There were indeed many who impressed Barak Obama in his last trip to India. Interestingly, once back home he has not forgotten to follow them . One such woman is Chetna Sinha who has become a source of inspiration and hope for the poor women in the forgotten town of Satara district in Madhya Pradesh.

Mrs Sinha runs Mann Deshi Mahila Sahakari Bank, a cooperative bank run by and for women that has been a pioneer in micro finance since its inception in 1997.

Now  US under secretary of international relations Lael Brainard is going to visit this bank and learn the tricks of micro financing. Obviously as a follow up, Obama has sent her to study rural business models in India.

The bank with over one lakh clients offers group loans, savings, insurance and pension plans to women. Brainard will particularly look at the bank’s initiatives to start Mobile Business School for Rural Women (MBSRW).

“I had a couple of minutes with the President Barack Obama when he met business entrepreneurs at the Trident hotel on November 6 last year, Bank founder Chetna Sinha said.

Aska Cooperative Sugar Industries Limited (ACSIL) has produced around 66,700 quintal sugar during the current crushing season, around 28,605 quintals more than the previous year.

In the previous year Orissa’s Aska-based sugar industry in cooperative sector produced 37,895 quintals of sugar.

Similarly the factory also crushed 38,317 metric tones  of sugarcane this year than the previous year. The oldest sugar industry in the state crushed 81,923 metric tones of sugarcane this year in 53 days as against the previous years 43,606 metric tones in 34 days.

The factory ran more days this year as the farmers supplied more sugarcane than the previous year, said a senior officer of the factory.

The factory started to crush the sugarcane from December 23, 2010 and ended on February 18.

The factory authorities aimed to crush around 1.50 lakh metric tones of sugarcane in the next crushing season to be started in the month of December.

“We have taken several steps to increase the acreages of the sugarcane in Ganjam district to achieve the target,” sugarcane manager of ACSIL P C Padhy said.

The factory authorities want to increase the sugarcane acreage in the district to 7500 acres from 3603 acres.

For any insurance company, penetrating in the rural areas is not easy. For one the worth of “to be insured asset” is generally very low and secondly, collecting the premium is quite difficult. But Iffco-Tokio, the non-life insurance company has achieved this impossible feat with the help of cooperatives and has grown at a breath-taking pace in the last ten years.

Talking to Indian Cooperative.com, the Managing Director of Iffco Tokio Mr S Narayanan said that leakage is most common in micro insurances as it is very difficult to find out the fraud. But with the help of cooperative societies we can keep a tab. According to IRDA, Cooperative societies may not  be our Agents but its members can be, said Mr Narayanan.

Banking on the huge network of IFFCO which has 40 thousand societies as its members, Iffco-Tokio has launched a series of insurance plans which address the poorest of the poor.

The farmers’ suicide would be stuff of past if the insurance company penetrates deep in rural areas. We have begun a process and given the huge size of our country it may take a while but Iffco-Tokio can help check farmers’ suicide and make free our farmers from the clutches of money lenders, claimed the Managing Director Mr S Narayanan.

Its Sankat Haran Bima Yojna provides personal accident insurance cover attached to the purchase of fertilizers from Iffco. It gives a coverage  of Rs 4000 on each sac to the maximum of one lakh or on 25 sacs . To keep the procedure simple, the sales receipt itself acts as the policy document and can be produced for settlement of claims.

In Barish bima yojna an average graph of the last years’ rail fall of the area is acquired from IMD sources. In case of variation to the tune of 25-30 per cent in the rain fall, the company gives claim to farmers.

Iffco-Tokio has another interesting bima plan in the shape of Kisan Subidha Policy in which house hold articles are insured against fire or flood. Cattle insurance is another major area where leakage was quite common and now the company has come out with the latest technology of Radio Frequency Tagging.

The question of local acceptability is most difficult to settle in rural areas, argues Mr Narayanan, the Managing Director of Iffco-Tokio. With the help of IFFCO’s network this problem was solved for us. Local language another handicap for companies operating in urban milieu was also solved by the agents of cooperative societies in rural areas. We could also thwart any manipulation as our alert agent from cooperative societies were there to warn us, added Mr Narayanan.

The Indian regulator(IRDA) says a minimum of  7 per cent of business is to be done in rural areas. But majority of companies pay penalty than operate in rural areas. Iffco –Tokio has expanded its business to the tune of 12 percent in rural areas, thanks to cooperative societies, says Narayanan.

In 2001 it collected a premium of Rs 72 crores and the same became Rs 1750 crores in the year 2011.

There are about 21 players in non-life insurance in India and among private players, Iffco-Tokio ranks third. Mr S Narayanan says that more than acquiring number one position in business we want to be number one in people perception. Reliability and dependability in the mind of people are more important for us than anything, adds Narayanan.

Today there is no insurance company except Iffco-Tokio that has been able to avoid a single year of loss or negative growth. Market for non-life insurance is huge and Iffco-Tokio posted a growth of 21 per cent last year. The MD plans to take it to the heart of people and he is banking on cooperatives and good will of Iffco to help him achieve this goal.

