NATIONAL DAIRY DEVELOPMENT BOARD

Item

Title
NATIONAL DAIRY DEVELOPMENT BOARD
extracted text
RF_DEV_8_SUDHA

^-1
I

: 14'0 s

SOO-IETY SUPERVISION - GUIDELINES
<ND SUffiRKSlON 10 ^il
The day-to-day work of an oilseeds growers' cooperative
society involves commitment of procurement of oilseeds,
sampling, weighing, testing and procurement of oils seis
offered by its members and allied activities.
The
staff of society (may bo a Secretary and a helper)
though supposed to look after the working of the society
and related problems of members, they are constrained
due to knowledge of curtain specific subi acts,parti cularly in tho initial stages. 4 society tnoroforo n-.iods
a tsacher, guide for its proper working and develop­
ment. ' Society Supervisor therefore assumes a vory
important position to tsach and guide and supervise the
staff of society end servo as
live wire link with tho
Federation. Tho job of society supervisor involves
several responsibilities such as:
To supervise the procurement of oilsoods from the
oilseeds grower members.

To chuck the oilsood purchesu, 'payment and tost rogistore and other books of accountt ;of tno society and
help the staff in thc-ir proper -ndd iir
iin to d'to
maint enmee.
To help the members, staff end managing committee
members in solving day-to-day working^problems and
also Certain specific problems within his 3C0D0.

-

equipment
To check the weighing, sampling and testing oquipment
of the society, and actual sampling and grading done
by society staff (Secretary) or Federation’s field
stuff.

Right type of supervisor shall be tho one who has a
thorough' knowledge of all procedures -nd practices for
Officiant working of a cooperative society, its records
and rugistores and their maintenance and who will be able
to guide and edvisv th staff concerned., Tho society
supervisor should keep in mind the following points to
carry out supervision of sociotiosj

1.

Allocation of time for various aspects of super­
vision, for example" for sup'orvision of records,
check sampling and testing, chocking of sampling
and testing equipment etc,, he will havo to devote
more time whereas, for introduction of new concepts
to the farmers, ho may spend loss time.

: 141 :

2.

The suporviaion rcp.rt t'
___ _______
should
bo, ooriiplotod and any
sD-Jcific probl.m-.j idjntifiod in hia
— ovaiu":tion
.. —
i5 should
bo followed upt

3.

He may U3c pr mous sunorvision report 93 f-n 'exten­
sion aat.Ti-1 for sorting out the problems.
The supervisor himself or the field assistant should
participate in th- general meeting ond once in 3 or
G months a maiaging committee meeting to discuss and
sort out the problems, if any.

5.

Ho should make use of extension media like film,
newsletter, lectures, posters etc. according to the
naod.

6.

Th a special individual problems may bo dealt by him
during specific fixed time. For answers not known,
ho may refer the problem to subject specialists.

: 142 ;

COOFER-aII

OIL-JEpUDS GROWERS*

.fe1.!!' ’ ’ 1'T j.

Report No.
Name of the Supervision/
Field or Procurement Assistant;

Araa/District/Divisional Office;
Tour Diary from;
Mb

To

»■ K* 0*«

Data

Society
visited

Time of
arrival

Depart uro from
s2ci;Jtx____
TJaUo
Time

Brief note on
the work de no one
observations made

: s 143

:

COOPER 1TIVE--0IL3.EEDB GROWERS’ KDERYTION in

REPORT NWBER

OF THE SOCIETY
SUPERVISOR ./FI ELD ■ASS 1STANTS

TOUR DIARY EFOM:

ID

(Dst c)

(Dst ■)

jUFSRVia-On REPCRT
Dm OF VISIT:

WOR ffil MONTH OFS

(MONTH a YEAR)

a

CSpERAL INFORMATION

1.

Name of the society

2.

Taluk a & District, (oddites •

3.

Gode No. of society: Reg.’lo:

4e

Route No. irea/Dist. office •

5.

Name of the Chairman

6.

Name of the Secretary $

7.

Number of members

8.

Tutus of OGGS (whether affiliated to Fed.)

REPCR T NO:

;



Khani

9.

Members area .under diff.
oilseeds (soasonwise) .

10.

Average yield for diff.
o ilsecds.

11.

Members' expected oilseeds
production (cropwiso &
seasonwisc) .

12.

Oilseeds stock lying with
members (during procuramont season only) .

st
?-—-Summer

beaarnun

Soy&bean

Rape 3 a od

I

B,

OILSEFDS COLWriON .
u.--knTSAcjl »»ii»»iiihiii-ii' |I» ■!■;—»!«■»—-I ■ m

Crop & V&noty

1

" 11 ■ITr‘

From Mcmb-ros
Qty. -Numbers

From Non-membors
Qty.
Num bo rs’ “

Total Collection Total
despat­
ches to
Fo dm,

Romain ing kny sho rtstock with ago or
so duty
excess.

Details of shortage or excess complaint lodged with.Juration

Date

Re f.No/Co roil t & Truck No.
dospatch memo No.
—*-V nf •jc^—.-<-*-*■

Qty.supplied
to Fodrn.
■ T. ■ 1

rn

Qty.mcaivuu at
Fad m.

’q/h other
Short ago
o r oxcoss Solved o r
not.

Data and
rof. No.



4^

System of purchase
Minimum standard utara

av rogo price paid

l-:.?tri.Bt

J

EooliniL

.Sampling procedure
Weighing of oilsG.ids
Determination or Refraction
(Karada)
Grading or Determination of
shelling percentage (utara) .
Highest shelling percentage
or grade
~
.
Average shelling percentage
o r grade

Lowest shelling percentage
or grade

Quantity of oilseeds above
prescribed grade or shell­
ing percentage

Co rrc c.i ■ c r 1 neo r re co
Corrjci oi Inco rroct
Oo

act or TX ixeuxi XJ z-k-l*
k>u

Correct or I ncorrect

e

Quantity of oilseeds below
pruscribod grade or shell­
ing percentage
Pi ghost R af raction
jjowost Refraction
Average Refr action
Record of variation, if any

Date

Sr.No. Members Name

2
3
4
5

Kg/bag
Kg/bag
Kg/bag

O\

3

Qty
Supplied

Society's Tost
Federation's Tost
Jh3TIing~RoTra- Wllin^~—RCTract ion
% Grad o ct ion
grade
kg/bag
kg/bag ~

Rotnark

I

■iiipl-' s Taken, nd natcci by the Suporv:hov
Date

3r.No

She 11 ing Par cant age/Grade
As done by
As done by
Supervisor
Secretary or
Field Asstt.

l\Mme of Member

1
2
3
4

5

Testing Procedure for Damaged Produce

Members’ Opinion about sampling ana
testing

Storage facility available (capacity
and ownership)

«

Storage 2nd transport problem, if Oiy •

Variation and Remarks

Tasting and Wolfing Equipmont

Source of supply (initial)
Item

Source

Whether equipment purchasoo.
is of standard quality or not

Yos/No

Any replenishment ;

Number

Rote

Pri co

Vari ficd/Not

Accuracy of weighing oquip>ment, general condition of
equipment.
Stock of oilseeds samples as
per the sample stock record.

Disposal of samples:
E.

P ro cud u ro'

ilocords. end Ragistors
Passbooks of Ifcmbars whether
rnaint dnod accurotoly

17hoth.. r entries in t ho oilsotds
purch 'su register end mombors
passbook tally (for any ton monbois)
Pooling/purchasa rogis tar
Oilsuods Test Register
Individual Member's Ledger Updated
Payment Register

R'.ta

Quantity

Amount rucGived
CD

: Yus/No.

Yas Ao.
Updated/Not
Go iip lot a/Not
Ya 3/No
Comploto/Not.

I

i
i

Fo

Books pf lccouat
Gsshjook

Upto Dft
(.last let
mt rjo

of

Yas/No

Yh-ther signed by
3 ucr at ar y/Ch air m an
on cosh closure

iv.
v.
vi .

Opening Balance:
Other Receipts
7ithdrow£l from B.nk
Purchases
Other expenditure
Closing b'lmco

2.

Others

ill.

30 ci ty

th ereof!

7 hot her amount
within pormisaiblo limits

Yos/Nc
D-'t a

Dsb o

oo

7h athor Trial B elm co
prepared every month/
qu art ar

If net, r

Cash in

Yas/No

PARTICULuRS OF L4ST 7ITHDRM3
1.
ii.

Opening Balsncu
on d v e f visit

Ycs/No

G« 01, h or , Tr ed qb/I nput s?

V^iitsblc oil

Shoe

S 03d g

Fortilizgr

Chemijolg

System of Sole (C sh/Receipt)
Members Demand

Date of lost receipt
Pros on t Stock:
W ont it v so Id (Fr oms
Tos
Stock of umpt 133,
i f any:
Dispos'd of empties
(Pro cedar -)
Amount rocliseds
Vi

Whether S‘;lo stock r agist or
updat.jd;

Pro bl ms f reals

Yos/No.

o

H.,

Au. lit
System of 4udit;
Date of last Audit:
Roracrka of Auditors:
Class of Audit:
Wbother Audit objections
complied to d«tosif not
why

Yes/No

Local auditor appointed &Dat JS

Yea/No

Name of local Auditor;

I.

Adrainistrative and other Records

M 'j mb er s hip R eg i st er
;are Ledger
Share Register
Share Certificate issue
Resolution Book
’Vheth ir masting held regularly &
Date of last mooting

Co mp 1 st s/I n co mp 1 et e
Co mp 1 et e/I I. - ? mp 1 et e
Corap 1 et e/I n co rap 1 et e
Co mp 1 et e /I nco mp 1 et e
Co mp 1 et e/I n co mp 1 et e
Managing Coram itt o o
Gon oral Body

Minut .s of mooting r cord id
properly or not

Managirg Commit tgi
Gm oral Body

Details of last throe Managing
Co rrniitt oc Me st mg
Details of the last general
body meetings;

Sr. Noe.

Dat e

M smb -r s
. Br ■3 :!ntj

*i i rrw» rw —

a
e

o

J

Ycs/No
Yoc/No
Yes/No
Yea/No
I mport ant
Resolutions
—» ——

—------- tr~ *

Staff Position of
Society

3 .No. Designation
aMCMf r

Pay Scale/ Resolution No.
du
Salary
ct Date
Data

■ r— cifcr-i y—r mTilfa Pin— w

r

wnrrtiBi ■



tiii»twi.i

i Ci



■ i ' aw

Appointment
letter rof.
r

»■■■ I* gw Cl ■

II » mmii iTm Ab

Dato of Dutidg

Mains

Training

Attendance of staff*

Regular/Not

■Secretary’s trained or not-

Yes/No (whether attended any rufrishar
training programme)

a•

Fund Utilisation luring. Lb ejnorth;

N anio

Purpose

Approval

Resolution No.
& D&t o

oo

vn
fV)

Quarterly or
Monthly

K.

Ext jnsion activities

1.

No.of dornonstr-tions conduct ed
(indicate crop variety aid typv of
damongt ration)

2.

■Area under demonstrations

3.

Result of demonstration plot (yiu]d/ha)

4,

No.of farmers visited the demonstration

5.

No.of farmers train.d under differ ant
training activities of Fedcrction*

oo

■1

E, Book of accjpunts and recpxus to be maintjiined.,at POGCS

1. Money Receipt Book.
2. Resolution Book ( two, one for MC and other for AGM),
5. Member information card.

4. Cash Book.
5. General ledger.
6. Individual member ledger.
7. Oilseeds purchase and payment register.

8. Acknowledgement/Receipt for oilseeds received.
9. Direct purchase/Jhangad purchase register,

10. Pooling purchase register.
11. Despatch memo.
12. Collection book (oilseed collection and fund position

statement)

15. Gunny bag stock and despatch register.
14, Inward and Outward register ( or receipt and despatch
register )

15. Stock register - General
16. Input viz* Seed, Implement, Insecticides and culture
Stock and supply register*
17. Fertilizer stock and supply register.
18. Soil sample register.
19. Demonstration Register.
20. Incentive and Subsidy register.

