Primary Agricultural Cooperative Societies Research Articles

Loan repayment behavior of beneficiary farmers in primary agricultural cooperative societies in Haryana (India)

Loan repayment behavior of beneficiary farmers in primary agricultural cooperative societies in Haryana (India)

Constraints in credit accessibility from primary agricultural cooperative societies in Haryana state, India

Abstract Subject and purpose of work: The objective of the study was to identify the constraints in credit accessibility from Primary Agricultural Cooperative Societies in Haryana State, India. Materials and methods: The primary data were used for achieving the objective of the study. The primary data were collected in the second quarter of 2022 by employing the schedule. The multistage purposive cum proportionate random sampling techniques were adopted to select a sample of 540 respondents. The percentage was used for data analysis. Results: The constraints in accessing credit are identified faced by beneficiary farmers and nonbeneficiary farmers. The major constraints faced by the beneficiary farmers in accessing credit from PACS are inadequate credit limit (87.40%), short time to repayment of loan (66.29%), high penalty rate (55.92%), and unavailability of medium-term loans (50.00%). While inadequate credit limit (80.00%), no new accounts opened (72.22%) and fear of being a defaulter (47.78%) were the major constraints faced by the non-beneficiary farmers in accessing credit from PACS. Conclusions: The various constraints were identified in accessing credit from PACS. Credit limits should be extended on the basis of the scale of the finance. Medium-term loans need to be increased.

Economic Impact of Primary Agricultural Cooperative Societies (PACS): Findings from Nadia District of West Bengal

"With the passage of time and needs of rural people, the number and activities of PACSs have increased manifold and undergone changes with government patronage. This paper seeks to address how and to what extend the farming people have been benefited from PACS for their economic frontier in Nadia district of West Bengal. Primary data have been analysed through different statistical methods including multivariate analyses viz. principal component analysis, cluster analysis, and group characterization. The results show a positive relationship of the PACS’ role and family income of the farming community and majority of the sampled farmer members expressed the moderate role of PACS on overall economic development of farming community. Perception of the members on economic development by PACS is mostly homogeneous in nature. General perception of the members indicates the disappointing performances of the PACS in raising agricultural productivity or opening business opportunity at village level."

Constraints in the Functioning of Primary Agricultural Cooperative Societies in Haryana State, India

Abstract Subject and purpose of work: T he s tudy a ims t o identify t he constraints in t he f unctioning of PACS in Haryana, India. Materials and methods: The study was based on primary data collected from nine PACS managers through schedule. The purposive sampling technique was employed for the selection of PACS. The percentage was used for data analysis. The data were collected in the second quarter of 2022. Results: The study found that 100 % of PACS managers regarded lack of adequate funds, a low level of deposits, and increased day-to-day government intervention as constraints in the functioning of PACS. Subsequently, the respondents mentioned inability to mobilise resources (77.77%), lack of managerial skills (77.77%), lack of trained staff (55.55%), improper channel of recovery system (44.44%), untimely repayment and poor recovery percentage of the loan (44.44%), political interference (33.33%), difficulties due to low educational level of borrowers (22.22%), and uncooperative attitude of borrowers (11.11%). Conclusions: Main constraints in the functioning of PACS are lack of adequate funds, a low level of deposits, increased day-to-day government intervention, inability to mobilise resources, and lack of managerial skills.

Social Impact of Primary Agricultural Co-operative Societies (PACS) in Nadia District of West Bengal

Aims: The researcher has endeavored to analyze impacts of PACS in-terms of selected social parameters using perception of the sample respondents. The study is significant to evaluate the perception of members PACS.
 Place and Duration of Study: The researchers have employed 290 members in 29 PACS out of the 365 operating PACS found in the Nadia district of West Bengal. Primary data for the study have been collected during 2017-2019.
 Methodology: The researchers have employed a multi-stage random sampling technique for selecting 290 members in 29 PACS in the Nadia district of West Bengal. The Likert-scale used with 5 points in the questionnaire in which, the respondents were required to grade the scale of their satisfaction for particular thing. Data have been standardized for in the study with Zero mean and Unit Standard Deviation. Qualitative as well as quantitative techniques of data analysis were used to describe and analyze the research questions. The data collected from household survey were organized, coded and entered into statistical package, TANAGRA and Statistical Package of Social Sciences (SPSS). Descriptive statistics such as, frequency distribution, percentages etc. multivariate analyses for data reduction, Principal Component Analysis, K-means Cluster Analysis, analyses related to Group Characterization have been done to arrive meaningful interpretations for conclusions of the study.
 Results: The score obtained from the PCA are then grouped through cluster analysis. Social perception is to arrange the score according to deviations from Standard Deviation (SD). More than 76 percent of the total members fall in the group implying the perception of the members on social development by PACS is mostly homogeneous in nature. The researcher has find two variables namely, PACS role on empowering women in decision making and PACS Social business with other rural institutions comprise the first factor. Similarly second factor consist of the two (2) variables namely, PACS role in sensitizing women leadership in PACS management and role in skill development of women though training/ handholding etc. The second factor may be viewed as the factor of woman empowerment.
 Conclusion: The study concludes that PACS play important role in social development of the family. Most of the members agreed upon the positive role of the PACS Empowering women in decision making, Generating awareness of ongoing social development schemes of Government, Mobilizing of weaker sections, Educating Co-operative principles and Social business with other rural institutions. Moreover, PACS help to improve education level and improve habit of agricultural loan at the time of cash requirement particularly during peak season of agricultural operations.

