Panel formed to study ailing DCCBs

Nagpur: The state government on Friday set up a high-level ministerial committee to study the working of district central cooperative banks (DCCBs) to suggest measures that could make them more effective and farmer-friendly.
A government resolution issued for the creation of the committee has noted that out of the 31 DCCBs, the financial health of 14 is in doldrums.To meet the target set of covering 80% of farmers in institutional finance network it will be incumbent upon the official agencies to infuse a fresh capital of Rs4,135 crore into these cooperative banks which are the backbone of the state’s farm loan network.
The matter has been in discussion for some time as it was felt that it was necessary not only to widen coverage under farm loans but also to provide the crop loans at cheaper rates so as to reduce the burden on distressed farmers. It was pointed out that the state’s apex bank gets funds from NABARD at low rates but by the time it reaches a farmer the rates scale up.
The committee would look into how this gap could be shortened besides making the working of DCCBs more effective by plugging loopholes in the system.
The nine-member committee will be headed by state’s cooperatives and marketing minister Chandrakant Patil while it will have ministers for agriculture, relief and rehabilitation and finance as members. Principal secretary (coop) will be the member secretary. Commissioner of cooperatives, general manager of NABARD, state-level bankers’ committee head, chief of Maharashtra State Cooperative Bank will be the members.
Interestingly, after Eknath Khadse’s resignation, there is no full-time minister for agriculture, relief and rehabilitation. The posts are being held by the chief minister as he has not devolved it to anyone. The committee has been asked to submit its report in two months.
Chairman of state task force for addressing farm distress, Kishore Tiwari, has welcomed the move to to set up the panel, He has been raising the failure of the nationalized banks to provide timely funds to the farmers. “Though it is getting late for the current kharif season, the committee would serve its purpose if it can improve working of DCCBs,” he said.