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POLICIES & PLANNING
Policies & Planning
 

The Department of Cooperation is responsible for promotion and development of Cooperatives, which have been recognised as an instrument of planned economic development and all-round socio-economic transformation, particularly in rural areas of the State. The Department formulates policies in this behalf and prepares plans to execute the policies.

The Department reoriented its policies during 1997-2000 to enhance professional competence, encourage adoption of modern methods of management and to introduce required structural, administrative and techno-legal reforms in Cooperatives to meet the challenges of economic liberalization and globalization in the country.
Policies:- 
  • Promotion & Development of Cooperativess
  The Department has so far pursued a policy of providing catalytic assistance, which include financial and technical assistance, to all Cooperatives in the State, irrespective of the fact whether they were involved in execution of policies and programmes of the Government or not. This policy has now been reformed as follows:-
  1.Provide need-based assistance to only those cooperatives, which are executing    government policies and programmes.
  2.Dis-invest from Cooperatives, which have become self-sustaining or cannot be revived    and sustained by the Government; and
  3.Promote unaided and self-reliant cooperatives.
  • Fertilizer Distribution Policy
    •  

    During the year 2001-02, 2002-03, it was decided to entrust total Procurement & distribution of Fertilizer to Markfed. For Kharif 2003, 25% to 30% Supply of Fertilizer through Cooperative Societies was entrusted to Nodal Points,Which were to retain Rs.20/- PMT margin and remaining was to be transferred to societies attached with them. Remaining supply was entrusted to Markfed.
    During Rabi 2003-04, 50% of total indented Demand of Fertilizer for supply through Cooperative Societies was entrusted to Nodal Points and remaining 50% was entrusted to markfed. During Kharif 2004 the same system continued. During Rabi 2004-05, 65% of total indented Demand of Fertilizer for supply through Cooperative Societies was entrusted to Nodal Points and remaining 35% was entrusted to Markfed. This system was extended to Kharif 2007. During Rabi 2007-08 50% of total indented Demand of DAP in case of Nodal Points for Supply through Cooperative Societies was entrusted to IFFCo and remaining 50% was entrusted to Markfed. Due to failure of Iffco to supply its share of indented demand of DAP, Markfed was assigned the duty to supply remaining quantity of DAP to Nodal Points in addition to supply of DAP to the Societies attached with Markfed. 50% of total Indented Demand of UREA in case of Nodal Points for supply through Cooperative Societies was entrusted to IFFCO and remaining 50% was entrusted to Markfed. 100% NPK 12:32:16 was to be supplied by IFFCO. All kinds of Fertilizer was to be supplied by Markefed to Societies attached with it. Now as per policy of Fertilizer for Kharif 2008, 100% indented demand of DAP will be supplied through cooperative societies by Markfed. If IFFCO supplies 35, 000 Mts the committed quantity of DAP, then this quantity will be sold by Markfed in open market through its sale canters. 50% of indented demand of Urea of Nodal Points will be supplied by IFFCO and remaining 50% will be supplied by Markfed. Marked will supply all kinds of Fertilizer to the Societies attached with it.
  • Revised Policy for KHARIF-2008
    		•
    a.  Govt. of Punjab has decided to import DAP and Markfed has been appointed Nodal Agency. Nodal Agency will procure DAP and will be suitably compensated by the Govt. of Punjab for handling charges on actual basis.
    b. The entire indent of the Nodal Points of DAP Fertilizer shall be met and supplied by the Markfed in addition to supply of DAP to the societies which are attached with Markfed. IFFCO has promised to supply 35000 MTs of DAP to the Nodal Point Societies which if supplied by the IFFCO then the Markfed would be at liberty to sell the surplus DAP through its sale centres in the State.
    c. 14457 Mts demand of NPK 12:32:16 of Nodal Point Societies and other Societies will be supplied by IFFCO.
    d. IFFCO will supply 50% of the requirement of UREa of Nodal Point Societies and the remaining 50% will be supplied by the Markfed to the Nodal Point Societies. Entire indent of UREA of the Societies attached with Markfed will be supplied by the Markfed.
     
    e. IFFCO will pay storage charges @ Rs. 15/- PMT per month, for two months for fertilizer supplied for advance stocking during February-2008 and for one month for fertilizer supplied for advance stocking during March-2008.
    2.0. The other parameters of the policy shall be as under:-
    A. FERTILIZER
    a. All the societies would be at liberty to fix margins and sale rates of fertilizers lower than the rates fixed by the Registrar, Cooperative Societies, Punjab, Chandigarh, Keeping in view the market rates. The present margins and rates for the fertilizer purchased from Markfed would be as given below:-
     

    Sr. No

    Particulars    

    DAP

    NPK 12:32:16

    Urea

    -

    -

    PMT

    P. Bag

    PMT

    P.Bag

    PMT

    P.Bag

    1.

    MRP

    9350/-

    467.50

    8480/-

    424/-

    4830/-

    241.50

    2.