Factors Determining Potato Market Outlet Choices of Members’ of Primary Agricultural Cooperative Societies: The Case of Jeldu Woreda, West Shoa Zone, Oromia Regional State, Ethiopia

Potato (Solanum tuberosum L.) popularly known as ‘The king of vegetables’, which is the fourth most important food crop next to maize, wheat and rice worldwide. The choice of market outlet for smallholder potato producers is very important, since potato is perishable product and more demanded by the society. The present study examines the major “Factors determining potato market outlet choices of members’: of primary agricultural cooperative societies: The study employed survey methods as a research approach. A random sample of 159 members of cooperatives societies has been selected for interview. Both descriptive and econometric methods have been employed for data analysis. Results from descriptive statistics shows that 69.8% of the total members have chosen non-cooperative firms as their potential market outlet for their potato produces, while 30.2% of them have chosen cooperatives as their outlets since the majority of the members have witnessed that non-cooperative firms have provided relatively fair price to their potato produce. The logistic regression model with p-value of 0.001 has witnessed that there is statistically significant difference between cooperatives and non-cooperative firms in market outlet choice. Moreover, results from logistic regression model reveals that extension service offered by the cooperatives, transportation facility, distance from markets , distance from cooperatives, access to credit and belief on cooperatives have p-value of less than 5% and hence are found to be the most determining factors of members market outlet choice in the study area. The study shows that cooperatives failed to be chosen as premier and potential market outlet by members in the study area. Therefore, the researcher suggested that institutional capacity of cooperatives should be strengthened in order to face unfair competition, influence other firms to behave competitively in the market place, to win trust of members and thereby bring about real participation in potato market and ensure sustainable growth. Keywords: Determinants, Logistic regression model, Market outlet, Potato, Study area DOI: 10.7176/JMCR/73-01 Publication date: November 30 th 2020

An Appraisal of Performance of Primary Agricultural Co-operative Societies (PACS) in Nadia District of West Bengal

Primary Agricultural Cooperative Societies (PACS) – the age-long rural institutions were set up mainly focussing credit aspects of farming community. However, with the passage of time PACS have undergone many changes in terms of their modus operandi as well as objectives. Of late they have been mobilizing financial resources from rural households in the form of savings etc. Additionally, they are now promoting Self-Help-Groups (SHGs), particularly women-groups who were untouched earlier. In this paper, attempt is being made to examine performance of PACS in terms of its coverage, inclusion, economic efficiency, social responsibility and prudence in financial management. The study is based on secondary data relating to the period 2007-08 to 2016-17 referring to randomly selected seven PACS of Nadia district, West Bengal. Finally the authors point out to the weaknesses and pitfalls of societies and conclude with some suggestions for strengthening PACS. It has been observed that PACS have broadened their base in terms membership growth and quantum of loan-disbursement. However, they have showed poor performance in recovery and decelerating NPA growth. The reasons for growths in Overdue and NPA need critical observations at ground level. An exhaustive evaluation is needed whether overdue or NPA are owing to growth of wilful or non-wilful defaulters.

The Withering Bloom of PACSs in Odisha

Odisha is primarily an agrarian economy. Statistics as divulged by 2011 census illustrate that 83.31 percent of Odisha's population resides in rural areas, depending directly or indirectly upon agriculture for their livelihood. Odisha's economy is expanding through sectoral shifts in GSDP from agriculture to industry to service. While the economy is transferring towards industry and services, the labor force remains concentrated in agriculture. As against the national average of around 52 per cent of labor share in agriculture & forestry in 2010–11, the State has a much higher labor share of 59 per cent. Co-operatives play a very important role in Socio-economic upliftment of the bucolic populace, predominantly, the primary agricultural credit co-operative societies. They are considered to be pillars of the entire cooperative edifice and continue to be the main source of agricultural credit to the farmers in rural areas. But the manner in which they are organized and functioned are not encouraging to efficient and prudent use of the vast resources at their disposal. This paper is an endeavor to evaluate the performance and progress of primary agriculture co-operative societies all through the period from 2002–03 to 2011–12 in Odisha.

