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Member Education Programme for PACS / LAMPCS 2014 A Study on Capacity Building needs assessment
Member Education
Programme for PACS /
LAMPCS
2014
A Study on Capacity Building needs
assessment in Odisha State
Study on Capacity Building needs assessment in Odisha State S A D H I K A
Study on Capacity Building needs assessment in Odisha State S A D H I K A
Study on Capacity Building needs assessment in Odisha State S A D H I K A
S A D H I K A R A T H A F O U
S A D H I K A R A T H A
F O U N D A T I O N
P L O T
N O
1 1
&
1 2 ,
H I G ,
T A N E S H A
N A G A R ,
M A N I K O N D A ,
H Y D E R A B A D
-
5 0 0 0 8 9

ACKNOWLEDGMENTS

Sadhikaratha Foundation gratefully acknowledges the support and assistance of the individuals who shared their experiences and assisted in the development of this study. In particular we thank Mr Tushar K Panda, Managing Director, Orissa State Cooperative Bank (OSCB) for his immense support for successful completion of the study. We would specially thank L D Acharya (CGM -OSCB) for without his support, our field visits would not have been completed so smoothly. We would also thank the Secretaries and the staff of District Cooperative Central Banks (DCCB) and AGMs of NABARD officials of the three districts – Balasore, Mayurbhanj and Koraput for their valuable suggestions. We would also thank Secretaries of the 2 Primary Agriculture Cooperative Societies (PACS) and Managing Directors of 4 LAMPCS (Large Scale Adivasi Multi-purpose Cooperative Societies) for their cooperation during the field visits.

Our sincere thanks to Mr SK Kale, CGM NABARD, Mr A K Singh, AGM, NABARD, Mr Santanu Kumar Mohanty, Mr Amarendar Das, i/c Director Odisha State Cooperative Union (OSCU), Mr A K Thriparti, Dy Registrar Department of Cooperation and Dr Vijaya, Dy. Director from MICM for the guidance provided during the study.

We are also thankful to our President Mr C S Reddy for his continuous guidance, our COO Ms S Rama Lakshmi for her initiative and vision in conceptualising the entire program and our Director for Research & Advocacy, Dr K Raja Reddy for his valuable advice and unending support throughout the study.

Our Special thanks to Mr Sekhar Rayaprolu for editing the report and providing the timely support as and when required by the team. Our applause thanks to Mr Singhdeo, Director, Mr Bijay Senapathy and Mr Prabod Mohanty of Madhyam Foundation for supporting us in field study and in completion of the report.

And finally, our most sincere thanks to Deutsche Gesellschaft für Internationale Zusammenarbeit – India (GIZ) GmbH for making Sadhikaratha Foundation part of their Rural Financial Inclusion Program (RFIP) which paved way for carrying out this study and specially Mr R. Ramakrishna for his role in helping the study evolve so successfully.

PACS Study Team N. Naveen Kumar Dr S. Prahallada

TABLE OF CONTENTS

1. Introduction

1

2. Methodology

2

2.1 Focus of Capacity Building Needs Assessment

2

2.2 Sampling Plan and Selection

 

2

2.3 Interactions at various levels

3

2.4 Data Collection and Analysis

4

3. Features of Credit Cooperative Societies in Odisha

5

3.1 Structure

6

3.2 State level Scenario

7

3.2.1 Initiatives from OSCB in DCCBs

7

3.2.2 Services offered by PACS / LAMPCS

8

3.3 Profile of districts visited

 

3.3.1 DCCB Balasore

 

9

3.3.2 DCCB Mayurghanj

10

3.3.3 DCCB Koraput

 

11

4. Member Education – Current Status

 

4.1 Current Institutional Arrangements in Odisha

14

4.2 Findings of the Study

 

4.2.1 Findings

from

District Level

17

4.2.2 Findings from PACS Level –Staff

18

4.2.3 Findings from PACS Level – Members

20

4.2.4 Findings from PACS Level non-members

25

5. Recommendations for Module Development

28

5.1 Recommendations

for

Content

30

5.2 Recommendations

for

Tools

31

5.3 Recommendations

for

Delivery

32

1. INTRODUCTION

GIZ and NABARD have started an ambitious Rural Financial Inclusion Program (RFIP) which primarily aims at improving the quality of Credit Cooperative Structure (CCS) in India. Under its capacity building program, GIZ-NABARD are imparting professional training to almost all levels in the CCS, except to lowest level i.e. the members of the Primary Agriculture Credit Societies (PACS). To fix this only missing cog, GIZ approached Sadhikaratha Foundation to design and develop a Member Education Program for increasing the awareness levels of the members of PACS.

Sadhikaratha Foundation has sought to undertake a study for assessing the capacity building needs of the members of PACS. Sadhikaratha Foundation has undertaken this study in 3 states viz., Telangana, Andhra Pradesh and Odisha. This report is part of the Capacity Building Needs Assessment (CBNA) study undertaken in the state of Odisha.

Sadhikaratha Foundation (SF) being a supporter of Self-Help movement felt that, there is an urgent need to develop a programme for PACS members. In this context, SF approached GIZ and explored the idea of working together on developing a concept of a member education program and developing module and material for member education programs of PACS. In this context, SF planned to work on the following:

1. Conduct a study on PACS and its membership in Andhra Pradesh and Odisha states and develop a concept of a member education programme for PACS

2. Develop training manual with content, methodology and material for member education program

The study was conducted with an objective to look at PACS performance and its membership in Odisha and to develop a concept for a member education programme for PACS/ LAMPCS (Large Scale Adivasi Multi-purpose Cooperative Societies) in a holistic approach.

1

2. METHODOLOGY

Training needs assessment is an exercise fraught with the risk of over generalisation and over simplification of the needs of the target group. Prejudices of the training provider creep into the assessment often resulting in a one-sided view of the needs. However, keeping in view the spirit of the democratic institutions that we are dealing with, we wanted to keep the entire process of CBNA participatory and democratic. This has provided us a balanced perspective with minimal possibility of internal predisposition or bias that could influence the needs assessment process.

To keep our study simple and interactive we used following techniques:

Focussed Group Discussions and

Semi-structured Interviews

2.1 Focus of Capacity Building Needs Assessment

The study team has identified critical areas and focused on content required for conducting member education programmes, so that they manage cooperative effectively and efficiently. The team also focused on the existing strategies for member education and identified the gaps for improving effectiveness of the member education programs. During the needs assessment, the study team has focused on the following:

Awareness levels of members about the functions of PACS which include performance of the members, products and services offered, volume of business, profitability of the institution, information about current problems being faced by the cooperatives

Member’s awareness about the role of members, the staff and their involvement in formulation of policies, decision making, mobilising resources etc.

Information related to financial, technical and cooperative is shared within and outside the cooperatives, and usage of information to the members and staff.

2.2 Sampling Plan and selection

During discussions with GIZ, it was agreed to conduct the study in 3 districts Odisha and in each district at-least 2 PACS / LAMPCS to be visited i.e. the study included a sample of 2 PACS / 4 LAMPCS in 3 districts. The sample of districts and PACS / LAMPCS within the districts was selected purposively based on following criteria:

Functionality of PACS / LAMPCS

Bouquet of Services offered – Financial and Non-Financial

Divergent Commodities the PACS / LAMPCS is dealing with

Membership of the PACS / LAMPCS

Location of PACS / LAMPCS – Tribal and Non-Tribal

Based on above criteria, Districts and PACS / LAMPCS have been purposively selected after discussion with different stakeholders including GIZ, OSCB and DCCB.

2

#

District Name

PACS / LAMPCS Visited

Criteria Observed

1

Balasore

Puroshotampur PACS

1. Well-Functioning

 

2. Large Bouquet of Services

3. High Membership

4. Award winning PACS

5.Highest in Deposit Mobilisation

2

Balasore

Olandosaragan PACS

1. Moderately Functioning

 

2. Smaller Bouquet of Services

3. Moderate Membership

4. Nearest Place to the DCCB

3

Mayurbhanj

Sirsha LAMPCS

1. Well-Functioning

 

2. Large Bouquet of Services

3. High Membership

4. Tribal membership

4

Mayurbhanj

Badasahi LAMPCS

1. Well-Functioning

 

2. Smaller Bouquet of Services

3. Moderate Membership

4.Tribal membership

5

Koraput

Borigumma LAMPCS

1. Moderately Functioning

 

2. Medium Bouquet of Services

3. High Membership

4. Tribal membership

6

Koraput

GuneipadaLAMPCS

1. Mediocre Functioning

 

2. Medium Bouquet of Services

3. Vast area of operations

4. Very distant from DCCB

5. Tribal Membership

2.3

Interactions at various levels

 

Different Stakeholders to whom we have interacted at state level are given below:

Level

Name of the Dignitary

Stakeholder

 

Technique

State

1. Tushar K Panda

Managing Director, OSCB

   

2. L D Acharya

CGM, OSCB & I/c Principal ACSTI

 

3. Prasanna Kumar Behera

DGM, OSCB

 

4. Santanu Kumar Mohanty

Retd. Grade – A. Odisha Cooperative Service

Informal

5. A K Singh

AGM, NABARD

 

Interviews

6. Dr P Tripathi

Deputy Registrar, Cooperative Department, Govt of Odisha

7. C Vijaya

Director,

Madhusudhan

Institute

of

Cooperative Management

 

3

Different Stakeholders with whom we have interacted at various levels, are given below:

Level

Stakeholders

Technique

District

Secretary and Senior Staff of DCCB AGM, NABARD Principal, Regional Cooperative Training Centre – Koraput, Mayurghunj Resource Persons, PACS Development Cell –Balasore, Koraput and Mayurbhanj

Semi Structured Interviews (See Annexure 1 for Structured interview format)

PACS /

LAMPCS

Secretaries / Managing Director and Staff of PACS / LAMPCS

Focussed Group Discussions (See Annexure 2 for Structured interview format)

 

Members availing services of PACS (Members) and Members not availing services of PACS(Non-members)

Focussed

Group

Village Level

Discussions(See Annexure 3 for

checklist)

2.4 Data Collection and Analysis

Primary Data has been collected through our formal structured interview formats and checklists at district and PACS / LAMPCS level. For Secondary data, we have collected annual reports/audit reports from DCCB and PACS wherever they were made available to us.