    Sale price by Markfed to PACS

    9150/-

    457.50

    8280/-

    414/-

    4668/-

    233.40

    3.

    Margin of Markfed

    75/-

    03.75

    75/-

    03.75

    38/-

    01.90

    4.

    Margin of PACS

    200/-

    10/-

    140/-

    07/-

    112/-

    05.60

    5.

    Margin for members

    -

    -

    60/-

    03/-

    50/-

    02.50

    6.

    Sale price by PACS to Members

    9350/-

    467.50

    8420/-

    421/-

    4780/-

    239/-

    b. Nodal Point Societies will retain a margin of Rs. 1/- per bag & transfer the remaining to attached Societies except DAP/UREA supplied by Markfed to them.
    c. Markfed & IFFCO would arrange supply of all kinds of fertilizers on FOR basis.
    d. DAP & UREA will be supplied by IFFCO & Markfed against post dated cheques dated 15-05-2008 & 31-05-2008 respectively for advance stocking. After advance stocking, Markfed/IFFCO would ensure the timely delivery of the fertilizer to the Societies within the period of three days from the date of receipt of DD/Cheque failing which they would pay interest to the societies at the rate being charged by the Bank on Cash Credit Limit for fertilizer.
    e. If IFFCO fails to supply on time then Nodal Point Societies will be at liberty to purchase from open market fertilizer of reputed Company by calling quotations from out of which one quotation will be called from Markfed.
    f. Markfed/IFFCO would ensure replacement of Un-saleable fertilizers, if any, lying in the societies only if it is supplied by Markfed/IFFCO.
    g. Markfed/IFFCO would supply fertilizer to Cooperative Marketing Societies at the rate at which fertilizer is supplied to the PACS.
    h. CMSs would sell fertilizer so procured from Markfed/IFFCO or any other source as per condition listed at “e” above at the rates applicable for PACS for retail sale in the open market on cash basis also.
    i. Markfed & Nodal Point Societies would arrange timely and adequate supply of fertilizer to farmers especially in case of shortage during sowing season of Kharif crops.
    j. Markfed & Nodal Point Societies would be responsible for the rates and quality of fertilizer supplied to the Societies.
    k. Markfed and Societies would endeavour to ensure the supply of fertilizer to farmers at a price, which is not higher than that prevalent in the market.
    l. Markfed would sell Urea, DAP and NPK 12:32:16 through its Sale Centres at the rates not below the rates applicable to CMs/PACS for retail sale.
    m. Markfed/IFFCO will supply the fertilizers to cotton sowing area earlier so that the sowing is not delayed.
     
  • Agro-Chemicals
    • a. Markfed would supply agro chemicals manufactured by it and of other renowned comapanies.
    b. Renowned companies would be selected by the Market after 100% testing of agro-chemicals. List of such companies will be submitted to the office of the Registrar, Cooperative Societies, Punjab, Chandigarh alongwith list of brands/price alongwith test report. To ensure that only good quality agro chemicals are supplied, Markfed would ensure that penalty is imposed on supplies found supplying substandard agro-chemicals.
    c. Markfed would supply agro chemicals to PACS on consignment basis. The Secretaries of the Societies would ensure that the unsold stock of agro-chemicals is returned to the Markfed at the end of the season and it would be binding on Markfed to take back the unsold stocks of agro chemicals.
    3.0 In order to make this policy successful the officers in the field would make regular periodical reviews. The Deputy Registrar, Cooperative societies would review weekly the progress made in their respective districts and send the report to this office. At the State level progress would be reviewed by Registrar, Cooperative societies, Punjab and Managing Director, Markfed, Punjab, Chandigarh.
    4.0 The parameters of the earlier policy, which have not been modified, would
    remain the same.
     
  • Modernization and Professionalization of Cooperative Financing Institutions
    •   The Department is working on a policy to modernize and professionalise its Cooperative Financing Institutions. These Institutions include PSCB, CCBs, PSCADB and PADBs. The policy covers following key components:
      1.Development of Human Resource.
      2.Development of Infrastructure including buildings;
      3.Computerisation of Operations and Records.
      4.Simplification of procedures and strengthening of systems.
  • Cooperative Credit Policy 2001 – 2006
    		•
     
    The Cooperative Credit Institutions are distinctively structured to provide for Short-Term and Long-Term credit needs of the farmers in the Sate. Short Term Cooperaive Credit in the State has increased from Rs. 7.60 crore in 1965 to Rs. 4801.63 crores in 2002-2007. Similarly Long-Term Cooperative Credit has increased from Rs. 1.64 crore in 1965 to Rs. 375.00 crores in 2007. During 1999-2000, it was observed that loans and advances of PSCB, CCBs and PADBs are stagnating and need to be diversified and made competitive. Realising this, the Banks have embarked upon a New Cooperative Credit Policy, 2001-2006.
  • Provision of Housing Finance in Rural Areas
    		•
     
