S

Member Education
Programme for PACS /
LAMPCS

2014

A Study on Capacity Building needs

assessment in Odisha State

SADHIKARATHA FOUNDATION PLOT NO 11 & 12, HIG,

MANIKONDA, HYDERABAD - 500089

TANESHA NAGAR,

ACKNOWLEDGMENTS

Sadhikaratha Foundation gratefully acknowledges the support and assistance of the

individuals who shared their experiences and assisted in the development of this study. In
particular we thank Mr Tushar K Panda, Managing Director, Orissa State Cooperative Bank
(OSCB) for his immense support for successful completion of the study. We would specially
thank L D Acharya (CGM -OSCB) for without his support, our field visits would not have
been completed so smoothly. We would also thank the Secretaries and the staff of District
Cooperative Central Banks (DCCB) and AGMs of NABARD officials of the three districts
Balasore, Mayurbhanj and Koraput for their valuable suggestions. We would also thank
Secretaries of the 2 Primary Agriculture Cooperative Societies (PACS) and Managing
Directors of 4 LAMPCS (Large Scale Adivasi Multi-purpose Cooperative Societies) for their
cooperation during the field visits.
Our sincere thanks to Mr SK Kale, CGM NABARD, Mr A K Singh, AGM, NABARD, Mr
Santanu Kumar Mohanty, Mr Amarendar Das, i/c Director Odisha State Cooperative Union
(OSCU), Mr A K Thriparti, Dy Registrar Department of Cooperation and Dr Vijaya, Dy.
Director from MICM for the guidance provided during the study.
We are also thankful to our President Mr C S Reddy for his continuous guidance, our COO
Ms S Rama Lakshmi for her initiative and vision in conceptualising the entire program and
our Director for Research & Advocacy, Dr K Raja Reddy for his valuable advice and
unending support throughout the study.
Our Special thanks to Mr Sekhar Rayaprolu for editing the report and providing the timely
support as and when required by the team. Our applause thanks to Mr Singhdeo, Director,
Mr Bijay Senapathy and Mr Prabod Mohanty of Madhyam Foundation for supporting us in
field study and in completion of the report.
And finally, our most sincere thanks to Deutsche Gesellschaft fr Internationale
Zusammenarbeit India (GIZ) GmbH for making Sadhikaratha Foundation part of their
Rural Financial Inclusion Program (RFIP) which paved way for carrying out this study and
specially Mr R. Ramakrishna for his role in helping the study evolve so successfully.
PACS Study Team
N. Naveen Kumar
Dr S. Prahallada

TABLE OF CONTENTS
1. Introduction ............................................................................................................................ 1
2. Methodology .......................................................................................................................... 2
2.1 Focus of Capacity Building Needs Assessment .................................................... 2
2.2 Sampling Plan and Selection.................................................................................... 2
2.3 Interactions at various levels ................................................................................... 3
2.4 Data Collection and Analysis .................................................................................. 4
3. Features of Credit Cooperative Societies in Odisha ....................................................... 5
3.1 Structure ..................................................................................................................... 6
3.2 State level Scenario .................................................................................................... 7
3.2.1

Initiatives from OSCB in DCCBs ................................................... 7

3.2.2

Services offered by PACS / LAMPCS .......................................... 8

3.3 Profile of districts visited............................................................................................

3.3.1

DCCB Balasore................................................................................. 9

3.3.2

DCCB Mayurghanj ...................................................................... 10

3.3.3

DCCB Koraput .............................................................................. 11

4. Member Education Current Status....................................................................................

4.1 Current Institutional Arrangements in Odisha................................................... 14
4.2 Findings of the Study ..................................................................................................
4.2.1

Findings from District Level ........................................................ 17

4.2.2

Findings from PACS Level Staff................................................ 18

4.2.3

Findings from PACS Level Members ...................................... 20

4.2.4

Findings from PACS Level non-members ................................. 25

5. Recommendations for Module Development................................................................ 28

5.1 Recommendations for Content .............................................................................. 30
5.2 Recommendations for Tools .................................................................................. 31
5.3 Recommendations for Delivery............................................................................. 32

1. INTRODUCTION

GIZ and NABARD have started an ambitious Rural Financial Inclusion Program (RFIP)
which primarily aims at improving the quality of Credit Cooperative Structure (CCS) in
India. Under its capacity building program, GIZ-NABARD are imparting professional
training to almost all levels in the CCS, except to lowest level i.e. the members of the
Primary Agriculture Credit Societies (PACS). To fix this only missing cog, GIZ approached
Sadhikaratha Foundation to design and develop a Member Education Program for
increasing the awareness levels of the members of PACS.
Sadhikaratha Foundation has sought to undertake a study for assessing the capacity
building needs of the members of PACS. Sadhikaratha Foundation has undertaken this
study in 3 states viz., Telangana, Andhra Pradesh and Odisha. This report is part of the
Capacity Building Needs Assessment (CBNA) study undertaken in the state of Odisha.
Sadhikaratha Foundation (SF) being a supporter of Self-Help movement felt that, there is an
urgent need to develop a programme for PACS members. In this context, SF approached
GIZ and explored the idea of working together on developing a concept of a member
education program and developing module and material for member education programs
of PACS. In this context, SF planned to work on the following:

1. Conduct a study on PACS and its membership in Andhra Pradesh and Odisha states and
develop a concept of a member education programme for PACS
2. Develop training manual with content, methodology and material for member education
program
The study was conducted with an objective to look at PACS performance and its
membership in Odisha and to develop a concept for a member education programme for
PACS/ LAMPCS (Large Scale Adivasi Multi-purpose Cooperative Societies) in a holistic
approach.

2. METHODOLOGY
Training needs assessment is an exercise fraught with the risk of over generalisation and
over simplification of the needs of the target group. Prejudices of the training provider
creep into the assessment often resulting in a one-sided view of the needs. However,
keeping in view the spirit of the democratic institutions that we are dealing with, we
wanted to keep the entire process of CBNA participatory and democratic. This has provided
us a balanced perspective with minimal possibility of internal predisposition or bias that
could influence the needs assessment process.
To keep our study simple and interactive we used following techniques:
Focussed Group Discussions and
Semi-structured Interviews
2.1 Focus of Capacity Building Needs Assessment
The study team has identified critical areas and focused on content required for conducting
member education programmes, so that they manage cooperative effectively and efficiently.
The team also focused on the existing strategies for member education and identified the
gaps for improving effectiveness of the member education programs. During the needs
assessment, the study team has focused on the following:
Awareness levels of members about the functions of PACS which include
performance of the members, products and services offered, volume of business,
profitability of the institution, information about current problems being faced by
the cooperatives

2.2

Members awareness about the role of members, the staff and their involvement in
formulation of policies, decision making, mobilising resources etc.

Information related to financial, technical and cooperative is shared within and

outside the cooperatives, and usage of information to the members and staff.
Sampling Plan and selection

During discussions with GIZ, it was agreed to conduct the study in 3 districts Odisha and in
each district at-least 2 PACS / LAMPCS to be visited i.e. the study included a sample of 2
PACS / 4 LAMPCS in 3 districts. The sample of districts and PACS / LAMPCS within the
districts was selected purposively based on following criteria:
Functionality of PACS / LAMPCS
Bouquet of Services offered Financial and Non-Financial
Divergent Commodities the PACS / LAMPCS is dealing with
Membership of the PACS / LAMPCS
Location of PACS / LAMPCS Tribal and Non-Tribal
Based on above criteria, Districts and PACS / LAMPCS have been purposively selected
after discussion with different stakeholders including GIZ, OSCB and DCCB.