Data collected was analysed based on the primary level information collected from the members and staff of the PACS / LAMPCS.

Data collected was analysed through ideograms. In presenting the data of the awareness levels we used a 5-point scale represented through Harvey Balls Ideograms 1 as shown below.

Ideogram

Level of Awareness

Illustration (What is cooperative nature of PACS)

0 No Awareness

No response

1 25% Awareness

An organisation for welfare of members

2 50% Awareness

An organisation for welfare of members which is managed by them

3 75% Awareness

Organisation for welfare of members which is owned and managed by them

4 Complete Awareness Organisation for welfare of members which is owned and managed by them
4 Complete Awareness Organisation for welfare of members which is owned and managed by them

4 Complete Awareness Organisation for welfare of members which is owned and managed by them with a set of roles, responsibilities, rights and entitlements for each member

1 Harvey Balls are round ideograms used for visual communication of qualitative information

4

3. FEATURES OF CREDIT COOPERATIVES IN ODISHA STATE

The State of Odisha, lying between 17 31' and 22 27' North latitude and 81 27' and 87 30' East Longitude covers a total geographical area of 155.71 lakh hectares, occupying 4.74% of India’s landmass and accounts for 3.74% of the country’s population. It comprises of 3 revenue divisions, 30 districts, 58 sub-division, 314 blocks and 51057 villages. The percentage of SC and ST population to the state’s total population is 16.53 and 22.13% respectively. The state is a predominantly agrarian economy & about 50% of the state’s domestic product comes from Agriculture and about 64% of total work force is employed in agriculture sector. But most of the rural people, dependant on agriculture, are small or marginal farmers, the average land holding being 1.25 Hectares and tenant farmers. It has been divided into 10 agro-climate zones based on land form, topography, climate, soil and crop adaptability. The state, situated in a subtropical zone, exhibits a temperate climate with normal average annual rainfall of 1502 mm. It has an immense potential of ground water, mineral wealth, fertile soil and diverse flora and fauna.

Despite the rich endowments, the State is still in the transitional stage of development and is classified as backward in terms of development status, the main reasons being:

1. Traditional farming practices with negotiable commercial crops(less than 2%)

2. Poor infrastructure for agriculture mark

3. Highest incidence of poverty at 47%.

4. Frequent occurrence of natural calamities- floods, cyclones and droughts.

5. Infrastructurally underdeveloped and tribal dominated, backward KBK (Koraput, Balangir and Kalahandi) region.

Presently Cooperatives in Odisha are governed under one state act called Odisha State Cooperative Societies Act, 1962. Earlier there was a parallel act called Odisha Self Help Cooperative Act, 2001. But due to amendment in 2008, all the cooperatives registered under 2001, Act should follow the rules annexed under “The Odisha State Cooperatives (Amendment) Act 2008”.

The 2001 Self-help Act is considered to be the more liberal of the two acts with some degree of autonomy given to Cooperatives. However, all the Cooperatives in the Credit Cooperative Structure (CCS) are registered under the 1962 Act. This means, all the PACS / LAMPCS functioning in Odisha are registered under 1962 Act with the significant degree of control from the Registrar of Cooperatives (ROC) and Cooperative Department.

5

3.1 Structure

The 3-tier structure of CCS (Credit Cooperative Structure) in Odisha is similar to other states as shown below:

OSCB DCCBs PACS / LAMPS
OSCB
DCCBs
PACS /
LAMPS

•14 Branches •Operates an Agricultural Cooperative Staff Training Institute (ACSTI) in Bhubaneswar

•17 DCCB with 318 Branches •All the DCCBs and branches operate under CBS

•2513 PACS and 212 LAMPS with a total membership of of 50 lakshs out of them 41.58 lakhs are ( KCC) holders

Some features of PACS/ LAMPCS in Odisha state are;

A farmer having a land holding deed is only eligible for membership in PACS i.e. landless labourers are not eligible for availing the loans.

Membership itself is divided into two categories –

o

“A” class are the shareholders of the PACS; they pay minimal Rs 300 or 10% of the loan amount as share capital along with minimal amount of membership fee and can avail loans from PACS and also are eligible for voting.

o

“B” Class member’s membership is creating trauma in the cooperatives. These members are listed in figures but information such as who are they from where are they is not known. “B” class members are also called as passive members and their contribution of amount is treated as “B” class Share capital amount. These members do not have any voting rights. However, based on the Vaidhyanathan recommendations, number of “B” class members is reducing.

After making Cooperative Amendment in 2008, the Boards of the PACS/ LAMPCS are not on the frame and totally governed by the staff through the guidelines and suggestions from the DCCBs.

6

3.2 State level scenario

The situation in Odisha was not different from the rest of the country so far as the status of membership of the PACS / LAMPCS are concerned. As per the sources, the number of agricultural families in the state was 50.04 lakhs. Out of the total agricultural families 49.19 lakhs were members of the PACS. Against the huge membership, only around 18 lakh members have had some transactions with the PACS and the balance remained are passive members. The details of the growth of membership and number of user farmer members is given below-

(# in lakhs)

Year

Agricultural

Members

% of coverage of membership to total agricultural families

Indebted

Families

enrolled

members

2006-07

50.14

45.34

90.42

48.93

2007-08

50.14

45.50

90.75

18.92

2008-09

50.14

45.21

90.17

19.13

2009-10

54.01

47.32

87.61

18.32

2010-11

54.94

49.19

89.53

20.35

(Courtesy from OSCB – Cooperatives at door step)

Presently, membership in the PACS / LAMPCS is stable and trying to develop the strategies to minimize the dual membership and identifying and converting the passive members to active members fold.

“Cooperatives at your doorstep” campaign helped the PACS/ LAMPCS at Odisha in identifying the key essential needs of the members and given a clear road map for creating the member awareness programme. Some of the key findings of the campaign are follows-

Large number of agricultural families not covered in the cooperative fold

Widespread ignorance about the functioning of the PACS

Organization and credit linking of Self Help Groups and Joint Liabilities Groups should be thrust area

Regular member contact is the sine qua non for recovery

The campaign proved that by sensitizing the members regular contact to use the services of PACS can bring about sustainable viability to credit structure and revitalize the entire system.

3.2.1 Initiative from OSCB in DCCBs

The bank has computerized accounts of its branches and head office since 1988 using one Total Branch Automation Software (COBOL Btrieve Based) named “Bank Plus”, one Back office accounting software (Oracle Power Builder Based) named “COINS”. In 1999 the bank has procured one ORACLE – VB based TBA, which is running in all the branches of DCCBs with a name of “SAMAVAYA”. Introduced online service facilities through RTGS and NEFT transactions with the support from YES bank.

7

OSCB is planning to connect itself and DCCBs with NPCI (National Payments Corporation of India) for enabling its customers (members and nonmembers of PACS / LAMPCS) to transact in “RUPAY” supported ATMs (Automated Teller Machine) and POS (Point of Sale) across the country. Kisan Credit Card (KCC) will be digitalized along with Savings Bank Accounts of Farmers (members). These Kisan Credit Cards can be used in any POS or ATM across the State as well as Country. This Bank is also introducing Mobile – ATMs in the State to provide doorstep banking services to members of the LAMPCS.

3.2.2 Services Offered by PACS / LAMPCS

DCCBs are performing a proactive role in designing the services to be rendered by PACS / LAMPCS to members. By considering previous experiences, DCCBs are taking decisions very cautiously and providing excellent support in monitoring the monetary terms.

Credit Plus initiatives are captured from the other models of PACS, but neither CCBs nor PACS are going for members requirements. As such from 2008, members participation is decreased upholding of elections may be one of the causes for it.

Services provided by PACS / LAMPCS

Sl no

Services Offered

1 Financial Services

Loans to members – crop loans, Gold loans, tractor loan, long term business loans and other asset creation loans

Deposits mobilization – Recurring deposits, Fixed deposits and savings accounts

Insurances – Pension, accidental and life

Remittances

2 Business services

Sale of Fertilizers and Pesticides

Sale of seeds

Hiring godown (warehouses)

3 Marketing Services

Paddy Procurement

4 Technical Services

Awareness campaigns at village level

Orientation on newly launched products

5 Social Services

Custom hiring centers – distribution of PDS commodities

OSCB is again planning to conduct the campaign called “Cooperative at your door step” in the state, after the completion of the elections.