    Since most of the Housing Finance Institutions concentrate on urban cities, the Department has decided that Housefed should give greater attention to housing finance in rural areas. They have been asked to formulate their future plans accordingly.
  • Disinvestment from Sick and Un-viable Cooperatives
    •  
     
    The Department is pursuing a conscious policy of disinvestment from un-viable and sick Cooperatives. To begin with, it has decided to disinvest and liquidate three Cooperative Spinning Mills at Mansa, Malout and Kotkapura and the Budhlada Cooperative Sugar Mills Limited, Budhlada. The Department has constituted two Committees - a State Level High Power Committee, chaired by CS, Punjab and a Negotiation Committee, chaired by RCS to pursue one-time settlement of long-term overdue loans of Financial Institutions, namely IDBI, IFCI and ICICI towards these mills and liquidation theirof. These Committees have successfully finalized OTS of outstanding term loans of the Mills towards Financial Institutions, namely IDBI, IFCI and ICICI at payment of principal amount plus 20% of simple interest calculated from the date of default to cut off date i.e. 30.6.1999. With this settlement, the State Government had to pay Rs. 33.34 crore to the Financial Institutions as against Rs. 98.15 crore due to them, saving a sum of Rs. 64.81 crore to the Government and the Mills. A similar settlement for Cooperative Spinning Mills of Abhor, Goindwal and Barnala and Nine Sugar mills of Ajnala, Faridkot, Jagraon, Zira, Patiala, Tarn Taran,  Gurdaspur,  Fazilka and Budhlada has been finalised for paying only principal amount plus 10% of simple interest. The Goernment has paid Rs.75.23 crore to Financial Institutions as against a guaranteed liability of Rs.236.5 crore. For revival and restructuring of weak Cooperatives, the Department has also proposed to NCDC to set up a Revival Fund on the pattern of BIFR.
    Future Policy & Planning
    The Department has identified following thrust areas for its future policy and planning:-
  • Structural and Administrative Reforms
    •   1.Punjab Cooperative Societies Act, 1961. (Proposed amendment bill 2007).
      2.Downsizing and dispersal of bureaucracy to improve efficiency and delivery.
      3.Formulation and Introduction of Code for Accounting and Administrative procedures in all Apex    Cooperative Federations.
      4.Computerisation of Operations and Records.
      5.Human Resource Development through Intensive Training and Up-gradation of knowledge and    skills.
      6.Intensive Application of Information Technology.
      7.Promotion and Development of Insurance Cooperatives.
      8.Creation of a fund at Apex and Central Level for development of Primary Cooperatives.
  • Promotion of New Generation Self-Reliant Cooperatives
    		•
      1.Development of Women Cooperatives and self-help groups.
      2.Urban Cooperative Banks.
      3.Multi-purpose Cooperative Societies in rural and urban areas.
      4.Greater thrust on Milk Producers' Cooperative Societies.
  • Dis-investment from Sick and Weak Cooperatives.
    •   1.Dis-investment from Cooperative Spinning and Sugar Mills merits greater attention and thrust.
      2.Amalgamation and restructuring of Primary Cooperatives whose imbalances are more than    50%
  • Liberalisation of Cooperative Marketing.
    •  
      1.Direct sale and purchase of agro-chemicals by PACS.
      2.Direct sale and purchase of fertilizers by PACS.
      3.Greater autonomy to Rural Consumer Cooperatives for supply and distribution of essential    commodities in the villages.
  • Strengthening, Modernization and Diversification of Cooperative Credit System
    •   1.Development of Infrastructure including building infrastructure
      2.Human Resource Development
      3.Greater thrust on Non-Farm Financing, particularly for rural un-employed youth.
      4.Greater thrust on Direct Finance to the farmers: Gradual Abolition of B-Component of short-    term agricultural loans.
      5.Greater thrust on Insurance Linked loaning to the farmers.
      6.Reduction in Administrative and Management Costs of Funds to provide cheaper credit to    farmers.
      7.Introduction of ATM–cum-Debit Card
      8.Introduction of personal banking on the pattern of private and commercial banks.
      9.Efforts towards Merchant Banking & Demating of Shares.
      10.Efforts to increase the non-fund business.
      11.Introduction of Housing Finance Schemes in selective banks.
  • Convergence of Services
    •   Development of "Sehkarta Bhawans" at District Level to accommodate all Offices of the Department and Cooperatives to ensure easy access to facilities for the members of Cooperatives and general public.
  • Training Policy
    		•
    The Cooperatives of Punjab have paid special consideration on the Training of the staff, for which they have formed a special Training Policy.
    Training Institutions
    Regional Institute of Cooperative Management, Sector-32 Chandigarh.
    Punjab Institute of Coop. Training, Ltd; Chandigarh.
    Junior Level Training Cell (JLTC), Chandigarh.
    Agriculture Cooperative Staff Training Institute, Jalandhar
    Milkfed Training Centre, Jallandhar