Economic viability of agro machinery service centers established by the primary agriculturalco-operative societies in Punjab

Mechanization has contributed significantly in the development of agricultural economy of Punjab. However, it also resulted into significant increase in fixed costs endangering the economic viability of farming, especially in the case of small and marginal farmers. In order to provide farm machines on custom hire basis to the farmers, the Punjab Government has encouraged the Primary Agricultural Cooperative Societies (PACSs) to establish the Agro Machinery Services Centres (AMSCs). However, economic viability of AMSCs is very important to ensure the sustainability of their services in the long run. The results revealed that on average the net returns of the selected AMSCs were although positive but insignificant. For the benefit of farm economy as well as for viability of these centers there is need to increase the volume of business of AMSCs through proper choice of machines as well as by encouraging the farmers to avail the services from these centers. The present investigation highlighted number of problems in running of AMSCs which need to be addressed for their sustainability in the long-run.

Customer Satisfaction of SHGs with the Primary Agricultural Cooperative Societies (PACS): Evidences from the Field

This paper analyses and discusses the customer satisfaction of the members of SHGs who obtained microfinance from the Cooperative banks, since India is the homeland of the SHG Bank linkage programme model of microfinance. The study concludes that the Cooperative banks treat the SHG members as customers and all the respondents informed that they were treated as good customers. The study concludes that majority of the respondents (87.7%) are satisfied with the banking services of the PACS and 11.7% of the respondents are satisfied to some extend and there is only one unsatisfied customer and the study reports that there is a significant relationship between the year of SHG formation and satisfaction of banking services. The study also found that there is inadequacy of loans and women members were forced to visit many times to obtain loans.

Impact of Primary Agricultural Cooperative Societies’s on Farmer’s Economy of Panchmahal District of Middle Gujarat, India

Utilization of credit for which it is provided is an important element in agriculture development. In this regards, it is necessary to understand the credit utilization pattern of farmers and efficiency of PACs. In tribal area of Panchmahal district, at the village level more than 100 PACs covering some villages or group of villages are working and providing crop production loans to their farmer members. Considering the above the study was confined to total 168 respondents (84 borrowers and 84 non-borrowers). The study revealed that due to availability of crop loan the total cropped area of both the categories (marginal and small) of farmers of borrower groups was higher as compared to non-borrower group, also the intensity of cropping was higher that is, 246.77 and 243.83% for marginal and small borrower farms as compared to non-borrower farms. Probably this may be due to more investment in irrigation system enabled the borrower farmers to raise more crops in a year than non-borrower farms. The study also showed the overall percentage increase in the employment was 8.21 and 9.29 % respectively in situation of before and after finance, while borrower farmers have obtained and used bank credit for improving their irrigation system There was also an increase in value of assets for irrigation facilities, farm building, live stock and land due to loan availability from PACSs. It is also found from the study that overall 29.76% of the total borrowers was found defaulted. The percentage of over dues to demand was maximum in small farmers, followed by marginal farmers. The most important contributing factors for mounting up of defaulters and over dues of credit were low productivity/ income (20.24%), followed by failure of crops (17.86%) and high family expenditure (15.48%) (Kaur et al., 2002).

Mechanization scenario of agriculture in Punjab

Agriculture in Punjab has undergone a remarkable change as far as mechanization was concerned in the post Green Revolution period. Nearly all the machines and implements such as tractors, combines, electric and diesel engine run tubewells, disc harrows, spray pumps, reapers, etc. have increased exponentially in numbers, barring a few instances where the growth in numbers dipped. As such the agriculture in Punjab is amongst the most mechanized in the country. This was fallout of increasing instances of labour shortages and mechanization seems to be one of the most viable solutions. The mechanization has led to the timeliness of the farm operations and a result both the production and productivity of agriculture on Punjab farms has increased through time. At the same time this lead to an over mechanization of agriculture in the state and resulted into squeeze of farm profits. Over mechanization can be checked by resorting to custom-hiring services which are readily available with a numbers of primary agricultural cooperative societies to undertake various farm operations, but to achieve this farm extension agencies have to acquaint the farm-operators about the benefits of custom-hiring services.