Maha govt presents bill proposing mandatory membership of service societies for farmers
Mumbai, July 7
In a significant move aimed at strengthening the cooperative credit structure and curbing local political rivalries, the MahaYuti government on Tuesday introduced a bill in the state assembly to amend the Maharashtra Cooperative Societies Act, 1960.
The bill makes it mandatory for cooperative societies to grant membership and extend crop loans to any farmer who owns at least 10 gunthas of land. The bill was tabled by Cooperation Minister Babasaheb Patil.
Local political factions often deliberately deny eligible farmers membership to maintain control over cooperative bodies. The proposed amendment is expected to effectively rein in such exclusionary practices.
Furthermore, under this new amendment, non-agricultural cooperative societies will be strictly prohibited from advancing loans to any individual who is not a registered member.
According to Section 23 of the Maharashtra Co-operative Societies Act, 1961, no cooperative society can deny membership to a person residing within its jurisdiction who fulfils the conditions specified in its bylaws.
Currently, if a society rejects an application, the aggrieved applicant has to appeal to the Registrar. However, this process often leads to harassment and endless bureaucratic delays for ordinary farmers.
To eliminate this struggle, protect the rights of eligible farmers, and fortify the grassroots cooperative credit network, this proposed mandatory membership amendment has been put forward. At the village level, Primary Agricultural Credit Societies (PACS) serve as the backbone of agricultural loan distribution. These institutions also supply essential farming inputs, such as fertilisers, seeds, and pesticides.
While a vast majority of farmers in the state rely on these cooperative networks for financing, instances have surfaced in which eligible farmers were intentionally denied agricultural loans and other essential services.
To empower these farmers and reinforce the cooperative credit framework, the proposed amendment to Section 23 mandates that any farmer owning at least 10 gunthas of land must be enrolled as a member of the local cooperative society.
An amendment has also been proposed to Section 44 of the Act. Under this provision, non-agricultural cooperative credit societies will be legally barred from advancing loans to anyone other than their registered members. This strict restriction ensures that these financial institutions cannot divert credit to outsiders who hold no membership stake.
As gold loans are secure and quickly disbursed, their demand has been rising rapidly. To increase access to institutional credit, another amendment has been proposed to enable non-agricultural cooperative credit societies to distribute gold loans to nominal members as well.
— IANS
Reader Comments
I appreciate the intent, but making it *mandatory* feels heavy-handed. What if a farmer doesn't want to join a particular society? There should be some flexibility. Also, what about landless tenants who actually do the farming? They are the real backbone of our agriculture. 🤔
Good riddance! I have seen endless paperwork and bribes for simple loan approvals. The Registrar's office is a nightmare for poor farmers. Making it mandatory will reduce harassment at least for those with 10 gunthas or more. Hope implementation is smooth. 🙏
Extending gold loans to nominal members is a double-edged sword. While it increases access to credit, we all know how predatory lending can trap families. The government must also ensure proper interest rate caps and recovery guidelines. Otherwise, it's just another debt trap. 🏦😰
This is a classic 'good idea, poor timing' move. With economic distress and input costs skyrocketing, making membership mandatory might push already struggling farmers into more debt. Also, 10 gunthas? That excludes many marginal farmers in drought-prone areas. We need a more inclusive definition. 🧑🌾
Interesting move. In Western countries, cooperative banking flows from bottom-up, not top-down. Making membership mandatory might solve local political capture but creates bureaucratic capture. India needs more competition in farm credit, not just mandating one pathway. 🌾
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