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Primary Agricultural Cooperative Banks

The organization of Cooperative system in Tamilnadu is integrated vertically on the basis of functional responsibilities viz the Primary Cooperative Banks at the base level the District Central Coop. Banks in the middle level and the State Coop. Bank at apex level. The Primary societies at the base are in general multipurpose in character but in a large number of cases they deal mainly with credit.

Membership and owned funds:

The number of members enrolled in the Primary Agricultural Coop. Banks as on 31.3.2002 is 3.08 lakhs. Out of this number of Scheduled Caste/Scheduled Tribe members comes to 0.49 lakhs.

The working funds of the Society mainly depends upon Share Capital, reserves, deposits and borrowings. Share Capital is the main source of owned funds. Total Deposit outstanding of all Primary Agricultural Cooperative Banks as on 31.3.2002 amount to the tune of Rs.8222.62 lakhs.


Loans and Advances

The composition of loans and advances in terms of period is Short Term, Medium Term and long-term loans. The Primary Agricultural Cooperative Banks main concentration is in short term and Medium term credit, since their borrowers constitute chiefly farmers, whose need of credit being short term in nature. Accordingly the Primary Agricultural Cooperative Banks give main thrust to short-term credit.

The short term credit constitutes crop loans, jewel loans, consumer loans and other miscellaneous loans. Under the crop loan, credit system is extended in cash and kind with reference to the Scale of finance for various crops as fixed by the technical committee. The kind portion of the loan is generally fertilizer and pesticides.

Jewel loans are very popular in the rural areas and there is a great demand for it. The other types of lending constitute the medium term loans for agricultural allied activities, non-farm sector loans and consumer loans etc.


Primary Agricultural and Rural Development Banks

An unique feature of the Agricultural Cooperative Banking in our country is the organization of separate institutions for providing long-term loans. To issue especially long-term loans, an independent agency viz Primary Agricultural and Rural Development Bank is established. Total number of members are 19,950. Out of this 3608 belongs to Schedule Caste. The Share Capital amount of members is Rs.150.33 lakhs.

The purpose of loans issued by the Primary Agricultural and Rural Development Banks are for Minor Irrigation, Farm mechanisation, NFS activities and Animal Husbandry etc.


Agricultural Producers Cooperative Marketing Societies

The main objective of an Agricultural Producers Cooperative Marketing Society is to provide an outlet for profitable marketing of the produce of the grower members so as to minimise their dependence on open market forces, especially the Private traders. The other objectives include distribution of fertilizers, Pesticides and agricultural implements and issue of Produce pledge loan etc.


Primary Cooperative Stores

The main functions of the Primary Coop. Stores are sale of controlled and non-controlled commodities through their retail outlets.


Employees Cooperative Thrift and Credit Societies

This type of societies are serving for the benefit of salary earners. The working funds of these societies depends mainly upon the members thrift deposit and Share Capital.


Public Distribution System

Another important function of the Cooperative Department and the Cooperative institutions is running Fair Price Shops. Distribution of essential commodities such as Rice, Sugar, and Kerosene for cardholders, old age pensioners, Anthoydia Anna Yojana Scheme beneficiaries is the main function of this shops.

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