21. Membership application forms.
22. Share transfer application forms.
25. Commitment forms.
24, Share certificate.

sns/mcn

o

RECORDS & BOOKS OP ACCOUNTS
MAINTAINJD AT TH£ SOCIETY

The

ociety will be required to maintain and periodically update

a number of records.

These records, would be in bound form and

initial supply would come from the

..

...................................... The records can be classifed as follows:

A.

ORGANISATIONAL RECORDS

(D

Receipt Book

(2)

Tfember Register

(3)
(4)
(5)
(6)

Share Register

4

Share Ledger

Individual Ledger
Individual Ifember Pass Book (7) Procasdings book

( Ona for General Body Meetings and Other for Management

B.

C.

'

Committee Meetings)

FINANCIAL RECORDS

(D

Cash Book

(2)

.General Led^r

<3)

Bonus & Dividend Register

(4)
(5)

Payne nt Register

Cash/Credit Ph mo

PROCURaWNT RNCORBS

(1)

Commitnent Form

(2)

Despatch Memo

(3)
(4)
(5)
(6)
(7)

Oilseeds Collection Statenent

(8)

Oilseeds Quality Testing Register
Oilseeds Purchase Register

Pmpty Gunny Bags Register

Oilseeds Stock Register
Oilseeds Pool Register

)

D.

GENERAL/MI SC. RECORDS
(1)

Dead stock Register

(2)

Input Supply Register

All the above mentioned books & registers, except
’’Oilseeds Quality Testing Register”, .cobs originating
frem the Secretary of the concerned society.

The Q

Quality Testing Register should be written and
signed by the concerned fie pie sent at ive who carries


'

out the quality tests.on behalf of federation, i

x

X

0V0W:VBW:MV: 50:25/9/81

V

/
i

i

i

5

R

Book No:

C I j P T

Bill No:

i

OILSJJD

LIMITED

I

NAMS
VILLAGE

J

DATD

I

CODING. OF W SOCIETY

We have received the amount from you as per the details
mentioned below :
SERIAL
NO.

PARTICULARS

AMOUNT
Rs.

Ps.
i

1.

Entrance Tteer

2.

Share Amount

34.

; Deposit
. Others

TOTAL
In Words :

Seal :

SIGNATURE
OF RECEIVER
(Duplicate )

RICFIPT BOOK

Receipt is to te prepared in duplicate-original is given to
the nemter/those who have deposited the amount, Duplicate
oopy is retained with the society,

This receipt book can
be used for receipt of entrance fees, share amount,
deposits etc.

*

OILS^DS GROWERS’ CO-OBiRATIV^} SOCIETY LIMITED

frfembej Registar

S.No.

Nans

Addre gg

ate of
receipt
of En­
trance
Fee

Age

Date of
member­
ship

Total number (Mana^nsnt
of share s
Committee
taksn
re solution
number

Name of
rr
and his re­
lation sh; p
to member

j

i

1
It helps in obtaining information about a particular nemter.

It details the information en number of shares

held by a member, the dates and also records the nan© and address of A i. heir/heirs to whom the share Zs may
be transfered in the event of his death. Nanss of the hbinters are recorded initially at the start of the
society, subsequently whenever a nBmter: joint the socia ty.

I

Remark



GROWERS’ CO-OPJJRATIVJ SOCIETY LIMITED

Share Register

No. of
share s
alloted
Sr,
Nq.

Date

Name. of the
Shareholder

Value
of
she "e

Face value .'Share
Date of
of sho ce
oortii/i-j- share
| cate
colle ot’ L2 fiber
tion &
number ro s olu tien
Rs. D ■.
numbe r

Share
Date of
Nans of the
trans­
transfe r transfe ree
fe r®^ and mana­
•1-,'
ging com~
f^.e/dat.••‘ mitte refee & datn solution
'7"
number

Remarks

I
-

I

i

I

Share Register s

This registers helps in determining the information about the

total shares held by a

/

also details abeut the transfer of shares and information about transferee.

I

Oilse3d Growers
’ Ltd.
Co-operative
Society

Bane of the Shareholder :

Date

NOT^ :

SHARC L£DGdR

Number of shares
Cash .Issu^^-b'.
Re turne d/Tra; l .rred
Book Srr-^y^gjor neofmbe r by whom transferred
Folio
Sx-No. Name
Address
shrge s,
d
No.
Nos*.

Address :
Balance + [ De pos-i te d
share s
held
(nos)

Rs. Ps.

Be turnsd

Transfe rre d

Rs. Ps.

Rs. Ps.

This is meant to record the detail <of" Shares purchased by each member of the
Primary
o-operati^ Society,. Information recorded here is
used in o ample tir.g individual re cor a.

ance Remark

Rs. Ps.

«

3

Oilseeds Growers* Co-operative Society Ltd.
INDIVIDUAL LSDGSR

NANS :

ADDRSES :

We ight s in

d: '/■

Dkte

Qtls.

Crop
Variety

Price

Rs. Ps. ;

Amount

Amount Paid
Rs • "^s •

Remarks

s

N0T£ :

This ledger includes details cf business transacteu by an individual producer

OVOW/VBW /MV/ 50/23-9-81

9

Individual lumber Passbook

Oilseeds growers’ Corop^rative Society Ltd.

Name of the nember

Shri

I

Month

Led^r Felio No.

1--------

Late

No.
of
bags

Gross weight
with gunny bags
Qts. Kgs.
Qty.

Weight
of
ra fract­
ion (in­
ert
matter)
per
gunny
Moisture
bag
%

Net
we ight
in
Gm
■’* •

Quality
( Grade )
•r
shelling %)

Price

Net
payable
amount
Rs. Ps9

Che que
number
and
date

Signature
of the
are a
super­
visor

Re marks

------------------ -

This record is for the information
a check against entries wrongly made
------- —j entries of oilseed purchase register and/

grr./er and tte pri«? payable/paid te him

CASH BOOK

CREDIT

DAIS

general
L/F No.

HSAD OP A/C

t

PARTICULARS

R5CISPT
No.

•.X-

AMOUNT
Rs. p.^s.

TOTAL AMOUNT
Rs.
Ps.

tr

«

DSBIT

i

DATjS ■MfiiRAL

L/F No.

HSAD OF A/C

PARTICULARS

VOUCHER
No.

AMOUNT
Rs. Ps.

TOTAL AMOUNT
Rs-

I

Ps.

I

ws

21S ha? both?LtO Tf?
transactions cf the
society. This book
vuil nays both pages of the register for one entry. The i
mconB (credit side) where as the right side will have thepage -n left will have entries for the
j entries for the expenditure (debit side).
Ayery day the first entry on the left side will
start
and will close .a the
right side with .ash in hand. The cash in hand on
the with
closeopening
Lf a~1 balance
'
day should tally with
tte openmg balance of the next day and the total incone (total of particular
all
_11 credit entries) and total
*f the expenditure and cash in hand should tally.

I ,

at.

;. ■<

-

. ici

MtdSjjiSBINGS BOOK FOR GiNFRAL BOBY/MANAGFMFNT COMMITTFF

*

IWfc] OF SOCIETY
*

I

A

DATi1

PROGSFWGS

Proceedings Book should be maintained in each society i

o record the proceedings <f the General Body/

Spatial General Bedy/Managing Committee Ifeetings.

shculd to separately maintained,

The book for General Body and Managing Committee
Re »rding is done each tine a neeting held. Proposals as per

agenda ofthe nesting and the :pesedations against each proposal are entered in this book. ’! '

BOWS AND DIVIB^ND RWISTWS

WE 2

ADDRESS :
J

ACCOUNTING NET QUANTITY
PERIOD
OP OILSEEDS

SUPPLIED
QTLS.

1

2

TOTAL AMOUNT bow:
OF BUSINESS
PAYS
TRANSACTION ABIE
(ALUE IN Rs,)
(VALUE IN Rs//

3

4

NO. OP
SHARES
HELDVALUE
Rs.Ps.

RATE OP
DIVIDEND
DECLARED

DIVIDEND TOTAL AMOUNT
PAYABLE
PAYABLE

Rs.Ps.

Rs.Ps.

5

6

7

SIGNATURE
OP
SECRETARY

eueiver

9

10

IGNATURE
OF

Rs oPs•
8

ncts

retails of bus ins ss transacted by an individual producer je inter over a period of ore year are
recorded in this register. Bonrsesis calculated based on the total amount of business
transaction of individual member.

NAIVE OF THE SOCIETY

TALUKA
GENERAL

LEDGER

HEAD OF A/o

CASH BOOK
PAGE NiO.

DATE

RECEIPT
NO.

. CREDIT
AMOUNT

UiC x I

PARTIJULARS



i

4

CREDIT/DEBE

Rs.

7.R SHARKS

Ps.

i

1
i

NOTE:

Rs.Ps.

'TDEBIJ ET PL­
AMOUNT
Rs.Ps.

I
1

.



j

;5

This register is maintained to record the finanoial 7business izEmsaction cf the society under a
separate account heads. The details of the register are
—J recorded at the end of each day when
the cash book is closed for the day.

4
PAYMENT RaGISIgR

SERIAL
NO.

BATE

NAME OF TI1E
FARMER

VIII IE TOTAL NO.
OF BAGS

WEIGHT
IN
Kg-Gms

VARIETY
OF
CROP

RATE PER

AMOUNT

unIt OF

PRODUCE
Rs. Ps.

PAID
Rs. Ps.

PE &
CASH MEMO
NO.

I. .

NOTE

:

Details of payments, made fsr th. ^purchase of oilseeds by the sceiety, are recorded in this Register.
Usually,
an Qilseed

Usual!v. in *n
Gil^^a Growers^o-operative
Society payment is made through cheque. In In
that
case,
that
the cheque No. is mentioned in
last column along with the . pash, neme . number..

cP

A
CASH/CR^DIT mMO

OILS3£DS GRCMRJ' CO-OP WTIV3 SOCISTY LIMT^B

NAMS :

VILLAGE :

TALUKA;

PATS :

Amount

Cheque i\lo.

3

1
+?*■

Sr .iM’o.

Particulars

Signature op the Supervisor

Weight
in
Quintals

Price /rate

Rs.

Cho ckb d by

Ps.

Rs.

Bate

Ps.

Se cretary

; Ci

(Signature or Thumb impression
of receiver)
Witnessed by Shri t

Signature
Bate
Note :

;

_____
Address
: ..............
This gives the details of amount paid to the producer by cteque (gives
total oilseeds supplied, (There is no need for 20 paise revenue stamp, cheque number) against the
if the value exceeds Rs.20/-) .

i

f

CO—OPiJRA'TIVH; OIL&5CDS GROWERS' FdnXRATIOl'J LIMITED

COMTMiJNT FORM
-No

Co-operative Oilseeds Growers’ Seoiety

Date :
Price a

NAME OF FEWR

Apprcximaie
number
of bags

Commitment Rate
Cbase don
standard
Quality)

Quality
(grade
or
Shelling^)

Rate
Payable

Jbr

Signature cf
member

Re marks

d. <



t

«
Re pre sentative
. ...Go.Op. Oilseeds Growers’ Ib’deratic

Note :

td.

Chairman/ Se ore t ary
... Co.op. Oilseeds Growers’ Society Ltd.

This is prepared in single copy. This form is a bind of agreement be tween the oilseed supplier and
the society/federation representative about the supply of his produce to the society/federation at the
commited rate based on quality.

CO-OBSRATIVjJ OILSAdJD GROWERS bOCLSTY LIMITED

VILLAGE
: :
TALUKA
DESPATCH IVEMQ

DISTRICT :
NO:

Date :

To
........................... Co-operative oilseed
Growers’ lb deration’ Limited,

Truck No.

