Narrow Results

Primary agricultural cooperative societies (PACSs) are the bases of cooperative credit structure in India. The cooperative credit structure functioning in Maharashtra state has three tiers. The main function of the PACSs is to provide short- and medium-term credit to its members. PACSs play a vital role in the socio-economic development of its members. Finance is the key to all types of activities. The efficient management of any society depends on the efficient management of finance. PACSs being financial intermediaries provide financial service with the objective of growth and profit. In the era of globalisation, PACSs face a different type of challenge which raises questions about the viability and sustainability of PACSs. A low resource base has been a major constraint in the effective functioning of PACSs. Financial stability has a direct bearing on the deposit mobilisation and overdue reduction. Limited resources result in low business activity. Limited resources, an increase in nonperforming asset, low recovery, overdue, lack of finance and lack of diversification have affected the viability of primary agricultural societies. Besides providing agriculture credit, some PACSs in Pune District are engaged in diversified activities. The PACSs that have diversified their business are more viable and sustain better than non-diversified societies. This chapter reports the viability analysis of selected PACSs in the Pune District. Multi-stage sampling technique was used. The primary and secondary data were mixed together. Primary data were collected with the help of specially designed schedules by conducting interviews, and secondary data were collected from different published sources and annual reports of PACSs. The study concludes that, as a result of the diversification, Talegoan Dhamdhere PACS in Shirur Block is potentially viable as compared to the Bhairawnath Kasarsai PACS in Mulshi Block of Pune District.