RAJNATH SINGH CALLS FOR REDUCING
INTEREST RATE ON FARM LOANS EXTENDED BY CO-OPERATIVES
The Agriculture Minister,
Shri Rajnath Singh has called upon co-operatives to discuss ways
of reducing the rate of interest on farm loans. He was inaugurating
the 50th All India Co-operative Week celebrations,
organized by the National Cooperative Union of India here today.
Shri Rajnath Singh said that banks have reduced their rates of
interest on farm loans to 9 per cent from the earlier level of
13 to 14 per cent, but co-operatives give a sizeable chunk of
farm loans. Therefore, it is essential that the rate of interest
on co-operative loans is reduced. Shri Rajnath Singh said that
as regards the Government’s role in the matter, he has discussed
the issue with the Finance Minster.
Stressing the
need for co-operatives to develop as autonomous and self-reliant
enterprises, the Minister suggested that co-operatives enter new
areas like transport, power generation and distribution and information
technology. He said that in the context of globalization, there
is a need to give a new momentum to co-operatives. Since both
the private and public sectors have their limits, there is no
alternative but to strengthen co-operatives. The rural sector
and the economy as a whole can be strengthened if the co-operative
sector is strengthened, the Minister added. Pointing out that
co-operatives have generated 1.54 crore jobs, he said that this
is only a part of the potential of employment generation the co-operative
sector has. The Minister also emphasized the need to increase
the creditability of co-operatives among common people.
The co-operative
week begins on the birth day of Pandit Jawahar Lal Nehru who wanted
co-operatives to spread all over the country. During the week,
achievements of the co-operative movement are highlighted and
policies are finalized. The theme of the co-operative week this
year is "Co-operatives- Growth Engine for Prosperity and
Nation Building".
The country’s
co-operative movement is one of the largest movements in the world.
There are more than five lakh co-operative societies with 23 crore
members in India. Co-operative credit institutions are disbursing
46.15 per cent and distributing 36.22 per cent of fertilizer in
the country. Their share in the production of sugar is about 59%
and they cover about 55 per cent of handlooms. The National Co-operative
Union of India is the apex organization of the Indian Co-operative
movement.