8

3.3 Profile of the Districts Visited

3.3.1 Profile of DCCBs Visited – Balasore

Balasore, the coastal district of Odisha is crisscrossed with perennial and estuarine rivers because of its proximity to the sea. Two important rivers of Odisha, namely: - Budhabalanga and Subarnarekha pass through this district from west to east before surging into the Bay of Bengal. The irrigation system in Balasore district is very much widespread.

The soil of Balasore district is mostly alluvial laterite. The soil of Central region is mostly clay, clay loam and sandy loam which is very fertile for paddy and other farm produces. Nilagiri Sub-division is mostly gravelly and lateritic soil, which is less fertile. A small strip of saline soil is also seen along the extreme coastal part of the district.

Balasore Bhadrak Central Co-Operative Bank, presently renamed as Balasore Bhadrak Central Co-operative Bank Ltd, Balasore, started its functioning on the first June of 1916 with a working capital of Rs. 10,000/- having only seven affiliated societies and in the year 1956, Balasore Bhadrak Central Co-Operative Bank was amalgamated with Balasore C.C.B commencing its operation with a share capital of Rs. 3.29 lakhs and deposit of Rs. 7.76 lakhs during 1956-57. The bank has grown substantially and as on 31st March'2011, the working capital of the bank reached Rs. 1189.09 crores with a deposit base of 626.61 crores. The bank has issued 375410 Kissan Credit Cards to the farmers of Balasore and Bhadrak district and disbursed loan to them for agriculture and other purposes.

The bank has extended its banking network through 30 branches, 249 PACS and 2 LAMPCS operating in 19 blocks in Balasore and Bhadrak district.to compete with recent technology adopted by the Nationalized Banks and Private Sector banks, bank has computerized 30 branches and 59 PACS in village areas for providing computerized customer service. The bank has earned a net profit of Rs. 204.72 lakhs in the year 2011-12 and declared dividend to its share-holders.

Balasore PACS are treating as well as performing Cooperatives. Some reasons that can be attributed for this success of Balasore are:

Agricultural conditions are favaroble to the farmers. Here three types of crops were grown in a year.

Good support from District Administration (The road and rail link to state capital may be one the reason)

Political Support - Positive mind-set on Cooperatives

The District lies in the coastal part of Odisha and is blessed with hot and humid climate with alluvium soil and intersected by the perennial rivers, which collectively provides conducive infrastructure for the growth of agriculture in this region

Some PACS in Balasore were quick enough to grasp the importance of financial services in development of PACS and stood first in state level in mobilisation of deposits (Puroshotampur PACS)

9

3.3.2 Profile of DCCBs Visited – Mayurbhanj

Mayurbhanj is a land-locked district with a total geographical area of 10,418 Sq.Km. and is situated in the Northern boundary of the state with district Headquarters at Baripada. The district lies between 21*16' and 22*34' North latitude and 85*40' and 87*11' East longitudes. The district is bounded in the North East by Midnapore district of West Bengal, Singbhum district of Jharkhand in the North West, Balasore district in the South East and by Keonjhar district in the South West. The district is divided into 4 administrative sub divisions, 9 Tahsils, 26 CD blocks, 382 Gram Panchayats, 3887 villages. The total population of the district is 25.13 lakh as per 2011 census with little bit more than half of the female population (50.13%), The sex ratio is 1005 per 1000 males. The scheduled tribes are pre- dominant community in the district. About 82% of households depend on agriculture and agri-labour for their livelihood (50% agriculture and 32% agriculture labour). The district is equipped with a total cultivable land of 4.47 lakh hectares and the district is knows for high growth of paddy.

The Mayurbhanj Central Cooperative Bank was founded by HH Maharaja Shri Pratap Chandra Bhanj Dev and got registered under Odisha Cooperative Societies Act on 31.01.1951. The Bank started its functioning from 25.07.1951 having its head quarter at Baripada, The Bank is a pioneer of Cooperatives Movement in the district as regards purveying of agriculture credit and till today the lion’s share of agriculture credit in the district is issued by this Bank, notwithstanding the fact that, so many Commercial Banks and RRBS have been opened in the district in the meantime. The Bank received license from the RBI to carry on banking business throughout the country in the year 1983. The bank is taking up its step forward to cope with the latest development in the Indian Financial System and the third generation banking concept with the active participation, cooperation and goodwill of its stakeholders.

By the pre-dominance of ST communities in the district, the DCCB is promoted 52 Large Scale Adivasi Multi-purpose Cooperative Societies (LAMPCSs) in the district. Each covered 80 – 130 villages. The DCCB established 15 branches of their bank to provide credit needs of the farmers. The NABARD established LAMPCSs development cell at DCCB office and positioned two Resource persons from the year 2012. The PDC is creating financial awareness to LAMPCS members primarily by preparation of Business Development Plans (BDPs). The PDC facilitated BDPs in 17 LAMPCSs and activities are under implementation in 10 LAMPCSs.

Some reasons that can be attributed for this success of Mayurbhanj are:

The economy of Mayurbhanj District is mostly dependent on agriculture. The agro climatic zone and the favourable soil type induce the proper growth of agriculture. Paddy is the major cultivated crop, followed by pulses and oilseeds.

This area also cultivates pulses, oilseeds and other cereals in khariff season. It has been showing an increasing trend due to diversification of cropping patterns. Moreover, the land use pattern is quite accommodating in the field of agriculture.

10

3.3.3 Profile of DCCBs Visited – Koraput

The Koraput Central Coop. Bank Ltd, Jeypore established on 15-3-1950, started functioning w.e.f. 5th April 1950, under the name of Nowrangapur Cooperative Central Bank Ltd. The Headquarter of the Bank was shifted from Nowrangapur to Jeypore in the year 1970-71 and now the Bank is functioning at Jeypore under the name of Koraput Central Co-operative Bank Ltd, Jeypore. In the year 1977 as per recommendation of K.S.Bawa Committee to undertake Credit Marketing and PDS business for its members was taken place. The bank got its license from Reserve Bank of India during 2010-11.

The District is predominated with Tribals covering more than 54% of the total population of Rs.35.42 lakhs. The erstwhile District divided into 4 (four) Revenue Districts during the 2nd October-1992, ‘GANDHI JAYANTI DAY’ under the new name of Koraput, Nabarangapur, Rayagada and Malkangiri district having one Sub-Division in each of the Districts of Malkangiri and Nabarangapur.

The Koraput DCCB is providing services to 55 LAMPCS in the arena of Credit services only.

It is playing an intermediary role in insurance services. Monitoring is not up to the mark

may be because of lack of human resources, LAMPCS are located in hilly areas and the main tribal language.

Some reasons that can be attributed for this success of Koraput are:

Pleasant in nature

The economy of Koraput District is mostly dependent on agriculture.

Paddy, sugarcane, Ginger, oil seeds vegetable are the major crops in the Districts.

Demand for agro based products

A

comparative analysis of the three DCCBs is given below:

 

#

Activity

Balasore- Bhadrak

Mayurbhanj

Koraput

A

Year Established

1956

1951

1950

 

No of PACS / LAMPCS Affiliated

243

52

55

 

No of Branches

22

15

14

B ^

Paid up Capital

7727

1955

2918

 

Reserves

4027

439

830

 

Deposits

87530

21561

41903

 

Borrowings

55855

13385

15738

 

Investments

14435

4856

9017

 

Net Profit

225

-348

96

 

Total Liabilities

169798

41847

70502

C ^

Loans & Advances

94727

21552

29856

 

Fixed Assets

229

229

DNP

 

Investments

63636

15265

33577

 

Other Assets

876

2816

3231

 

Cash and Bank Balances

10330

1985

3837

 

Total Assets

169798

41847

70502

11

^All figures in lakhs

DNP – Did not hold/ purchase

Liabilities Composition

Assets Composition

0% 5% 2% Balasore DCCB 8% Paid up Capital Reserves 33% Deposits 52% Borrowings Other
0%
5% 2%
Balasore DCCB
8%
Paid up Capital
Reserves
33%
Deposits
52%
Borrowings
Other Liablities
Net Profit
0% 1% 6% Balasore DCCB Loans & Advances Investments 37% Fixed Assets 56% other Assets
0% 1% 6%
Balasore DCCB
Loans &
Advances
Investments
37%
Fixed Assets
56%
other Assets
-1% 5% 1% Mayurbhanj DCCB 11% 31% 51% Paid up Capital Reserves Deposits Borrowings Other
-1%
5% 1%
Mayurbhanj DCCB
11%
31%
51%
Paid up Capital
Reserves
Deposits
Borrowings
Other Liablities
Net Profit
5% Mayurbhanj 7% Loans & Advances Fixed Assets Investments 51% other Assets 36% 1%
5%
Mayurbhanj
7%
Loans & Advances
Fixed Assets
Investments
51%
other Assets
36%
1%
4% Koraput DCCB 0% 1% Paid up Capital 13% Reserves Deposits 22% Borrowings 60% Other
4%
Koraput DCCB
0%
1%
Paid up Capital
13%
Reserves
Deposits
22%
Borrowings
60%
Other Liablities
Net Profit
Koraput DCCB 5% 5% Loans & Advances Fixed Assets 42% Investments other Assets 48% Cash
Koraput DCCB
5%
5%
Loans &
Advances
Fixed Assets
42%
Investments
other Assets
48%
Cash and Bank
Balances
0%

It is clearly showing that 50% of the DCCBs funds are mobilized through Deposits.

