The MahaYuti government in Maharashtra has presented a bill in the state assembly to modify the Maharashtra Cooperative Societies Act, 1960. The bill aims to ensure that cooperative societies provide membership and crop loans to farmers owning a minimum of 10 gunthas of land. This move is intended to tackle local political factions that obstruct eligible farmers from joining cooperatives.
The proposed amendment also prohibits non-agricultural cooperative societies from offering loans to individuals who are not registered members. This change is designed to prevent exclusionary practices within these societies. Additionally, the amendment mandates that cooperative societies cannot refuse membership to eligible individuals residing within their jurisdiction as per the bylaws.
To streamline the process and protect farmers’ rights, the amendment eliminates the need for rejected applicants to appeal to the Registrar, which often leads to delays. The amendment seeks to strengthen the cooperative credit system by ensuring that farmers with at least 10 gunthas of land become members of local cooperative societies. This move is crucial to empower farmers and enhance the cooperative credit structure.
An additional amendment to Section 44 of the Act prohibits non-agricultural cooperative credit societies from lending to non-members. This restriction safeguards against the diversion of credit to outsiders. Furthermore, a proposal to allow non-agricultural cooperatives to provide gold loans to nominal members aims to improve access to institutional credit for farmers in need.