Lorry Re ee ipt No

...coo..Transport company.

<

Oilseed Collection
Statens nt

QUANTITY


Serial

No/Date

Bags

.........

__

Ne t

j

Grtss Weight
(Tenne s) exelu£rcl«sive of
gunnys bags
we ight

1Refraction (inert
matter) per bag

Total
Refraction (inert
matter)

Kg.

Kg.

Gms.

Weight
•f
Oilseed
(Tonne s)

i

REMARKS I

Gms.

«

-1
TOTAL
(Triplicate)

R^PRUS^NTATIVi?

GO-OPSRATIVxi} CHAIRMAN/SJCR5TARY
OILSNj5D GROWERS* FNDN. LTD.
CO-OP. 0ILS&3D GROWERS SOCIETY LTD.

x,espatoh nemo is pis pared in triplicate - Two o spies should be sent to the Federation along with the truck
(one cap^ will be sent to the Store seation of the Tb deration and another copy will be sent to A/c section
for the payment to the truak); third oopy is retained with the society.
Re pie sent at ive fromthe Federation may be the Distriot Offioor/Aiea Off icer^Procuienent Asstt/Extension
W crke r.

CO-OPJRATIVi! OILS^SDS GROvvJRS' PJDJRATION LTD.

VILLAGE
TALUKA
OILS^DS COLLECTION STATiSMBiiT

DISTRICT

SERIAL NO. .
TRUCK NO. . ... DATE

Dear Sir,
Co-Operative Oilseeds Gr -v/eijs' .Federation Ltd*

QUANTITY*

SERIAL NO.

NAFiE- OF MEMBER­

BAGS

Gress Wt. in tonnes Refraction (Inert
excluding gunny
matter) per bag
bags

Kg. Gms.

; Co C01MTMENT
_____ Derails DETAILS
_
Total
Ne t
Commitnent
Rate per
Refraction Weieht
Form
unit
ine rt
(TonnNo •
matter.)
e s)
Kg. Gms.
Rs. Ps.

TOTAL

Quality (Grade Or
or she 11 ing %)

Advance amount to
be paid per ton

1

despatch

Total a
Advance ta
be paid

Date

Transport Details

I

Place to be
de spatche d

I

Re marks

i
J

!

i

TOTAL

REPRESENTATIVE

tTriplicate)
CHA
IRMAN/SE
CRETAR
Y
CO-OP. OILSEED GRaVERS"FEDERATION LTD.
CO-OP. OILSEED GROWERS’SOCIETY LTD.

n

T

. Oilseeds Growers' C.-operative Society Ltd

OILS^PS QUALITY TESTING BUGISTDR
Serial
’No.

I’Jane of
the
nemher

Total "
number of
bags

Total weight
in quintals

Number of bags
taken for re­
caction (inert
matter) Testing

:3

Quality
Moisture
(Grade
%
or
shelling:
%

Refraction
(inert
matter per
bag

Gms.

Total
It
Signature
Re frac­ we ight
of the
tion
of
re pre (inert I Oil­
sentat-matter) | seeds
ive
Kgs.Gms. Qt.K§

i

NOTJ? :

prepared in duplicate and ao&
moistur^ /o 9 Foreign matter, Net weight of oilseeds supplied.

1/

rx

vn
HJRCF AS3 R£)GISTR
............. Oilseeds Growers’ Co-Ojerative Soaiety Ltd

Wane of the Purahase Centre :

Sr .14 o.

Date

Nane of
the;
ns mbe r

Villas

......................

Nn, (.
: Crop I! No.
&
bags
var. iety

Purchase
price
Rs.Ps.

i

Gross
weight
with
bags
Qts-

We ight
of
ampty
bags

Moisture
%

Amount
to be
paid
Rs.’Ps.

Re fra­ Net (Quality Rection we ight ( Grade) me.rRs
(inert of cil*- O3T
niatter; seed
shell­
Kg.
ing /o)

i

Che eke d by

Aiea Supervisor

NOTM :
This register contains the information ab<at the ietal amount of .ilseeds supplied by various
nemters and the quality of it. It also gives the information cn how much amount U be paid
to the grower and the moisture
quality and net weight of oil feeds supplied by them.

o\
Oilseeds Growers' Co-operative Society Limited
'

s>’

jWY GUNNY BAGS STOCK REGISTER

STOCK

NO. OP BAGS
RECEiyED
ffiOM
FEDERATION

HJRCHASiS

TOTAL

BAGS
NO. OF BAGS
GIVEN
MTURIED/
TO THE PuSJi5CT£D
FARMER^ TO FEDERATION

Resolution

I
p
CLOSING
STOCK

NO. OF
MANAGEMEM
COWTTEE

: REMARK

I
I

i

i

L
F0T£ •

i
j

This register -‘gives a
i clear picture about the number cf gunny bags received from the D:
Federation, returned to Federation
------ L at and
hand. Regular maintenance tf this register
will avoid the mishandling of bags by the society staff.

7

I

... Oilseeds Growers' Co-operative Society Ltd
OILSiJhIDS STOCK RLGISTSjR

----- -- ------------- 1.
opening Stock
BATH}

No.; J
jYJ.
of
Kg/1 on
Bags

RTRCHSN
STOCK

No.
of
Bags

Kg/ton

TOTAL
STOCK

No
of
Bags

; STOCK SNNT
■ TO FNDNRATION

Kg/1 c? i

No.
of
Bags

Kg/1 on

CLOSING
STOCK

No •
of ♦ ’Kg/ton
Bags

<

i

nota;



..

...



.

This rsgistor giva s the position of oilseed stock with the society.

a*

FRIQ3

REMARKS

SI

.ATUR£

J

OILSEEDS POOL REGISTER

Page No. i

Cc-C^r-r-_/.
'
iftSowai,
i .
CO-OPiRATIVj; OILSiSDS GROWERS' SOCIETY LTD.
Village :

.

WE OF OILSFFD GROWER

DATF

SR.
NO,

Nans s

COJMTMSNT
Form
No.

Rate
per
Unit

NO.
OF
BAGS

Addrssss

Advance amount
t* te paid per
ton.
of ’
oilseed

Taluka s

District :

Qt of oilseed supplied
by member for process­
ing. Exclusive of wt.
of gunny bags
(In Tonnes)

Refraction
(inert
matter)
per bag
Kg. Gms.

ADVANCE AMOUNT

Total
advance
rece ived

Total
Re fraction
(Ine rt
matter)
Kg. Gms.

Ne t
we ight
(in Tonn-e s)

xlity
(Grade or
shelling 70)

DETAILS OF RECEIPT

Cheque or Draft

Signature of

Nt.

Re ce ive r

Date

REMARKS

5

\ •

t

DETAILS OF LAST
AdWsTMJNT' of
ADJTSWN'J

J

EROM FEDERATION

Letter No.

Date

v Amount; re «e ive d
far the oilseeds
Ssupplied f«r
pro*j ssing

Advance
.amount
paid •

DETAILS OF BALANCE AMOUNT
BALANe4 -?

Date of
payment

Cheque/Draft
No.

A

Amount

S
.ciSignature
of Re »e iva r

:

NOT^ :
This register camprises all the ...details ab<ut the business transacted by each member.
The day-ta-day entries w.th reference ia oilseed purahase made in the cash book should
caincide with, the particulars entered in this register. This Register serves as an
acknowledgement for the receipt of aheque by the .member.
*

REMARKS

i

Oilseeds Growers' Co-.jBTative S.oiety Ltd

DEAD STOCK KB (JI STEB

Date

Wane of
Mate rial

Mo.

Rate
Rs.Rs•

Total
Amount
Rs. Ps.

Tetal
Na.

Details of
Bre akage

Mamagement Committee
Resolution N<. & Date

-------

TT-- :

=r-

NOTE :

This register Jeeps a re a ord of arti.les such as furniture, table, chairs, weighing balances,
and .ther equipments belonging to the society.

Re marks

b

SOCIETY WE :

TALUKA :

INPUTS SUPPLY REGISTER.

Re oe ipt
Numbe r
& Bate

Jane &
' Addre ss
of

Area under
oil seeds

Seeds Supplied

we ight Price Amount
Kg* Gm» Rs.Ps. Rs.Ps.

Ibrtilizers supplied
We ight Price Amount
Kg.Gm. Rs.Ps• Rs.Ps.

Plant Protection
Che mi cals suppl ie d
Qu&htity Price Amount
Kg/lt
Rs ePs . Rs.Ps•

Total

Re­
marks

amount
Rs.Ps.

I

1

X>£V -

MODEL BYE LAWS FOR A ERDIARY OILSEEDS
GROWERS’ COOPERATIVE SOCIETY
Io

Introduction s
(D The name of this society shall be 9^ooooc,oo»ooot>0^c0

Oilseeds Growers’ Cooperative Society Limited and its
registered address shall be at • 6 <,«<,».»o
Taluka ... .....
. District ........... ......

Any

change in this address shall be notified to the District
Registrar, Cooperative Societies, within thirty days.

Change

in the address can only be done by making amendment in the

bye-laws.
(2)

The objective of the society shall be as unders
(i)

To launch necessary activities to produce oilseeds

and increase its production per hectare of land and
to give necessary guidence and assistance to the

members to carry out these objectives.
(ii)

To provide facilities for more profitable marketing
of oilseeds through the federation,,

(iii)

To undertake all necessary agricultural extension and

specially oilseed production activities to maintain and

improve the quantity and quality of oilseeds crops.
(iv)

To underte,ke suitable steps to arrange supply of
Fertilizer, seeds, pesticides and allied services to
increase the production of oilseeds.

(v)

To sell vegetable oil, edible oil and cattle feed
manufactured by the Federation.

(vi)

Subject to fulfilling the required conditions, the
members will be arranged with technical inputs which

will be as loan in kind.

(vii)

To take up all other necessary activities for carrying

out the above objective for the development of the
business.

..2 ..

V

2
II o

Fun<? ^ s

(5)

(4)

Funds of the society may be raised by
a)

Issue of shares

13)

Receiving deposits s
(i)

From members

(ii)

„j, but residing within the area
From non-members,
of the village/villages
of the limits c_

c)

Raising loans

d)

Donation and

e)

Entrance fees

The amount of share capital to be raised by shares shall
not exceed Rs.1.00 lac and the face value of the share
shall be Rs.50/- which may be paid with the share application,

or in instalments as may be decided by the Managing Committee.

(5)

(i)

Amount on fixed or current deposits may be received
at such a rate of interest and for such a period as

may be decided by the Managing Committee, but the rate
of interest on this fixed and saving deposits should be

one percent less than the rate of such deposits
offered by the banks.

(ii) The total loans and deposits -should not exceed ten

times the total amount of share capital, accumulated

reserve fund and building fund, minus the accumulated
losses,.
(6)

The funds of the society when not utilised, shall be
deposited as per section 71 of the State Co-operative
Societies Act 19&1•

Notes-

Building constructed/to be constructed for society/
godown will fall under the prerogatives of the society.

..5 ..

-

IIIo

-

Membership s

(7) a)
(i)

No person shall be a member unless ?
He is a resident of the village, has completed 18
years of age and is competent to contract.

(ii)

His written application in the prescribed form
for membership has been approved by the majority
of the Managing Committee (for this see Schedule-A)

(iii)

He has land on his name in Revenue records and

producing oilseeds
(iv)

He has taken at least one share and paid an entrance
fee of one rupee.

(v)

He is not dealing in the business of oilseeds or
its processing in any way.

(vi)

He has agreed (in writing) to supply oilseeds

produced by him on his land to the society only.
(vii)

He is not bankrupt and is not legally disabled.

(viii)

He is not criminally convicted for moral terpitude

b)

A person who has qualifications shown in 7(-^-) shall be

entered as a nominal member by paying Rs.1/-.
Note?

