The Punjab Government has decided to enhance the cash limit of Primary Agricultural Cooperative Societies (PACS) for purchase of goods or stock from Rs50,000 to Rs1 lakh to enhance volume of business besides providing better goods and services to farmers at their doorsteps. The decision was taken by Principal Secretary to the Chief Minister and Financial Commissioner (Cooperation) SK Sandhu while presiding over a review meeting with the presidents and secretaries of PACS and milk producing cooperative societies on Wednesday. These societies were supplying consumer goods at the doorstep of farmers and the cooperative banks provide a limit of Rs50,000 to the societies for the purchase of goods or stock.
“But as per the fresh decision, the societies could now be sanctioned Rs1 lakh credit limit, if they so require, depending upon the average business done by the society during the last six months,” said the spokesperson. “It was also decided to give more autonomy to the cooperative societies to sell consumer products depending upon the local requirements,” he said. It was also decided to allow the societies to procure the sugar from various cooperative sugar mills in the state for selling it to its members at a relatively cheaper rate.
likewise, Punjab State Cooperative Milk Producers’ Federation limited (Milkfed) has been asked to provide better and quick veterinary services to members of the milk producers’ cooperative societies attached to the various milk plants. In another decision, it was also decided that the burden of relief, to be given to the farmers under the recently launched One Time Settlement (OTS) Scheme to the debt ridden farmers by the Punjab State Cooperative Bank, would not be borne by the cooperative societies only, rather it would be shared by the cooperative bank and the cooperative societies jointly.
It would give relief to the farmers in redressing their loans on one hand and help cooperative societies and the banks to fetch more money into circulation and strengthen their financial position on the other. The decision has also been taken to allow credit limit to the farmers for the purchase of cattle feed in addition to the existing maximum credit limits (MCl) to support the dairy activities.
Pertinently, the Cooperative Bank provide funds to member farmers of the societies in the shape of credit limits for cash loans as well as purchase of fertiliser and other agri-inputs and diesel etc. Taking another significant decision aimed at felicitating the societies to supply various products of the Marked to its members at relatively cheaper rates, the state government has given approval to bring margin on the products of Markfed supplied through the cooperative societies at par with the private dealers of Markfed. Earlier, Markfed was giving lesser margin to the cooperative societies as compared to its private dealers.