Koraput DCCB is investing its funds in other institutions whereas Balasore and Mayurbhanj DCCBs are in the form of Loans and Advances (Loans to members)

Koraput DCCB does not possess any fixed assets whereas Balasore and Mayurbhanj holding own building with some fixed assets.

DCCBs of Balasore and Koraput are able to achieve Breakeven point (BEP) where Mayurbhanj is still struggling to reach the BEP.

All the DCCBs are maintaining optimum idle funds rate.

12

Funds Mobilization Comparison (Amounts in Lakhs)

Own Funds

Profit /Loss

Balasore- Bhadrak Mayurbhanj Koraput 8000 7000 6000 5000 4000 3000 2000 1000 0 Paid up
Balasore- Bhadrak
Mayurbhanj
Koraput
8000
7000
6000
5000
4000
3000
2000
1000
0
Paid up
Reserves
Capital
External Funds
External Funds
Balasore- Bhadrak Mayurbhanj Koraput 100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0
Balasore- Bhadrak
Mayurbhanj
Koraput
100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0
Deposits
Borrowings
Other
Liablities

300

200

100

0

-100

-200

-300

-400

225 96 Balasore- Mayurbhanj Koraput Bhadrak -348
225
96
Balasore-
Mayurbhanj
Koraput
Bhadrak
-348

Assets Comparison

Cash and Bank Balances

Loans and Investments

12000 10000 8000 Balasore- Bhadrak 6000 Mayurbhanj Koraput 4000 2000 0 Cash and Bank Balances
12000
10000
8000
Balasore- Bhadrak
6000
Mayurbhanj
Koraput
4000
2000
0
Cash and Bank Balances
Other Assets
100000 90000 80000 70000 60000 Balasore- Bhadrak 50000 Mayurbhanj 40000 Koraput 30000 20000 10000 0
100000
90000
80000
70000
60000
Balasore- Bhadrak
50000
Mayurbhanj
40000
Koraput
30000
20000
10000
0
Loans & Advances
Investments

4.

MEMBER EDUCATION – STATUS

4.1

Current Institutional Arrangements

The responsibility of providing training and capacity building to Credit Cooperative Structures is undertaken by multiple agencies as shown below:

Agriculture Cooperative Staff Training Institute, Bhubaneswar Madhusudhan Institute of Cooperative Management,
Agriculture
Cooperative
Staff Training
Institute,
Bhubaneswar
Madhusudhan
Institute of
Cooperative
Management,
Bhubaneswar
Odisha State Cooperative Union Regional Cooperative Training Centre
Odisha State
Cooperative
Union
Regional
Cooperative
Training Centre

Agriculture Cooperative Staff Training Institute (ACSTI)

ACSTI located in Bhubaneswar is an institute promoted by OSCB. Its mandate is to provide comprehensive training both in the short term and long term credit support. This institute provides trainings mainly to the staff of DCCBs on regular basis and provides need based trainings to the staff of the PACS / LAMPCS whenever necessary. This institute has reached up-to the Presidents level (earlier in 2007s) only. Planned to provide the trainings to members but it restricted to the paper. Lack of human resources is the major concern for the member level training programmes. Member level modules are not yet prepared just focusing to plan for the orientation programmes i.e., to on Credit services only. There is no institutional arrangement on part of OSCB or ACSTI to provide any training or capacity building to members of PACS

Training Programmes offered by OSCB - ACSTI, Bhubaneswar PACS / LAMPCS

#

Name of the Program

Participants

1

Developing PACS into Multipurpose Societies

Staff of PACS

2

How to do existing business better in Post Reform Scenario

Staff of PACS

3

Programme on Business Development Plan

Staff of PACS

4

Recovery & NPA Management

Staff of PACS

5

Common Accounting System and MIS

Staff of PACS

6

Programme on Basic Computer Awareness

Staff of PACS

7

Management Development Programme

Staff of PACS

8

Capacity Building of PACS functionaries PACS Board of Directors 2

Presidents

2 Material is provided by NABARD

14

Odisha State Cooperative Union

Odisha State Cooperative Union (OSCU) works under the aegis of Odisha State Cooperative Department. OSCU has an elaborate mandate for providing member education with an objective –

For socio economic upliftment of the masses through cooperation training

To felicitate the promoter of the cooperative institutions and to strengthen the member societies through education avenues

Being A friend, A Promoter, A guide in Cooperative Movement

The OSCU is disseminating the training programmes through Central Cooperative Institute (CCI) located in Bhubaneswar and 4 Regional Cooperative Training Institutes in Baragarh, Koraput, Mayurbhanj and Gunjam. These training programmes are supervised by the District Registrar Cooperative Societies (DRCS) at training center level

Presently, the management of Odisha State Cooperative Union is now vested with Registrar, Cooperative Societies, Odisha as there is no elected managing committee / body since nearly 11 years.

After Vaidhyanathan Committee recommendations, none of the PACS is paying some percentage of the surplus amounts to the OSCUs. So, the OSCU is suffering from lack of funds for providing training programmes and even it is suffering in recruiting the staff also. The facilities at the training venues are unable to attract the participants to stay. The participants’ also showing disinterest in attending the training programmes at the training centre.

Training Programmes offered by Odisha State Cooperative Union through Regional Cooperative Training Centres to PACS staff or Board of Directors

#

Name of the Program

 

Participants

1

Diploma in Cooperative Management & Administration

Staff of PACS / LAMCPS

2

Computer Awareness

 

Staff of PACS / LAMCPS

3

Sensitization

Programme

on

97 th

Constitutional

Staff of PACS / LAMCPS

Amendments

4

Training Programme on Cooperative Audit

 

5

Business Development Plans

 

Staff of PACS / LAMCPS

6

Training Programme on EP / Dispute / Liquidation

Staff of PACS / LAMCPS

7

Member Education Programme to Staff of the PACS / LAMPCS

Staff of PACS / LAMCPS

8

Cooperative Leadership Education Programme to Staff

Staff of PACS / LAMCPS

9

Workshops and Seminars

 

Staff and BOD of PACS / LAMCPS

10

Capacity Building of PACS functionaries PACS Board of Directors 3

Board of Directors and Staff of the PACS

3 Material is provided by NABARD

15

Madhusudhan Institute of Cooperative Management (MICM), Bhubaneswar

The MICM is also a nodal training institute listed by the NABARD to provide need based trainings to the PACS Staff and also to the members who have had connected with Cooperative Department.

The Madhusudhan Institute of Co-operative Management (MICM) is one of the premier Management Institute of the state established in the year 1955-56. The MICM is functioning under the aegis of National Council for Co-operative Training (NCCT), New Delhi, being financed by the Ministry of Agriculture, (Department of Co-operation) Government of India. The basic objective of the Institute is to develop human resources for efficient management by organising various management training programmes. MICM offers various Diploma courses and MDPs for the personnel working in Cooperative institutions and employees of cooperation and allied department of Government of Odisha.

MICM is located in the heart of Bhubaneswar, the Capital City of Odisha, having its own sprawling campus located at Unit-8, Bhubaneswar which includes administrative block, class rooms, staff quarters and 150 seated hostel. The Bhubaneswar Airport (Biju Patnaik International Airport), Railway Station, Main Bus Stand, Hospital, Post Office are located about distance of 4-8km. from the institute.

They have organised institutional arrangement with OSCU promoted training centres throughout the Odisha. It is also connected to provide trainings to the staff and members of the Cooperative but because of various reasons it is sticked to provide trainings to the staff of the PACS / LAMPCS located in the Odisha state. Even most of the trainings are planned by the OCSU to the staff of the cooperatives; simultaneously MICM also providing need based inputs to the staff of the PACS.

Training Programmes offered by MICM through Regional Cooperative Training Centres of OSCU to PACS staff

# Name of the Programme

Participants

1 MDP for Financial Inclusion and Financial Literacy for Cooperative Banks

Staff of the DCCBs and staff of the PACS / LAMPCS

2 MDP on Paddy Procurement for Secretaries of PACS in collaboration with MARKFED / RMC

Staff of the PACS / LAMPCS

3 Cooperative Law

Staff of the PACS / LAMPCS

4 MDP for Cooperative Management for the Secretaries of PACS

Staff of the PACS / LAMPCS

5 Seminars on Constitutional Amendments

Staff of the PACS / LAMPCS

6 MDP on Business Diversification & Sustainability of PACS

Staff of the PACS / LAMPCS

7 Programme for Accounts for Secretaries / Employees of PACS

Staff of the PACS / LAMPCS

8 MDP on Election Procedure at the PACS

Staff of the PACS / LAMPCS

Training institutes located in Odisha (see annexure – 4)

16

4.2

Findings of the Study

4.2.1

Findings at District Level 4

The main objective of the interaction with District officials was to understand their perception of an effective member education program and to seek their suggestions on creating the module.

