Transcript Strengthening Primary Agricultural Cooperatives ROLE

Strengthening Primary
Agricultural Cooperatives
ROLE OF MANAGERS
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Dr Daman Prakash
Senior Consultant
IFFCO FOUNDATION, NEW DELHI
Primary Agricultural Credit Cooperatives:
Are the backbone of agricultural
credit system in India;
They are an integral part of world’s
largest agricultural credit system;
Are the strongest chain in the largest
Agricultural Cooperative Movement of India;
There are over 380,000 agricoops with a
membership of nearly 200 million farmers;
PACS are the largest contributors to national food stock
and Largest distributors of farm inputs;
Largest warehousing capacity;
Own large industrial and processing units;
Have their own federal structure;
Hold major shares in cooperative banks;
They operate within a legal framework adhering to
norms of transparency and fair trade practices;
Farmer-Members are the Owners, Managers,
Employers, and Estate-owners
PACS ARE THE PRIDE OF INDIAN AGRICULTURAL
COOPERATIVE MOVEMENT
Indian Cooperative Movement
580,000 Coops of all types;
450 million basic members;
Already over 100 years old;
Cooperation is a State Subject
[Multi-State Coops also exist];
Cooperatives observe
Principles of Cooperation;
General Body is Supreme;
Democratic Management
[One Member-One Vote Basis];
Generally free from State Controls;
Several outstanding achievements:
India is world’s largest producer of milk;
Holds 45% share in coop ice cream;
Highest level of Wheat & Rice Production;
World’s No. 2 in Cotton production;
Federal structure in all sectors;
Largest Coop Education & Training structure;
Hassle-free Loaning Procedures;
Coop Unions & Banks support all Coops;
Loan recovery varies from State to State
[Punjab recovery is most outstanding, almost 92%];
Govt provides advisory, guidance
and audit services through
its field structures.
SECRETARIES/MANAGERS
ARE THE KEY COMPONENTS
OF THIS HUGE AGRICULTURAL
CREDIT STRUCTURE
IN INDIA
MEMBERS GENERAL BODY MEETING
ELECTS
BOARD OF DIRECTORS
AUDITORS
BOARD APPOINTS
SECRETARY/MANAGER
AND OTHER EMPLOYEES
COOP BYELAWS HELP
GOVERN THE COOPERATIVE
BYELAWS ARE ADOPTED BY MEMBERS
AND REGISTERED BY THE REGISTRAR
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This document contains information on:
Objectives, activities, governance techniques
e.g., holding meetings, powers & duties of
office-bearers and members, tasks of
secretaries/managers, handling of finances,
distribution of profits, capital formulation,
management of books, audit procedures,
legal issues, closure of the cooperative etc.
GENERAL BODY FRAMES POLICIES;
BOARD FORMULATES ACTION PLANS;
SECRETARY/MANAGER IMPLEMENTS.
REPORTING IS UPWARD
BOARD OF DIRECTORS & AUDIT BOARD
ARE ANSWERABLE TO GENERAL BODY;
ALL EMPLOYEES REPORT TO
BOARD OF DIRECTORS THROUGH
THE SECRETARY/MANAGER.
ROLE OF THE SECRETARY
Manages the Coop in response to
the wishes of the General Body,
as per directions of the Board
and according to the
government & bank procedures
Ethics, Honesty & Fairness are
the foundations to earn goodwill
of member-owners
TASKS OF SECRETARY ARE
LAID DOWN IN THE BYELAWS
Some of the important ones are:
Holding meetings in time; Fixation of MCL of the Coop
and of members; Receive loan applications and get
them approved by the Board; Distribute inputs in time
and with all fairness; Arrange for disposal of products;
Maintaining books of accounts & other books;
Follow-up recovery procedures; Laise with Department,
Bank & Federation; Keep good rapport with members
& office-bearers; Strong inventory & financial controls;
Prepare Annual & Audit Reports; Compliances;
Reconciliation of accounts; Enhance membership;
Expand loaning.
SATISFIED MEMBERS ARE A CREDIT TO SECRETARY
CAPACITY BUILDING HELPS ALL AND
STRENGTHENS THE COOPERATIVE
Awareness about Cooperation; Byelaws, Govt Rules
& Regulations; Proper paperwork; Business Ethics;
Accurate cash/accounts handling; Interaction;
Encouraging member participation; Member
education & training of office-bearers including
Secretary; Involvement of youth and women;
interaction with agri extension experts; Frequent
visits to members; Proper flow of information.
SYNERGY WITH OTHER
DEVELOPMENT PROGRAMMES.
CAPACITY BUILDING
OPPORTUNITIES LEADING TO
PROFESSIONALISATION
Training programmes offered by NCUI,
State Unions/Federations, Management
institutes; Conferences, Seminars and
Workshops; Field visits.
ANY EXPENDITURE ON HUMAN RESOURCE
DEVELOPMENT IS AN INVESTMENT.
LEARN BUSINESS TECHNIQUES FROM
PRIVATE ENTERPRISES.
Thank You
for your kind attention
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Dr Daman Prakash
IFFCO FOUNDATION
34 NEHRU PLACE, NEW DELHI 110019
March 03 2009