With the State Government participation by way of Share Capital Contribution, loan and managerial subsidy, the Co-operative movement has now become a vital instrument of economic development in the tribal areas. It has become an effective medium for the successful implementation of various schemes, which have a bearing on the raising of the standard of living of the tribal population. In order to study the problems of Adiwasi Co-operative Societies a Committee was appointed on 30th January 1984, under the Chairmanship of Shri Madhukarrao Pichad, the then Minister of State for Tribal Development. On the basis of the recommendations made by that Committee the following important decisions were taken by the Government to revitalize Co-operative structure in the Tribal areas. Accordingly by liquiding 275 old societies established 938 new small size Adivasi Vividh Co-operative Societies the following important decisions were taken by the Government to revitalize the co-operative structure in the Tribal areas :-

To reorganise the Adivasi Co-operative Societies on the following criteria.

  • the area of operation of a society should be limited to 5 to 10 kms.
  • for each 5,000 population, there should be one society

While reorganising the societies on the above lines, the existing societies should be liquidated; and

To extend financial assistance to these societies in the following manner :

  • To increase the rate of commission under Monopoly Procurement Scheme;
  • To increase rate of commission in Fair Price Shops dealings; and
  • Managerial loans given to Adivasi Co-operative Societies from the fourth to the seventh year be converted into subsidy.
The Government has accorded sanction to give 100 percent management subsidy to these reorganised societies for a period of five years. The Government has also agreed to convert the operational loans given to the then Adivasi Seva Societies into subsidy. However, the pattern in respect of management subsidy and share capital is still under the consideration of Government.

The details of some important schemes and outlays provided for them in the Tribal Sub Plan, 2014-15 are given in the following paragraphs.

Subsidy towards bad debt reserves :-

Financial assistance is given to each Adivasi Co-operative Society towards its bad debt reserve funds upto a limit of 5 percent of the maximum of its outstanding. Government contribution for subsequent years is on the basis of difference in loans advanced in the previous years, subjects to the maximum contribution Rs.0.30 lakh to each society. The total outlay proposed for 2014-15 is Rs.4.00 lakhs.

Grant of interest subsidy under various schemes :-

There are various schemes for grant of interest subsidy to tribal farmers. These schemes are.

  • Interest subsidy to small farmers,
  • Interest subsidy to Tribal farmers,
  • Interest subsidy to Adivasi Members of Adivasi Co-operative Societies government has decided that the crop finance disbursed to the Adivasi Co-operative Societies should be at concessional rates. However, tribal members having irrigated crop will not be eligible for subsidy under these schemes. The schemewise outlays provided for 2014-15 are as follows

In Lakhs

1) Interest subsidy to small farmers 0.00
2) Interest subsidy to Adiwasi Members of Adivasi Co-operative Societies at 5%. 0.00
3) Crop Productive Incentive Scheme 292.38

Seven years interest free loans for the purchase of shares of Adivasi Co-operative Societies :-

Adivasi Co-operative Societies offer various facilities to their tribal members. However, in order to enable the tribals to become the members of such societies, Government grants them interest free loan of Rs 100. The loan is repayable in 5 equal installments and the first installment becomes due in the third year from the date of release of the loan. An outlay of Rs.161.09 lakh has been provided for the year 2014-15 for scheme Seven years interest free loans for the purchase of shares of Adivasi Co-operative Societies as well as for Co-operative Consumer Shops.

Financial assistance to ST for purchase of shares of Co-operative Sugar Factories :-

Under this scheme financial assistance is given to the tribals so as to become the member of of the co-operative sugar factories at the rate of Rs 3000/- or the actual book value of the share by way of of 50 percent interest free loan and 50 percent subsidy. The loan is recovered in 5 equal installments after 2 years from the date of grant of loan. This scheme is being implemented through the District Deputy Registrar of Co-operative Societies. An outlay of Rs.103.90 lakh has been proposed for this scheme for the year, 2014-15.

Managerial Subsidy for Fair Price Shops of Tribal Co-operative Societies :-

The distribution of food grains and consumer articles is done through Adivasi Multipurpose Co-operative Societies. Undertaking these activities, the societies sustain losses. In order to reimburse such losses, management subsidy is given at the rate of Rs 2,500 per society per year. There are in all 141 Fair Price Shops, being run by the existing Adivasi Societies. An outlay of Rs 0.00 lakh has been proposed in the Tribal Sub Plan of 2014-15 for this purpose.

Managerial subsidy and share capital to co-operation Adivasi VKS societies for revitalisation :-

Since the activities of the above recoganised Adivasi societies have been expanded, they will have to appoint additional staff for which they will have to incur management expenses. The estimated excess expenditure involved on management activities would be about Rs 30,000 per society per year. To meet out this extra expenditure they are being provided management subsidy at account of management expenditure in the previous year, whichever is loss. However, the pattern in respect of financial assistance is still under consideration of Government. An outlay of Rs.29.90 lakh for management subsidy and share capital has been provided in the Tribal Sub Plan for the year 2014-15.

Hence, the outlay of Rs. 728.47 lakhs for District Plan & Outlay of Rs.7.00 Lakh for State Plan has been provided for this sub sector for the year, 2014-15 under the Tribal Sub Plan.

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