A

brief summary of the district level officials’ perception of functioning of PACS / LAMPCS

in

general and member education in specific is given below:

Responses from Officials at DCCB

- Campaign called “Cooperative at door step” campaign has given a picture that “where they are” and “what can they do” to admire the satisfaction of members.

- Ownership among members on cooperatives is lacking

- Member participation in governing is missing as there are no governing body at DCCB level or at PACS / LAMPCS level.

- In terms of services provided by PACS / LAMPCS and the awareness levels of the members is quite satisfactory

- The boards from OSCB to PACS level have been dissolved, because of some political causes and effect of 97 th Amendment.

- PACS / LAMPCS should increase their viability to attract members either by meeting their demands or offering them value added services. Only then will any strategy of member education can work.

- There is no question of lack of awareness among members on various subsidies offered by government. This type of information can spread faster than anybody can anticipate, but restricting themselves in gaining the personal benefits

- Members are eager to hear about the elections.

- Secretaries / Managing Directors of PACS / LAMPCS are focusing on removal of inactive members.

- Insufficient staff at PACS / LAMPCS level. Recruiting the Managing Directors for LAMAPCS on a priority basis

Responses from Officials of NABARD

- PACS Development cell is established and able to cater the capacity building programmes to members

- Resource Person of PACS Development Cell needs to be trained on the cooperative principles and in all rural developmental programmes, especially in educating the members regarding the designing PACS Member Education Module.

- Postponement of Cooperative elections are creating confusion amongst the members about the ownership of PACS / LAMPCS

4 Most of the responses are advisory in nature and are written in recommendations part

17

- Focus need to be on member livelihood enhancement trainings

- Need to focus on Rupay Cards and its utilisation. Need to linkup the members to Rupay Cards. New guidelines have been issued on KCC to link with Rupay cards

Responses from Officials of Principal, Cooperative Training Institutes

-

Lack of human resources and insufficient training facilities to the participants.

-

Member awareness is important for increasing member participation in PACS.

-

Training centre should be well equipped with modern facilities

-

All the compliances to systems and procedures possible only when members get this responsibility in them. It will also lead to cautiousness of Management and Staff.

-

Training calendar is designed but we are unable to mobilize the participants

-

Most of the participants are leaving before completion of the training programme and it is impacting negatively on quality and knowledge.

4.2.2

Findings from PACS Level – Staff

The objective while interacting with staff of PACS / LAMPCS was to assess their current

levels of awareness on issues related to PACS / LAMPCS and also to seek their suggestions in creating an effective member education program. Some relevant responses are mentioned below:

- Demographically LAMPCS coverage is huge compare to PACS, and the members are

located in different parts of the hills. So it is huge challenge to bring the members on a single track

- Most of the AGM (Annual General Body Meetings) have been conducted with less quorum

- Some factors for successful functioning of PACS are – Strong and Senior staff Secretaries of PACS / Managing Directors of LAMPCS) retained in the PACS/ LAMPCS and Pro-active support staff specially the Field coordinators (Branch In charge) have had good awareness among members on PACS.

- Most of the management feel that there is no sufficient time to provide capacity building programmes on member education. Most of the times they are creating awareness on need based financial products rather than cooperative issues.

- Lack of awareness of members will affect the performance of PACS in a multitude of ways:

o

Ownership is lacking due to government intervention in all the services of the PACS / LAMPCS

o

Revenue Generation due to lack of quality on Services offered (As per orders from the Government PACS / LAMMPS opened Janata Markets 5 , it created financial disturbance and malpractices at PACS / LAMPCS level and lead to financial insecurity amongst the members)

o

Deposit Mobilisation due to lack of awareness on advantages of Banks

o

Loan Repayments due to lack of recognition of impact of default on PACS

5 Provision stores at village level

18

- Two important factors affecting PACS / LAMPCS performance from government side Subsidies and Waivers and lack of elections.

- It is important for PACS to provide more value added services to members for them to be interested in PACS. Especially in areas where PACS are not making any profits and not providing any services

- The Paddy procurement business has made the PACS /LAMPCS under profits, before that all are running in losses.

- Members have full awareness levels comparing to more services providing PACS to less providing PACS

Some general issues identified during the interactions with PACS Management & Staff are given below:

Communication

Mechanisms

1)

2) Secretary / Managing Director is sometimes contacted through phone calls or visit to PACS for important information 3) Interested farmers get also in touch PACS / LAMPCS staff (mobile) and often makes visits to PACS / LAMPCS office 4) PACS are able to communicate through proclamation by beat of tom-tom/Dandora but most of the LAMPCS cannot follow. 5) Pasting the postures / papers at Notice board of the PACS / LAMPCS office

Generally word of mouth communication within farmers.

Sources of Funds 1) Generally revenue earned through value added services like fertilizer, seed sale and mainly from procurement of produce in recent times. 2) Deposit mobilisation is highly preferred as source of funds and most of the PACS / LAMPCS are highly depending on it. 3) Refinance services from DCCB forms next big source, but is limited to the extent of funds available with DCCB 4) Subsidies and Waive-off loans amounts from the Government 5) Interest amounts on the loans (except crop loans) 6) Commissions from out station cheques deposits and money transfers with in DCCB level.

Recovery

1) Except crop loans, other loans repayments are satisfactory and

Management

repayment is ranging from 80% – 95%

2) Generally very less defaulters (Crop loans) as they follow Book adjustment technique i.e. Loanee farmers every year sign on the book and the loan is considered to be repaid and renewed 3) With this technique most of PACS manage to about 60-80% recovery in crop loans. 4) Loan waiver announcements during elections have devastated even this moderate recovery rates and PACS are reeling under severe credit crunch presently.

Approaching village heads for recovery process at LAMPCS level

5)

19

because if one member pays the crop loan on time then all the members will follow him.

Annual

General

1) Odisha Cooperative Act mandates AGM twice every year, but this norm is restricted in conducting once in a year and at some places it happens just on the paper. 2) Wherever the AGMs are conducted they end up with lack of quorum and submitting the same papers to registrars. 3) For LAMPCS, the AGM is conducted to discuss about the launch of financial or finance plus services. As such neither PACS nor LAMPCS informed about the financial position of the organization in any meeting.

Body Meetings

Some reasons cited by staff of large and well-functioning PACS are:

- Committed and dedicated employees

- Supportive and Responsive DCCB branches

- Identification and Initiation of need based activities by PACS

o Procurement process at Borigumma LAMPCS

- Quickly realising the demand and closing down of activities incurring losses

o Janata shops at Guneipada and Borigumma LAMPCS

- Active involvement of members in utilising services offered by PACS / LAMPCS

- By regularly visiting PACS, Members get a sense of ownership in PACS.

4.2.3 Findings from PACS Level – Members

Code

District

Name of Cooperative

Established

COOP - 1

Balasore

Puroshothampur PACS

1967

COOP - 2

Balasore

Olandosaragan PACS

1969

COOP-

3

Mayurbhanj

Sirsha LAMPCS

1970

COOP - 4

Mayurbhanj

Badasahi LAMPCS

1977

COOP - 5

Koraput

Borigumma LAMPCS

1970

COOP - 6

Koraput

GuneipadaLAMPCS

1974

Services offered apart from Traditional ST/LT Loans

 

Fertilizer Sale

Seed

Procure

Tractor

Gold

Other Services

Code

Sale

ment

Loans

Loans

COOP - 1

SHG Loans

COOP - 2

COOP- 3

PDS

COOP - 4

PDS, Cement Shop, sale of poly bags

COOP - 5

SHG, Loans

 

Godown hire

COOP - 6

SHG Loans

 

Insurance

20

Financial Performance

Code

Membership

Deposits ^

Loan Outstanding ^

Default

Total

Defaulters

Amount ^

COOP - 1

3061

102 (3%)

4547

570

17 (3%)

COOP - 2

2269

429 (19%)

24

105

COOP - 3

5930

150 (3%)

DNA

150

23 (15%)

COOP - 4

4715

152 (3%)

51

598

86 (14%)

COOP - 5

11637

1387 (12%)

703

808

222 (27%)

COOP - 6

12145

2393 (20%)

568

1458

253 (17%)

^ - Figures in Rupees Lakhs, DNA – Data Not Available

Some observations from above data are:

It can be clearly observed that Badasahi LAMPCS of Koraput (COOP - 4) and Borigumma LAMPCS (COOP -5) are clearly offering more services to their members and correspondingly performing well. This broadly indicates a positive correlation between number of services offered and performance of PACS & membership of PACS.

Membership in LAMPCS is more than the PACS

Each PACS is offering different services suitable to local needs

LAMPCS are providing innovative services than the PACS

Default rate is high in LAMPCS as compared to PACS

Deposit mobilisation is more in PACS as compared to LAMPCS

Staff of the PACS has been attending trainings on “Cooperative Management”, except Managing Directors/ Secretaries, others do not possess any knowledge on it.