#
1

District Name
Balasore

PACS / LAMPCS Visited

Puroshotampur PACS

Balasore

Olandosaragan PACS

Mayurbhanj

Sirsha LAMPCS

Mayurbhanj

Badasahi LAMPCS

Koraput

Borigumma LAMPCS

Koraput

GuneipadaLAMPCS

2.3

Criteria Observed
1. Well-Functioning
2. Large Bouquet of Services
3. High Membership
4. Award winning PACS
5.Highest in Deposit Mobilisation
1. Moderately Functioning
2. Smaller Bouquet of Services
3. Moderate Membership
4. Nearest Place to the DCCB
1. Well-Functioning
2. Large Bouquet of Services
3. High Membership
4. Tribal membership
1. Well-Functioning
2. Smaller Bouquet of Services
3. Moderate Membership
4.Tribal membership
1. Moderately Functioning
2. Medium Bouquet of Services
3. High Membership
4. Tribal membership
1. Mediocre Functioning
2. Medium Bouquet of Services
3. Vast area of operations
4. Very distant from DCCB
5. Tribal Membership

Interactions at various levels

Different Stakeholders to whom we have interacted at state level are given below:
Level
State

Name of the Dignitary

1. Tushar K Panda
2. L D Acharya
3. Prasanna Kumar Behera
4. Santanu Kumar Mohanty
5. A K Singh
6. Dr P Tripathi
7. C Vijaya

Stakeholder
Technique
Managing Director, OSCB
CGM, OSCB & I/c Principal ACSTI
DGM, OSCB
Retd. Grade A. Odisha Cooperative
Informal
Service
Interviews
AGM, NABARD
Deputy
Registrar,
Cooperative
Department, Govt of Odisha
Director, Madhusudhan Institute of
Cooperative Management

Different Stakeholders with whom we have interacted at various levels, are given below:
Level

District

PACS /
LAMPCS

Village Level

2.4

Stakeholders
Secretary and Senior Staff of DCCB
AGM, NABARD
Principal,
Regional
Cooperative
Training Centre Koraput, Mayurghunj
Resource Persons, PACS Development
Cell
Balasore,
Koraput
and
Mayurbhanj
Secretaries / Managing Director and
Staff of PACS / LAMPCS

Technique
Semi Structured Interviews (See
Annexure 1 for Structured
interview format)

Focussed Group Discussions

(See Annexure 2 for Structured
interview format)
Members availing services of PACS Focussed
Group
(Members) and Members not availing Discussions(See Annexure 3 for
services of PACS(Non-members)
checklist)

Data Collection and Analysis

Primary Data has been collected through our formal structured interview formats and
checklists at district and PACS / LAMPCS level. For Secondary data, we have collected
annual reports/audit reports from DCCB and PACS wherever they were made available to
us.
Data collected was analysed based on the primary level information collected from the
members and staff of the PACS / LAMPCS.
Data collected was analysed through ideograms. In presenting the data of the awareness
levels we used a 5-point scale represented through Harvey Balls Ideograms1 as shown
below.
Ideogram
0
1
2

Level of Awareness
No Awareness
25% Awareness
50% Awareness

75% Awareness

Complete Awareness

1Harvey

Illustration (What is cooperative nature of PACS)

No response
An organisation for welfare of members
An organisation for welfare of members which is
managed by them
Organisation for welfare of members which is owned
and managed by them
Organisation for welfare of members which is owned
and managed by them with a set of roles,
responsibilities, rights and entitlements for each
member

Balls are round ideograms used for visual communication of qualitative information

3. FEATURES OF CREDIT COOPERATIVES IN ODISHA STATE

The State of Odisha, lying between 17 31' and 22 27' North latitude and 81 27' and 87 30'
East Longitude covers a total geographical area of 155.71 lakh hectares, occupying 4.74% of
Indias landmass and accounts for 3.74% of the countrys population. It comprises of 3
revenue divisions, 30 districts, 58 sub-division, 314 blocks and 51057 villages. The
percentage of SC and ST population to the states total population is 16.53 and 22.13%
respectively. The state is a predominantly agrarian economy & about 50% of the states
domestic product comes from Agriculture and about 64% of total work force is employed in
agriculture sector. But most of the rural people, dependant on agriculture, are small or
marginal farmers, the average land holding being 1.25 Hectares and tenant farmers. It has
been divided into 10 agro-climate zones based on land form, topography, climate, soil and
crop adaptability. The state, situated in a subtropical zone, exhibits a temperate climate with
normal average annual rainfall of 1502 mm. It has an immense potential of ground water,
mineral wealth, fertile soil and diverse flora and fauna.
Despite the rich endowments, the State is still in the transitional stage of development and
is classified as backward in terms of development status, the main reasons being:
1. Traditional farming practices with negotiable commercial crops(less than 2%)
2. Poor infrastructure for agriculture mark
3. Highest incidence of poverty at 47%.
4. Frequent occurrence of natural calamities- floods, cyclones and droughts.
5. Infrastructurally underdeveloped and tribal dominated, backward KBK (Koraput,
Balangir and Kalahandi) region.
Presently Cooperatives in Odisha are governed under one state act called Odisha State
Cooperative Societies Act, 1962. Earlier there was a parallel act called Odisha Self Help
Cooperative Act, 2001. But due to amendment in 2008, all the cooperatives registered under
2001, Act should follow the rules annexed under The Odisha State Cooperatives
(Amendment) Act 2008.
The 2001 Self-help Act is considered to be the more liberal of the two acts with some degree
of autonomy given to Cooperatives. However, all the Cooperatives in the Credit
Cooperative Structure (CCS) are registered under the 1962 Act. This means, all the PACS /
LAMPCS functioning in Odisha are registered under 1962 Act with the significant degree of
control from the Registrar of Cooperatives (ROC) and Cooperative Department.

3.1 Structure
The 3-tier structure of CCS (Credit Cooperative Structure) in Odisha is similar to other
states as shown below:

OSCB

DCCBs

PACS /
LAMPS

14 Branches
Operates an Agricultural Cooperative Staff Training Institute
(ACSTI) in Bhubaneswar

17 DCCB with 318 Branches

All the DCCBs and branches operate under CBS

2513 PACS and 212 LAMPS with a total membership of

of 50 lakshs out of them 41.58 lakhs are ( KCC) holders

Some features of PACS/ LAMPCS in Odisha state are;

A farmer having a land holding deed is only eligible for membership in PACS i.e.
landless labourers are not eligible for availing the loans.

Membership itself is divided into two categories

o A class are the shareholders of the PACS; they pay minimal Rs 300 or 10%
of the loan amount as share capital along with minimal amount of
membership fee and can avail loans from PACS and also are eligible for
voting.
o B Class members membership is creating trauma in the cooperatives.
These members are listed in figures but information such as who are they
from where are they is not known. B class members are also called as
passive members and their contribution of amount is treated as B class
Share capital amount. These members do not have any voting rights.
However, based on the Vaidhyanathan recommendations, number of B
class members is reducing.

After making Cooperative Amendment in 2008, the Boards of the PACS/ LAMPCS
are not on the frame and totally governed by the staff through the guidelines and
suggestions from the DCCBs.

3.2 State level scenario

The situation in Odisha was not different from the rest of the country so far as the status of
membership of the PACS / LAMPCS are concerned. As per the sources, the number of
agricultural families in the state was 50.04 lakhs. Out of the total agricultural families 49.19
lakhs were members of the PACS. Against the huge membership, only around 18 lakh
members have had some transactions with the PACS and the balance remained are passive
members. The details of the growth of membership and number of user farmer members is
given below(# in lakhs)
Year
Agricultural
Members
% of coverage of membership to Indebted
Families
enrolled
total agricultural families
members
2006-07 50.14
45.34
90.42
48.93
2007-08 50.14
45.50
90.75
18.92
2008-09 50.14
45.21
90.17
19.13
2009-10 54.01
47.32
87.61
18.32
2010-11 54.94
49.19
89.53
20.35
(Courtesy from OSCB Cooperatives at door step)
Presently, membership in the PACS / LAMPCS is stable and trying to develop the
strategies to minimize the dual membership and identifying and converting the passive
members to active members fold.
Cooperatives at your doorstep campaign helped the PACS/ LAMPCS at Odisha in
identifying the key essential needs of the members and given a clear road map for creating
the member awareness programme. Some of the key findings of the campaign are follows

Large number of agricultural families not covered in the cooperative fold

Widespread ignorance about the functioning of the PACS
Organization and credit linking of Self Help Groups and Joint Liabilities Groups
should be thrust area
Regular member contact is the sine qua non for recovery

The campaign proved that by sensitizing the members regular contact to use the services of
PACS can bring about sustainable viability to credit structure and revitalize the entire
system.
3.2.1

Initiative from OSCB in DCCBs

The bank has computerized accounts of its branches and head office since 1988 using one
Total Branch Automation Software (COBOL Btrieve Based) named Bank Plus, one Back
office accounting software (Oracle Power Builder Based) named COINS. In 1999 the bank
has procured one ORACLE VB based TBA, which is running in all the branches of DCCBs
with a name of SAMAVAYA. Introduced online service facilities through RTGS and
NEFT transactions with the support from YES bank.

