Two days meet of members of NAFSCOB from April 28 to 29 in N Delhi is going to be stormy. The members sounded quite belligerent on the issue of getting their demands met at the Press Conference organized by NCUI on Tuesday in New Delhi. The  two days meet is titled “ National Consultation and Review Meet on Implementation of Revised Revival Package of Short Term Cooperative Credit Structure” as recommended by Vaidyanathan committee report.

Listing his demands the Chairman of NAFESCOB, Dr Bijender Singh told media that Vaidyanathan Committee report is applicable only from 1997 onwards. Accepting the report in toto, the government has given a package of Rs 71000 crores which has  helped coop banks in big way, added Dr Singh. Banks were able to improve their balance sheet and some dead ones have sprung to life. But those farmers who took loan before 1997 have been left out and  Dr Singh demanded them to  be included.

The government is giving loan to the state cooperative banks at the rate of 4percent and expects that coop banks will disburse the loan at the rate of 7 percent to farmers. But this loan amount is forwarded to State Cooperative banks which in turn forward it to district cooperative banks and then to Primary credit cooperative bank. Now because of these structures, without which the loan cannot reach to farmers, the cost of loan goes up to  9 percent. In other words, coop banks are bound to be in loss because of lacuna in the  system . Dr Bijender demanded  correction in this anomaly so that Coop bank could operate better. Commercial banks have their branches only in cities and are not bothered with farmers woes  but we are the implementing agency of the Govt , quipped Dr Singh. Recovery is poor as our farmers depend on the vagaries of climate. Being the social face of the govt we cannot be ruthless on the lines of commercial banks , yet we are expected to get result like them ,lamented the Chairman.

But what seems to have seized entire NAFESCOB is the issue of income tax which was imposed on cooperative banks in 2006. Dr Bijender Singh was emphatic that this must go at least for those banks which are operating in rural areas and which does the job of  strengthening the cause of Govt. What even the first Prime Minister Jawaher Lal Nehru did not do, Chidambrem in his earlier avatar as Finance Minister did. He imposed income tax on cooperative banks, lambasted Dr Sigh. He plans to meet the Prime Minster and UPA Chairperson for removal of income tax burden on cooperative banks. Many members including Jigneshwer Prasad from Orissa echoed his sentiments and told media that they will support whole heartedly any decision of launching nation wide protest including closing the coop banks for a day or two that our chairman decides to undertake.

Describing the agenda of the Meet, the Managing Director of NAFESCOB   Mr Bhima Subrahmanyam told media that the Meet will examine the problems  being faced by states in bringing suitable legal reforms whereby Viadyanathan report could be implemented. He further said that CRR should be reduced for cooperative banks to 3 percent. But his most vehement request pertained to creation of a  separate apex body following the Rakesh Mohan Committee report for cooperative banks. NABARD which does the refinancing to cooperatives is burdened with a number of responsibilities and we need a dedicated apex body ,  Mr Subrahmanyam added.

Ch Sheesh Pal Singh,Chairman,Sahkari Ganna Samiti is not happy with the hike announced by the Centre and demanded that the price should not be less than rupees 175 per quintal. Inflation is ruling the roost as almost price of everything have sky-rocketed, he added. Farmer is a consumer too and if he does not get price for his labour where will he go, quipped Sheesh Pal.

He was also wondering as to what does the State government do in this matter as it has to fix the price for mill owners that they will pay to farmers. The real story will be unfolded then only. He also said the pricing is decided by the clout of Sharad Pawar, Union Agriculture Minister who has only Maharashtra’s farmers interest in his mind. Mr Sheesh Pal was categorical that farmers and the common men should get benefit from any decision Govt takes.

India, the biggest sugar buyer, raised the minimum price that millers must pay growers by 7 percent as it seeks to boost production and pare imports. Cane farmers will receive 139.12 rupees ($3.10) for 100 kilograms for the 2010-2011 season starting Oct. 1, compared with 129.84 rupees this year, the government said.

India, the largest user of sugar, imported record amounts last year after a drought parched cane fields, sending futures in New York to a 29-year high in February. A slump in global prices since the peak won’t deter millers in the Asian nation from paying growers more than the floor price, as they vie to secure raw-material supplies, according to Pranshu Mittal, an analyst at Mumbai-based Centrum Broking Pvt.

“India may still import next season to build inventory” even as output rises, he said. “Mills will be paying more.”Output in Uttar Pradesh, the nation’s biggest grower may surge 35 percent to 7 million tons next year, Shyam Lal Gupta, secretary-general of the Uttar Pradesh Sugar Mills Association, said in an interview.

India has taken steps to increase supplies by extending the window for duty-free imports of raw and refined sugar until Dec. 31, ordering bulk consumers to hold inventories for no more than 10 days from 15 days previously and getting mills to sell on a fortnightly basis.

The measures have led to prices at Vashi in Mumbai, India’s biggest wholesale market for sugar, to decline by about a third from a record 4,050 rupees per 100 kilograms on Jan. 8. The cost fell to 2,740 rupees , the lowest since Aug. 6.