Knowledge on byelaws and return submission is lacking.

Getting member wise details from PACS / LAMPCS are a huge challenge. (40% of the total members are available with the PACS / LAMPCS).

Responses from Focussed Group Discussions with Members availing Services from PACS (as per questions in checklist in Annexure 3)

Governance Aspects

#

Area

COOP -1

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

A

Governance

Principles

of

Cooperatives

1

1

2

0

2

2

Membership

2

2

2

0

2

2

and structure

Roles

&

Responsibilities

2

2

2

1

1

1

Internal

Controls

0

0

0

0

0

0

Members across all PACS / LAMPCS broadly understand the cooperative nature of PACS. And many of the members expressed that this cooperatives are started by

21

their ancestors and later hijacked by the politicians (Puroshotampur and Olangasaragan PACS members)

There is awareness on membership procedures but limited to monetary terms like membership fee, share capital and KCC issue charges. This may be due to the regular discussion on monetary terms rather than developmental initiatives.

There is mixed response on roles and responsibilities, more restricted to their roles and responsibilities as patron of services of PACS than as a full member of a Cooperative Society. Many of them expressed as their role is crucial at the time of elections. Members of Olangasaragan has lodged complaints on the previous board and demanded for immediate action. They felt that because of their struggle Government has dissolved the board and terminated the Secretary of the PACS.

Awareness on various internal controls made available to members is very poor. Members are not very keen to be involved in administrative affairs of PACS and do not consider it as their responsibility. As such many members said that they have not signed on any paper while attending the AGMs.

Very few members know about Annual General Body Meetings as at most of the places they are conducted only as a ritual. But many of the members informed that this AGM is conducting while launching the new service products.

#

Area

COOP -1

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

B

Services of PACS

 

Services Offered

3

1

3

4

3

3

 

Benefits Derived

2

1

2

2

2

2

Most of the members quoted their PACS / LAMPCS is the best services provider than any other and also quoted some benefits –

o

Quick service of PACS and instant loan provision (except crop loans) as compared to other financial institutions in the locality.

o

Provision of loan and subsidy as per Government norms which is not possible for banks)

o

Provides credits on agricultural loans at 2%interest p.a. for regular re-payers where as other commercial banks at minimum 5%.

o

Comes to their door step for recovery unlike other banking institutions

o

Members getting maximum support price directly from department of civil supplies through PACS / LAMPCS.

o

Provides seeds and fertilizers in a relatively cheaper cost than open market

o

Providing Crop insurance under national crop insurance scheme @ 3% premium for paddy and 4% on ginger.

22

Irrespective of the performance of the PACS, most of the members are aware of the services being offered by the PACS / LAMPCS and are actively availing the services. But some members shown disappointment with the lengthy loan process and depositing 10%of the loan amount as contribution / share capital. However, they pay interest for the entire sanctioned amount of the loan.

The awareness on the corresponding benefits derived is limited. Members are concerned only with the benefits to themselves, but are not quite averse of the benefits accrued to the PACS / LAMPCS when members are availing the services. Members of Olangasaragan PACS (Coop -2) stated that benefits are going to the relatives and the friends of the management but not to the actual beneficiaries.

Some members showed dissatisfaction on the arbitrariness in allocation of resources from PACS / LAMPCS and alleged the lack of transparency in transactions. But when confronted with the question on who is stopping them, members said that they are not aware of what to ask and what they are entitled to.

Members feel that the PACS / LAMPCS is not offering enough credit to meet their financial needs in comparison to Commercial banks. With this the even small client- patron connection between PACS / LAMPCS and its members is also being cut-off.

Interestingly, many of the members quoted that pattern of Waive-off the loans is demoralising the active re-payers.

Some of the members eagerly waiting for the savings account facility in Sirsha LAMPCS (Coop -3)

#

Area

COOP -1

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

C

Performance

of

Cooperatives

 

Profitability

1

2

2

2

2

2

 

Human

Resources

2

2

2

2

3

3

There is far less interest in the members about profitability of PACS. The members did not receive any dividends since inception. As such no PACS / LAMPCS had declared divided in Odisha state. As many of the PACS/ LAMPCS were incurring losses but now because of paddy procurement they are able to stabilise. As AGMs are just for the sake of it, members never get a chance and neither are they interested to know about the profitability of PACS

Staff of the PACS / LAMPCS are well known to the members.

Members are dissatisfied with the performance of the board members and many times revolted against them.

23

Communication within PACS

#

Area

COOP -1

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

D

Communication

 

Procedures

3333

2222

2222

1111

3333

3333

 

Themes

2222

2222

2222

1111

1111

1111

Most of the members know how to get information from PACS / LAMPCS. There are several ways in which the information from PACS reaches members like Dandora – For public announcements, AGMs, etc., by staff (branch in-charges) – Only important announcements and by Word of mouth by members contacting each other.

Pasting the circulars at notice board of respective PACS/ LAMPCS offices, circulating pamphlets and placement of banners in important junctions like members floating is more

But most of the members are illiterate, so unable to read the circulated things. Especially LAMPCS are facing a big challenge in communicating the information to the grass root level.

But the information received is only limited to services offered at PACS. Information regarding performance of PACS, administrative issues never really reach the members

Overall observations of discussions with members of PACS / LAMPCS are:

- Neither Staff of the PACS nor members of the PACS have the knowledge on importance of Governance issues like registration process, Bye –laws and about returns submission

- Members have attended unstructured orientation programmes conducted by the PACS / LAMPCS; even though it is limited to credit aspects only.

- Members are very disgusted about the role played by the PACS (Olangasaragan PACS)

- Members are interested to attend the training programmes if it is conducted in their convenient time.

- Situation of lack of elections is clearly observed negatively about the PACS in the mind-set of the members.

- Members informed that they have not signed in any of the paper while attending AGMs.

24

4.2.4 Findings from PACS Level – Non-Members

Responses from Focussed Group Discussions with Non - Members of the PACS / LAMPCS

#

Area

COOP -1

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

A

Principles

of

0

0

0

0

0

0

Cooperatives

 

Membership and structure

1

0

0

1

1

1

 

Roles

&

1

0

1

0

1

0

Responsibilities

 
 

Internal Controls

0

0

0

0

0

0

B

Services Offered

1

1

1

1

1

1

 

Benefits Derived

1

1

0

0

0

0

C

Profitability

0

0

0

0

0

0

 

Human

1

1

1

1

1

1

Resources

D

Procedures

1

0

0

0

0

0

 

Themes

0

0

0

0

0

0

Some patterns emerging from above ideograms are:

- Overall, the awareness levels are very less compared to members of the PACS.

- Even non- members are able to avail non-credit services from the PACS / LAMPCS.

- Some non-members complained that board members and staff demanded bribe for providing the membership in the PACS. Even paying to the both, some of them did not get credit from PACS and hence moved over to Commercial Banks. They do not find any need for PACS / LAMPCS in their village as a credit institution

- Because of vast geographical size is a cause for more number of non-members in LAMPCS. This assertion is valid from Guneipada LAMPCS (COOP-6).

Observations from Non-members at exclusively in PACS:-

While discussing with non-members in the PACS / LAMPCS, it was revealed that different perceptions exist among the non-member about the PACS / LAMPCS. The percentage of non-member is very less where the PACS are providing services. The perception about the PACS is much stronger than the LAMPCS.

Even though they agree that the members are getting benefit from the PACS, they still do not want to be a member in PACS due the following reason:

Non-members are unable distinguish between the present form of PACS and the earlier cooperative society;

25

The harsh action (seize of their property and land) taken by the cooperative society in the past has been a hinder for them to be member of PACS;

Low risk taking ability of community members;

Taking loan is considered as a symbol of negativity in the rural Odisha;

Not interested to be a part of PACS due to less information about the PACS and its benefits informed earlier.

Satisfied with existing agricultural practices;

Some members prefer to take seed and fertiliser from the PACS but not interested to take loan hence they have not taken the membership of PACs;

Lengthy procedure of loan disbursement to members has also adversely impacted the membership drive;

During the discussion with PACS members, it was also revealed that very few steps have been initiated by the PACS to increase the membership of PACS. The membership drive should be initiated every year to increase the membership in the PACS. Some of the problems and challenges that cooperatives are facing:

Inability to ensure active membership, speedy exit of non-user members;

Lack of member communication and awareness building measures;

Serious inadequacies in governance including that related to Boards’ roles and responsibilities;

A general lack of recognition of cooperatives as economic institutions both amongst the policy makers and public at large;

Inability to attract and retain competent professionals Lack of efforts for capital formation particularly that concerning enhancing member equity and thus member stake;

Lack of cost competitiveness arising out of issues such as overstaffing a general top- down approach in forming cooperatives including the tiered

26

Differences between members and non-members

Members

Non Members

High

agriculture practices

risk

capability

to

diversify

their

Not interested to diversify the agricultural practices and not willing to avail the services offered by PACs

Well informed on different programs and schemes of government

Less inform on the programs and schemes of government

the

through membership

Access

different

services

of

PACs

Limited access to the different services of PACs through membership

Level of awareness on different agriculture practices

Biased towards the PACS

Higher productivity and production;

Crops/produce/animal protection through integrated crop/animal-care delivery systems;

Opportunity for participation in the social and cultural development processes;

Exposure to modern technologies and opportunities to participate in, and manage the working of larger complex social organisations, thus leading to development of rural entrepreneurs/ leadership

27

5. RECOMMENDATIONS FOR MODULE DEVELOPMENT

This section summarises the various recommendations received by the team from diverse stakeholder throughout the study. Some recommendations on the areas to focus on and some precautions to be taken while designing Member Education Program are:

to be taken while designing Member Education Program are: Awareness on ownership – PACSs /LAMPCSs are

Awareness on ownership – PACSs /LAMPCSs are their own institutions - Advantages of having membership

Increasing the participation of members in PACS / LAMPCS activities - Invite the members to visit the PACS on a regualr basis

Changing the mindset of the members from Credit only to Credit plus services. Credit plus services must be provide to members only

LAMPCS need to be restructured like PACS, the criteria would the distance and number of members

Focus on

Massive campaign to create awareness on importance and benefits of PACS to members

Bringing non-members and inactive members into cooperative fold.