OSCB is planning to connect itself and DCCBs with NPCI (National Payments Corporation
of India) for enabling its customers (members and nonmembers of PACS / LAMPCS) to
transact in RUPAY supported ATMs (Automated Teller Machine) and POS (Point of Sale)
across the country. Kisan Credit Card (KCC) will be digitalized along with Savings Bank
Accounts of Farmers (members). These Kisan Credit Cards can be used in any POS or ATM
across the State as well as Country. This Bank is also introducing Mobile ATMs in the
State to provide doorstep banking services to members of the LAMPCS.
3.2.2

Services Offered by PACS / LAMPCS

DCCBs are performing a proactive role in designing the services to be rendered by PACS /
LAMPCS to members. By considering previous experiences, DCCBs are taking decisions
very cautiously and providing excellent support in monitoring the monetary terms.
Credit Plus initiatives are captured from the other models of PACS, but neither CCBs nor
PACS are going for members requirements. As such from 2008, members participation is
decreased upholding of elections may be one of the causes for it.
Services provided by PACS / LAMPCS
Sl no
Services Offered
1
Financial Services
Loans to members crop loans, Gold loans, tractor
loan, long term business loans and other asset creation
loans
Deposits mobilization Recurring deposits, Fixed
deposits and savings accounts
Insurances Pension, accidental and life
Remittances
2
Business services
Sale of Fertilizers and Pesticides
Sale of seeds
Hiring godown (warehouses)
3
Marketing Services
Paddy Procurement
4
Technical Services
Awareness campaigns at village level
Orientation on newly launched products
5
Social Services
Custom hiring centers distribution of PDS
commodities
OSCB is again planning to conduct the campaign called Cooperative at your door step in
the state, after the completion of the elections.

3.3 Profile of the Districts Visited

3.3.1

Profile of DCCBs Visited Balasore

Balasore, the coastal district of Odisha is crisscrossed with perennial and estuarine rivers
because of its proximity to the sea. Two important rivers of Odisha, namely: Budhabalanga and Subarnarekha pass through this district from west to east before surging
into the Bay of Bengal. The irrigation system in Balasore district is very much widespread.
The soil of Balasore district is mostly alluvial laterite. The soil of Central region is mostly
clay, clay loam and sandy loam which is very fertile for paddy and other farm produces.
Nilagiri Sub-division is mostly gravelly and lateritic soil, which is less fertile. A small strip
of saline soil is also seen along the extreme coastal part of the district.
Balasore Bhadrak Central Co-Operative Bank, presently renamed as Balasore Bhadrak
Central Co-operative Bank Ltd, Balasore, started its functioning on the first June of 1916
with a working capital of Rs. 10,000/- having only seven affiliated societies and in the year
1956, Balasore Bhadrak Central Co-Operative Bank was amalgamated with Balasore C.C.B
commencing its operation with a share capital of Rs. 3.29 lakhs and deposit of Rs. 7.76 lakhs
during 1956-57. The bank has grown substantially and as on 31st March'2011, the working
capital of the bank reached Rs. 1189.09 crores with a deposit base of 626.61 crores. The bank
has issued 375410 Kissan Credit Cards to the farmers of Balasore and Bhadrak district and
disbursed loan to them for agriculture and other purposes.
The bank has extended its banking network through 30 branches, 249 PACS and 2 LAMPCS
operating in 19 blocks in Balasore and Bhadrak district.to compete with recent technology
adopted by the Nationalized Banks and Private Sector banks, bank has computerized 30
branches and 59 PACS in village areas for providing computerized customer service. The
bank has earned a net profit of Rs. 204.72 lakhs in the year 2011-12 and declared dividend
to its share-holders.
Balasore PACS are treating as well as performing Cooperatives. Some reasons that can be
attributed for this success of Balasore are:
Agricultural conditions are favaroble to the farmers. Here three types of crops were
grown in a year.
Good support from District Administration (The road and rail link to state capital
may be one the reason)
Political Support - Positive mind-set on Cooperatives
The District lies in the coastal part of Odisha and is blessed with hot and humid
climate with alluvium soil and intersected by the perennial rivers, which collectively
provides conducive infrastructure for the growth of agriculture in this region
Some PACS in Balasore were quick enough to grasp the importance of financial
services in development of PACS and stood first in state level in mobilisation of
deposits (Puroshotampur PACS)

3.3.2

Profile of DCCBs Visited Mayurbhanj

Mayurbhanj is a land-locked district with a total geographical area of 10,418 Sq.Km. and is
situated in the Northern boundary of the state with district Headquarters at Baripada. The
district lies between 21*16' and 22*34' North latitude and 85*40' and 87*11' East longitudes.
The district is bounded in the North East by Midnapore district of West Bengal, Singbhum
district of Jharkhand in the North West, Balasore district in the South East and by Keonjhar
district in the South West. The district is divided into 4 administrative sub divisions, 9
Tahsils, 26 CD blocks, 382 Gram Panchayats, 3887 villages. The total population of the
district is 25.13 lakh as per 2011 census with little bit more than half of the female
population (50.13%), The sex ratio is 1005 per 1000 males. The scheduled tribes are predominant community in the district. About 82% of households depend on agriculture and
agri-labour for their livelihood (50% agriculture and 32% agriculture labour). The district is
equipped with a total cultivable land of 4.47 lakh hectares and the district is knows for high
growth of paddy.
The Mayurbhanj Central Cooperative Bank was founded by HH Maharaja Shri Pratap
Chandra Bhanj Dev and got registered under Odisha Cooperative Societies Act on
31.01.1951. The Bank started its functioning from 25.07.1951 having its head quarter at
Baripada, The Bank is a pioneer of Cooperatives Movement in the district as regards
purveying of agriculture credit and till today the lions share of agriculture credit in the
district is issued by this Bank, notwithstanding the fact that, so many Commercial Banks
and RRBS have been opened in the district in the meantime. The Bank received license from
the RBI to carry on banking business throughout the country in the year 1983. The bank is
taking up its step forward to cope with the latest development in the Indian Financial
System and the third generation banking concept with the active participation, cooperation
and goodwill of its stakeholders.
By the pre-dominance of ST communities in the district, the DCCB is promoted 52 Large
Scale Adivasi Multi-purpose Cooperative Societies (LAMPCSs) in the district. Each covered
80 130 villages. The DCCB established 15 branches of their bank to provide credit needs of
the farmers. The NABARD established LAMPCSs development cell at DCCB office and
positioned two Resource persons from the year 2012. The PDC is creating financial
awareness to LAMPCS members primarily by preparation of Business Development Plans
(BDPs). The PDC facilitated BDPs in 17 LAMPCSs and activities are under implementation
in 10 LAMPCSs.
Some reasons that can be attributed for this success of Mayurbhanj are:
The economy of Mayurbhanj District is mostly dependent on agriculture. The agro
climatic zone and the favourable soil type induce the proper growth of agriculture.
Paddy is the major cultivated crop, followed by pulses and oilseeds.
This area also cultivates pulses, oilseeds and other cereals in khariff season. It has
been showing an increasing trend due to diversification of cropping patterns.
Moreover, the land use pattern is quite accommodating in the field of agriculture.

10

3.3.3

Profile of DCCBs Visited Koraput

The Koraput Central Coop. Bank Ltd, Jeypore established on 15-3-1950, started functioning
w.e.f. 5th April 1950, under the name of Nowrangapur Cooperative Central Bank Ltd. The
Headquarter of the Bank was shifted from Nowrangapur to Jeypore in the year 1970-71 and
now the Bank is functioning at Jeypore under the name of Koraput Central Co-operative
Bank Ltd, Jeypore. In the year 1977 as per recommendation of K.S.Bawa Committee to
undertake Credit Marketing and PDS business for its members was taken place. The bank
got its license from Reserve Bank of India during 2010-11.
The District is predominated with Tribals covering more than 54% of the total population of
Rs.35.42 lakhs. The erstwhile District divided into 4 (four) Revenue Districts during the 2nd
October-1992, GANDHI JAYANTI DAY under the new name of Koraput, Nabarangapur,
Rayagada and Malkangiri district having one Sub-Division in each of the Districts of
Malkangiri and Nabarangapur.
The Koraput DCCB is providing services to 55 LAMPCS in the arena of Credit services only.
It is playing an intermediary role in insurance services. Monitoring is not up to the mark
may be because of lack of human resources, LAMPCS are located in hilly areas and the
main tribal language.
Some reasons that can be attributed for this success of Koraput are:
Pleasant in nature
The economy of Koraput District is mostly dependent on agriculture.
Paddy, sugarcane, Ginger, oil seeds vegetable are the major crops in the Districts.
Demand for agro based products
A comparative analysis of the three DCCBs is given below:
#
A

Activity
Year Established
No of PACS / LAMPCS Affiliated
No of Branches

Balasore- Bhadrak
1956
243
22

Mayurbhanj
1951
52
15

Koraput
1950
55
14

B^

Paid up Capital
Reserves
Deposits
Borrowings
Investments
Net Profit
Total Liabilities

7727
4027
87530
55855
14435
225
169798

1955
439
21561
13385
4856
-348
41847

2918
830
41903
15738
9017
96
70502

C^

Loans & Advances

Fixed Assets
Investments
Other Assets
Cash and Bank Balances
Total Assets

94727
229
63636
876
10330
169798

21552
229
15265
2816
1985
41847

29856
DNP
33577
3231
3837
70502

11

^All figures in lakhs

Liabilities Composition

DNP Did not hold/ purchase

Assets Composition

0% 5% 2%

0%

Balasore DCCB

1% 6%

Balasore DCCB

8%

Loans &
Advances
Investments

Paid up Capital
Reserves

33%

37%

Deposits

52%

56%

Borrowings

Fixed Assets
other Assets

Other Liablities
Net Profit

-1% 5% 1%

Mayurbhanj DCCB
7%

11%

31%
51%

Mayurbhanj

5%

Loans & Advances

Paid up Capital
Reserves
Deposits
Borrowings
Other Liablities
Net Profit

Fixed Assets
Investments

51%

36%

other Assets

1%

0%

4%

Koraput DCCB
5%

1%

Koraput DCCB

5%

Loans &
Advances
Fixed Assets

Paid up Capital

13%

Reserves

42%

Deposits

22%

Borrowings

60%

Investments
other Assets

Other Liablities

48%

Cash and Bank

Balances

Net Profit

0%

It is clearly showing that 50% of the DCCBs funds are mobilized through Deposits.
Koraput DCCB is investing its funds in other institutions whereas Balasore and
Mayurbhanj DCCBs are in the form of Loans and Advances (Loans to members)
Koraput DCCB does not possess any fixed assets whereas Balasore and Mayurbhanj
holding own building with some fixed assets.
DCCBs of Balasore and Koraput are able to achieve Breakeven point (BEP) where
Mayurbhanj is still struggling to reach the BEP.
All the DCCBs are maintaining optimum idle funds rate.

