The taluk cooperative bank, which had been in losses for 10 successive years and was on the verge of closure, has managed to run business of Rs three crore this year.
Cooperative societies and banks have long remained the backbone of the country’s economy. The shareholders and farmers in the region, who depend heavily on the bank for their investments and loans, were relieved with the positive change in the condition of the bank.
The Sericulturists’ Cooperative Society and Farmers’ Cooperative Union Bank were started in 1970, as the brainchild of former legislator late A V Muniswamy.
The Bank, which serves in 52 villages all over the taluk, has more than 4,000 shareholders.
The last 10 years, however, had been very difficult for the Bank, as it faced heavy losses. There was even a point when the Bank was on the verge of liquidation. Staff members were not paid their salaries and the State government had also ordered that Bank be closed down.
Turning point
In a change of fate, the Bank got a new chairman in 2010-11 and since then, has been on the path to success.
S Prakash, who had worked as director of the District Cooperative Union and in several industrial ventures, took charge of the Bank. But taking charge of a loss-making bank proved a challenge for him.
He used friends and farmers to get deposits. Fertilisers used by local farmers- DAP, 10-26 potash, neem compost and 20-20 compost- were purchased and then sold to farmers at rates lesser than at the market. The move that would deny the Bank any profit surprised many people, but proved successful in the long run.The Cooperative Society also started selling insecticides and seeds to farmers.
Profit moves
As a result, the Bank had a business of Rs three crore in 2011-12, as a turnaround from normal situation. The depots of the Society have fertiliser worth Rs 25 lakh and pesticides worth Rs 15 lakh, which show the stability of condition of the Society.
“The Cooperative Society continues to sell fertilisers of excellent quality and sowing seeds at low rates to farmers, without attempting to make profits. We have all benefited from the work-style of the Society,” says Hariprasad Gowda, a farmer from Dyapasandra in the taluk.
“The directors and staff members of the Society as well as the public have assisted in reviving the Sericulturists’ Cooperative Society. Steps are being taken to collect all items necessary for farmers, stock them in one place and sell them at low rates,” explained Prakash, speaking to Deccan Herald. “The next step would be to start a Janata Bazaar for the farmers of the region soon,” he said.