“Some mills may report losses in the coming quarters as prices have fallen sharply,” Centrum’s Mittal said.The stock brokerage last month recommended selling shares of Bajaj Hindusthan Ltd., India’s biggest producer, and Shree Renuka Sugars Ltd., the top refiner, and lowered Balrampur Chini Mills Ltd. and Triveni Engineering & Industries Ltd. to “hold” from “buy,” amid the slump in prices.

India’s production in the year ending September may total 18.5 million tons and rise to 23 million tons in the 2010-2011 season, Vinay Kumar, managing director of the National Federation of Cooperative Sugar Factories Ltd., said this week.

The country may have a deficit of 1.8 million tons even as the world supplies exceed demand by 6 million tons, Centrum said in March report.

The cabinet has decided to raise FRP of sugarcane by 7 percent and has tried to match the recommendation of Food Ministry. The Food Ministry has recommended a price of Rs 140 a quintal while cabinet determination of price has brought it to  Rs 139.12 per quintal for the 2010-11 season. The FRP of sugarcane for 2009-10 season was Rs 129.84 per quintal. Sugar season runs from October to September.

“The Cabinet Committee on Economic Affairs (CCEA) approved determination of FRP of sugarcane for 2010-11 season at Rs 139.12 per quintal,” an official statement said. The decision was taken at a meeting of CCEA this morning. FRP is the minimum price that sugarcane farmers are legally guaranteed. However, the sugar mills are free to offer any price above the FRP.

From the current season, the Centre has decided to fix FRP as the price to be paid by the sugar mills instead of the Statutory Minimum Price (SMP) earlier. FRP is linked to a basic recovery rate of 9.5 per cent subject to a premium of Rs 1.46 for every 0.1 percentage point increase in recovery above 9.5 per cent. Recovery rate is the sugar produced from the crushed cane, the statement said.

The CCEA has fixed the FRP of sugarcane for 2010-11 season close to the recommended price of around Rs 140 a quintal by the Food Ministry. In the current season, sugarcane farmers have received about Rs 250 a quintal due to shortage of the crop. The FRP is fixed after taking into consideration the margins for sugarcane farmers on account of risk as well as profit on the cost of production of sugarcane, including the cost of transportation. It includes a margin of nearly 45 per cent on account of profit and risk to the farmers on the all India adjusted average cost of production of sugarcane, including the cost of transportation to the mill gate.

The reactions of sugarcane growers are yet to pour in though they had sort of won the battle last year when they brought Delhi to stand still by populating its streets in large number on the issue of sugarcane price.

The controversy erupted as the Centre proposed an FRP of just under Rs. 130 a quintal of sugarcane at a time when the market price was above Rs. 200. The government’s (now dropped) proposal was if the State governments were to suggest a higher SAP, the difference would have to be paid by them to farmers, not the mills. The result: the State governments would not declare SAP, farmers would have got less for their produce in accordance with the Centre-declared FRP and mill owners would benefit by getting cane cheap. This part of the proposed amendment has now been dropped altogether.

Among a few institutions that are doing well in Bihar DNS Regional Institute of Cooperative Management  figures prominently in these. It has many courses for all categories of people running from 3 days to 26 weeks. In  the  year gone by it imparted cooperative management skills to about 8473 participants in 280 courses.

Established in 1954-55 DNS Regional Institute of Cooperative Management   organizes training programmes for  both the non officials of cooperative societies as well as for the executives working in them. It has a team of qualified faculty with diverse professional back ground. Rural development, cooperative laws, credit, planning,  banking and such other key areas for the success of cooperative movement are taught here. The Institute offers Higher Diploma in Cooperative Management,  Diploma in Handloom cooperative management, Fisheries, Marketing, Cooperative Audit and Certificate Course even in Computer Application and System. Soon it is going to train 170 cooperative auditors-a must for cooperative movement to be successful. It also proposes to train cooperative inspectors in Higher Diploma in Cooperative Management.

Mr Ajai Rastogi, the dynamic  regional director of the Institute feels that as in Kerala, law should be enacted in Bihar too for compulsory training of cooperative management for people associated with it. It needs no mention that cooperative management skill  go a long way in making this movement successful. Gujarat is living example.

As to why cooperative movement has failed to take off in Bihar barring a few exception of COMFED , Mr Rastogi says that absence of credible cooperative leadership is partly to be blamed for this. Nitish Kumar has no doubt, sort of revived cooperative movement by conducting free and fair PACS election, it will take time before the movement picks up steam.

Whatever be the future, presence of a  Premier  institute is itself a necessary fodder for the growth of cooperative movement  whenever the time comes and DNS inspires hope on this front.

A quiet revolution is sweeping Bihar which has otherwise dismal performance in other areas of cooperative sector. Bihar State Milk Cooperative Federation(COMFED) is leading this revolution with zeal and skillful management. Around 4.50 lakh rural families associated with 8600 dairies cooperatives are not only supplementing their income but also earning a name for their state as second Anand . Set up in 1983 COMFED does not treat itself as government body nor does it treat itself as NGO. It prides itself on being  a body of the farmers, by the farmers and for the farmers.