(i)

Those who. have signed the original application
shall be exempted from bye-law No.7’(a)-(ii)

(ii)

A nominated person, authorised by a share holder

to receive the share and/or interest in the society
after his death or his legal successor shall be
exempted from bye-law No.7 (a)-(iv), provided the
Managing Committee approve his application for

membership•

..4..

4
(8)

a)

The liability of a member shall not exceed any unpaid
amount on shares subscribed.

*b)

Any member s~

(i)

If he has dues with the society

(ii)

If he ceases to have any of the qualifications

for membership prescribed in bye-law 7(a)

(iii)

If he has supplied oilseeds to the society less

than 800 Kgs. in the previous cooperative year,
shall not enjoy any other right other than

receiving bonus9 dividend and other monetary

benefits such as getting seeds at subsidised
rates etc.

(9)

Any member may withdraw from the society at any time by

submitting his resignation to the Managing Committee and getting
it approved but such approval shall not be given while he is

in debt to the society or is a surety to another member.

In

case a member has no outstanding dues with the society or he is

not a surety to another member his resignation will be
considered and accepted after one month from the date of his

resignation even if the Managing Committee has not approved it.
(1O) A member of tho society may be expelled by a resolution
passed by 5/4 majority of tho members entitled to vote- from

among those who aro present at .a General Meeting for the
following reasonss-

(i)

If he is a persistent defaulter

(ii)

If he willfully deceived the society by
false statements.

(iii)

If he intentionally does any act likely to injure
the credit of the society.

..5 ..

5

(iv)

If he persistently dishonours the suggestions and

resolutions of the Managing Committee.

(v)

If he produces oilseeds and sells to some other party
of if he deals in sale and purchase of oilseeds and
its processing.

(vi)

If he does not reside in the area of operation of the
society regularly or ceases to possess any of the

qualifications for becoming a member.

But, before expelling a member he shall be given an
opportunity to present his case before the General

Meeting and the resolution of the general meeting meets

with the approval as per section ^6 of the State Co­
operative Societies Act.
(11) (a) The membership of a person shall be treated as discontinued
for or any one of the following reasons 5 but the concerned
member or his nominee shall be informed of this decision

within 15 days.

(i)

On death,

(ii)

If his resignation is accepted by the
Managing Committees

(iii)

If shares belonging to him are transferred to
another member,

(iv)

If he is expelled as per bye-law No.10,

(v)

If he is expelled according to Section 2$ of
the State Co-operative Societies Act.

(b)

When a person cease to be a member, the society shall

refund all his dues within six months.
(12)

Application for share shall be made in writing and shall be

disposed off by the Managing Committee.

..6 ..

6

(1J)

Share certificate/s having separate serial numbers shall be
issued to every share holder.

If a share holder fails to

pay the share amount/instalment of it, as decided by the

Managing Committee within 30 days, such share/s shall be
forfeited as may be decided by the Managing Committee and
the share amount of such forfeited share/s shall be credited

to the reserve fund.

However, before forfeiting such shares,

the share holder shall be intimated in writing 15 days in

advance.
(14)

A member, after holding share/s for one year, with the

approval of the Managing Committee, can transfer his share/s

to another member/s; but for this he shall have to apply 15
days in advance in the prescribed form showing the acceptance
of the buyer of the share/s.
Share transfer shall not be completed unless an entry is

made in the share transfer register and a transfer fee of

25 paise is paid to the society.
(15)

Share/s of members expelled as per bye-law No.10 shall be

forfeited by a resolution of the General Meeting-

(16)

A member is entitled to receive back the amount worth the

value of his share/s after completion of two years of his
possession of the share/s, but before making the claim the
person shall have to give three months prior notice to the

societyo

However, the total amount of such refundable share

capital shall not exceed 1/10 of the total paid up share
capital as shown on 50th June of the previous year.

(17)

No member shall have claim or any interest on the shares
of the society exceeding 1/5 of the paid up share capital
or Rs.5000/- whichever is less.

..7..

-7-

(18)

A member of the society can nominate any person except

an employee or officer of the society to receive his
share, interest and other dues from the society after
his death*

No fee shall be charged for the first such

nomination, but thereafter>s for any transfer or
change, a fee or 25 paise shall be charged*

Such

nomination paper shall be signed by him in presence of
two witnesses.,

(19)

On the death of a member, the amount standing to his
credit by way of share or order■, subject to deductions
on account of his liabilities , shall be paid to lais heir

nominated by him or in the absence of such nomination,
to any other person who according to the Managing Committe ■
is entitled to receive the amount as heir or legal

representative of the deceased member on his executing a
deed of indeminity to the society,

The amoimt of fixed

deposit shall be paid back at the expiry of the period

in such case.
IV

General Meetings s

(20)

The General Meeting of the society shall have the supremo
powers subject to the State Co-operative Act, rules bye­

laws.

The first general meeting of the society shall

have the same powers as are herein given to the Annual
General Meeting.
(21)

The Annual General Meeting shall be held within a peric of three months after the end of the cooperative year

Its functions shall be as under.
(i)

To elect the Chairman of the meeting 9 and to confirrt

the minutes of the last general meeting*

(ii)

To receive from the managing committee a report on
the working of the society for the preceeding year

together with the statements of trading account, profit

and loss account and balance sheet for the year and to
sanction the appropriation and distribution of profit.

o.8 0 .

8
(iii)

To declare the names of the managing comm? ttee members

who are elected by ballot system as per appendix-B

(for the ensuring year)
Notes

(This will not apply to the first general meeting

as the managing committee shall be elected by the
same).

(iv)

To appoint the Internal Auditor and to sanction the

budget for the next year if deemed necessary.

(v)

To consider and take necessary decision on the audit
memo and other correspondence received from the

District Registrar, the State Cooperative Oilseeds
Growers* Federation and the District Cooperative

Bank.
(vi)

To fix the limit of funds to be raised under bye-law
5 (11).

(vii)

To make necessary arrangements for the collection and
transport of oilseeds according to the instructions of

the federation.

(viii)

To make necessary amendments, additions, alterations,

decisions etc. in the bye-laws of the society.
(ix)

To dispose off any other work proposed reasonably.

The proceedings of the General Meeting shall be

recorded in the minute book of the General Meeting.
(22)

A special General Meeting of the members may be convened

at any time by a majority of the Managing Committee, or on
receipt of a requisition from 1/5 or 50 members or from the

direction of the District Registrar, or on the requisition
of the Board of Directors of the federation.

It shall be

the duty of the Chairman of the society to call such a

meeting within a month of the receipt of such a
requisition.

9

(25)

In case of the Annual General Meeting, 10 days notice

and in case of Special General Meeting, 7 days notice
shall be given by publication of a written notice

outside the office of the society and other conspicious
places that may be convenient, within the jurisdiction
of the society. The notice shall specify the date,
time and place fixed for holding the meeting and shall
state the nature of the business to be transacted at
the meeting.

(24)

With the permission of the 2/5 of these present at the
General Meeting any member may bring forward a proposal

regarding any matter not specified in the notice of the

meeting, provided he may not propose the expulsion of

another member or any amendment in the bye-laws.

(25)

2/5 of the total members or 20, whichever is less shall
form a quorum at the General Meeting,

if?9 on ‘th-6

°£

the General Meeting, there is no quorum, the meeting shall

be held on another day and at the time notified before.
If on the day to which the meeting is adjourned, no quorum

is obtained after waiting for 50 minutes, the business

shall be disposed off without a quorum.

The notice for

the adjourned meeting shall be published outside the office

of the society, specifying date, place and time.

If on

the day of the General Meeting all business is not
completedj the remaining business may be adjourned to
another day.

(26)

At all General Meetings, the President shall be elected
by the members present.

(27)

Each member shall have one vote.

The President shall

have a casting vote in case of tie- on any point.

.. 10 ..

10
No resolution passed in the Annual General Meeting can

(28)

be put for change or cancellation within six months
from the date of the resolution0

But if 2/j of the

member of the Managing Committee are of the opinion

that a particular resolution requires to be changed/
or altered in the interest of the society and if the

District Registrar agrees to such a change, the
Managing Committee may call a Special General Meeting
within six months for carrying out such work.

V

Managing Committee s
(29)

a)

The elected Managing Committee of the society
shall be of nine members according t® schedule

(b) of the bye-laws of the society, of which
1/5 of the members shall retire every year.

b)

The presence of more than one half of the members
of the Managing Committee shall form a quorum

(5 members).

(30)

The members having the following qualifications shall
only be eligible for election or can continue as a
member of the Managing Committee»

(i)

If he is not in default to the society in respect

of any overdues from him.

(ii)

If he has no direct or indirect interest in the

current agreement with the society or the property
purchased or sold by the society or in any other

dealings with the society (except the investment
made by him in the society).

(ill)

If he is not disqualified by any legal procedure

and is not convicted for any misappropriation of
money or mismanagement in the society or any
other institution

11
If he is not found liable for any responsibility of any

(iv)

other society under section 82, 90 and 93 of 'the State

Cooperative Societies Act or is not convicted for any
offence under section 147 of the State Cooperative

Societies Act.

If he is not a paid employee of this or any other society
and is not relative of any of the paid employees of the

(v)

society according to section 6 of the State Co-operative

Societies Act.

If he, or any member of his joint family does not

(vi)

carry on business of the kind carried on by this society
(including contract or sub-contract) nor has partnership

interest in such concerns
If he has grovm oilseeds on his land and has sold the
same through the society in the previous co-operative

(vii)

year.
If no legal steps have been taken against him to collect

(viii)

dues of the society from him during the last three co­
operative years.
(

If he has not performed duty as a paid employee for the

)

last three co-operative years.
If he is not considered responsible for any offence under

(X)

section 146 and 147 of the State Co-operative Society Act.

If he does not have any other disqualification other than

(xi)

the ones fixed as per the rules of the election.

(jl)

Any member of the Managing Committee automatically ceases to
be a member for the following reasons s

(i)

By submitting his resignation and getting it approved
by the Managing Committee.

.•12 .•

12

(ii)

When he ceases to be a member of the society due to
death or any other reason.

(iii)

When he ceases to possess any required qualification
as a member of the Managing Committee.

( iv)

If he remains absent in the Managing Committee meeting

for three consecutive times.

The Managing Committee shall have to take note of it
in its meetings and this resolution shall be effective

from the date on which such note is taken.

It will be

the duty of the committee to inform the member about
the details of this resolution.

Such information will

be considered as valid even when it is displayed on
the notice board of the society.

(32) (i)

Every year the Managing Committee shall elect a

Chairman from its members within 10 days after the

General Meeting.
(ii)

Chairman will preside over the meetings of the

committee when he is present.

In the absence of

the Chairman, the members present shall elect
another member as the Chairman for the meeting.

(iii)

The committee shall take decision by a vote of
majority.

When there is a tie over any subject,

the Chairman of the meeting shall have a casting

vote in addition to his usual vote.

(33) The committee shall meet as many times as is necessary

to transact the business but it shall meet atleast once
in a month, (if possible, the week and day of the month

will be decided in the previous meeting so that all
members know about it in advance) .

(34)

No member shall remain present and vote on any matter in
which he has personal interests, but if any (decision is
to be taken against his interests he shall be given an
opportunity to explain.

..13..

-13(55) Vacancies on the Managing Committee occuring during the year

by death or any other reason may be filled up by co-option
by the Managing Committee till the next Annual General Meeting

(56)

All acts done by the Managing Committee or by any person

acting as member of the Managing Committee shall, notwith­
standing that it is afterwards discovered that there was

some defect in the appointment of such committee or person,
be considered as valid, as if the committee or such person

has been duly appointed.
($7) All the decisions of the Managing Committee shall be

recorded in the separate minute book alongwith the

proceedings of the meeting and the signatures of the members
present.

($8) If the District Registrar finds serious mismanagement in the
. society he can suspend the Managing Committee and appoint
an administrator and meanwhile all the officers of the
society shall cease to hold any post.

