IMPACT OF APPLIED AGRO-COOPERATIVE CREDIT AND BANKING ON FARMERS AND FARMING
People depend for good introduction in Agro-Farming not only on good seeds, good fertilizers, good irrigation and good Agro-technology; but they need also short-term, medium and long term loans to meet their other demands at farm level in farming. This genuine situational scene has a power to present an impact of applied cooperative credit and banking on farmers in farming from the point of origin of the Indian Cooperative Credit (a facile credit) movement from the period of working of NIDISH in Madras Province in 1882 to 1904 till date. This is a good Genesis of this issue with a scientific periodicity which may be perused in following section. An Iota in the facile cooperative credit scene of madras province Nidish a socio-economic social group were working in very active form like the primary cooperative credit societies at farm level in rural Madras province in 1882-1884. Madras Provinces 1882-1884 :- Fedaric Nicholson’s visit from India to Germany to study the working of The Raiffieson Model Rural Cooperative Credit societies and came back with a finding “Find Raiffieson” because he found 100% similarities in need of Agro – financing for Rural India, with cultural similarities at great scale in rural India and Rural Germany. In India also there was great exploitation done by private moneylenders by charging 75% rate of interest and in Germany also such high interest was taken by Jews/Nazis from Rural Germany Farmers. The profit motive and usurious practices were similar in India and Germany. In 1882 to 1884 Fedaric Nicholson came back from Germany in Madras Province and recommended to the government to start primary Agro-Cooperative credit and Banking instead of Nidish to protect rural people from great exploitation and usurious practices of private money lender. His report and recommendations were accepted by the Madras provincial government under the control of British government. This was also studied and accepted by the government of Bombay province Maharashtra due to great vitality in his recommendations in public interest. In 1896, the British government appointed Edward committee (sir Edward as chairman) to study the Indian Rural conditions, needs and scope of working of the primary Agricultural Cooperative Credit societies under the control of British government for the people to work with cooperation of the people for the people with democratic management at grass root level. The Edward Committee 1896-1904 surveyed the Indian Rural agro-banking system and passed first cooperative Societies Act 1904 which was accepted and made applicable for greater India (from Kabul to Burma) with democratic centralised cooperative credit banking; viz; from Kabul to Burma, if any primary Agricultural cooperative society was organised, then it was bound to get registration from Delhi only. This was a real scene from 1904-1908. The distance factor was main problem for formation and registration of Agro-primary Cooperative Credit Societies. In this era cooperative credit was considered as a facile credit and cooperative banking was accepted a means to achieve the desired goal in a desired time. In 1908, Lawd recommended to add cooperative Audit, with cooperative credit and banking by increasing two sections in the cooperative Act of 1904. Thus total sections from 48 to 50 were made in the first cooperative society’s act of 1904 in 1908-1912. This added great strength to Agro-cooperative credit and banking system for Rural India. In 1912, the cooperative society Act was again examined by Sir Malcolm I.C.S and others. They suggested to add three sections more for facilitating cooperative credit, Consumption, and Marketing to the people of Rural India to protect them from exploitation of private traders and took them away from cruel clutches of exploiters by using cooperative organisation of the people for the people. It was accepted by the government...
Please join StudyMode to read the full document