12

Funds Mobilization Comparison (Amounts in Lakhs)

External Funds

Own Funds
Balasore- Bhadrak

Mayurbhanj

Koraput

8000
7000

Balasore- Bhadrak

Mayurbhanj

Koraput
300

100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0

6000
5000
4000
3000
2000
1000

225

200
96
100
0
-100
Deposits

Borrowings

0
Paid up
Capital

Profit /Loss

BalasoreBhadrak

Mayurbhanj

Koraput

-200

Other
Liablities

-300

Reserves

-348

-400

Assets Comparison
Cash and Bank Balances

Loans and Investments

12000

100000
90000

10000

80000
70000

8000
Balasore- Bhadrak
6000

Mayurbhanj
Koraput

4000

60000

Balasore- Bhadrak

50000

Mayurbhanj

40000

Koraput

30000
20000

2000

10000
0

0
Cash and Bank Balances

Other Assets

Loans & Advances

Investments

4. MEMBER EDUCATION STATUS

4.1 Current Institutional Arrangements
The responsibility of providing training and capacity building to Credit Cooperative
Structures is undertaken by multiple agencies as shown below:

Agriculture
Cooperative
Staff Training
Institute,
Bhubaneswar

Madhusudhan
Institute of
Cooperative
Management,
Bhubaneswar

Odisha State
Cooperative
Union

Regional
Cooperative
Training Centre

Agriculture Cooperative Staff Training Institute (ACSTI)

ACSTI located in Bhubaneswar is an institute promoted by OSCB. Its mandate is to provide
comprehensive training both in the short term and long term credit support. This institute
provides trainings mainly to the staff of DCCBs on regular basis and provides need based
trainings to the staff of the PACS / LAMPCS whenever necessary. This institute has reached
up-to the Presidents level (earlier in 2007s) only. Planned to provide the trainings to
members but it restricted to the paper. Lack of human resources is the major concern for the
member level training programmes. Member level modules are not yet prepared just
focusing to plan for the orientation programmes i.e., to on Credit services only. There is no
institutional arrangement on part of OSCB or ACSTI to provide any training or capacity
building to members of PACS
Training Programmes offered by OSCB - ACSTI, Bhubaneswar PACS / LAMPCS
#
Name of the Program
Participants
1
Developing PACS into Multipurpose Societies
Staff of PACS
2
How to do existing business better in Post Reform Scenario
Staff of PACS
3
Programme on Business Development Plan
Staff of PACS
4
Recovery & NPA Management
Staff of PACS
5
Common Accounting System and MIS
Staff of PACS
6
Programme on Basic Computer Awareness
Staff of PACS
7
Management Development Programme
Staff of PACS
8
Capacity Building of PACS functionaries PACS Board of Directors2
Presidents
2Material

is provided by NABARD

14

Odisha State Cooperative Union

Odisha State Cooperative Union (OSCU) works under the aegis of Odisha State Cooperative
Department. OSCU has an elaborate mandate for providing member education with an
objective
For socio economic upliftment of the masses through cooperation training
To felicitate the promoter of the cooperative institutions and to strengthen the
member societies through education avenues
Being A friend, A Promoter, A guide in Cooperative Movement
The OSCU is disseminating the training programmes through Central Cooperative Institute
(CCI) located in Bhubaneswar and 4 Regional Cooperative Training Institutes in Baragarh,
Koraput, Mayurbhanj and Gunjam. These training programmes are supervised by the
District Registrar Cooperative Societies (DRCS) at training center level
Presently, the management of Odisha State Cooperative Union is now vested with Registrar,
Cooperative Societies, Odisha as there is no elected managing committee / body since
nearly 11 years.
After Vaidhyanathan Committee recommendations, none of the PACS is paying some
percentage of the surplus amounts to the OSCUs. So, the OSCU is suffering from lack of
funds for providing training programmes and even it is suffering in recruiting the staff also.
The facilities at the training venues are unable to attract the participants to stay. The
participants also showing disinterest in attending the training programmes at the training
centre.
Training Programmes offered by Odisha State Cooperative Union through Regional
Cooperative Training Centres to PACS staff or Board of Directors
#
1
2
3
4
5
6
7
8
9
10

Name of the Program

Diploma in Cooperative Management & Administration
Computer Awareness
Sensitization Programme on 97th Constitutional
Amendments
Training Programme on Cooperative Audit
Business Development Plans
Training Programme on EP / Dispute / Liquidation
Member Education Programme to Staff of the PACS /
LAMPCS
Cooperative Leadership Education Programme to Staff
Workshops and Seminars

Participants
Staff of PACS / LAMCPS
Staff of PACS / LAMCPS
Staff of PACS / LAMCPS

Staff of PACS / LAMCPS

Staff of PACS / LAMCPS
Staff of PACS / LAMCPS

Staff of PACS / LAMCPS

Staff and BOD of PACS /
LAMCPS
Capacity Building of PACS functionaries PACS Board of Board of Directors and Staff
Directors3
of the PACS

3Material

is provided by NABARD

15

Madhusudhan Institute of Cooperative Management (MICM), Bhubaneswar

The MICM is also a nodal training institute listed by the NABARD to provide need based
trainings to the PACS Staff and also to the members who have had connected with
Cooperative Department.
The Madhusudhan Institute of Co-operative Management (MICM) is one of the premier
Management Institute of the state established in the year 1955-56. The MICM is functioning
under the aegis of National Council for Co-operative Training (NCCT), New Delhi, being
financed by the Ministry of Agriculture, (Department of Co-operation) Government of
India. The basic objective of the Institute is to develop human resources for efficient
management by organising various management training programmes. MICM offers
various Diploma courses and MDPs for the personnel working in Cooperative institutions
and employees of cooperation and allied department of Government of Odisha.
MICM is located in the heart of Bhubaneswar, the Capital City of Odisha, having its own
sprawling campus located at Unit-8, Bhubaneswar which includes administrative block,
class rooms, staff quarters and 150 seated hostel. The Bhubaneswar Airport (Biju Patnaik
International Airport), Railway Station, Main Bus Stand, Hospital, Post Office are located
about distance of 4-8km. from the institute.
They have organised institutional arrangement with OSCU promoted training centres
throughout the Odisha. It is also connected to provide trainings to the staff and members of
the Cooperative but because of various reasons it is sticked to provide trainings to the staff
of the PACS / LAMPCS located in the Odisha state. Even most of the trainings are planned
by the OCSU to the staff of the cooperatives; simultaneously MICM also providing need
based inputs to the staff of the PACS.
Training Programmes offered by MICM through Regional Cooperative Training Centres of
OSCU to PACS staff
#
1

Name of the Programme

MDP for Financial Inclusion and Financial Literacy for
Cooperative Banks
2 MDP on Paddy Procurement for Secretaries of PACS in
collaboration with MARKFED / RMC
3 Cooperative Law
4 MDP for Cooperative Management for the Secretaries of
PACS
5 Seminars on Constitutional Amendments
6 MDP on Business Diversification & Sustainability of
PACS
7 Programme for Accounts for Secretaries / Employees of
PACS
8 MDP on Election Procedure at the PACS
Training institutes located in Odisha (see annexure 4)

16

Participants
Staff of the DCCBs and staff
of the PACS / LAMPCS
Staff of the PACS / LAMPCS
Staff of the PACS / LAMPCS
Staff of the PACS / LAMPCS
Staff of the PACS / LAMPCS
Staff of the PACS / LAMPCS
Staff of the PACS / LAMPCS
Staff of the PACS / LAMPCS