(39) Over and above these decided elsewhere under the bye-laws
the duties, rights and responsibilities of the Managing
Committee shall be as under
(i)

To approve the minutes of the previous meetings.

(ii)

To deal with applications for membership, resignations,
demand for shares, transfer of shares and refund of

shares and to take necessary steps to recover the
unpaid instalments of shares.

(iii) To raise necessary funds for the working of the
society and to decide the conditions to receive
deposits and to invest the excess of the funds of
the society according to section 71 of the State
Co-operative Societies Act.

...14..

-14-

(iv)

To appoint not more than two sub-committee for specific

work and to allocate necessary duties and powers to

them.
(v)

To open necessary accounts in the Co-operative Bank in
the name of the society and to delegate necessary
powers to transact money.

(vi)

To depute representatives, as and when required to the
co-operative institutions to which the society is
affiliated.

(vii)

To verify the member register, books of acco-unts and
other registers and to take necessary actions to have

these written systematically and completely.
(viii) To inspect the account of society, to verify the cash
physically and to authorise the Chairman or another
member of the committee to sign the cash book regularly.

(ix)

To decide date, time, place and agenda of the General
Meeting to make necessary arrangements to call special
General Meeting according to section 78 of the State
Co-operative Society Act and to see that annual General
Meeting is held in the prescribed time limit.

To prepare annual report and accounts in time and to

authorise the Chairman or any member of the Committee
to publish them and to recommend the distribution of
profits in the General Meeting.
(xi)

To file claims, protect and compromise legal suit
and hear other complaints and dispose them off.

(xii)

To hire buildings and/or godowns for the office of the

society and/or for storing or selling goods; or to
build or purchase these by getting prior approval of
the General Meeting and the Co-operative Department.

....15...

-1

(xiii) To frame administrative rules not contrary to the

Co-operative Act9 Rules and bye-laws and resolutions

of General Meeting for the efficient running of the

society. Such administrative rules should be recorded

in the minute book of the Managing Committee and shall
come into force only after getting the approval of

the General Meeting.

(xiv)

To furnish, in time, all statements and other
necessary informations asked to by the Co-operative

department.

(xv)

To take note of audit reports of this society and

arrange to execute the instructions given in the

audit notes. To rectify the defects shown in the
a ydit reports and to send rectifications report within
a month after receiving the same. This report along-

with rectifications will be presented for approval
in the next General Meeting. To furnish necessary

facilities, informations and statements to auditors

and other officers of the Audit Department,9 bank and
authorised officers of the federation.

(xvi)

To recommend

to the General Meeting for amendments,

alterations and cancellation in the bye-laws of the

society.
(xvii) To demand from the Secretary of the society the

monthly statements of accounts of the society
such as income and expenditure, sales and purchase,
stock of goods etc. for inspection and approval and

to approve the expenditure within the limit oi the
budget provisions approved ,’by the General Meeting.

(xviii)To fix specific responsibilities for records,
equipments, goods stock etc. of the society.

(xix)

To take package insurance policy at reasonable rate

against loss of cash and other commodities.

...16..

- 16 -

(xx)

To arrange the purhhase/sale of oilseeds Vegetable
Oils etc. as per the instruction of the State Co-oper­

ative Oilseeds Growers' Federation and to carry out*
all the instructions of the Federation.

(xxi)

To take necessary steps to recover any outstanding

debt of the society.
(xxii) To take all steps to increase oilseeds production and
conduct necessary crop husbandry activities including
varietal trials as per the directives of the Federation.

(xxiii) To dispose off the disputes which have not been
settled by the Chairman.
(xxiv) a)

To appoint the Secretary of the society and all

other paid employees and to relieve them or to

dismiss them or take necessary disciplinary action,

against them.
To fix the pay scales, conditions of services and

qualifications of all paid employee of the society

and to fix duties, authority and:, responsibilities
of all the employees.
c)

To get the surety bonds executed from all the
employees of the society and to keep these

surety bonds in the District Central Co-opera­
tive Bank for protection and to obtain the

receipt for the same in the committee.
d)

To frame staff Provident Fund rules for the

employees of-the society and to execute them
after approval of the General Meeting and the
Co-operative Department.

(xxv)

The Managing Committee can appoint or can allow a

person having the following qualifications to continue

as an employee of the society otfer and above the
conditions mentioned elsewhere in the bye-laws of
the society.

...I? —

-i.7-

a)

If he is ntft dealing in any business or contract
independently or in partnership which is related

to the objectives of the society, such as of
oilseeds and its processing, transport of oilseeds
etc.

b)

If he is not holding any position as a paid
employee of any other honorary position in any

local institution (or in any other society) e

c)

If he is not found convicted for moral turpitude.

d)

If he is not found guilty for misappropriation and
misadministration in this or any other society-

e)

If he is not found violating any provision stated

in section $5 of the State Co-operative Societies
Act.
If any employee of the society is found not observing
the above conditions at any time during his service,
the Managing Committee shall terminate his services
immediately.

(xxvi)

The Managing Committee may invest money within the limits
of section 71 of the State co-operative Societies Act 9
but if such investment is to be made in building,

it can not be done without the prior approval of the
District Registrar.

VI.

Chairman/Secretary:
(40)

The duties of the Chairman, over and above those mention ,j.

already in thebye-laws will be as unders(i)

To execute through th? Secretary the resolutions

passed by the Managing Committee and the General
Meetings.

(ii)

To supervise the daily routine work of the Secretary«

(iii)

To deposit in the Banks surplus amount exceeding
limit as specified in the bye-laws. To ensure tho

the cash in hand does not exceed more than the

amount fixed by the resolution of Managing Committee

4R

-18(iv)

To verify or get verified the stock of goods,
equipments dead stock, etc., atleast once in three
months and to take note of having done the same in
the Managing Committee by a resolution.

(v)

To see that the work of the society is conducted,
according to the Act/Rules and bye-laws.

(vi)

To take necessary actions immediately to rectify
the objections mentioned in..audit notes, inspection
memos and visit notes.

(vii) To arrange to furnish immediately all the details
and information asked for by the Co-operative

Department, the Bank and the federation.
(viii) To dispose off the complaints, wherever possible

and to place such a complaints before the

Managing Committee with his findings.
(41)

Duties of the Secretary, over and above those mentioned

already in the bye-laws, will be as follows:
(i)

To call meetings of the General Body, Managing
Committee according to the instructions of the

Chairman and to remain present at these meetings
and to record the proceedings of such meetings

in separate minute books.

(ii)

To spend, withdraw and recover money according
to the instructions of the Managing Committee.

(iii)

To receive all communicat ions addressed to the
societies and to draw the attention of the
Chairman and committee on any important matter.

(iv)

To prepare all receipts, vouchers, annual reports,
balance sheet and other necessary statements for
the society, and to furnish in time the
required informations, records etc. to the Co-op­
erative Departments the Bank and the Federation.

...19..

-20-

(42)

In the absence of the Secretary, Managing Committee

can authorise any other person to attend to the work
of the Secretary, if such authority is not given by the

Managing Committee the next person whose salary is
less than that of the Secretary, may be responsible for
the secretarial work.

Vile Distribution of’ Profit

(45) The gross profit of the previous year shall be declared
in the Annual General Meeting and the following

deductions shall be made from it.
(i)

Interest payable on loans and. deposits.

(ii)

V/orking expenses of the society *

(iii)

Losses.

(iv)

Depreciation on building and other assets

(v)

Bad debts sanctioned by the Managing Committee

and approved by the District Registrar.
(vi)

Contribution, if any, to staff provident fund

and staff-gratuity.
A.

The balance remaining after these deductions shall be

treated as net profit. The net profit shall be distributed

as follows:
(i)

A sum not less than 25/o shall be taken to the

Reserve Fund.

(ii) To pay the share holders as dividend a sum not
exceeding 12% of the paid up share capital.

(iii) To set aside contribution for the Education Fund in

accordance with section 69 of the State Co-operative
Societies Act. The society shall pay divident only

after the Education Fund is paid to the State
C o~op era t ive Federa t ion.

21...

-19-

(v)

To do the necessary correspondence pertaining to

the routine administration of the society and to

furnish all the required informations to members

and to correspond, with the prior approval of
Chairman, -in special matters.

(vi)

To place before the Managing Committee, without

delay, the audit

reports and to rectify immediately

the discrepancies shown in the report and submit
the same to the Auditor within one month after

getting it approved by the Managing Committee.
(vii)

To guide the other employees of the society and to
supervise and control their work and to inform the

Managing Committee regarding their work and to fix

up their duties and responsibilities in consultation
with the Managing Committee.

(viii)

To write or get written the cash book and. other

books of accounts of the society regularly.

(ix)

To disburse money for the oilseeds purchase as per
the policies fixed by the federation from time to

time, day and to collect everyday the sale proceeds
from the concerned persons of the society.
To produce for approval, monthly income and
expenditure statements, sale/purchase statement

and profit loss records etc. before the Managing
Committee.

(xi)

To deposit the surplus cash in the bank.

(xii)

To take necessary steps, subject to the bye-laws

for increasing the business of the society.
(xiii)

To see that the dues of the society are regularly

recovered and if it is not possible, to prepare
required statements for legal action in consultation

with the Managing Committee.

(xiv)

To do all other works as directed by the Chairman

and the Managing Committee.

-21

B.

The balance. after'the above deductions, shall be
distributed as under:
65% as bonus to the members in’accordance with the

(i)

value of oilseeds supplied by them to the society.
(ii)

10% to be set aside for the Agriculture Development

Fund.
(iii)

10% to be set aside for the charity.

(iv)

10% as bonus to the staff (bonus to the staff shall
be given as may be decided by the committee but
the amount should not exceed more than two months
pay in each). The excess of amount left from this

will be credited to the suceeding year.

(v)

5% to be set aside for the Co-operative Propaganda

Fund.
(vi)

The balance remaining after these deductions shall

be carried over to the reserve fund.
(vii)

If it is found necessary to make any change in the
above pattern of the distribution of profit, it
can be done only for one year and that also only

with the sanction of General Meeting and the
approval of the District Registrar.

(viii) The Managing Committee shall frame the rules for
the utilisation of these funds and shall spend
only after the approval of these rules by the District
Registrar.
(44) In addition to the sums prescribed under section 6? o-f

the State Co-operatives Societies Act9 all admission
fees, fines, share transfer fees, forfeited amount of
share capital and donations shall be carried over to the
reserve fund,.

22..

-22-

VIII

Miscellaneous s

(45)

Accounts and. records shall be maintained, in the

forms prescribed by the Registrar with such

addition and alterations as the Managing Committee
thinks necessary.

(46)

The Chairman or one or more members of the Managing
Committee and the Secretary as may be authorised
by the committee, have the power jointly to execute

documents,, gx-cuiu
grant receipts, sign share certificates,
make transactions with the bank and sign cash book

on behalf of the society, while all the receipts
issued by the society sha-ll be signed by the person

authorised by the Managing Committee.

(47)

Any member of the society may inspect any of the

registers or records during office hours so far as
it relates to his own business transactions and

shown in section 55 of the S-tate Co-operative Societies

Act. For this the Managing Committee shall decide
the office hours for the society.

(48)

Before the 51st of July every year the Managing
Committee shall prepare statements showing the

receipts and expenditure, assets and liabilities,
balance sheet and the report of the previous year.
A copy of these

statements shall be submitted to

the Government Auditor before the 15th of August.

(49)

The notice which is to be served to any member

shall be considered as properly served only when
it is sent to the registered address of the member.
(50)

Subject to the rules framed, by the S-^ate Government
bye-laws can be amended, provided a notice of the

amendment has been given to all the members atleast

ten days prior to the meeting. Amendments shall come
into effect only after they are registered by the

District Registrar.

...25...

-25

(51)

The society shall be affiliated to
, District Central Co-operative Bank
and State Co-operative Oilseeds Growers1 Federation
and such other institutions which are useful to promote

the objectives of the society.

