Primary Agricultural Cooperatives Research Articles

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.

A study on growth and performance of Primary Agricultural Cooperative Credit Societies of West Bengal

A study on growth and performance of Primary Agricultural Cooperative Credit Societies of West Bengal

Inclusive Growth through SHG-An Expost Study

SHGs is for accelerating the economic growth with equity by way of access to credit requirement to vulnerable groups. The NABARD implemented such programmes favouring SHGs in the country. SHGBLP requires coordinated efforts by all stake-holders to tackle the issues of heavy concentration, stagnation in growth, multiple membership, lower bank linkage both in number and quantum, and also for the rising of non-performing assets in the country. The cooperative institutions like District Cooperative Central Banks and Primary Agricultural Cooperative Credit Societies have a long history and also helped the beneficiaries tremendously in our country. It is noted that the SHGs has grown over the years in various parts of the country but 26 per cent of them have been brought under the SHG-Bank Linkage Programme. In addition, a huge amount of regional variation in both credit deepening and credit widening has been observed in the country.

AN ANALYSIS OF GROWTH AND PERFORMANCE OF KARNATAKA STATE COOPERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK IN KARNATAKA

Primary Agricultural Cooperative and Rural Development Banks are playing an important role in meeting the credit requirements of the rural population. The main activity of the Bank is the dispensation of long-term credit for agricultural and rural development under schematic lending approved by NABARD Bank. The lending programs are for productive purposes like integrated loans for agriculture and allied agricultural purposes under major and medium-term projects. The present study was carried out with a broad objective to examine the performance of the Karnataka State Cooperative Agriculture and Rural Development Bank (KSCARD Bank). The study has made use of secondary data (2010- 11 to 2019-20) and the analysis is carried out by using the exponential growth model which has been used to analyze the performance of KSCARD Bank. Finally, it is concluded that the lending performance has very crucial role in Long Term Credit requirements, but the status of the recovery balance of KSCARD bank is very high when compared to the demand and collection of the recovery

Success Factors from Dutch Agricultural Cooperatives and Canadian Agricultural Cooperatives in the Food and Beverage Sector: A Comparative Analysis

Dutch agricultural cooperatives have long been successful in their business growth throughout Europe. With more farmers forming cooperatives that supply locally produced food and beverage products into national and international markets, there is no question that the Dutch are successful at forming agricultural cooperatives. The use of vertical coordination throughout their supply chains combined with the country’s geography provides the opportune place for food and beverage production. However, there is no standard set of ideals or factors that these cooperatives have followed to gain their success. In Canada, more cooperatives exist, but a lack of acceptance of new technologies over the past 20 years has led to a lag in automation and a reliance on labour. While outdated reports exist on starting an agricultural cooperative in Canada, there are still no updated reports that farmers could follow on a national or local scale. A lack of support from the Canadian Government has meant a monopolized cooperative arrangement with Saputo and Agropur being the two primary agricultural cooperatives nationally. The results indicate that there are commonly agreed upon ‘success factors’ and ‘bottlenecks’ among researchers in the Netherlands, over a span of 25 years of research. In Canada, the federal Government conducted interviews with industry and farmers on support for cooperatives across Canada, but little came out of these meetings. These results suggest that additional support for cooperatives in Canada is needed, and while Dutch researchers’ ‘success factors’ were found, they cannot be directly applied to Canadian cooperatives because of policy and geography differences.

Analysis of the Effectiveness of Existing Niger Seed Market Channels in Selected Primary Agricultural Multipurpose Cooperatives in Horo Guduru Wollega Zone, Oromia (page 43—60)

Agriculture in Ethiopia remains to be the key sector. A recorded literature suggests that one form of smallholder farmers’ commercialization is through production of cash crops like niger crop is conceivable to be the major source of export revenue and contribute to livelihoods diversification and poverty alleviation by directly increasing the farm household's income earning potential. The objective of the study was, to analyze the effectiveness of existing niger seed market channels cooperatives in the study area. Multi- stage sampling technique was used to select Abay Chomen District and the four primary cooperatives from the sample frame and by using Kothari formula sample of 145 respondents were drawn from four primary agricultural multipurpose cooperatives in the study area. The analysis of the study was based on both Primary and secondary data sources that combined qualitative and quantitative data which were collected from the members of the sampled cooperatives. The data were collected through the survey interview schedule questionnaires, checklist for FGDs and key informant interviews. For the realization of the stated objectives the study included variables like. The data was analyzed using descriptive statistics using SPSS version 16.0 and χ 2 of association were used to test the association between the independent and dependent variables. Based on the main findings due to a number of factors that limit the niger seed market channels in cooperatives, 37(25.5%) of the respondents were reported that the existing niger seed market channels in cooperatives is effective whereas 108(74.5%) of the opined that ineffective. The result of the descriptive statistics showed that from the truncated descriptive statistics and cross tabs result shows that asset endowments like farm land and size of oxen owned are the major influencing factors of the existing niger seed market channels’ effectiveness in cooperatives the study area. Keywords: Niger seed , multipurpose cooperatives , effectiveness, market channel DOI: 10.7176/JAAS/74-01 Publication date: July 31 st 2021

