PACS? pelf pains: Is Govt to blame? | india | Hindustan Times
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PACS? pelf pains: Is Govt to blame?

india Updated: Jun 23, 2006 00:14 IST

IN RECENT years, frequent changes introduced to governance of the Primary Agricultural Co-operative Socities (PACS) Societies by State authorities has put the recovery by societies in the doldrums.

According to sources, it’s four years since the government stopped supporting salary of employees and this had declined their interest in the ongoing of recovery drive. Besides, state government passed instructions to all PACS societies to arrange for the payment of its secretary and other staff from their own resources.

Thus, the government directives increased the financial troubles of secretaries especially those facing financial losses.

Hence, these secretaries lost interest in the functioning of societies, especially in collection of recovery. This impacted the return of dues and put the co-operative societies deeper in the red.

Co-operatives assistant district registrar Alok Singh agreed that the problem was one of the reasons for poor recovery. However, he cited another reason for poor recovery and said that PACS societies are mainly dealing with the sale of harvest-supporting products like fertilizers and seeds.

He further said that for the last few years, 50% supply of these products was being supplied through the private sector, which affected the output of the societies due to change in government policies.

Singh said that this affected the overall income of societies and most of them showed a fall in income. Therefore, they could not bear their expenditures, including salary payment to employees, added Singh.

Talking about the Kanpur, Singh said the condition of recovery was far better in the district. In Kanpur district, about 90 PACS societies exist, but only 50% of them were functioning informed sources. However, Singh said that about 80 on record were functioning.

An amount no less than Rs 25 crore is to be recovered as dues by various societies. Meanwhile, the district has been allotted a recovery target between 70% and 72% by June 30. Singh claimed that recovery worth Rs 12 crore had already been made and a large amount is expected within the deadline.

He said stringent action has been initiated against the defaulters. There are about 19,000 defaulters and some 3,000 defaulters having huge loan dues.

About 550 such defaulters were also arrested during the current year, added Singh.