(52)

Each member will be given a pass book and. all his
transactions with the society will be recorded in it,

It will be the responsibility of the member to get it
recorded regularly.

(55)

In case any difference of opinion arises in the
interpretation of these bye-laws, the decision of the

District Registrar shall be the final and binding on
both the sides.
Place s
Date

Year :

Month :

Signature of more than 10 promoters of different
families:
1.
2.

5.
4.
5.
6.

7.
8.

9.
10.
11.
12.

Approved.

Registrar

Co-operative Societies

...24...

-24-

SCHEDULE ,A»
See Bye-law No 7^(2)

r
o o..Oilseeds

Application for menibei' of the .. □. □ 0..

Growers’ Co-operative Society Limited.

Place :

Date

:

Chairman/Secretary :

..... o .• o... .......... Oilseeds Growers * Co-operative Society
Limited. I desire to be a member of your society. I have
read the bye-laws of your society and I hereby undertake to

abide by then* Herewith, I am presenting Rs. 1/- as entrance
fee and Rs 50/- as a value of one share (total Rs.51/—)

Other necessary details pertaining to me are given below.
I request you to enroll me as a member of your society.
Full lfcnie(with surname)

Place:

Age :
Profession :

Name of the Village :

Land holding in Acres.
Last year production of oilseeds

...25..

o **

-25-

How these oilseeds are desposed off at present •

I assure that

I undertake to sell oilseeds produce on my

farm to the society and not to other person/or party-parties
till I remain a member of the society.
I guarantee that the above given details are proper and

correct.
I hereby nominate Shxi •»

omy son/

daughter/wife as my heir.

Signature of the witness

-

» C* |

Signature of the applicant

th A

The application is approved in the Managing Committee by
resolution No.

...........

dated

Secretary

...26...

-26SCHEDULE *B'

Oilseeds Growers’ Co-operative Society
Limited.
Election Rules as per the Bye-laws:
(l)

These rules shall be called the election rules of the

Managing Committee of ..... o.
0 o ..o .

o
Oilseeds
Growers *

Co-operative Society Limited.

This shall come into force from the date of sanction by the

Co-operative Department® The first electron of the
Managing Committee shall be conducted in the first General
Meeting of the society after its registration. The members
present in the meeting only are eligible to get elected
into the Managing Committee.
(2)

If it has not "been made clear about these terms else-where:
(i)

The 'Law* means the State Co-operative Societies law
1961 and ccts which are in force under the same.

(ii)

’Bye-laws1 means the bye—laws which are in force
-with additions and amendments of .<» o.

..o.

Oilseeds Growers’ Co-operative Society Limited.

(iii) ’Election Officer- means the officer who is
appointed by the Managing Committee for the election
purposeo
(iv)

’Assistant Election Officer* means the person who is
appointed by the Election Officer io assist him in
the work relating to election from the staff member
of the society or any pther person wrio is not a member
of the society.

(v)

’Voter'e means a member who is qualified to vote as per
bye--laws as on JOth June.

(vi)

...... Oilseeds Growers*
Society means
Co-operative Society Limited.

- 27 -

($) Notification of Election Roll :
i)

The Secretary shall prepare a list of exisiting members

from the members register as on JOth June who are qualified
to be the member as per bye-laws section 8 (B), and he will

display the listen the Notice Board of the Society with his
signature within the time limit of election schedule
prescribed by the Managing Committee.
M)

If any member has any objection to the above list, the reason
for the same may be conveyed to the Secretary in writing.

ill)

The Election Officer, after scrutinising the objections, shall

arrive at proper decision and shall display a final list of
voters on the Notice Board of the society

in the prescribed time

limit of election schedule as decided by the Managing Committee.
iv)

The persons whose names are included in this final electoral

roll shall be entitled to contest, get elected as office

bearers of the society, vote in the election, put proposals
and second the proposals subject to the conditions mentioned

in sub-section (5) given below?
v)

Over and above the specifications contained in the society’s
bye-laws, if any member has ?

a) Any dues of the society recovered by arbitration
during the last three years.
b) Any amount over

'due since last three years, and is

a debtor.
c ) Engaged in a business similar to that of the society

personally or through any family member of his joint
family, independently or in partnership.

d) Relation to any paid employee of the society or to

any nearest relative of such employee.

- 28 -

e) Supplied less than 800 kgs. of pilseeds

to the society

during the last co-operative year.

He ■will not be eligible to vote or contest for the Managing

Committee membership.
4) Declaration of Vacancies

i) 1/3 of the total members of'the Managing Committee will retire
every year.

For the first two years the members shall retire

either by mutual understanding or by putting chits.

ii) The name and number of such vacancies shall be decided by the
• Managing Committee every year.

According ' to the list of

names decided by the Managing Committee, the ^lection Officer

shall publish the same on the Society’s Notice Board as per the

election schedule.

The members who retire shall be entitled

to he re-elected.
iii) In case vacancy arises within the year, the same r.ay be filled

in as per rule for the period for which it was to be continued.

5) Filling up the nomination forms s
i) According to the time schedule of the election programme decided

by the Managing Committee, the nomination forms in form ’A’ shall
be received and acknowledged by either the election officer or

the Secretary, at the office of the society between 9 ani to 12.00

noon.
ii) A voter may file his nomination for a vacancy in the Managing

Committee.

iii)

voter may propose only one candidate forthe Managing Committee

and shall be allowed to second only one.

iv) Aft°r taking acknowledgement, the nomination forms shall be
supplied free from the office of the society during the working

hours.

However,9 no member would be supplied with more than

one nomination form.

- 23 -

(v)

Nomination form shall have to be filled up separately

and neatly.
(vi) As per the election schedule fixed by the Managing Committee,
the Election Officer shall verify the nomination forms in the

presence of the candidates, and he shall consider the objections

received in this respect or he himself shall approve or disappr- ..e
the nomination forms.

The reasons for not approving the nomin­

ation forms shall be recorded on the forms.
The nomination forms can be disapproved only subject to
the Cooperative Rules/Act and Society's bye-laws and the reasons

furnished in the election rules.
vii) The list of candidates prepared out of th.’ approved nomination

forms shall be' duly signed by the Election Officer and published
on the same day on the Notice Board of thesociety.

viii)lf any candidate desires to withdraw his nomination form, he
may withdraw the same by giving written information to this

effect to the Election Officer on or before the date prescribed

for the same in the election schedule fixed by the Managing

Committee.
ix) In this manner if any nomination form is withdrawn, a final

list of the remaining candidates shall be prepared by the

Election Officer duly signed by him and shall be puulished
as per election schedule on the notice board of society.

If the number of candidates is eoual to the number of vacant
seats declared by the Managing Committee, these candidates
shall be declared ejected uncontested by the Election
Officer and this may be notified in the annual report of
the society and shall also be notified on the notice board

of the society.

- JO -

xi)

If the number of candidates is more than number of seats
declared open for election, the election will be conducted and

symbol to each candidate shall be alloted by the Election
Officer.
xii) In case the numberof nomination forms received fall short of
the number of vacant seats, seats lying vacant shall be filled

by nomination in the first governing body meeting or in the
first Managing Committee meeting thereafter, for the full term.

(6)

Voting g

i) If election is to be conducted, voting shall be at the place and

time fixed by the Managing Committee as per schedule of the
election.
ii) Voting shall be exercised in the prescribed form ’B1.

The names

of the candidates in the ballot paper shall be arranged alphabeti­
cally (without surname).

iii) Every voter shall be entitled to franchise his vote to the extent
of the number of vacant seats of Managing Committee, however he

shall not exercise more than one vote to a single candidate.
iv) Voting shall be exercised by marking a cross in the column shown

against the name of each candidate.

v) Voting shall be carried out by secret ballot system and the
Election Officer shall arrange for the same.

vi) In the presence of the candidates 9 the ballot boxes shall be
sealed

before fifteen minutes of the commencement of actual

voting and the same shall be kept in the possession of the
Election Officer.

v:ii) The ballot paper with the cross marked secretly in the election

booth . shall be dropped in the ballot box in the presence of the
Election Officer.

- 31 -

viii) during the period of voting nobody shall be allowed to

canvas in an area around 100 meters from the election
centre.
ix)

At the election centre if any voter

due to his physical

inability9 is unable to exercise his vote 9 the Election

Officer shall help him.

7)

Counting of Votes ?

Immediately on completion of voting, the counting of

i)

votes shall be carried out in the presence of the
candidates, if they are present, and immediately on
completion of the counting, results shall be declared.
Those who have secured more votes shall be considered

as elected.

ii)

The results, duly signed by the Election Officer, shall

be declared on the same day at the office of the society.

In the annual General Meeting also this result shall be

announced and the same shall be recorded.

iii)

The Election Officer may reject the ballot papers only

under the following conditionss
a)

If a

b)

When the cross mark is not clear to decide to whom

candidate is given more/than one vote.

the vote is cast.

c)

If the ballot paper is tampered with

d)

If the number of candidates for whom the votes were
exercised is not eaual to the number of candidates to

be

elected.

However, the Election Officer should show reason for the
rejection of such votes

ballot paper.

with his signature on the

- 52 -

iv)

In case any two of the candidates have secured equal number
of votes, the ^lection Officer in the presence of both
candidates shall draw a chit and thus declare the name of

the elected candidates.
v)

If any candidate desires recounting, he shall apply to the
Election Officer, in writing immediately after completion
of the counting.

Vi)

Immediately on receipt of such application, the ^lection

Officer shall recount the votes and declare the result on
the same pattern as above

8)

Miscellaneous
i)

On completion of the counting of votes and after declaring
of the result, all the documents pertaining to the election

shall be kept in the ballot box and sealed by the Election

Officer.

The ballet box shall be kept in a safe place under

the supervision of the Secretary.
ii)

In case of dispute in connection with the Election procedures
a voter may ask for arbitration under section

of the

co-operative rules.

iii) If a voter has gone for arbitration 9 2 months after the
settlement of the same, and if no voter has gone for the

arbitration, two months after the declaration of the result
of election, the documents of election shall be destroyed by
the Secretary in the presence of the Chairman of the Society.

iv)

The election schedule showing the date and time shall be
decided by the Managing Committee.

But due to any special

reason or in special case if it ’is found proper the Managing
Committee may change the dates except the date of election.

However, the election schedule and changes therein may be
displayed on the notice board ofthe society duly signed by the

Election Officer.
v)

In case cf any dispute in the interpretation of these rules the
decision of the District Registrar shall be the final.

ELFC'i ION

cmnTTLE

(As per se ■tion (84) of .^lection Rules)
Sr No.

Date

articulars

1.

Publication of the first electoral roll
and the vacant seats with the names.

2>

Last date to submit objections on the
electoral roll.

5.

Publication of final electoral rolls

4.

Last date and time for acceptance of
t; e nomination forms.

5.

Date of verification of ncminrtion
forms •

6.

Publication of the approved nomination
forms.

7.

Last date for the withdrawl of
nomination forms.

8.

Publication of the final list of
candidates.

9.

Date of election, time ..
to——hours.

10.

The date of counting the votes
(immediately after voting is over}

11.

Date of declaration of result.

Time

^lection Officer

- 54 FORI-:

Oilseeds G overs * Cooperative Society Limited.
For the nomination of the
election of Managing ^omrnittee
The ^lection Officer
ۥ

o

Oilseeds Growers1 Co-operative Society Ltd.,

Io

Fi'll name of the candidate :

2.

Sr9Noe of the candidate in the electoral roll :

5.

Seat for which he is contesting
Member of the
Managing Committee

4o

Full name of tbeproposer s

5.

Sr.No. in the electoral roll
of the person w^o has proposed

Signature of the
person who has seconded

If I contest and get
The details furnished above are correct.
elected I shall uor as a member of the Managing Committee and
accept the responsibilities of the same.

Signature of the Candidate

Date s

This nomination form isreceived today(day)
(Date)..... P.at.

