State’s decisions in cooperative sector could influence voters in 22 Lok Sabha constituencies

Last week, hours before the model code of conduct kicked in, the state stood guarantor for 13 sugar factories in northern, western Maharashtra and Marathwada

In the last eight months, especially after the induction of Ajit Pawar into the ruling alliance, the state government has taken a series of measures in the cooperative sector to reach out to the voters associated with it through sugar factories, credit societies, banks, and lift irrigation schemes. Whatever side they take in the upcoming elections, their decision could alter results in at least 22 of the 48 Lok Sabha constituencies in western and north Maharashtra and Marathwada.

Mumbai, India – June 21, 2023: NCP leader Ajit Pawar during the Nationalist Congress Party ( NCP ) Silver jubilee year celebrations at Shanmukhananda Auditorium, in the presence of member and acting president Supriya Sule, NCP leader Ajit Pawar, NCP leaders Praful Patel, NCP leader & MP Sunil Tatkare, along with other NCP leaders, in Mumbai, India, on Wednesday, June 21, 2023. (Photo by Bhushan Koyande/HT Photo)

Among the major decisions taken by Pawar’s colleague and cooperation minister Dilip Walse-Patil is a subsidy of ₹1.50 per unit for electricity the co-generation power plants of sugar factories sell to the Maharashtra State Electricity Distribution Company Limited. Considering millions of units these plants generate every day, the subsidy would transform into crores of rupees.

In a relief to around three crore depositors, including farmers, the cooperation department allocated ₹100 crore under an insurance scheme that would ensure protection up to ₹1 lakh in case a credit society goes bankrupt or shuts down.

The government also agreed to stand guarantor for 11 sugar factories in western Maharashtra and Marathwada, who were seeking loans of ₹1,192 crore from National Cooperative Development Corporation and Maharashtra State Cooperative Bank.

Last week, hours before the model code of conduct kicked in following an announcement on Lok Sabha elections, the government again stood guarantor for 13 sugar factories in northern, western Maharashtra and Marathwada, who wanted to obtain ₹1,898 crore in loans. Other than leaders from Pawar’s group and BJP, the factory controlled by Congress MLA from Bhor Sangram Thopte was among the beneficiaries. Bhor is part of Baramati Lok Sabha constituency where Pawar’s wife Sunetra is going to take on her sister-in-law and current MP Supriya Sule.

Political analyst Abhay Deshpande said the cooperative sector directly benefits regional and local leaders controlling the sugar factories, banks, milk federations etc. and indirectly benefits farmers and people associated with those institutions.

“The cooperation department’s decisions, which ensure direct monitory benefits to the factories, milk federations or banks, help political parties strengthen their bases in a particular area. These offer the ruling parties an opportunity to remind the voters what they had done for them,” Deshpande added.

The Lok Sabha constituencies, where there is a sizeable population directly or indirectly associated with the cooperative sector, include Pune, Baramati, Shirur, Maval, Solapur, Madha, Kolhapur, Hatkanangale, Sangli, Satara, Ahmednagar, Shirdi, Nashik, Dindori, Latur, Nanded, Hingoli and Jalna.

In July 2023, Pawar joined the government as deputy chief minister. The Mahayuti of BJP, Eknath Shinde-led Shiv Sena and Pawar’s NCP is going to face a tough electoral battle with the opposition trio - Shiv Sena (UBT), NCP (SP), and Congress.