Addressing key questions of - What can member get from PACS / LAMPCS? What can member ask from PACS / LAMPCS?

Recruiting young and energetic staff at PACS level

Sensitizing in non-members to members in PACS / LAMPCS activities

Regular conducting of elections - and member shpould have basic knowledge about PACS / LAMPCS to participate in the contest

Elections should be conductled as per the time frame

28

Provide suggestions to the visited members in a polite way, so that they can feel comfortable in approaching PACS / LAMPCS again and again.

PACS / LAMPCS wise training calender to be designed at DCCB Level. Time and location shouild be prepared based on the members convenience

The content delivery cannot be too much it may be simple and need based. Regular follow up with refresher trainings are mandatory

Training calender should be realistic - induction training should be mandated to BOD members, whenever necessary

Precautions

Membership cards to be designed and should be circulated to all the members

New membership need to be given after having a one day orientation on PACS / LAMPCS membership and its functions.

Old aged farmers and inactive farmers should not be ignored

Old aged farmers and inactive farmers should not be ignored Member list should be maintained in

Member list should be maintained in a sofy copy and a hard copy

Financial literacy and feeling of ownership need to be enriched.

29

The recommendations for module development are categorised into three broad areas:

1)

Recommendations for Content of Module

2)

Recommendations for Tools to be used while developing content

3)

Recommendations for Delivery Mechanisms of the content

5.1 Recommendations for Content of Module

Module should broadly cover following aspects

Cooperative Principles, Cooperative Act 1962

aspects Cooperative Principles, Cooperative Act 1962 Feel of Community ownership of PACS / LAMPCS Benefits from

Feel of Community ownership of PACS / LAMPCS

Act 1962 Feel of Community ownership of PACS / LAMPCS Benefits from PACS - focus should

Benefits from PACS - focus should be on non credit services

Benefits from PACS - focus should be on non credit services Best practices and Success Stories

Best practices and Success Stories from PACS across the State/Country

and Success Stories from PACS across the State/Country Rights and Entitlements of Members as per byelaw

Rights and Entitlements of Members as per byelaw

Rights and Entitlements of Members as per byelaw Roles and Responsibilities of Members, Board of Directors

Roles and Responsibilities of Members, Board of Directors and Staff

Responsibilities of Members, Board of Directors and Staff Government Schemes related towards farmers and non farmers

Government Schemes related towards farmers and non farmers

Government Schemes related towards farmers and non farmers Effective use of services offered by the PACS

Effective use of services offered by the PACS

non farmers Effective use of services offered by the PACS Importance of AGM and topics to

Importance of AGM and topics to be discussed during AGMs

Importance of AGM and topics to be discussed during AGMs Moving beyond financial literacy to increase

Moving beyond financial literacy to increase financial capability i.e not just taking loans but how to manage the loans.

i.e not just taking loans but how to manage the loans. Fund Capital Management - Importance

Fund

Capital

Management -

Importance

of

Deposit

mobilisation

and

Share

- Importance of Deposit mobilisation and Share Loan management - Impact of default on PACS sustainability

Loan management - Impact of default on PACS sustainability

and Share Loan management - Impact of default on PACS sustainability PACS / LAMPCS structure -

PACS / LAMPCS structure - three tier system

and Share Loan management - Impact of default on PACS sustainability PACS / LAMPCS structure -

30

5.2 Tools to be used Following tools can be used for creating an effective Member Education program

Videos showcasing stories of successful PACS / LAMPCS and also by audio visuals at the PACS office on regular basis, atleast once per month

Paintings and Banners in village or atleast on PACS office walls. Prniting the subject material on a Calender

office walls. Prniting the subject material on a Calender Village level shows in an experimental manner

Village level shows in an experimental manner so that local people can clearly understand ex- Folk songs, Kalajatharas, local methods, etc

understand ex- Folk songs, Kalajatharas, local methods, etc Exposure Visits to atleast newly Board of Directors

Exposure Visits to atleast newly Board of Directors

etc Exposure Visits to atleast newly Board of Directors Articles/advertisements in local newspapers and cable TV

Articles/advertisements in local newspapers and cable TV network through scrolling

Pamphlets, Brochures about the imoprtant and services aprovided by PACS / LAMPCS

PACS / LAMPCS information should be printed on the annual calenders. Respective DCCBs should play an active role in designing the annual calenders.

31

5.3 Delivery Mechanisms

Following mechanisms can be used while delivering the content of Member Education Programme:

Convergence

with

departments

all

line

Integration of MEP with Agriculture and Veterinary departments. Sensatise the members at the time of field visits. Attract the members invloving agricultural sessions in the MEP sessions

Program Based

Training

Program based training - camouflaging member education program with government programs where there is some incentive for the member

programs where there is some incentive for the member Farmers Clubs Identifying progressive farmers and creating
programs where there is some incentive for the member Farmers Clubs Identifying progressive farmers and creating
programs where there is some incentive for the member Farmers Clubs Identifying progressive farmers and creating

Farmers Clubs Identifying progressive farmers and creating a forum for 10-15 progressive farmers like Farmers clubs affiliated to PACS, escpecially in LAMPCS. The people in the forum must have good understanding on agricultural socities and various aspects of banking. They can read magazines, organise talks by scientists and also could play intermediary role forming a crucial channel for information dissemination for PACS

CRP

Strategy

5 to 10 progressive farmers from other PACS to come and train the members. These farmers act as Community Resource Persons (CRPs) similar to the CRP strategy used by NRLM in creating awareness among SHG members to form groups

(Cooperative

 

Resource

Perosn)

PACS

Resource Persons from PDCs should take a proactive role in dissemination of MEP

Development

Cell

Involvement

Board members should take a proactive role in mobilisation of members from their villages in attending the programmes. Even BOD members should take sessions in the training programmes

Board

of

Directors

Annual

General

Members should be encouraged to participate in the AGMs through - conducting village level games, offering awards and reward like declaring best member of the PACS

Body meetings

Convergence

Body meetings Convergence
Body meetings Convergence

SHG

Federations with

PACS / LAMPCS

with

Intially members need to be understand the impact of SHG movement and able to clearly understand the roles and responsibilities performed by them

understand the roles and responsibilities performed by them Revival Training Centers of Revival of field level
understand the roles and responsibilities performed by them Revival Training Centers of Revival of field level

Revival

Training Centers

of

Revival of field level training centers / trainer / resource persons related to OSCB

32

ANNEXURES

ANNEXURE – 1

Guide for Semi Structured interviews with District Officials Focus will be on needs of members to increase effectiveness of PACS

General Information

Date

Location (Venue of the meeting)

Name of the District Official:

Name of the DCCB

Name of the District

Name of the State

Name of the Interviewer1

Name of the Interviewer2

 

Programme related information Collect annual report of PACS (If any available)

Education Program provided to PACS Stakeholders (Members/BODs/Secretaries) during the last 5 years including ToTs

Broad subject

Duration of

Training topics

Training tools used (incl. Audio- visual, exposure visit, case studies)

Opinion on Training

Usefulness of

of training

training

covered

training

*Collect Reports of training programs (If any available) #Collect any IEC/Training Material developed/used

1. Background information on DCCB/PACS Activities

2. What is your assessment of capacity building needs of the members – in terms of performing their role?

a. Governance Aspects

b. Services offered by PACS

c. Performance of PACS – Profitability/Dividend, Human Resources

d. New Business Opportunities

3. Are there sufficient training capacities with existing training institutions on PACS? If Yes, Details, If No, Reasons?

4. Which are the capacities needed for existing training institutions, over the next five years?

5. What aspects trainings have been provided to stakeholders of PACS? What is your assessment of capacities needed for members of PACS, over the next five years?