A Study on Financial Statement Analysis of Primary Agricultural Cooperative Credit Society in Paiyanoor Branch at Chengalpattu District

This study discussed the financial statement analysis of Primary Agricultural Cooperative Credit Society in Paiyanoor branch at Chengalpattu district, the study based last five year annual report of 2014 to 2019 form PACCS. The Accounting ratios like Current ratio, Quick ratio, Debit ration, Debit equity ratio, Net assets turnover ratio, Gross profit ratio, Net profit ratio, Return on equity ratio, Return on equity ratio, Solvency ratio used analysis the performance of financial statement analysis of Primary Agricultural Cooperative Credit Society. The study revealed that Debit Ratio highest value in the year 2014-15 is 0.830, Net Profit Ratio highest value in the year 2015-16 is 1.015, Current Ratio highest value in the year 2018-19 is 2.052, Quick Ratio highest value in theyear 2018-19 is 2.813, Gross Profit Ratio highest value in the year 2018-19 is 0.134. It shows that the PACCS gradually increase financial performance in last five years from 2014 to 2019.

An Economics Appraisal of Lending Programme Organized By Women SHGs and Primary Agricultural Cooperative Banks

An Economics Appraisal of Lending Programme Organized By Women SHGs and Primary Agricultural Cooperative Banks

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

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

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.

Assessment of the Role of Agricultural Cooperatives in Input Output Market in Boke, Anchar and Darolebu Districts of West Hararghe Zone, Oromia Region, Ethiopia

The study was conducted in three districts where agricultural cooperatives have been well promoted in West Hararghe zone to identify role of primary agricultural Cooperatives and factors affecting its role in the study area. Structured interview schedule were used to collect data from 180 cooperative members and non-members selected randomly from six agricultural cooperatives and its surrounding. Focus group discussions were also conducted to collect qualitative data from respondents. In this study, the statistical tools like descriptive statistics such as mean, frequency distribution and percentage, SWOT analysis and an index score was used to rank major constraints. Out of interviewed respondents, 66.7% were member of cooperative while 33.3% were non-members of the cooperatives. Most primary cooperative mainly focuses on the activities like provision of fertilizer (DAP, UREA and NPS), consumable food items (sugar and cooking oil) and rarely involved in improved seed distributions. Lack market interest, climate change, lack of market information, insufficient capital and low price of the marketable commodity were major constraints found in agricultural commodities in study area. Strengthening training, improve their capital, services and transparency, increasing members participation, sharing dividend to the members and annual auditing their status were major recommendation delivered for responsible bodies by the study. Keywords: agricultural cooperative, role, inputs, outputs DOI: 10.7176/JNSR/10-11-03 Publication date: June 30th 2020

Factors Affecting Adoption of Improved Haricot Bean Technology in West Hararghe Zone of Oromia Region, Ethiopia: A Heckman Two-step Approach

Adoption of improved technology is one of the most promising ways to reduce food insecurity in Ethiopia. However, the adoption and dissemination of these technologies is constrained by various factors. The aim of this study was to determine intensity of adoption of improved haricot bean technology and identify factors affecting its adoption in the study area. The study was based on cross sectional data collected from 148 randomly selected improved haricot bean producing farmers. The Heckman selection model results showed that farmers with large livestock size, members of primary agricultural cooperatives, participation in haricot bean technology demonstrations and having contact with an extension agent, are more likely to adopt and implement haricot bean production technology. Strengthening the existing livestock production system through providing improved health services and forage, expanding and capacitating primary agricultural cooperatives, and increasing the number of participants on technology demonstrations and field days are recommended to facilitate adoption of improved haricot bean technology.