4.2 Findings of the Study

4.2.1 Findings at District Level4
The main objective of the interaction with District officials was to understand their
perception of an effective member education program and to seek their suggestions on
creating the module.
A brief summary of the district level officials perception of functioning of PACS / LAMPCS
in general and member education in specific is given below:
Responses from Officials at DCCB
-

Campaign called Cooperative at door step campaign has given a picture that
where they are and what can they do to admire the satisfaction of members.
Ownership among members on cooperatives is lacking
Member participation in governing is missing as there are no governing body at
DCCB level or at PACS / LAMPCS level.
In terms of services provided by PACS / LAMPCS and the awareness levels of the
members is quite satisfactory
The boards from OSCB to PACS level have been dissolved, because of some political
causes and effect of 97th Amendment.
PACS / LAMPCS should increase their viability to attract members either by
meeting their demands or offering them value added services. Only then will any
strategy of member education can work.
There is no question of lack of awareness among members on various subsidies
offered by government. This type of information can spread faster than anybody can
anticipate, but restricting themselves in gaining the personal benefits
Members are eager to hear about the elections.
Secretaries / Managing Directors of PACS / LAMPCS are focusing on removal of
inactive members.
Insufficient staff at PACS / LAMPCS level. Recruiting the Managing Directors for
LAMAPCS on a priority basis

Responses from Officials of NABARD

-

PACS Development cell is established and able to cater the capacity building
programmes to members
Resource Person of PACS Development Cell needs to be trained on the cooperative
principles and in all rural developmental programmes, especially in educating the
members regarding the designing PACS Member Education Module.
Postponement of Cooperative elections are creating confusion amongst the members
about the ownership of PACS / LAMPCS

Most of the responses are advisory in nature and are written in recommendations part

17

Focus need to be on member livelihood enhancement trainings

Need to focus on Rupay Cards and its utilisation. Need to linkup the members to
Rupay Cards. New guidelines have been issued on KCC to link with Rupay cards

Responses from Officials of Principal, Cooperative Training Institutes

-

4.2.2

Lack of human resources and insufficient training facilities to the participants.

Member awareness is important for increasing member participation in PACS.
Training centre should be well equipped with modern facilities
All the compliances to systems and procedures possible only when members get this
responsibility in them. It will also lead to cautiousness of Management and Staff.
Training calendar is designed but we are unable to mobilize the participants
Most of the participants are leaving before completion of the training programme
and it is impacting negatively on quality and knowledge.
Findings from PACS Level Staff

The objective while interacting with staff of PACS / LAMPCS was to assess their current
levels of awareness on issues related to PACS / LAMPCS and also to seek their suggestions
in creating an effective member education program. Some relevant responses are mentioned
below:
- Demographically LAMPCS coverage is huge compare to PACS, and the members are
located in different parts of the hills. So it is huge challenge to bring the members on
a single track
- Most of the AGM (Annual General Body Meetings) have been conducted with less
quorum
- Some factors for successful functioning of PACS are Strong and Senior staff
Secretaries of PACS / Managing Directors of LAMPCS) retained in the PACS/
LAMPCS and Pro-active support staff specially the Field coordinators (Branch In
charge) have had good awareness among members on PACS.
- Most of the management feel that there is no sufficient time to provide capacity
building programmes on member education. Most of the times they are creating
awareness on need based financial products rather than cooperative issues.
- Lack of awareness of members will affect the performance of PACS in a multitude of
ways:
o Ownership is lacking due to government intervention in all the services of the
PACS / LAMPCS
o Revenue Generation due to lack of quality on Services offered (As per orders
from the Government PACS / LAMMPS opened Janata Markets5, it created
financial disturbance and malpractices at PACS / LAMPCS level and lead to
financial insecurity amongst the members)
o Deposit Mobilisation due to lack of awareness on advantages of Banks
o Loan Repayments due to lack of recognition of impact of default on PACS
5Provision

stores at village level

18

Two important factors affecting PACS / LAMPCS performance from government

side Subsidies and Waivers and lack of elections.
It is important for PACS to provide more value added services to members for them
to be interested in PACS. Especially in areas where PACS are not making any profits
and not providing any services
The Paddy procurement business has made the PACS /LAMPCS under profits,
before that all are running in losses.
Members have full awareness levels comparing to more services providing PACS to
less providing PACS
Some general issues identified during the interactions with PACS Management &
Staff are given below:

Communication
Mechanisms

1) Generally word of mouth communication within farmers.

2) Secretary / Managing Director is sometimes contacted through
phone calls or visit to PACS for important information
3) Interested farmers get also in touch PACS / LAMPCS staff
(mobile) and often makes visits to PACS / LAMPCS office
4) PACS are able to communicate through proclamation by beat of
tom-tom/Dandora but most of the LAMPCS cannot follow.
5) Pasting the postures / papers at Notice board of the PACS /
LAMPCS office

Sources of Funds

1) Generally revenue earned through value added services like

fertilizer, seed sale and mainly from procurement of produce in
recent times.
2) Deposit mobilisation is highly preferred as source of funds and
most of the PACS / LAMPCS are highly depending on it.
3) Refinance services from DCCB forms next big source, but is
limited to the extent of funds available with DCCB
4) Subsidies and Waive-off loans amounts from the Government
5) Interest amounts on the loans (except crop loans)
6) Commissions from out station cheques deposits and money
transfers with in DCCB level.
1) Except crop loans, other loans repayments are satisfactory and
repayment is ranging from 80% 95%
2) Generally very less defaulters (Crop loans) as they follow Book
adjustment technique i.e. Loanee farmers every year sign on the
book and the loan is considered to be repaid and renewed
3) With this technique most of PACS manage to about 60-80%
recovery in crop loans.
4) Loan waiver announcements during elections have devastated
even this moderate recovery rates and PACS are reeling under
severe credit crunch presently.
5) Approaching village heads for recovery process at LAMPCS level

Recovery
Management

19

Annual General
Body Meetings

because if one member pays the crop loan on time then all the
members will follow him.
1) Odisha Cooperative Act mandates AGM twice every year, but this
norm is restricted in conducting once in a year and at some places
it happens just on the paper.
2) Wherever the AGMs are conducted they end up with lack of
quorum and submitting the same papers to registrars.
3) For LAMPCS, the AGM is conducted to discuss about the launch
of financial or finance plus services. As such neither PACS nor
LAMPCS informed about the financial position of the
organization in any meeting.

Some reasons cited by staff of large and well-functioning PACS are:

4.2.3

Committed and dedicated employees

Supportive and Responsive DCCB branches
Identification and Initiation of need based activities by PACS
o Procurement process at Borigumma LAMPCS
Quickly realising the demand and closing down of activities incurring losses
o Janata shops at Guneipada and Borigumma LAMPCS
Active involvement of members in utilising services offered by PACS / LAMPCS
By regularly visiting PACS, Members get a sense of ownership in PACS.

Findings from PACS Level Members

Code
COOP - 1
COOP - 2
COOP- 3
COOP - 4
COOP - 5
COOP - 6

District
Balasore
Balasore
Mayurbhanj
Mayurbhanj
Koraput
Koraput

Name of Cooperative
Puroshothampur PACS
Olandosaragan PACS
Sirsha LAMPCS
Badasahi LAMPCS
Borigumma LAMPCS
GuneipadaLAMPCS

Services offered apart from Traditional ST/LT Loans

Fertilizer Sale Seed
Procure
Code
Sale
ment






COOP - 1






COOP - 2






COOP- 3






COOP - 4

Established
1967
1969
1970
1977
1970
1974

Tractor
Loans




Gold
Loans





COOP - 5

COOP - 6

20

Other Services
SHG Loans
PDS
PDS, Cement Shop,
sale of poly bags
SHG, Loans
Godown hire
SHG Loans
Insurance

Financial Performance
Code
Membership
Deposits^
Total
Defaulters
COOP - 1
3061
102 (3%)
4547
COOP - 2
2269
429 (19%)
24
COOP - 3
5930
150 (3%)
DNA
COOP - 4
4715
152 (3%)
51
COOP - 5
11637
1387 (12%)
703
COOP - 6
12145
2393 (20%)
568
^ - Figures in Rupees Lakhs, DNA Data Not Available

Loan
Outstanding^
570
150
598
808
1458

Default
Amount^
17 (3%)
105
23 (15%)
86 (14%)
222 (27%)
253 (17%)

Some observations from above data are:

It can be clearly observed that Badasahi LAMPCS of Koraput (COOP - 4) and
Borigumma LAMPCS (COOP -5) are clearly offering more services to their members
and correspondingly performing well. This broadly indicates a positive correlation
between number of services offered and performance of PACS & membership of
PACS.
Membership in LAMPCS is more than the PACS
Each PACS is offering different services suitable to local needs
LAMPCS are providing innovative services than the PACS
Default rate is high in LAMPCS as compared to PACS
Deposit mobilisation is more in PACS as compared to LAMPCS
Staff of the PACS has been attending trainings on Cooperative Management,
except Managing Directors/ Secretaries, others do not possess any knowledge on it.
Knowledge on byelaws and return submission is lacking.
Getting member wise details from PACS / LAMPCS are a huge challenge. (40% of
the total members are available with the PACS / LAMPCS).
Responses from Focussed Group Discussions with Members availing Services from PACS
(as per questions in checklist in Annexure 3)
Governance Aspects
#

Area

A Governance
Principles
of
Cooperatives
Membership
and structure
Roles
&
Responsibilities
Internal
Controls

COOP -1

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

Members across all PACS / LAMPCS broadly understand the cooperative nature of
PACS. And many of the members expressed that this cooperatives are started by

21

their ancestors and later hijacked by the politicians (Puroshotampur and

Olangasaragan PACS members)

#
B

There is awareness on membership procedures but limited to monetary terms like

membership fee, share capital and KCC issue charges. This may be due to the regular
discussion on monetary terms rather than developmental initiatives.

