the extent of Crop Loan from JBY & Group Insurance Scheme

23.85 - 27.81

Scholarships under the scheme (JBY) (Two children of member will be paid scholarship @ 1200/- each studying 9th to XIIth Std.)

3.96

Janatha accidental group Policy (Premium Paid to IFFCO – Tokio)

(Sum Assured Rs. 1,00,000/-)

3.00 -

Janatha accident group Policy claims Received - 2.00

IFFCO-Tokio – Accidental Insurance claims to Members on sale of fertilizers

- -

Total 36.40 29.81

Particulars Rs. In Lakhs

Premium

Paid

Claims

Received

Insurance of Milch Animals, Sheep 4.95 14.60

Insurance of Electric Motors Tractors & Harvesters 14.39 -

Individual Policies of Members through Society 10.08 N.A

Insurance of immovable properties 2.00 -

Insurance of Stock and cash handling 8.46 -

Work Men Compensation 2.5 -

Total 43.99 14.60

Society as agent to Insurance Agencies Contd..

Over All Benefit to Members

During the Financial Year 2016-17.

Particulars No of Members Amount

Rs. In Lakhs

Society Welfare Schemes - 64.19

Bonus on Paddy / Paddy Seed / Cotton 5583 242.93

Subsidy & Margin Money from Govt. Agencies

288 37.86

Insurance Benefits - 29.81

Govt. Interest Subvention Scheme 6582 259.21

Dividend (15%) 7547 237.85

Int. on Thrift Deposits @ 9 % 7450 205.00

Telangana Govt. Debt Waiver Scheme 6822 1237.53

Total 2314.38

Member Point of View

(Agri. Bonus)

A/C. Desc. Laon

Amt.

Int.

Paid

Total

SAO - KF 84,600 3,291 87,891

SAO - RB 84,600 2,364 86,964

MTO –

KF Instl.

4,300 1,598 5,898

Total 1,73,500 7,253

(A)

1,80,753

Variety Qty. Bonus/

Qtl.

Bonus

Amt.

Paddy – Grade A

0 110 -

Paddy – Grade B

94.02 85 7,994

Cotton 7.92 275 2,178

Paddy Seed

27.18 100 2,718

Total (B) 12,890

Admission No. : 9700 Land Holding : 5 Acres / 2.8 Ha.

Member Name : Anuka Radha

Bonus Amt (B) 12,890

Interest Subsidy from Govt. 5,655

Total 18,545

Interest Paid (A) 7,253

Benefit to member 11,292

Member Point of View

Debt. Break

Loans

A/C. Desc. Loan Amt.

SAO 19,700

MTO -

LTO -

Additional Crop

Loan 20,000

Total (A) 39,700

Deposits & Benefits

Description Amount

Shares 12,900

Deposits 22,850

Welfare Fund 25,000

Group Insurance linked

to Crop Loan 19,700

Total (B) 80,450

Admission No. : 7780 Member Name : Allam Yadagiri

80,450 – 39,700 = 40,750 Surplus to his dependants

In most cases debt is not passed on to the children or dependants of the deceased member

at the Time of Demise

Share Capital 15.85

Thrift Deposit 26.89

Reserves 96.93

Other Deposit 17.28

Borrowings 101.13

Payables 7.07

Surplus 5.92

Total 271.07

Financial Position As on 31-03-2017.

Availability of Funds

Rs. In Crores

Surplus2%

Share Capital6%

Member Deposit

10%

Reserves36%

Other Deposit6%

Payables3%

Borrowings29%

Loans O/s 111.02

Investments 64.69

Properties 31.68

Stock on Hand 40.73

Receivables 21.72

Cash on Hand 1.23

Total 271.07

Financial Position As on 31-03-2017.

Utilisation of Funds

Rs. In Crores

Business Turnover

(During 2016 – 2017)

Loans & Advances 191.40

Sale of inputs 21.55

Marketing

Services

70.57

Consumer Goods

& Other Services

6.03

Total Turn Over 289.55

Rs. In Crores

Loans & Advances

66%

Sale of Inputs

8%

Marketing Services

24%

Other Services

2%

REGISTRATION

Registered under Hyderabad Cooperative Societies

Act 1952

Automatically Deemed into AP Cooperative Societies

Act 1964

Converted to APMACS Act 1995 in the year 1995

Organisation Structure

MANAGING

COMMITTEE

GENERAL

BODY

PRESIDENT

VILLAGE

COMMITTEE’S

EMPLOYEES

GENERAL

MANAGER

MEMBERS

GENERAL BODY Members of the society, meets at least once in a

year.