Co-operatives in New Zealand have pulled together following the powerful earthquake in the country earlier this week.

The 6.3-magnitude quake struck the city of Christchurch, on the country’s south island, on February 22nd.

Fonterra — the dairy co-operative — has donated $1 million to the Red Cross Christchurch earthquake appeal and they have launched a Fonterra Earthquake Relief Fund to enable their 10,500 farmer members and 16,000 staff to make personal donations, which will be matched $1 for $1 by the co-operative up to a further $1 million. The co-operative has also sent million litres of water from their Clandeyboye site to schools around Christchurch, and UHT milk and bottled water has been shipped to relief centres in Christchurch.

The majority of stores operated by the retail group Foodstuffs are open and has managed to put in place an effective supply chain of essential items. Out of 36 stores on the south island, only six remain closed due to damage from the quake.

Foodstuffs South Island CEO Steve Anderson said: “We are committed to feeding Christchurch and wider South Island residents, and are successfully managing to do this during these challenging times.”

The New Zealand subsidiary of Dutch co-operative Rabobank has donated $100,000 to the Salvation Army Canterbury earthquake appeal.

Financial services co-operative PSIS has put together a special banking package with a number of short-term cash management options for members impacted financially by the earthquake.

Bill McLeod, Chair of fertiliser co-operative Ravensdown, reported that members in Christchurch were all well, but sustained severe damage to properties. Said Mr McLeod: “I was actually in the building on the third floor when the quake struck and I can assure you it’s not something I would want to experience again. However, having got all our people out safely is something I will be eternally grateful for. We need to be aware, though, that the trauma will take a lot longer to fix than the buildings.”

Ed Mayo, Secretary General of Co-operatives UK, sent a message to co-operators in the country: “On behalf of Co-operatives UK and the UK movement I would like to send you our thoughts and concerns at what must be a very difficult time. We know that in times of crisis the spirit of co-operation comes to the fore. The people of New Zealand are in our thoughts as they work through their personal loss.”

Charles Gould, Director-General of the International Co-operative Alliance, said: “We know that many of you are concerned about the situation in Christchurch, New Zealand, as the scale and impact of the recent earthquake becomes more clear. Please keep all of the people in New Zealand in your thoughts as they work through their personal loss.”

Ramsey Margolis, Executive Director of the New Zealand Cooperatives Association, has been keeping co-operatives around the world up-to-date on the latest response from the movement through a blog. To read the latest updates visit: http://s.coop/nzquake/

Submitting fake loan proposals and withdrawing money in collusion with bank officials is an old modus operendi of fraud in banks. But urban cooperative banks seem to have perfected this art with finness.

Maharashtra Deputy Chief Minister and nephew of Maratha strongman Sharad Pawar Ajit Pawar’s close aid Shivaji Kale has been charge sheeted in one of such case involving an urban cooperative bank in Pune.

Former chairman Vilas Balwant Sarnobat used 40 fake loan proposals to earn Rs 9.99 crore. Former director Kishore Vasant Kunjir submitted 23 such proposals and earned Rs 8.96 crore. former deputy speaker of khed panchayat samiti Rajesh Vasant Jawalekar had submitted 39 fake loan proposals and collected Rs 10.9 crore from the bank while former director Rajendra Vasant Konde submitted five fake loan proposals amounting to Rs 5.82 crore.These were mentioned in the chargesheet filed by Economic offence wing.

Incidently the bank’s name is also Ajit Cooperative bank where Shivaji Kale, Ajit Pawar’s aid was Director at the time of fraud two years ago.Ajit Pawar’s reaction is awaited.

With the arrival of budget season round the corner, activities to fight for the removal of Income Tax on cooperatives have gathered momentum. A delegation of Urban Cooperative banks met Union Finance Minister Pranab Mukerjee on Wednesday to demand for removal of IT on urban cooperative banks.

Readers may be aware that income tax was imposed on cooperatives in the year 2006 and it continues since then.

Urban banks have argued that since its area of operation involves vulnerable section of population where the risk is high, it should be exempted from IT net. We tread a path where private commercial banks fear to go and it not only banking but a kind of social service,they argue.

According to reliable sources, Pranab Mukerjee has assured the delegation of sympathetic consideration.

The delegation of Forum of Urban Cooperative Banks led by Basudev Acharia (CPI-M) and its convenor C V Kumar met Mukherjee in Parliament House and demanded to scrap the Income Tax imposed on such banks.

The delegation also requested that effective tax rates on cooperative banks be reduced.

“The Finance Minister sought some clarifications from us and assured that our concerns would either be addressed in the current budget or when the Direct Tax Code becomes effective,” Kumar told.

The delegation said the Finance Minister gave them a patient hearing and appeared positive to their demands.

