'NABARD circular fatal to co-op societies'

Mangalore, Aug 13: The circular of National Band for Agriculture and Rural Development(NABARD) of vesting power of issuing agri credit to district banks and not with the Agriculture Co-op Societies has created a sense of confusion among the co-ops.

Addressing a news conference in the city on Monday on the same lines, South Canara District Central Cooperative Bank President M N Rajendra Kumar said that the move of the NABARD will reduce Agricultural Credit Cooperative societies to mere commission agents and this is not accepted by credit cooperative societies.

To chalk out plans to fight this out, Mr Kumar said that heads of all co-op societies will convene a meeting in Bangalore on August 16.

Calling the circular as an impractical one, he said that it will hamper the functioning of the credit cooperative societies.

"Credit Co-op Societies had strengthened financial condition of institutes in rural areas and had direct interaction with public. New circular has given a tremor to credit cooperative societies. There are more than 4,800 credit co-op societies in the state. The government should intervene at this juncture and withdraw the new decision of NABARD, which has adverse affect on the successful co-ops," Mr Kumar opined.

He called upon all the elected representatives to raise voice against this move of NABARD in assemblies and parliament.

With regard to the losses faced by the farmers due to the fruit rot disease, Mr Kumar said that Government itself should form a committee and conduct survey and compensate the farmers who are in dire straits.