Agitated over the issue of allowing NCDC to give loans to private parties, Sahakar Bharati has penned a strong letter to Union Minister Narendra Singh Tomar. Signed by its President Ramesh Vaidya, the letter reminds the minister that NCDC was set up by an Act of Parliament in 1963 as an Apex Financial and Developmental Institution exclusively for the Country’s Cooperative Sector.
The letter also talks of the fact that there are a host of institutions ready to offer loans to the private sector but none for the co-op sector and therefore the NCDC be spared to focus exclusively on the cooperative sector.
Excerpts:
Hon Shri Narendra Singh Tomarji
Minister of Agriculture and Farmer Welfare,
Govt of India, Krishi Bhavan, New Delhi – 110001
Dear Shri Tomarji,
Namaskar
We have been given to understand from various cop sources that at a recently convened meeting of Officers from the Ministry of Agriculture and Farmer Welfare (Agriculture Ministry), it was considered and decided that NCDC should henceforth also extend financial assistance to Private Sector.
We also understand that this proposal is being forwarded to Prime Minister’s Office (PMO) for its approval.
We are disturbed by this decision taken at the meeting of the Officers. You are aware that NCDC was set up by an Act of Parliament in 1963 as an Apex Financial and Developmental Institution exclusively for the Country’s Coop Sector.
Over the years, NCDC has extended financial assistance to over 1 Lakh coops and played a major role in promoting and strengthening sectors such as Processing, Marketing, Storage of Agricultural Produce, Setting up of and Nurturing CoOp Societies of Livestock, Fisheries and Dairy. NCDC has also supported Transport, Rural Housing and Projects/Hospitals relating to Healthcare in the Coop Sector.
This has been achieved by raising financial resources at market rates and while keeping its administrative and operational costs at the bare minimum level, NCDC has all along extended financial services at competitive rates in the face of stiff competition from Financial Institutions and Banks.
For a Country that has over 8.50 Lakhs Coops, serving over 25 Crore shareholders and when the current focus of the country is on Doubling of Farmers’ Income, we need more such exclusive Institutions like NCDC for the Coop Sector.
At a time, when Private Sector has access to a variety of channels like Banks (PSU Banks, Pvt Sector Banks, Foreign Banks, Small Finance Banks, etc.), NBFCs, FDI, Venture Capital, Mutual Funds, Insurance Companies and Equity & Bond Markets, etc., there is no reason for the Officers in the Agriculture Ministry to recommend that NCDC should now start financing the Private Sector.
A few years back, a similar proposal was submitted to the PMO and the same was rejected. Hence, there is no propriety to once again forward a similar proposal to the PMO.
We, Sahakar Bharati, earnestly appeal to you to intervene in the matter and ensure that NCDC continues to function as per the mandate which it has received through an Act of the Parliament.
Thanking you
Ramesh Vaidya
National President