There is mixed response on roles and responsibilities, more restricted to their roles
and responsibilities as patron of services of PACS than as a full member of a
Cooperative Society. Many of them expressed as their role is crucial at the time of
elections. Members of Olangasaragan has lodged complaints on the previous board
and demanded for immediate action. They felt that because of their struggle
Government has dissolved the board and terminated the Secretary of the PACS.

Awareness on various internal controls made available to members is very poor.

Members are not very keen to be involved in administrative affairs of PACS and do
not consider it as their responsibility. As such many members said that they have not
signed on any paper while attending the AGMs.

Very few members know about Annual General Body Meetings as at most of the
places they are conducted only as a ritual. But many of the members informed that
this AGM is conducting while launching the new service products.

Area
Services of PACS
Services Offered
Benefits Derived

COOP -1

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

3
2

1
1

3
2

4
2

3
2

3
2

Most of the members quoted their PACS / LAMPCS is the best services provider
than any other and also quoted some benefits
o Quick service of PACS and instant loan provision (except crop loans) as
compared to other financial institutions in the locality.
o Provision of loan and subsidy as per Government norms which is not
possible for banks)
o Provides credits on agricultural loans at 2%interest p.a. for regular re-payers
where as other commercial banks at minimum 5%.
o Comes to their door step for recovery unlike other banking institutions
o Members getting maximum support price directly from department of civil
supplies through PACS / LAMPCS.
o Provides seeds and fertilizers in a relatively cheaper cost than open market
o Providing Crop insurance under national crop insurance scheme @ 3%
premium for paddy and 4% on ginger.

22

Irrespective of the performance of the PACS, most of the members are aware of the
services being offered by the PACS / LAMPCS and are actively availing the services.
But some members shown disappointment with the lengthy loan process and
depositing 10%of the loan amount as contribution / share capital. However, they pay
interest for the entire sanctioned amount of the loan.

The awareness on the corresponding benefits derived is limited. Members are

concerned only with the benefits to themselves, but are not quite averse of the
benefits accrued to the PACS / LAMPCS when members are availing the services.
Members of Olangasaragan PACS (Coop -2) stated that benefits are going to the
relatives and the friends of the management but not to the actual beneficiaries.

Some members showed dissatisfaction on the arbitrariness in allocation of resources

from PACS / LAMPCS and alleged the lack of transparency in transactions. But
when confronted with the question on who is stopping them, members said that they
are not aware of what to ask and what they are entitled to.

Members feel that the PACS / LAMPCS is not offering enough credit to meet their
financial needs in comparison to Commercial banks. With this the even small clientpatron connection between PACS / LAMPCS and its members is also being cut-off.
Interestingly, many of the members quoted that pattern of Waive-off the loans is
demoralising the active re-payers.
Some of the members eagerly waiting for the savings account facility in Sirsha
LAMPCS (Coop -3)

#
C

Area
Performance
Cooperatives
Profitability
Human
Resources

COOP -1

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

of

There is far less interest in the members about profitability of PACS. The members
did not receive any dividends since inception. As such no PACS / LAMPCS had
declared divided in Odisha state. As many of the PACS/ LAMPCS were incurring
losses but now because of paddy procurement they are able to stabilise. As AGMs
are just for the sake of it, members never get a chance and neither are they interested
to know about the profitability of PACS
Staff of the PACS / LAMPCS are well known to the members.
Members are dissatisfied with the performance of the board members and many
times revolted against them.

23

Communication within PACS

#
Area
COOP -1
D Communication
Procedures
3
Themes
2

COOP -2

COOP -3

COOP -4

COOP -5

COOP -6

2
2

2
2

1
1

3
1

3
1

Most of the members know how to get information from PACS / LAMPCS. There
are several ways in which the information from PACS reaches members like
Dandora For public announcements, AGMs, etc., by staff (branch in-charges)
Only important announcements and by Word of mouth by members contacting each
other.
Pasting the circulars at notice board of respective PACS/ LAMPCS offices,
circulating pamphlets and placement of banners in important junctions like members
floating is more
But most of the members are illiterate, so unable to read the circulated things.
Especially LAMPCS are facing a big challenge in communicating the information to
the grass root level.
But the information received is only limited to services offered at PACS. Information
regarding performance of PACS, administrative issues never really reach the
members

Overall observations of discussions with members of PACS / LAMPCS are:

-

Neither Staff of the PACS nor members of the PACS have the knowledge on
importance of Governance issues like registration process, Bye laws and about
returns submission
Members have attended unstructured orientation programmes conducted by the
PACS / LAMPCS; even though it is limited to credit aspects only.
Members are very disgusted about the role played by the PACS (Olangasaragan
PACS)
Members are interested to attend the training programmes if it is conducted in their
convenient time.
Situation of lack of elections is clearly observed negatively about the PACS in the
mind-set of the members.
Members informed that they have not signed in any of the paper while attending
AGMs.

24

4.2.4 Findings from PACS Level Non-Members

Responses from Focussed Group Discussions with Non - Members of the PACS / LAMPCS
Area
Principles
of
Cooperatives
Membership and
structure
Roles
&
Responsibilities
Internal Controls

COOP -1
0

COOP -2
0

COOP -3
0

COOP -4
0

COOP -5
0

COOP -6
0

Services Offered
Benefits Derived

1
1

1
1

1
0

1
0

1
0

1
0

Profitability
Human
Resources

0
1

0
1

0
1

0
1

0
1

0
1

Procedures
Themes

1
0

0
0

0
0

0
0

0
0

0
0

#
A

Some patterns emerging from above ideograms are:

- Overall, the awareness levels are very less compared to members of the PACS.
- Even non- members are able to avail non-credit services from the PACS / LAMPCS.
- Some non-members complained that board members and staff demanded bribe for
providing the membership in the PACS. Even paying to the both, some of them did
not get credit from PACS and hence moved over to Commercial Banks. They do not
find any need for PACS / LAMPCS in their village as a credit institution
- Because of vast geographical size is a cause for more number of non-members in
LAMPCS. This assertion is valid from Guneipada LAMPCS (COOP-6).
Observations from Non-members at exclusively in PACS:While discussing with non-members in the PACS / LAMPCS, it was revealed that different
perceptions exist among the non-member about the PACS / LAMPCS. The percentage of
non-member is very less where the PACS are providing services. The perception about the
PACS is much stronger than the LAMPCS.
Even though they agree that the members are getting benefit from the PACS, they still do
not want to be a member in PACS due the following reason:
Non-members are unable distinguish between the present form of PACS and the
earlier cooperative society;

25

 The harsh action (seize of their property and land) taken by the cooperative society in
the past has been a hinder for them to be member of PACS;
Low risk taking ability of community members;
Taking loan is considered as a symbol of negativity in the rural Odisha;
Not interested to be a part of PACS due to less information about the PACS and its
benefits informed earlier.
Satisfied with existing agricultural practices;
Some members prefer to take seed and fertiliser from the PACS but not interested to
take loan hence they have not taken the membership of PACs;
Lengthy procedure of loan disbursement to members has also adversely impacted the
membership drive;
During the discussion with PACS members, it was also revealed that very few steps have
been initiated by the PACS to increase the membership of PACS. The membership drive
should be initiated every year to increase the membership in the PACS. Some of the
problems and challenges that cooperatives are facing:
Inability to ensure active membership, speedy exit of non-user members;
Lack of member communication and awareness building measures;
Serious inadequacies in governance including that related to Boards roles and
responsibilities;
A general lack of recognition of cooperatives as economic institutions both amongst
the policy makers and public at large;
Inability to attract and retain competent professionals Lack of efforts for capital
formation particularly that concerning enhancing member equity and thus member
stake;
Lack of cost competitiveness arising out of issues such as overstaffing a general topdown approach in forming cooperatives including the tiered

