UP coop societies to disburse Rs 2,700 crore loan in FY07

Lucknow, July 21 (UNI) Uttar Pradesh has set a target to distribute a total of Rs 2,700 crore worth of crop loan by state cooperative societies in the current fiscal.

Of this, Rs 1,800 crore and Rs 900 crore pertain to short term and long term crop loan distribution schemes respectively, official sources today said here.

Similarly, 11 lakh Metric Tonnes (MT) fertiliser and over 35 thousand quintal progressive seeds will also be distributed to farmers in FY07.

The state cooperative societies are distributing 33 per cent of total short term crop loan in UP, 40 per cent fertiliser and about 52 per cent progressive seeds.

Sources said loan disbursal by UP cooperative societies has been on the rise in the last couple of years. These institutions extended crop loans worth Rs 1,343 crore in 2003-04, Rs 1,530 crore in 2004-05 and Rs 1,625 crore in 2005-06.

Similarly, 23.68 lakh MT fertiliser was distributed in 2003-04, 25.91 lakh MT in 2004-05 and 26.96 lakh MT in 2005-06.

To speed up crop loan distribution and maintain transparency, Kisan Credit Cards have been distributed to about 54 lakh farmers till March 2006, sources informed.

About 18,000 cooperative societies are functioning in UP at present, including 50 District Cooperative Banks and 10 top cooperative institutions.

''The role of cooperative institutions has been important for economic development of farmers, who have limited resources. The objective of the cooperative movement is to free poor and marginal farmers, agricultural labours and entrepreneurs of rural areas from money lenders,'' sources added.

The government enacted the UP Cooperative Act in 1965 with a view to give institutional form to the cooperative movement.

Later, the state formulated the UP Cooperative Societies Rules.

Since then, these societies are functioning under the act and rules.

It act also includes loan distribution, agriculture investment distribution, stock of agriculture produce and the distribution of chemical fertilisers, progressive seeds and insecticides.

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