MANAGING COMMITTEE Members of the society elect 15

Managing Committee members

Meets once in a month

Financing Bank

DCCB from 1956 to 1969

State Bank of Hyderabad from 1969 to till date

Promoted A. K. Vishwanatha Reddy

Rural Development Society – in the Year 2000

Water Shed Programs – with NABARD Assistance

Strength Particulars for the Academic Year – (2016 - 17)

Intermediate

College

Degree

College

Total

Girls 108 157 265

Boys 112 95 207

Colleges – with MCRBMS support

Program Name Phase Sanctioned

Amount

(Lakhs)

Work Done

Amount

(Lakhs)

Treatment Area

Nara Hari Thanda FIP 41.25 40.98 1225 Acres

Mustafapur FIP 75.61 69.61 1250 Acres

Vangara FIP 145.95 135.95 1225 Acres

Total 265.31 246.54

Create rural capital base of Rs. 5,00,000 Crores.

Late Shri V. Kurian,

Father of Indian Dairy Cooperative Movement

Mulkanoor India

Employees 112 46 Lakhs

Share Capital Rs. 1.15 Crores Rs. 47,150 Crores

Savings Rs. 6.00 ,, Rs. 2,46,000 ,,

Reserves Rs. 5.70 ,, Rs. 2,33,700 ,,

Commented about Mulkanoor Cooperative in 1981 as

If 41,000 Mulkanoor like Cooperatives in India . . . .

Members

Active and Loyal

Confidence in

their own society

Member Education

Program

Receive Package

of Practices

Management

Dedicated & Honest

No outside

interference

Transparency

Compact Area

Approach

Governance

Strong Leadership

Strategic Vision

Equality

one member one vote

Performance

Evaluation

Efficient Marketing

Management

Linking of Credit

with Marketing

Reasons for Success

Awards / Felicitations Late Sri A. K. Vishwanatha Reddy

President from 1956 to 1985

Manager of the year – 1981

Hyderabad Management

Association

Citation received on behalf of Late A. K.

Vishwanatha Reddy by Sri A. Praveen Reddy

Peddi Reddy Thimma Reddy

farm foundation, Hyderabad

Sri A. Praveen Reddy President from 1987 onwards

Awards / Felicitations

Best Cooperator - 2004

Kribhco Sahakarita Vibhushan Good Working Society

NCDC Biennial Cooperative

Excellence - 2014

Prominent Visitors

late Sri. Y. S. Rajashekhar Reddy, former Chief Minister of Andhra Pradesh, was chief

guest at Golden Jubilee Celebrations.

Present & Former Chief Ministers, Ministers, MP’s, MLA’s and many other

representatives visited the society

Many dignitaries from abroad such as U.N.O, World Bank, Universities and other

institutions.

Many personalities from Cooperative Institutions, Rural Development Organisations

and Farmer related associations come here to study the Society activities.

Late Sri P. V. Narsimha Rao, former Prime Minister of India is Member and served as

Vice President of the Society

Sri. N. Kiran Kumar Reddy, former Chief Minister of Andhra Pradesh, visited to

inaugurate Cotton Ginning & Pressing Mill.

His Excellency E.S.L Narasimhan, Hon’ble Governor of AP visited the society to

interact with the farmers

late Sri. Krishna Kanth, former vice president of India, unveiled the statue of

founder president.

Students from IIM / ISB / NIRD / IRMA / MANAGE / ICRISAT / ICM come here to study

the society activities

After all, we are proud of the past laurels we have won

“Ye Mulkanoor Nahi Hai...

Ye Mulk ka Noor Hai.....”

Sri P.N. Haksar, the then Vice Chairman of

Planning Commission on his visit to MCRBMS

“This is not Mulkanoor, it is light of Nation”

Thank you

A. Praveen Reddy Ex. MLA

President – MCRBMS

Director – IFFCO

Ex. BOM, ANGRAU, Hyderabad

Ex.BOM, SVVU, Tirupathi