Trainings BoDs Members Topics on which there is Good Awareness Topics on which Awareness is
Trainings
BoDs
Members
Topics on which there is Good Awareness
Topics on which Awareness is Needed

6. Any other comments on implementation of future strategy in the district

a. Strategy for Institutional Strengthening of PACS

b. Training Strategy

ANNEXURE – 2

Focussed Group Discussions with PACS board members and staff Focus of discussions to be on awareness needs of PACS members training

General Information

Date Location (Venue of the meeting) Name of the PACS Name of the Block Name
Date
Location (Venue of the meeting)
Name of the PACS
Name of the Block
Name of the District
Name of the State
Types of Crops Grown
No of Cropping Seasons
Irrigation Facilities
Total no of Households
Total
BC
SC
ST
Programme related information
Total Savings with PACS
Total membership of PACS
Loan disbursement during last year
New members added in last 3 yrs.
Loan outstanding
Last Elections held (Year)
No of Defaulters
Default Amount
Respondent Information
S. No
Respondent Name
Gender
Age
Educational
No. of years in this position
Qualification

Services Related Information

Service Offered

Institutional Linkages

Extent of Linkage

1) What are the objectives of setting up of PACS?

2) What are the services provided by PACS?

3) List out Roles and Responsibilities

BoDs

Staff

Members

4) What are the rights and entitlements of members from PACS?

5) What is Member awareness and what are ways in which members are made aware of their roles and responsibilities?

6) What are different methods of communication of PACS with its members and vice versa? (Examples from last 6 months)

7) What are various sources of funds for PACS? What is financial status of PACS? Has the profit been distributed among members? How are the losses incurred in PACS?

8) How does PACS manage its Recovery? How can members play a role in recovery management?

9) Impact of Loan Waiver

10) Annual General Body Meeting (AGM) – Information shared, Members attended, and Issues raised, etc. What kind of role does member play in AGMs?

11) List out Trainings attended. What is their opinion on training? How far are the trainings provided to PACS employees/BoDs sufficient to create awareness among members?

12) What are the key aspects of training that are to be included in member education program?

13) What are different methods that can be used in member education program?

14) What are the ways to increase the ownership of members on their PACS?

ANNEXURE – 3

Focus Group Discussion with PACS members availing services Focus of discussions to be on awareness levels on PACS and its functions

General Information

Date

Location (Of the meeting)

Name of the PACS

Name of the Block

Name of the District

Name of the State

Legal form

Promoted by

Total number of members in PACS

Number of Board Members

No. of staff

Date of the PACS Formation

Financial services offered to members

Name of the Moderator1

Name of the Moderator2

Existing training received during the last 4 years (To be taken from Members of FGD)

 

Broad subject of training

Name of the training agency

Duration

Training topics covered

Training tools

Usefulness of

Any suggestions on improvement

of training

used (incl.

training

   

Audio-visual,

 

exposure visit,

case studies)

 

PACS Study: Checklist/Questionnaire for Members

Component

Indicator

Checklist/questionnaire

   

i)

Are the members aware of the cooperative nature of their

Principles of Cooperatives

PACS? ii) What are the advantages of cooperatives over other

institutions?

 

i)

Who can be the members and What are the procedures for

Membership and structure

getting membership into PACS? (Eligibility, process, share capital, removal, Minimum duties etc) ii) What is the governance structure of PACS iii) How are their elections held

 

i)

Are members aware of the responsibilities of various

Governance and Management

Roles and Responsibilities

stakeholders of PACS (i.e. Members, Board of directors, Office bearers, sub-committees)? ii) How are they performing their roles? iii) What are the barriers for fulfilling the roles?

 

i)

Is the PACS structure designed for sufficient autonomy and

Internal Controls

transparent functioning? ii) Are the members aware of various internal controls that they have on PACS? iii) Are the controls being effectively exercised by the members/BoDs? If no, what are the barriers? iv) GBMs and outcome of GBM

   

i)

What are the different services offered by PACS to the

Services Offered

members? ii) How do they rate the services offered by PACS as compared to others and reasons thereof? iii) Do they have any unmet financial needs outside PACS? Why is PACS unable to cater to those needs?

Services

 

i)

Has PACS been able to provide financial services to members

Benefits Derived

in a timely, effective and cost efficient way? ii) Are services and products accessed by members from PACS flexible and suited to need of poor households iii) are members equipped to leverage financial services from other institutions on account of their membership with PACS

   

i)

What do members think of performance of PACS? ii) Have

Profitability

they received any dividends for their share capital? iii) What can be done to improve the performance?

Performance

 

i)

Who are the key human resource working for the PACS and

Human Resources

What are their roles? ii) How are their appointment made? Who takes decisions on their salaries/benefits? iii) How are they performing their roles? iv) How do members ensure their

accountability?

 

Procedures

i)

How are the members contacted by PACS office for sharing

information? ii) How often are the members contacted

Communication

 

i)

How are the members communicated about the policy

Themes

decisions of the taken by board? ii) How are the members

notified of interest rate changes/repayment schedules

   

i)

How far PACS experience equips members to acquire

Financial literacy

financial literacy skills ii) Are members relatively more capable

of taking sound financial decisions (evidence)

 

i)

Are the members aware of the rights they possess in PACS? ii)

Training

Member Rights

How far are they able to access these rights? What are the barriers? iii) Has there been any attempt for making members aware of their rights?

 

i)

How are the members (old/new) made aware of their own

Roles

roles and responsibilities? ii) Do they face any challenges in performing their roles? iii) What measures have been taken to reduce the difficulties?

 

Institutional Development

i)

What are the new businesses that can be taken up by the

Vision

PACS?

Training

i)

What are the expectations of the members from a training

 

program?

ANNEXURE 4

Training Institutes operating in Odisha State

1. Institute of Agricultural Management, Bhubaneswar

2. Gram Sevak Talim Kendra (GSTK), Bolangir

3. Gram Sevak Talim Kendra (GSTK), Ganjam

4. Gram Sevak Talim Kendra, Dhenkanal

5. Minor Irrigation and Water Use (MIWU), Bhubaneswar

6. Plant Protection Training Institute (PPTI), Bhubaneswar

7. Soil Conservation Training Institute (SCTI), Koraput

8. School of Horticulture (SHC), Khurda

9. Krutartha Acharya Co-operative Training Institute(KACTI),Baragarh

10. Revenue Inspectors Training Institute (RITI), Ganjam

11. Home Economics Training Centre (HETC), Bhubaneswar.

12. Home Economics Training Centre (HETC), Barpali, Sambalpur

13. Crew Training Institute (CRTI), Chandabali, Bhadrak

14. School of Printing and Allied TRADES(SPAT), Cuttack

15. Driving Training School (DRTS), Bhubaneswar.

16. Secondary Council Education Research Training (SCERT),Bhubaneswar

17. Madhusudhan Institute of Accounts & Finance (MIAF), Bhubaneswar

18. Rangers Training College (RTC), Angul

19. Nocholoson Forest School (NFS), Keonjhar

20. Muny Forest Guards School, Dhenkanal

21. Health & Family Welfare Training Centre(HFWTC), Cuttack

22. Regional Institute of Planning, Applied Economics& Statistics(STI),BBSR

23. SC & ST Training Institute, Bhubaneswar

24. Secretariat Training Institute (SECTI), Bhubaneswar

25. Municipal Training Institute (MTI), Bhubaneswar

26. Public Health (PH), Bhubaneswar

27. Master Craftsmen Training Institute (MSTI), Bhubaneswar

28. Water and Land Management Institute (WALMI), Cuttack

29. Gopabandhu Academy of Administration, Bhubaneswar.

30. Veterinary Officers Training Institute (VOTI), Bhubaneswar

31. Extension Training Centre, Bhawanipatna.

32. Extension Training Centre, Keonjhar

33. Extension Training Centre, Bhubaneswar.

Annexure -5 List of officials met in Bhubaneswar, Balasore and Mayurbhanj districts

S.No.

District

Name

Designation

Organisation

1

Bhubaneswar

Sri TK Panda

MD

OSCB

2

Bhubaneswar

Sri LD Acharya

CGM & Incharge Principal

OSCB

3

Bhubaneswar

Sri Behera

DGM & Vice - Principal

OSCB & ACSTI

4

Bhubaneswar

Sri Santanu Kumar Mohanty

Individual Consultant

Retd Cooperative Department

5

Bhubaneswar

Dr. P. Thripati

DR,

Dept. of cooperation

6

Bhubaneswar

Sri SK Kale

CGM

NABARD

7

Bhubaneswar

Sri AK Sing

AGM,

NABARD

8

Bhubaneswar

Sri Amarendra Kumar Das

Secretary

OSCU

9

Bhubaneswar

Mrs. D.Vijaya

Deputy Director

MICM

10

Balasore

Sri Bijay Krishna Thriparti

Secretary

DCCB

11

Balasore

Bagavanth Mohanty

Resource persons

PACS Development cell

12

Balasore

Subranchu panda

Resource persons

13

Balasore

Mr.Lakshmankund

Secretary

Puroshotampur PACS

14

Balasore

Mr.Manash Chandra Acharya

Secretary ,

Olandasaragan PACS

15

Balasore

B. Sridhar

DDM

NABARD

16

Mayurbhanj

Sri GK Das

AGM,

DCCB

17

Mayurbhanj

Mr.Swastik zena

Resource persons

PACS Development cell

18

Mayurbhanj