Cooperatives were established to provide long-term financial support, as noted by Union Minister for Home and Cooperation Amit Shah. He urged agriculture and rural development banks to focus on extending long-term finance to projects like irrigation and infrastructure during the National Conference of Agriculture and Rural Development Banks (ARDBs). Shah emphasized the importance of having a database for the cooperative sector, stating that expansion is only possible with proper information.
Shah highlighted the need for increased long-term financing for agricultural development, pointing out that many states are facing challenges due to collapsed banking systems. He stressed the importance of reviving and rebuilding the infrastructure for financing in every state. Shah also called for NABARD to establish a wing for extension and expansion.
Acknowledging the decline in long-term finance for agriculture, Shah urged for a reevaluation of the current system. He emphasized the need for cooperative banks to play a larger role in providing financial support to farmers. Shah also encouraged cooperation among banks to share successful reforms and best practices for the sector.
Shah emphasized the importance of directing surplus funds towards agricultural and rural development projects, rather than non-agricultural purposes. He called for a focus on promoting long-term finance, infrastructure, micro-irrigation, and cooperative irrigation for the sector’s expansion. Shah announced plans to convene a meeting to discuss strategies for increasing long-term financing.
Highlighting the lack of a comprehensive database on cooperatives in the country, Shah stressed the need for accurate data to facilitate sector growth. He mentioned the government’s efforts to create a database for cooperatives. Shah also discussed the increase in foodgrain procurement through cooperatives, indicating a positive trend in paddy and wheat procurement over the years.
In conclusion, Shah emphasized the importance of reviving the cooperative spirit for the sector’s success.
