UP reviving defunct cooperative societies in Purvanchal

The Uttar Pradesh government has planned to revive defunct cooperative societies in the Purvanchal region of the state.

These societies play a major role in the local rural economy by providing small agricultural loans, besides selling fertiliser and seed to member farmers.

Of the total 7,479 registered societies in UP, about 950 units with majority in eastern UP have been lying defunct.

To revive these societies, the government is extending financial assistance worth Rs 24 crore for reviving and re-energising 1,200 societies in Purvanchal by giving Rs 2 lakh to each society. Additionally, 88 new cooperative societies have been established in areas, where the defunct societies are being liquidated.

The funds are being channelised to these societies through UP Cooperative Bank (UPCB) and Provincial Cooperative Federation (PCF).

This year, an increase has been registered in the distribution of short-term and long-term loans, both in quantum and number of borrowers. The government is targeting 50 per cent increase in rabi and kharif credit this year.

The prevailing interest rate is 7 per cent, however, borrowers are given subsidy of 4 per cent, if they repay timely. The centre and state government provide 3 per cent and one per cent interest subsidy respectively.

Meanwhile, in current rabi season, the government is targeting distribution of over 10 lakh quintals of improved varieties of seed compared to 7 million quintals distributed last year.

State cooperatives minister Naseemuddin Siddiqui has also directed officials to ensure availability of fertiliser to societies for retailing by September end. He informed that the government had advance stocked 40 lakh quintals of phosphate fertiliser under Rabi Mission to pre-empt any scarcity to farmers.

Besides, areas where district cooperative banks (DCB) have weakened, new branches of commercial banks and other DCBs will be opened for ready availability of credit to farmers.