Co-Operative Long Term Finance

Since the beginning of the present century, veteran cooperators, planners, administrators etc., have been facing the problem of long term finance for farmers. The Co-operative Societies Atc, 1904 gave a concretised shape for establishing primary cooperative societies to meet both the short and medium term loan needs of farmers. The provision of these loans did not make any improvement and did not have any impact on the farmers' ?economic status and consequently, they were head and ears in debt. In order to solve this problem and make the farmers free from the usury of money-lenders, the idea of cooperative long term credit institutions called Cooperative Agricultural Development Banks (earlier called Cooperative Land Mortgage Banks) was mooted. The idea behind establishing cooperative agricultural development banks was to redeem the farmers from the case of indebtedness. Today the cooperative agricultural development banks aim at accelerating the economic position of farmers by providing needed capital for various productive purposes in farm and thus, described them as ?catalysts? input has a major role in dealing with the problem of regional imbalances in the agricultural sector. It is a known fact that credit creates deposits and deposits flow as credit improves the economic condition resulting in surplus savings. In the present study an attempt has been made in the above direction viz., the flow of long term credit for utilisation of agricultural productive purposes and recovery of it. A better recovery of loan given indicates the wellbeing of the farmer-borrowers. Flow of credit as well as recovery of it has been analysed region-wise and district-wise in Andhra Pradesh. In the light of the results obtained, the author has made a number of suggestions which may prove useful to the concerned authorities. From the findings recorded in this book. It is likely to prove highly useful for students of cooperation, researchers, universities and policy-makers as well.