.
(time)..

the

Signature of the
Election Officer

Sr No.

Receipt

Received from Shri
nomination as a member of the Managing Committee.

the form for

Signatime of Promoters
1
2

6.
?•
8.

4
5.

9.
10

Signature
^lection Officer

- 55 -

wr ’P/

Oilseeds Growers’ Co-operative Society Limited.
Sr.No.of the voter s

Signature or thumb impression
of the. voter.

o o .... o... o * <>.... o. Oilseeds Growers ’

Cooperative Society Limited
BAI LOT PAPER

Sr
No.
1
2

5
4

5

Name or Symbol of
the candidate

Space for
putting Cross

^■56^

SCKdDCLE ’C

Application for registering the society (^orm as per rule 5) s
.To ?
The District Registrar
Co-operative Societies
at

•00000000000000004.

a

We the undersigned. whose names and address are mentioned below are
desirous of being formed into a Co-operative Society with limited/

unlimited liability and we hereby make an application as per section
8 (l) for registration under section 9 of the State Co-operative

Societies Act 1C61.

We are enclosing

herewith four copfOs of the

proposed by-laws accepted and duly signed by us.
The detailed pa?.-ticulars regarding the proposed society are as

under ?

.

.

1.

Name of the proposed society s

2.

Address to be registered
(including the nearest Post Office)

5.
4.
5.

Is liability limited or unlimited 2
Area of operation 2

6.

State whether the applicants belong to different families and

Objectives of the society

whether they have relations with each other such as wife­

husband, father-mother, grand-father, grand-mother, step-father,
step-mother, son-daughter, step-daughter , grandson-grand-daughter
brother-sister, brother’s wife.

7.

If the capital is to be raised by shares, state the

value

and the number of shares to be issued, alongwith'. . the list

of shares subscribed unpaid up aciouirt for that?
8.

State the total amount of share capital collected and the
amount deposited in a Bank or its branch and state whether the

Bank balance certificates is enclosed with

the application.

- 57 -

9.

In case of federal societies, where ‘the applicants are societies

and companies, state whether they have enclosed copies of the
resolution authorising them to sign the application and the
bye-laws end state whether they are the promoters or the members

i

of the Managing Committee of their society or company.

If the

applicant is a firm,9 state whether the signee is a partner of
that firm.

10. State the details of the preliminary expenditure incurred by
the promoters upto the date of application and also the
estimate of expenditure likely to be incurred by them for

getting the society registered.
11

State the name of the chief promoter and his address to which
the correspondence is ro be directed*

12. State the language in

which the books and accounts will be

maintained by the society.

t v % ’

Supervision and checking- of the records and Registers maintained by a
Primary Oilseeds Growers1 Cooperative Society

1.

Day Book s
This covers all the daily financial and business transactions of the
society giving details of opening balance, purchases, sales, different
types of income .and expenditure and closing balance, on the left side
enter all the credit or inc-e md on the right side all debit or
expenditureSo

P o inis to re mem box' \ ihe. n u he cash book is check c d
Check with whether all the entries, credit or debit, have been made
er’Teuelpls,
or by resolutions of th.:
with proper
receipts, vouchers,
vouchers, certificates
<
Committee
or Ly other records authorising the incomes and
Managing C
------debits.
Sote the opening balance, cash in hand end confirm: that the amount in
b;
prescribed by the Management
hand is not more than the Rs.100.00 or as prescribed
Committee resolution.
c) Verify the stock of sales, fertilizers, equipments, pesticides oil,
vanaspati Ghee etc. and confirm with cash in hand, deposits dr withdrawis or purchase etc. to ensure that the no money -or stock in
rolling or unaccounted.
d; I'icte updating- Hie cash book and stock register results in rolling- cu
money and .?c see that these two records are upto date.
Check all the withdrawls from and the deposits in the Bank. Lie ver

a;

e)

keep this work pending.
l\iOue whether all paid up share amounts of membe.s3 or accessor incomes

~ i the custom
like sample sales or money comingfrom
--------- service offered by
etc.
the ssociety to itsmembers for pesticide spraying- ploughing
gainst the
'Through receipts and other records) have been written against the
appropriate dates in the cash book.
’ ?, vouchers or certificates produced for
g) Confirm whether the .receipts
incomes and purchase of materials are reasonable and whether that
material is present or not (Physically)»
h; Go through all remai: ing registers like payment registers ana other
compare the entries with the cash book to c^ifirm the society s
dealing- are true and fair.

i)

Ge neral, Le dger.
Gives a cross reference -co the cash book by giving- all the financial or
business transactions of the society under separate.account heads, thus
helping to arrive-at the cumulative total for each item, sc as o
facilitate the preparation of the trial balance, trading account, proiit
and loss account and balance sheet.
Points to Jiemomber;
a)

All the account beaus in casn book will be written on separate pages
in the General Ledger.

k

2
t)

The amount of “all’ entries from the cash book will be posted in
regular dates under respective heads.

v)

bee the postages are made closely and specifically without any change
of heads <credit and debit side). Also note that monthly totals’are
made.

See that all postings tally with the cash book so that the trial
balance will tally.

e)

Most important thing to be checked in stock is Gunny bags position.

Apart from above two register following are important registers to
be cheeked at society;OHGaMSATIQNAL:

2.

Share ledger/share register

1.

Share book

5.
5.

Individual members Register 4.

Member’s land details Register

6.

Minit book (Managing' Committee
meetingj.

Minit book (General body
meeting/o

1.

Committment Register

5.

Jhangad Register

5.
7.

Collection Register

Gut right Purchase Register

4.
6.

Pooling- Register

Despatch book

Despatch Register

PIiMAhClAb :
1-

Cheque book

2.

Pass bock

3.
5.
7.
9.

Payment .Register

4o

Cheque inward Register

Cheque outward Register

6.

bales tax bill book

Voucher’s book

8.

Sample sales Register

Labour charges Register

MISCELLANEOUS

s

2.

Gunny bag stock Register - with Federation
»»
Farmer’s
Gunny bag issue
issu Register -

5.

Sample Stock Register

5o

79«

1.

Attendance Register

Dead Stock Register

4.
6.

Letter outward Register

8.

Telephone - call Register

Postate - stamp Purchase
Register

10.

Visit book

Letter inward Register

X.

IKPUT ItEGIbTEHS :

1.

Soil sample Register

2.

Aerial Spray Register

Pesticides Stock Register

4.

Equipment Stock Register

5.

Custom service
me nt) Register )

7*

Fertilizer stock ano aistri-8.
bution Register

(h-quip- 6.

Seed stock and Distribution Regis­
ter.
■Jeuiunstratiori iie^ister

In addition t<. above referred registers following are some of the
important files for references maintained by the societies.
1.

Voucher File

2.

C omniit tme nt Fi le

Unit Report Filo

4.
6.

Balance sheet File
Circular and notice letter from
Federation File

5.

Audit report and rectifi­
cation File

7.

Supervision reports ano
rectification File

8.

domination Form File

9o

Member application File

10.

Correspondence with Cooperative
department File

12.
11. Agenda book for Manag'ing
Committee and General body
Meeting Filo

Bye-laws File

13. Security paper of staff,
14.
non-judicial stamp agreements

Rent paio. vouchers lile

Member’s sugge stion/Complaints
File

1b-

Correspondence with Feder-16.
ation File

'.7.

Miscellaneous Correspondence File:-

Viz:

Resignation forms, application forms, leave reports,
share withdrawal File.
AUDIT HEiOtTS

1.

Date of last auditing

2.

Audit class

3.

Audit rectification Date

s

If not why

4.

If there any very imp ortant
point (of agrave concern;
in audit report

5.

Cash book upto date
If no then upto date
what edate

Yes/Ro

6.
7.

Ledger upto date
Monthly statement ready

Yes/Ro
Ye s/No

8.

Cash in hand is in a limit

Yes/No

*•

4

cash book
1.

Upto date (last date of entry)

Yes/ho

2.

Signature of Chairman/Secretary
in each closure

Yes/No

3.
4.

Opening balance on the day of visit

5c

Particulars on thedate of last
four withdrawls

Is the cash in society with in the
permissiable limits
(Mention limit and actual cash;

Ye s /No

1

a.

Opening Balance

b.

Total receipts

2

c.

Bank with dr awls

S

d.

Other expenditures

2

e.

Closing balance

CTNERS ;
1.

Whether trial balance prepared
every month

2.

If no in above indicate reason

Yes/No

RSCORBS Aim!) REPORTS?

1.

Pass book maintained regularly

2.

Entries of pass book and purchase/
payment register tally for last
ten times

3.

Following1 Registers upto date or not:

2

a)

Stock Register

s

Yes/Nc

b)
c)

Individual Members Register

s

Ye s/No

Member’s land Register

s

Yes/Nc

d)

Minit book (General body meeting): Yes/No
Minit book (Management committee
meeting)

Yes/No

Committment Register

Yes/No

g)

Purchase Register

Yes/No

h)

Jhangad Register

Yes/No

i)

Pcolirg Register

Yes/ilo

j)

Despatch Register

Yes/No

k)

Payment Register

Yes/No

i;

Cheque-in-ward Register

Yes/No

2

5

4

f

5
14.

Sample sales register

15.

Labour charges Register

16 „

Gunny bag stock hegistcr

Yes/ho

17.

Bead stock Begister

Yes/ho

18.

Postagc -Stam;., s Register

Yos/No

19

Telephone call Keglster

Yes/Bu

20.

Staff attendance Legister

Yes/ho

1.

Mini balance & condition

Good/Bad

2.

Weightbox ^f'ull of few weights
ar-e missing;

3.

Big balance & Condition

Yes/lio
o

s

Yes/ho

Good/Bad

W.. ight s
(full or few weights .'iissin,-;J
SI'OCK i
1.

S t i t chi ng thre ad (kg )

2.

fertilizer stock Register

Coinple te /Incomp le te

3.

Seed Sale Kegister

Complete/incomplete

4.

Pesticides Stock Register

Comple te /Incomple te

5.

Demonstrate Register

Com pie te /Incomple te

O a

Soil testing' Register

C omple t e /1 ncomp le t e

7.

Seed drill stock Legist:r

C ciiij.Je te /incomple te

8.

Equipment St^ck liegister

Complete /Incomplete

9.
io.

Oil stock register

C omple te /Incomplete

Ghee steck liegister

Comple te /Incomple te

11.

bmpty tin hegister

Complete/Incomple Le

Village Survey
Survey form, is used to obtain data to determine the potentiality oi

an area for organisation of ’’Primary Oilseeds Growers’ Cooperative
Society” ^POGCS) and to assess

infrastructural facilities available

in that area.

Importance of survey:

1.

It provides data to determine the viability of a society.

2.

It helps in identifying the location of a POGCS office and the
Procurement Centre.
It gives an idea of transportation facilities available so that
possible procurement routes can be chalked out.

a/4.

v/6.

J4.

It helps in identifying the potential leaders from the village.
It helps in assessing the receptivity of villagers to co-operative
movement.
It also gives a picture of communication facilities existing
in that area or region.

It gives an overview of :
a) Different oilseed crops being grown in that region.
b) Land, holding pattern.
cj System and type of farming.
d> Irrigation facilities.
e) Average production of oilseeds/unit area (yield)
fj Total production of oilseeds.
s; Procurement potential.
h) Demographic details.
i) Problems in oilseeds cultivation in the area.

Existing credit and marketing facilities.

- Pre-requisites of survey:
Survey-form should not create any doubt in the respondents*
i)
mind: Investigators should explain in detail the objectives
of the survey so that the respondent answers each question
frankly and without fear.

ii)
iii)

Survey form should be in local language.
While surveying it is always advisable to take the help
of local leaders, panchayat/revenue staff.

SUkVisY i'OHM
Name of Surveyor ...