26

Differences between members and non-members

Members
Non Members
High risk capability to diversify their Not interested to diversify the agricultural
agriculture practices
practices and not willing to avail the services
offered by PACs
Well informed on different programs and Less inform on the programs and schemes of
schemes of government
government
Access the different services of PACs Limited access to the different services of
through membership
PACs through membership
Level of awareness on different agriculture Biased towards the PACS
practices
Higher productivity and production;
Crops/produce/animal protection through
integrated crop/animal-care delivery
systems;
Opportunity for participation in the social
and cultural development processes;
Exposure to modern technologies and
opportunities to participate in, and manage
the working of larger complex social
organisations, thus leading to development
of rural entrepreneurs/ leadership

27

5. RECOMMENDATIONS FOR MODULE DEVELOPMENT

This section summarises the various recommendations received by the team from diverse
stakeholder throughout the study.
Some recommendations on the areas to focus on and some precautions to be taken while
designing Member Education Program are:
Awareness on ownership PACSs /LAMPCSs are their own institutions Advantages of having membership
Increasing the participation of members in PACS / LAMPCS activities Invite the members to visit the PACS on a regualr basis
Changing the mindset of the members from Credit only to Credit plus
services. Credit plus services must be provide to members only
LAMPCS need to be restructured like PACS, the criteria would the
distance and number of members

Focus on

Massive campaign to create awareness on importance and benefits of

PACS to members
Bringing non-members and inactive members into cooperative fold.
Addressing key questions of - What can member get from PACS /
LAMPCS? What can member ask from PACS / LAMPCS?
Recruiting young and energetic staff at PACS level
Sensitizing in non-members to members in PACS / LAMPCS activities
Regular conducting of elections - and member shpould have basic
knowledge about PACS / LAMPCS to participate in the contest
Elections should be conductled as per the time frame

28

Provide suggestions to the visited members in a polite way, so that they can
feel comfortable in approaching PACS / LAMPCS again and again.
PACS / LAMPCS wise training calender to be designed at DCCB Level.
Time and location shouild be prepared based on the members convenience

The content delivery cannot be too much it may be simple and need based.
Regular follow up with refresher trainings are mandatory
Training calender should be realistic - induction training should be
mandated to BOD members, whenever necessary

Precautions

Membership cards to be designed and should be circulated to all the

members
New membership need to be given after having a one day orientation on
PACS / LAMPCS membership and its functions.

Old aged farmers and inactive farmers should not be ignored

Member list should be maintained in a sofy copy and a hard copy

Financial literacy and feeling of ownership need to be enriched.

29

The recommendations for module development are categorised into three broad areas:
1) Recommendations for Content of Module
2) Recommendations for Tools to be used while developing content
3) Recommendations for Delivery Mechanisms of the content
5.1 Recommendations for Content of Module
Module should broadly cover following aspects
Cooperative Principles, Cooperative Act 1962
Feel of Community ownership of PACS / LAMPCS
Benefits from PACS - focus should be on non credit services
Best practices and Success Stories from PACS across the State/Country
Rights and Entitlements of Members as per byelaw
Roles and Responsibilities of Members, Board of Directors and Staff
Government Schemes related towards farmers and non farmers
Effective use of services offered by the PACS
Importance of AGM and topics to be discussed during AGMs
Moving beyond financial literacy to increase financial capability i.e not
just taking loans but how to manage the loans.
Fund Management - Importance of Deposit mobilisation and Share
Capital
Loan management - Impact of default on PACS sustainability
PACS / LAMPCS structure - three tier system

30

5.2 Tools to be used

Following tools can be used for creating an effective Member Education program

Videos showcasing stories of successful PACS / LAMPCS and also by audio visuals at
the PACS office on regular basis, atleast once per month

Paintings and Banners in village or atleast on PACS office walls. Prniting the
subject material on a Calender

Village level shows in an experimental manner so that local people can

clearly understand ex- Folk songs, Kalajatharas, local methods, etc

Exposure Visits to atleast newly Board of Directors

Articles/advertisements in local newspapers and cable TV network through

scrolling

Pamphlets, Brochures about the imoprtant and services aprovided by PACS /

LAMPCS

PACS / LAMPCS information should be printed on the annual calenders. Respective

DCCBs should play an active role in designing the annual calenders.

31

5.3 Delivery Mechanisms

Following mechanisms can be used while delivering the content of Member Education
Programme:
Convergence
with all line
departments

Integration of MEP with Agriculture and Veterinary departments.

Sensatise the members at the time of field visits. Attract the members
invloving agricultural sessions in the MEP sessions

Program Based
Training

Program based training - camouflaging member education program with

government programs where there is some incentive for the member

Farmers Clubs

Identifying progressive farmers and creating a forum for 10-15

progressive farmers like Farmers clubs affiliated to PACS, escpecially in
LAMPCS. The people in the forum must have good understanding on
agricultural socities and various aspects of banking. They can read
magazines, organise talks by scientists and also could play intermediary
role forming a crucial channel for information dissemination for PACS
CRP Strategy 5 to 10 progressive farmers from other PACS to come and train the
(Cooperative
members. These farmers act as Community Resource Persons (CRPs)
Resource
similar to the CRP strategy used by NRLM in creating awareness among
Perosn)
SHG members to form groups
PACS
Development
Cell
Involvement
Board
Directors

Resource Persons from PDCs should take a proactive role in dissemination

of MEP

of

Board members should take a proactive role in mobilisation of members

from their villages in attending the programmes. Even BOD members
should take sessions in the training programmes

Annual General
Body meetings

Members should be encouraged to participate in the AGMs through

- conducting village level games, offering awards and reward like declaring
best member of the PACS

Convergence
with
SHG
Federations with
PACS / LAMPCS

Intially members need to be understand the impact of SHG movement and

able to clearly understand the roles and responsibilities performed by them

Revival
of
Training Centers

Revival of field level training centers / trainer / resource persons related to OSCB

32

ANNEXURES

ANNEXURE 1
Guide for Semi Structured interviews with District Officials
Focus will be on needs of members to increase effectiveness of PACS
General Information
Date

Location (Venue of the meeting)

Name of the District Official:

Name of the DCCB

Name of the District

Name of the State

Name of the Interviewer1

Name of the Interviewer2

Programme related information

Collect annual report of PACS (If any available)
Education Program provided to PACS Stakeholders (Members/BODs/Secretaries) during the last 5 years including ToTs
Broad subject
Duration of
Training topics
Training tools used (incl. AudioOpinion on Training
Usefulness of
of training
training
covered
visual, exposure visit, case studies)
training
*Collect Reports of training programs (If any available)
#Collect any IEC/Training Material developed/used

1. Background information on DCCB/PACS Activities

2. What is your assessment of capacity building needs of the members in terms of performing
their role?
a. Governance Aspects
b. Services offered by PACS
c. Performance of PACS Profitability/Dividend, Human Resources
d. New Business Opportunities

3. Are there sufficient training capacities with existing training institutions on PACS? If Yes,
Details, If No, Reasons?

4. Which are the capacities needed for existing training institutions, over the next five years?

5. What aspects trainings have been provided to stakeholders of PACS? What is your
assessment of capacities needed for members of PACS, over the next five years?
Trainings
BoDs
Members
Topics on which there is Good Awareness

Topics on which Awareness is Needed

6. Any other comments on implementation of future strategy in the district

a. Strategy for Institutional Strengthening of PACS
b. Training Strategy

ANNEXURE 2
Focussed Group Discussions with PACS board members and staff
Focus of discussions to be on awareness needs of PACS members training
General Information
Date

Location (Venue of the meeting)

Name of the PACS

Name of the Block

Name of the District

Name of the State

Types of Crops Grown

No of Cropping Seasons

Irrigation Facilities

Total no of Households
Total
BC

SC

ST

Programme related information

Total Savings with PACS

Total membership of PACS

Loan disbursement during last year

Loan outstanding
No of Defaulters

New members added in last 3 yrs.

Last Elections held (Year)
Default Amount

Respondent Information
S. No Respondent Name

Services Related Information

Service Offered

Gender

Institutional Linkages

Age

Educational
Qualification

No. of years in this position

Extent of Linkage

1) What are the objectives of setting up of PACS?

2) What are the services provided by PACS?
3) List out Roles and Responsibilities
BoDs
Staff

Members

4) What are the rights and entitlements of members from PACS?

