Govt for change in co-op credit bodies

NEW DELHI: Opposing the three-tier structure of cooperative credit institutions, the Union Agriculture Minister Ajit singh has said multiple layers considerably raise the interest to be paid by farmers and other loanees. "We have to seriously think in terms of cutting down costs by doing away with the three-tier structure in cooperative credit bodies", he said, addressing a seminar ''Challenges and Opportunities before Cooperative Agriculture and Rural Development Banks'' on Monday. The presence of multiple layers at state, district and primary levels led to considerable increase in the interest rates payble by the farmers besides high operational costs. "Is it still necessary to continue the three-tier structure? With high-tech communication facilities and revolution in information technology, multiple layers can be avoidable to make it cost effective," Singh said. The minister said the traditional multiple-layered system had been done away with in Karnataka and that could be followed in other states as well. Stressing the need for reforms in the cooperative sector to make it face the challenges of globalisation and WTO regime, Singh said the Multi-State Cooperative Bill seeking to replace the old Act would free the cooperatives from the "clutches" of governmental control and interference. "On their part, cooperative sbocieties would have to perform. They must transform themselves into responsible, democratic and professional bodies", he said. The seminar was organised by National Cooperative Agriculture and Rural Development Bank''s Federation.