The Knowledge of Leaders About Basic Cooperative Principles as a Key Factor for Agricultural Cooperatives Business Performances’ in Horo Guduru Wollega Zone, Ethiopia

The main objective of this study is ‘to examine the knowledge of leaders about basic cooperative principles as a key factor for Agricultural cooperatives business performances’. The study covers 96 cooperative leaders and 192 individual members of cooperatives selected from 96 primary agricultural cooperatives. The study employed both quantitative and qualitative research approach to answer the research question. The data related the study was collected with the help of survey questionnaire, key informant interview and focus group discussion from the study participants. The pertinent data collected were analyzed with the help of descriptive statistics and inferential model called multiple regression models. Accordingly, the 16 basic cooperative principles have significant impact on the business performances of agricultural cooperatives at 0.05 significance level. So, the government and other community development partners should arrange continuous trainings on cooperative principles and its roles on business practicesto cooperative leaders to improve the effectiveness of Leadership in enhancing business performance of cooperatives, and leaders of cooperatives need to focus on basic cooperatives principles as key factor for success of business practices of the cooperatives. These actions will ensure the survival, productivity, improved living standard of the cooperatives members, competitiveness, and prosperity of cooperatives businesses. Keywords: business performance, board of directors, cooperatives, cooperative principles, leadership, members, multiple regressions DOI : 10.7176/JAAS/60-03 Publication date: January 31 st 2020

Members’ Satisfaction on Service Provided by Selected Cooperative Business Enterprises (CBEs) in Bedeno Woreda, East Hararghe Zone, Oromia Region

This study was conducted in Bedeno Woreda on five purposively selected primary cooperatives. Based on PPS technique 344 members were selected as sample size. The required data was collected from both secondary and primary sources. Primary data was collected from 334 selected members using semi-structured interview. The collected data was analyzed by using descriptive analytical tools like frequency analysis, percentage and crosstab analysis. The result of descriptive statistics showed that majority of member respondents were not satisfied on services provided by CBEs. It is recommended that the cooperatives have to offer quality service at low cost and provide high price for member’output by searching new market like foreign market. Cooperatives have to fairly distribute service and should be based on customer/member oriented principle. Cooperatives have to focus on extending the existing service and offering other required services. Keywords: Primary Agricultural Cooperatives, Member’Satisfaction, Cooperative Services DOI : 10.7176/JMCR/63-03 Publication date: December 31 st 2019

Factors influencing Effectiveness of Niger Seed Market Channels of Selected Primary Agricultural Multipurpose Cooperatives in Abay Chomen District, Oromia Regional State, Ethiopia

Factors influencing Effectiveness of Niger Seed Market Channels of Selected Primary Agricultural Multipurpose Cooperatives in Abay Chomen District, Oromia Regional State, Ethiopia

Analysis of the Governance Models Applied in Agricultural Primary Cooperatives: The Case of Ilu Galan District, West Shawa Zone, Oromia, Ethiopia

Prompted by increased concern about cooperative governance, the study was conducted to analyze the governance architecture, the governance models applied and the factors determining the choice of the application of the models using data obtained from 114(99 male and 15 female) respondents from four of Primary Agricultural cooperatives in Ilu Galan District. The study focuses on the governance architecture, six governance models (Democratic, Compliance, Partnership, Cooptation, Stakeholder and Rubber Stamp) and determining factors thematically organized in to seven themes: Teaming, leadership, Conflict of interest, Unnecessary intervention, legal, governance and education/training. The data analysis was made using descriptive statistics: percentage of frequency, weighted mean, standard deviation and ranking methods. The results identified that primary Agricultural cooperatives in the District have the poorly adapted governance architecture which cannot clearly show the governance framework or the four pillars (accountability, transparency, predictability and participation) and strategic leadership activities (the vision, mission, objectives and activities to be achieved in their plan and bylaw). The cooperatives hardly apply the principles of cooperatives in general and that of governance models in particular. Democratic, Co-optation, Rubber Stamp Models were the top three models that Primary Agricultural Cooperatives were implementing in the District. The data analyzed show that almost all the members of the cooperatives were confused with word “model” as a result of which governance related factors, lack of awareness/education/training, Teaming and strategic leadership factors were the first four important factors in influencing the choice of the application of Cooperative Governance Model to Primary Agricultural Cooperatives in the District. Therefore, the prescriptions for the cure also lie in bringing about improvement in these factors.

Recombinant Urbanization: Agrarian–urban Landed Property and Uneven Development in India

AbstractThis article develops the concept of recombinant urbanization to show how agrarian landed property and land‐based caste/class relations shape the production of post‐liberalization urban real estate markets in India. I focus on two interrelated but differentiated agrarian property regimes in western Maharashtra to argue that real estate development is building on prior uneven agrarian land markets, which were themselves sociotechnically produced by colonial and postcolonial development politics. Through an examination of the organizational form of sugar cooperatives, which mediated agrarian capitalism in an earlier era, I track how these primary agricultural cooperatives are now being reorganized into real estate companies, sometimes with former sugarcane growers as company shareholders. The same caste‐based political and social capital that made sugar cooperatives possible in a capitalist agrarian society is now being leveraged by agrarian elites to ease their own and their constituents’ entry into an urbanizing economy. The concept of recombinant urbanization opens new methodological entryways to analyze the entangled agrarian and urban question in predominantly agrarian and late liberalizing societies.

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.