Structure and Financial Performance of Primary Agricultural Credit Cooperative Societies in Mizoram

Mr Vanlalmuana,Dr Laldinliana

doi:10.47392/irjash.2020.120

Abstract

Agriculture is one of the most important sectors in the country as more than 55 percent of total workforce in India is engaged in the sector. Since the formulation of Indian Cooperative Societies Act in 1912, cooperative sector plays a major role in delivering credit to the masses. One of the main players of Rural Short-Term Cooperative Credit System (RSTCC) in the country as well as in Mizoram is Primary Agricultural Credit Cooperative Societies (PACS). The paper examines the structure and financial performance of 25 sample PACS using certain structure and financial parameters like – villages covered, membership, employment generation, working capital, total business, capital structure, CD ratio, debt-equity ratio, return on investment etc. And to draw inferences, statistical tools like CAGR, t-value of curve estimation, ratios and Pearson Correlation were used. While the village coverage is low, membership base has increased significantly. The sample PACS were able to utilise its membership base to increase its share capital. However, credit-deposit ratio and capital structure of the sample PACS do not have significant relationship on return on investment.

Highlights

Results and Discussion3.1 Structural Aspects of sample Primary Agricultural Credit Societies (PACS) Primary Agricultural Credit Cooperative Societies (PACS) are formed and managed by a group of people with cooperative deed
Introduction depend on itMany policy and legal reforms have been undertaken by Government of India through a Providing adequate credit in far flung areas for small and marginal farmers is one of the most pressing challenges faced by agriculture sector in India [1]
It was the formulation of All India Rural Credit Survey Committee (AIRCSC) that shape up the involvement of other formal www.rspsciencehub.com institutions in providing agricultural credit

Summary

Results and Discussion

3.1 Structural Aspects of sample PACS Primary Agricultural Credit Cooperative Societies (PACS) are formed and managed by a group of people with cooperative deed. They may cover only one village or particular area or a number of villages. Data compiled from field studies among 400 non-borrowing members suggests that being self-sufficient is the main reason of being a non-borrower, followed by unavailability of collateral for security It will be crucial for sample PACS that they increase their membership base, especially borrowing members to become more successful in the coming years

National Average

Total Business

Test parameters

Conclusions