COMFED  tries to fashion itself around Anand with three tier structures-  all working in perfect coordination with each other. At the primary level which actually is village level, Primary Dairies Cooperatives exist. There are 8600 PDCs in the whole of State. About 4.50 families are connected to these PDCs but only one member from each family has voting rights. Each family can purchase share but no matter how much share one owns, voting right is limited to one in a family unlike commercial venture where  greater no of shares gives  you greater clout. Village level dairies cooperatives elect District Cooperative Unions which are presently six in number with head quarters at Patna, Muzaffarpur, Darbhanga, Barauni, Arrah and  Bhagalpur. Two more  are in the process of coming up.

At the village level, dairy cooperatives have 13 members with a Chairman. The chairmen of Primary Dairy Cooperatives elect district milk union board. These district milk union boards take care of the needs of village dairy cooperatives and operate in tendem with them. At the state level  the COMFED is constituted by the  chairmen of district union boards which are six in number. There are 11 members on the board of COMFED in which 3 are from National Dairy Development Board,  Managing Director and  the chairman being the other two.

Milk is collected from dairy cooperatives in the village twice a day and brought to milk sheds in district milk unions which have more than one dairy plant on average. There are 13 dairy plants in total. At the plant, milk is processed for urban consumer , filled in pouches and milk derivatives are produced. COMFED has about 26 milk products and this is marketed under the brand name of Sudha. On an average 7.5 lakhs litres of milk is procured every month with this figure touching 11 lakh litres in March 2010.It is being marked in 110 cities even crossing the boarder of State to West Bengal, UP and Jharkhand.

Amidst the dismal cooperative scenario in the state of Bihar the story of Sudha is indeed inspiring. Most of the cooperatives be it consumer, land development bank, the once famous BISCOMAUN are defunct bodies today. But even for COMFED the journey is far from complete.  Sudha would be truly successful when along with raising the milk production  entire milk production in the state is routed through it. Mr Ashok Jawa, the General Manager at COMFED is confident that with new plants and vision of expansion this could be achieved.

Ajay Jha for Indian cooperative.com

Bhopal: The state economic investigation bureau has arrested Narendra Srivastava, Chairman of  Pushp Grih Cooperative Society in the major land scandal in Bhopal.

According to S P  Mr Arvind Saxena in economic bureau this cooperative sold 200 plots of 11 acres of land in which 40 plots were such which were sold again and again. The brother in law of Narendra, Shree Ram was already in police custody but Narendra was absconding for quite a long time.

Ghaziabad: A co-operative bank was looted by armed robbers in a village near here who fled with Rs 83,000, police said on Tuesday.

Around four to five armed dacoits looted district co-operative bank in village Surana under Muradnagar police station, 35 kilometres from here, yesterday afternoon when bank employees were tallying their day account.

According to SSP Raghubir Lal, dacoits looted Rs 83,000 from the cashier at the counter. They also barged into the strong room of the bank but did not find any more cash.

The bank employees and villagers provided clues to the police and a hunt is on.

The Centre has been requested by private and cooperative sugar mills for reconsiding its decision on extending duty-free import of raw sugar for bulk consumers till April 30, 2011. These mills feel that it would adversely impact finances of the industry, especially when they are striving to cope with falling prices.

The sugar industry has argued that the extension is unwarranted, especially when the production in India is likely to rise 22 per cent to touch 18 million tonnes in 2009-10 season ending September. Besides, sugar prices have already fallen sharply at Rs 2,600 per quintal. Cooperative mills already raised this issue during their meeting with the Minister of Food, Consumer Affairs and Distribution Sharad Pawar.
Industry sources told Business Standard: “The government will have to immediately withdraw its order. Sugar prices have already come down and it’s difficult for mills to cope with the situation. Apart from likely production of 18 million tonnes, there is a carry forward stock of 4.1 million tonnes in the country. The government decision is detrimental to the industry as a whole and, thus, should be withdrawn.”
Office bearers of the Indian Sugar Mills Association and National Federation of Cooperative Sugar Factories preferred not to be quoted on the issue.
The Maharashtra sugar brokers and merchants association wanted to know whether the government decision was to protect Brazilian cane growers or to safeguard the interest of the Indian sugar industry as a whole. Association President Yogesh Pande said: “The domestic sugar industry is paying Rs 2,100-2,700 per tonne to the cane growers. If raw and white sugar is not taxed immediately, it will lead to a serious crisis for the domestic industry which has been the backbone of rural development in Maharashtra and Karnataka. Traders foresee a fall in sugar prices till they match international market rates, if the current policy is not amended.”
He added that traders were reluctant to make fresh trade seeing the uncertain government policy. Further fall in global sugar prices has added to the woes. At the current 15-16 cents, landing cost of raw sugar works out to Rs 18 per kg. Processing cost of Rs 5 makes white sugar cost Rs 23 per kg.