BHUBANESWAR: After Krushak Assistance for Livelihood and Income Augmentation (KALIA) scheme, Odisha Government has decided to constitute an administrative fund to secure the financial stability of Primary Agriculture Cooperative Societies (PACS) across the State.

The PACS Administrative Fund will support the establishment cost of PACS, including Large Area Multi-Purpose Cooperative Societies (LAMPS), service cooperative societies (SCS) and Farmers’ Service Cooperative Societies (FSCS). 

The fund will be constituted at the level of Odisha State Cooperative Bank (OSCB), for which the State Government has prescribed a set of guidelines and modalities.
As per the decision, 30 per cent of paddy procurement commission payable to PACS, LAMPS, SCS and FSCS by Odisha State Civil Supplies Corporation every year as commission agents will be passed onto PACS Administrative Fund at source.

Besides, five per cent of the net profit earned by OSCB and Central Cooperative Banks will be determined every year after audit and transfer to PACS Administrative Fund as per the provisions of OCS Act, 1962 and by-laws of the banks which can be used for participating societies proportionately. 

An official at Registrar of Cooperative Societies said, the fund will help improve the managerial efficiency and bring about uniformity in the establishment cost of cooperative societies involved in various activities, including procurement of paddy.

“Once the procurement season is over, PACS find it difficult to manage salary of staff and other expenditure. The fund will help meet the recurring expenditure during the period when the societies do not have other source of income,” he said.

The OSCB will pay the highest rate of interest on term deposits from time-to-time on the basis of daily products to PACS Administrative Fund, which will be maintained at the bank itself.

The financial assistance to the PACS will be released half-yearly - June and December - at a proportion decided by the authorities to enable the societies to meet the establishment cost.

A seven-member common pool committee will also be formed at Central Cooperative Banks level to monitor and review the flow of funds to PACS Administrative Fund. Odisha has 2,708 PACS which have been engaged for procurement of paddy, supplying seeds, fertilisers and agricultural equipment to farmers.