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FINANCE |
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CROP
FINANCE.
Vacuum was thus created in the rural credit
structure. Government took a serious view of the situation and
instituted the system of crop or seasonal finance. The principal
agencies which have been recognised for grant of crop or seasonal
finance are the following:-
(1) Co-operative Societies;
(2) Revenue Department (Tagavi Loans);
(3) Grain Depots;
(4) Persons authorised under section 54 of the
Bombay Agricultural Debtors' Relief Act, 1947.
As far as possible, crop or seasonal finance is
advanced through co-operative societies to persons who are parties
to the proceedings or awards under the Bombay Agricultural Debtors'
Relief Act. Advances made through agencies other than cooperatives
are not, therefore, very large. The advances are secured by crops
grown by them. They are essentially short term in character and
their chief object is to finance at reasonable rates of interest,
agricultural operations connected with the raising of crops.
Societies have been advised to keep a watch over the crops and to
effect prompt recoveries. Inspite of this provision, there have been
defaults in many cases.
The following table shows the position as regards
advances of crop or seasonal finance through the co-operative
societies in Kolhapur district in the years 1949-50 to 1955-56:-
TABLE No. 4.
STATEMENT SHOWING
ADVANCES OF CROP OR SEASONAL FINANCE THROUGH CO-OPERATIVE SOCIETIES
DURING THE YEARS 1949-50 TO 1955-56.
|
Year. |
No. of applications received. |
Amount of finance applied for. |
Amount advanced. |
Amount recovered. |
|
1 |
2 |
3 |
4 |
5 |
|
|
|
Rs. |
Rs. |
Rs. |
|
1949-50 |
2,378 |
6,29,359 |
1,76,161 |
-- |
|
1950-51 |
4,505 |
17,31,419 |
8,89,498 |
1,49,781 |
|
1951-52 |
4,985 |
22,66,720 |
6,00,815 |
3,65,354 |
|
1952-53 |
10,079 |
19,93,064 |
8,58,445 |
12,63,653 |
|
1953-54 |
4,262 |
33,69,657 |
8,36,205 |
7,47,346 |
|
1954-55 |
13,719 |
N. A. |
10,68,711 |
8,09,315 |
|
1955-56 |
12,540 |
N. A. |
9,98,868 |
8,04,005 |
continued.
|
Year. |
Amount outstanding at the end of the year. |
Amount of overdues. |
Amount of government guarantee. |
|
Authorised. |
Unauthorised. |
|
1 |
6 |
7 |
8 |
9 |
|
|
Rs. |
Rs. |
Rs. |
Rs. |
|
1949-50 |
1,71,161 |
1,71,161 |
-- |
-- |
|
1950-51 |
9,13,878 |
7,28,827 |
1,85,051 |
-- |
|
1951-52 |
5,82,595 |
24,402 |
5,58,193 |
-- |
|
1952-53 |
4,36,043 |
2,40,257 |
1,95,786 |
-- |
|
1953-54 |
5,24,902 |
-- |
67,230 |
-- |
|
1954-55 |
7,84,297 |
57,827 |
5,13,485 |
967 |
|
1955-56 |
8,79,160 |
94,702 |
3,63,770 |
-- |
The table indicates that co-operative societies have
not been able to meet fully the requirements of the agriculturists.
The amount actually advanced always fell short of the amount applied
for. The state of recoveries was unsatisfactory throughout as is
evidenced by the increasing amounts of outstandings and overdues at
the end of every year from 1949-50 to 1955-56. The table also
reveals the fact that more and more people have begun to avail
themselves of this kind of financial assistance. In 1949-50, for
example, only 2,378 agriculturists had applied for crop finance and
the amount advanced to them was Rs. 1,76,161. As against this in
1955-56 as many as 12,540 had applied and they were assisted to the
tune of Rs. 9,98,868. This clearly indicates the increasingly
greater role played by co-operative societies in matters of crop
finance during recent years. | 