Ramesh Saxena,  BJP MLA and four others were awarded  two years jail by a Sehore court in Madhya Pradesh in a fraud case committed in Sehore district central cooperative bank eight years ago.

Mr Saxena was Chairman of the Bank at the time of fraud. The investigation was carried out by Madhya Pradesh Police’s Economic Offences Wing (EOW).

They were released later on a bail bond of Rs 15,000 each. They allegedly committed financial irregularities in the disbursement of funds under ‘Apna Ghar Banao’ scheme over eight years ago.

The MLA ,however, said they will challenge the sentence in the MP High Court.

The government should give a serious thought to allowing exports of wheat, rice and sugar looking at bumper production and comfortable stock position, Agriculture Minister Sharad Pawar said on Wednesday.

On allowing sugar exports, he said the EGoM  is likely to consider the issue this week.

“This year it (sugar export) was taken seriously by the govt to allow export of half a million tonnes. And quota allocation was also made, but decision was kept on hold.

“If we have to give a second thought, we have to call a meeting of Empowered Group of Ministers (GoM). And I think that the Food Ministers have suggested calling a meeting of the GoM sometime in this week and one of the agendas would be reasons to allow sugar export. So that decision would be taken in the GoM meeting probably this week,” he said.

Sugar output is pegged at 24.5 million tonnes in 2010-11 (October-September) against 19 million tonnes in the previous year. The annual demand is seen at 22 million tonnes and India has an opening stock of 5 million tonnes.

The minister also noted that wheat production is likely to exceed the current estimate by 2.5 million tonnes to touch 84 million tonnes due to conducive weather conditions.

“I cannot support anything. I said that our stock position is good whether it is rice, whether it is wheat or whether it is sugar. I think this is the time when government has to give a serious thought and allow certain exports,” he said when asked if he supports wheat, rice and sugar exports.

Food Corporation of India has 47 million tonnes of wheat and rice in its godowns against the buffer norm of 25 million tonnes as on January 1.

Pawar favoured wheat exports to cash in on high prices and short supply in global markets. There have been reports that China wheat crop might decline due to drought conditions.

“We have ample buffer stock of wheat and this year’s crop condition is extremely good…I am sure the next meeting of Empowered Group of Ministers (EGOM) this week will give a serious thought to it,” he told reporters.

The exports of wheat and non-basmati rice were banned in February 2007 and April  2008, respectively, to control high inflation. Recently, exports of 1.5 lakh tonnes of three superior varieties of non-basmati rice was allowed.

On wheat crop conditions, Pawar said: “As on today the weather situation is quite favourable. Last year our production was somewhat near to 81 million tonne. Looks like that we may reach to 84 million tonne (this year) provided, the good weather situation continues”.

The Ministry had recently pegged wheat production of the country, the world’s second largest producer, at record 81.47 million tonnes in 2010-11 crop year (July-June) against 80.71 million tonnes in the previous year.

Rice output is estimated to rise to 94 million tonnes this year from 89 million tonnes.

The Reserve Bank on Tuesday imposed penalties of Rs1 lakh each on four cooperative banks on various charges including violation of anti-money laundering guidelines.

The four banks are the Jamnagar Mahila Sahakari Bank, Amreli Nagarik Sahkari Bank, Shri Mahila Sewa Sahakari Bank, Ahmedabad, and the Virambam Mercantile Cooperative Bank, the RBI said in different statements.

While Jamnagar Mahila Sahakari Bank and Amreli Nagarik Sahkari Bank were found guilty of violating instructions related to anti-money laundering guidelines, the Ahmedabad- based Shri Mahila Sewa Sahakari Bank was held responsible for violating instructions on grant of unsecured advances in excess of the prescribed ceiling.

The Virambam Mercantile Cooperative Bank, meanwhile, was charged with non-filing of cash transaction report with concerned authorities.

RBI did not provide further details of the cases.

RBI’s action comes a day after it imposed penalties of up to Rs5 lakh on two cooperative sector lenders – Surat Mercantile Co-operative Bank and Urban Co-operative Bank, Cuttack – for violation of banking norms.

PTI

The surplus sugar is causing problem for farmers as export of sugar has been stopped by the government of India. The union minister of state for food and civil supplies K V Thomas assured the problem-ridden Maharashtra cooperative sugar industry that the empowered group of ministers would take a decision on sugar exports at its meeting slated for Monday.

He admitted that the decision to export 500,000 tonnes of sugar under open general license has been kept in abeyance but assured that decision is expected at Monday’s meeting.

It is well known that  Maharashtra cooperative sugar industry is caught in  financial crisis due to stoppage of export. The state cooperative minister made a fresh appeal to the Centre to allow for export.

Sharad Pawar, a product of sugar cooperative movement of Maharashtra  had earlier requested his colleague Pranab Mukerjee for discontinuance of the ban

In view of bumper crop this year total sugar availability is expected to touch 29 million tonnes against the anticipated domestic consumption of 23 million tonnes.

The empowered group of Ministers will decide on the issue on Monday