5) What is Member awareness and what are ways in which members are made aware of
their roles and responsibilities?
6) What are different methods of communication of PACS with its members and vice versa?
(Examples from last 6 months)
7) What are various sources of funds for PACS? What is financial status of PACS? Has the
profit been distributed among members? How are the losses incurred in PACS?
8) How does PACS manage its Recovery? How can members play a role in recovery
management?
9) Impact of Loan Waiver
10) Annual General Body Meeting (AGM) Information shared, Members attended, and
Issues raised, etc. What kind of role does member play in AGMs?
11) List out Trainings attended. What is their opinion on training? How far are the trainings
provided to PACS employees/BoDs sufficient to create awareness among members?
12) What are the key aspects of training that are to be included in member education
program?
13) What are different methods that can be used in member education program?
14) What are the ways to increase the ownership of members on their PACS?

ANNEXURE 3
Focus Group Discussion with PACS members availing services
Focus of discussions to be on awareness levels on PACS and its functions
General Information
Date

Location (Of the meeting)

Name of the PACS

Name of the Block

Name of the District

Name of the State

Legal form

Promoted by

Total number of members in PACS

Number of Board Members

No. of staff

Date of the PACS Formation

Financial services offered to members

Name of the Moderator1

Name of the Moderator2

Existing training received during the last 4 years (To be taken from Members of FGD)
Broad subject of
Name of the
Duration
Training topics covered
Training tools
training
training agency of training
used (incl.
Audio-visual,
exposure visit,
case studies)

Usefulness of
training

Any suggestions on
improvement

Component

Governance and Management

PACS Study: Checklist/Questionnaire for Members

Indicator
Checklist/questionnaire
i) Are the members aware of the cooperative nature of their
PACS? ii) What are the advantages of cooperatives over other
Principles of Cooperatives
institutions?
i) Who can be the members and What are the procedures for
getting membership into PACS? (Eligibility, process, share
Membership and structure
capital, removal, Minimum duties etc) ii) What is the
governance structure of PACS iii) How are their elections held
i) Are members aware of the responsibilities of various
stakeholders of PACS (i.e. Members, Board of directors, Office
Roles and Responsibilities
bearers, sub-committees)? ii) How are they performing their
roles? iii) What are the barriers for fulfilling the roles?
i) Is the PACS structure designed for sufficient autonomy and
transparent functioning? ii) Are the members aware of various
Internal Controls
internal controls that they have on PACS? iii) Are the controls
being effectively exercised by the members/BoDs? If no, what
are the barriers? iv) GBMs and outcome of GBM

Services Offered

Services
Benefits Derived

i) What are the different services offered by PACS to the

members? ii) How do they rate the services offered by PACS as
compared to others and reasons thereof? iii) Do they have any
unmet financial needs outside PACS? Why is PACS unable to
cater to those needs?
i) Has PACS been able to provide financial services to members
in a timely, effective and cost efficient way? ii) Are services and
products accessed by members from PACS flexible and suited to
need of poor households iii) are members equipped to leverage
financial services from other institutions on account of their
membership with PACS

Profitability
Performance
Human Resources

Procedures
Communication
Themes

Financial literacy

Training

Member Rights

Roles

Institutional Development
Vision
Training

i) What do members think of performance of PACS? ii) Have

they received any dividends for their share capital? iii) What can
be done to improve the performance?
i) Who are the key human resource working for the PACS and
What are their roles? ii) How are their appointment made? Who
takes decisions on their salaries/benefits? iii) How are they
performing their roles? iv) How do members ensure their
accountability?
i) How are the members contacted by PACS office for sharing
information? ii) How often are the members contacted
i) How are the members communicated about the policy
decisions of the taken by board? ii) How are the members
notified of interest rate changes/repayment schedules
i) How far PACS experience equips members to acquire
financial literacy skills ii) Are members relatively more capable
of taking sound financial decisions (evidence)
i) Are the members aware of the rights they possess in PACS? ii)
How far are they able to access these rights? What are the
barriers? iii) Has there been any attempt for making members
aware of their rights?
i) How are the members (old/new) made aware of their own
roles and responsibilities? ii) Do they face any challenges in
performing their roles? iii) What measures have been taken to
reduce the difficulties?
i) What are the new businesses that can be taken up by the
PACS?
i) What are the expectations of the members from a training
program?

ANNEXURE 4
Training Institutes operating in Odisha State
1.

Institute of Agricultural Management, Bhubaneswar

2.

Gram Sevak Talim Kendra (GSTK), Bolangir

3.

Gram Sevak Talim Kendra (GSTK), Ganjam

4.

Gram Sevak Talim Kendra, Dhenkanal

5.

Minor Irrigation and Water Use (MIWU), Bhubaneswar

6.

Plant Protection Training Institute (PPTI), Bhubaneswar

7.

Soil Conservation Training Institute (SCTI), Koraput

8.

School of Horticulture (SHC), Khurda

9.

Krutartha Acharya Co-operative Training Institute(KACTI),Baragarh

10. Revenue Inspectors Training Institute (RITI), Ganjam

11. Home Economics Training Centre (HETC), Bhubaneswar.
12. Home Economics Training Centre (HETC), Barpali, Sambalpur
13. Crew Training Institute (CRTI), Chandabali, Bhadrak
14. School of Printing and Allied TRADES(SPAT), Cuttack
15. Driving Training School (DRTS), Bhubaneswar.
16. Secondary Council Education Research Training (SCERT),Bhubaneswar
17. Madhusudhan Institute of Accounts & Finance (MIAF), Bhubaneswar
18. Rangers Training College (RTC), Angul
19. Nocholoson Forest School (NFS), Keonjhar
20. Muny Forest Guards School, Dhenkanal
21. Health & Family Welfare Training Centre(HFWTC), Cuttack
22. Regional Institute of Planning, Applied Economics& Statistics(STI),BBSR
23. SC & ST Training Institute, Bhubaneswar
24. Secretariat Training Institute (SECTI), Bhubaneswar
25. Municipal Training Institute (MTI), Bhubaneswar
26. Public Health (PH), Bhubaneswar
27. Master Craftsmen Training Institute (MSTI), Bhubaneswar
28. Water and Land Management Institute (WALMI), Cuttack
29. Gopabandhu Academy of Administration, Bhubaneswar.
30. Veterinary Officers Training Institute (VOTI), Bhubaneswar
31. Extension Training Centre, Bhawanipatna.
32. Extension Training Centre, Keonjhar
33. Extension Training Centre, Bhubaneswar.

Annexure -5
List of officials met in Bhubaneswar, Balasore and Mayurbhanj districts
S.No.
District
Name
Designation
1
Bhubaneswar
Sri TK Panda
MD
2
Bhubaneswar
Sri LD Acharya
CGM & Incharge Principal
3
Bhubaneswar
Sri Behera
DGM & Vice - Principal
4
Bhubaneswar
Sri Santanu Kumar Mohanty
Individual Consultant
5
Bhubaneswar
Dr. P. Thripati
DR,
6
Bhubaneswar
Sri SK Kale
CGM
7
Bhubaneswar
Sri AK Sing
AGM,
8
Bhubaneswar
Sri Amarendra Kumar Das
Secretary
9
Bhubaneswar
Mrs. D.Vijaya
Deputy Director
10
Balasore
Sri Bijay Krishna Thriparti
Secretary
11
Balasore
Bagavanth Mohanty
Resource persons
12
Balasore
Subranchu panda
Resource persons
13
Balasore
Mr.Lakshmankund
Secretary
14
Balasore
Mr.Manash Chandra Acharya
Secretary ,
15
Balasore
B. Sridhar
DDM
16
Mayurbhanj
Sri GK Das
AGM,
17
Mayurbhanj
Mr.Swastik zena
Resource persons
18
Mayurbhanj
Mr.Jyothirajan Sahu
Resource persons
19
Mayurbhanj
Sri Sanjeev Kumar Dev
Principal ,
20
Mayurbhanj
Sri Mahendra kumar Patnaik
Principal
21
Mayurbhanj
Sri Prakash Kumar Das
DDM,
22
Mayurbhanj
Sri Prasanna Kumar chakra
Manager (Credit)
26
Mayurbhanj
Mr.Nilakanta Behera
MD,
27
Mayurbhanj
Mr.Sathosh kumar patrol
MD,
28
Koraput
Mr.Darmendra kumar
Principal,
29
Koraput
Mr.Murali k mishra
DDM,
30
Koraput
Mr Shukla
AGM,
31
Koraput
Resource Person
32
Koraput
Resource Person
33
Koraput
Mr Manoj Kumar Das
Managing Director
34
Koraput
Mr Prasanna Kumar Mishra
Managing Director

Organisation
OSCB
OSCB
OSCB & ACSTI
Retd Cooperative Department
Dept. of cooperation
NABARD
NABARD
OSCU
MICM
DCCB
PACS Development cell
Puroshotampur PACS
Olandasaragan PACS
NABARD
DCCB
PACS Development cell
CCM
(Retd), CCM
NABARD
DCCB
Sirsha LAMPCS
Badasahi LAMPCS
CCM
NABARD
DCCB
PACS Development cell
Borigumma LAMPCS
Guneipada LAMPCS