The Hindu Business Line : Cooperating for a cause

This refers to the editorial `Why cooperatives do not work' (Business Line, September 16). As pointed out in the editorial, the problems are politicisation, lack of professionalism and too much dependence on the government for funds.

What could be the solution to the problems of small producers in the country? Here are a few out-of-the-box suggestions:

Reconstructing an entirely new cooperative framework;

Generating funds from macro-management with government involvement confined to creating an independent regulatory agency;

All the primary Cooperative societies and District Cooperative Societies should be amalgamated with the State Cooperative Bank, which should be managed by an elected board.

The Board of Management should consist of 33 per cent independent and professional Directors.

Capital Adequacy and other prudential norms of accounting should be ensured at the level of State Cooperative Bank.

All the existing NPA/Bad debts should be taken over by ARCIL or similar other Agency for a price.

If there is a deficit, it could be made good by Government as a one-time measure.

R. H. Sarma

Mumbai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

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