Name of Village Panchayat

..Date of Start of Survey ..
Date of Finishing the Survey
Taluka

1

2

3

District

4

5

t/Names of Villages within 8-10 KM radius
/Distance from main village
/Distance from Taluka H.Q.

/Distance from District R.^,.
/lumber of Families

/otal Population
PUBLIC IaCILITIiuSs
/ Post Office; If ’NO’, the nearest Post
Office & its distance (KM)

electricity; If ’NO’ nearest village
having electricity & its distance (KM.)
^Telegraphic Office; If ’NO’ nearest
one and its distance (KMj

’ Drinking Water Facility; If ’NO’
? noa.r^ st place having- drinking- water &
its di st ance (KM )
« Education Facility; If ’YeS’ upto which
standard.. ...... If ’NO’ nearest
village 6c its distance (KM)
/Bus Facility; If ’NO’, nearest village
having- bus & its distance (KM)

^/Railway Stations If ’NO’, nearest R-S.
& its distance (KM)

DANK FACILITIi-S;
•^Commercial Bank; If ’NO’ (Nationalised)
nearest one 6c its distance (KM)

»Zo-operative Bank; If ’^0' nearest
one & its distance (KM)
ar/Rough Road

.................................

"Place of weekly marketing'
H.Q. of Gram sevak

.Nearest City

■?

/

2

EaCILKY :

EiXlSTIM}

1

Details regarding marketing of oilseeds

Is it through Coop./Private market merchant/
regulated market
Do. of Oilseeds Traders in nearby villages
'Wholesale merchant/Retailer

Nearest city for selling' oilseeds

If regulated market, name of regulated
market yard
RATh 01- OlLSiLisDb 1GR LAST THREh YiARS.
1st

<19.o.oo;

2nd
Jrd U9o... j
PROCEbbiiiiG FLAM' AbAB. BY : YiiS/i\iO

’YES’, its dailty capacity
How & Where from do they purchase oilseeds?
CuOPibRATIViL INIWlATlON

i/ls there is other village Cooperative
If 'YES’ , Where is H.Q.?

Activities of Cooperatives.
(1) Credit, (2) fertilizer, 0) Seed,
(4) Plant Protection Chemical
(5) Liasion activities

Credit for Oilseeds/ha in Cash
Credit for Oilseeds/ha in kind
Storage Facility, if any; If yes,
its capacity

l/Can society hire a godown for storage
of oilseeds? If so, available space
and approximate rent
Opinion of farmers’ community
for Cooperatives
FARMuJiS

o

jNo. of Cultivators

rjo. of Agricultural Labourers

\/No. of Cultivators having 2.5 acres
between 2.5 & 5-0 acres
5.0 acres

2

5

4

5

5
1

'.ARbA:

Total cultivable land (

)

Irrigated area
Facilities of Irrigation .. .........

i\io. of wells & area covered in ha

Area covered by tube well t-t
Canal Irrigated

Any other source irrigated area
Kharif area

o

Rabi area .
Pasture land area
1V1A1W CtilPb & TillsIh. ARilA ;

Groundnut

Soybean
Other Oilseeds
Total area under oilseeds
KHARIT s

Groundnut

Soybean

Other oilseeds

RaBI

j

Groundnut

Soybean
Other oilseeds
OlhSKSPS PROlDCTlOli :

Groundnut

Soybean

Other oilseed
Total production of oilseeds
VARIETIES :

Groundnut
Soybean
Other Oilseeds

AVERAGE Ylfr-bP • Groundnut
in Qtl./ha
Soybean
Other oilseed

2

3

4

5

4
PRUlTUCT1 IO1\1 PUR laUT THREE YEARS .
1

Groundnut

78- 79
79- 80
80- 81

Soybean

78-79
79- 80
80- 81

Other
oilseeds

78- 79
79-80
80- 81

PaCKaGe OJ? PRACTICES .

Source of seed , variety & approximate price
Source of fertilizer and approximate price

Source of culture & approximate price
Source ol insecticides & approximate price

Major diseases & pest prevalent in that
village & Name of crop
AGRICuLTDRaa IMPLEI'iEM'S ;

Number o± Tractors
Other improved implements

Sprayers
Busters

Others
Is suitable accommodation for society
available?

Is there any other institution purchasing'
oilseeds’?

What is the opinion for farmers for
forming society?
Is there anybody educated available
to work as secretary?

2

5

4

5

5
VILLaGjl bUEtVibY FORM

This survey form is meant to test the feasibility of
forming- an Oilseeds Growers' Cooperative Society in

a particular village.

It helps in getting1 necessary

infromations on gross area and production under Oilseed
Cultivation in a year, present system of marketing the

produce, response of villagers to formation of society,

infrastructural facilities etc.

These particulars will

be useful for Spearhead Team to select certain villages,
having favourable factors to make the societies viable.

Is there any person to initiate
the formation of society?

If 'Yes', name

Any other relevent information s

Surveyor's opinion for formation of Oilseeds

Growers’ Cooperative Society.

Signature of Surveyor
Fame :

I- v

Restructuring Edible Oil Economy
Although India had been an important exporter of oilseeds and
vegetable oils a few decades ago, the oilseed and vegetable oil
sector has been on the verge of a crisis during the last few years.
The production of oilseeds has remained virtually stagnant since the
mid-sixties except for erractic fluctuations from year to year.
Vegetable oil consumption — about 12 grammes per day per person has
remained at approximately a third of the minimum nutritional
requirements.
Soaring edible oil prices during recent years in relation to other
essential food commodities have been straining the family food
budgets especially of the poorer. And since the increase in prices
(groundnut oil prices for example have risen from Rs. 1,985 per
tonne in^October, 1965 to Rs.11,700 in October 1979) had not been
adequately reflected in the prices paid to oilseed wproducers , there
was ’very little hope of making any substantial improvements in the
functionining of" the
— oilseed
economy.

But tne picture has not been entirely one of unrelieved gloom, Very
high yield levels, comparable to those in any other oilseed
producing c untry, have been achieved on demonstration farms. As
against the average groundnut yields of 700-800 kg/hectare in the
country, yields achieved on these farms have been between 5»000 and
6,000 kg/hectare indicating that a small region such as Saurashtra
in Gujarat alone can meet the entire country’s deficit in groundnut
production. The advances that have been made in oilseed processing
technology provide the hope that the existing outmoded and
inefficient plants can be vastly improved upon. And perhaps most
important of all, the principles evolved in our dairy development
programme — Operation flood — provide the model on which to bring
about the modernisation and restructuring of the oilseed and
vegetable oil economy.
At the suggestion of the Government of India9 the National Dairy
Development Board which is the project authority for Operation
Blood, has designed a project for restructuring edible oil and
oilseed production and marketing. The main objective of the project
is the establishment of a modernised industry based on oilseed
growers’ co-operatives, so that processing and marketing will be
carried out by the producers themselves. They will undertake the
procurement and marketing of vegetable oils - both imported and
indigenously produced — so as to bring about a stabilisation of
vegetable oil supplies and their price levels and thus benefit
both the consumers and the producers.

!

f

2

The low and stagnant consumption of edible oils is mainly due to an
absence of a positive yield growth rate in most of the oilseeds
which in turn has been caused by s veral other factors. One of the
most impoxuant factors is the absence of high yield-cum-high
stability technolgy in oilseeds vis-avis other crops. This has
pushed oilseed cultivation mainly to regions with inferior soils
affected by saline, alkali or semi-alkali conditions9 with low and
highly irregular rainfall and meagre facilities of canal or lift
irrigation. Oilseed yields are mainly influenced by rainfall which
happens to fail frequently in these dry or semi-dry regions.
For example, the coefficient of variation of rainfall in Saurashtra
is as high as J8 per cent whereas in all other regions including
Rajasthan, it is 18 to 22 per cent. As a result, yields have
fluctuated from as low as 200 kg/hectare (1972-7$) to as high as
1,200 kg/hectare (1975-76). And also, returns received by oilseeds
farmers are often unremunerative and excessively chancy. In
Saurashtra, gross incomes of groundnut farmers was only Rs.50 crores
in 1974-75 as against Rs.200 crores in the previous year.
Consequently the use of insecticides, fertilisers and other
production inputs has. been very low. The absence of crop insurance
schemes has further aggravated the existing situation.
With regaid to the efficiency of processing and marketing systems,
also the situation is highly unsatisfactory. The oilseed processing
industry is characterised by a large number of small-sized widely
scattered units, which while taking full advantage of exemptions
from government licensing, taxes and so on, do not contribute at
all to the welfare of the farmer. The outdated machinery (The
Indian expeller is 40 years behind current developments) and an
absence of modern cake treatment and conditioning methods results
not only in a lot of wastage of oil during crushing but also of
valuable protein from oilcakes .

The existence of a large number of intermediaries in the oilseeds
and oils trade both in the domestic as well as export markets
contributed to the high instability of edible oil market through
hoarding and speculation. A speculator aiming at all times at
maximising his own profits will permit the market forces to operate
until the gap between demand and supply is fully reflected in
increase or decrease in the price as the case may be• During
periods of short supply this implies that a speculator w_.
keep
cornering supplies in the face of rising prices and will unload
in the market at a time when the price is at or near the peak.
When many speculators undertake such operations, an artificial
scarcity arises by their acts of withholding stocks and this
results in a peak price higher than would have been the case under
competitive conditions. In a relatively good year the speculators
will allow the price to falla slow as the excess supply position
would require in order to clear the market before they start
buying and once again their collective behaviour will accentuate
the downward fall in the prices of oilseeds.



5
Such instability affects particularly the poorer sections of the
consuming public. Households in the higher income classes are
estimated to consume 10 times as much oil as do the lowest income
classes. r.ince they generally purchase in bulk at th., beginning of
the season? the burden of high prices at the end of the season
largely falls on the middle and poor income classes, who purchase
monthly or even dai2y.

Severe price fluctuations of oilseeds and oils, which are caused
more by speculative forces than production changes, will not be
conducive to rational decision-making on the part of farmers. It
is estimated that prices of oil-seeds received by the farmers are
only 21 to 24 percent of edible oil prices and that 10 per cent
rise in annual edible oil price will raise the farm harvest price of
oilseeds only by 6 per cent over time. This low and declining share
of farmer in the edible oil price perhaps makes their response to
farm prices for oilseeds very low as this implies that the oil
price rises required to induce a given rise in supply would be very
large indeed.
Another factor to be emphasised is that relatively small increases
in the incomes of the low income groups results in a more than
proportionate increase in their expenditures on essential food
items such as edible oils. Hence, any increase in prices of these
commodities has a highly adverse and serious implications for
consumers who have to curtail their already very low level of
consumption.

Groundnut is a highly remunerative crop. In a normal year it can
fetch as high an income as any other crop like improved variety
of wheat or cotton or sugarcane^ but as a result of high yield
fluctuations, average gross income of groundnut farmers remains
relatively low.

This brings into sharp focus the need for increasing the oilseed
production on the one hand and improving and modernising the
facilities for processing the oilseeds on the other in a manner that
will assure a reasonable return to the farmer for his efforts and
the consumer to enjoy the benefits of enhanced production.
The RDDB project envisages the application of the principles of
co-operative organisation in the restructuring of the edible
oil inudstry — alongwith of course, such on-line corrections
which are deemed necessary in the light of certain fundamental
differences between the nature of the two businesses.
The basic strategy of promoting growers co-operatives will help curb
speculative and manipulative practices and streamline the market
system by eliminating the dominance of large growers/traders/
processors combinations and multiple layers of middlemen. It is
estimated that a 15 per cent share of the maiket with such
co-operatives will make them effective instruments of restructuring
the oilseeds and oil economy.

Funds worth Rs. 150 crores required for the project would be generated
through the sale of donated oils received from the Co-operative
league of the USA (CLUSa) and from other friendly countries e

4
The oilseeds growers co-operatives will have a two-tier structures

i)
ii)

village-level oilseed growers’ co-operatives
state-level federations of village-level co-operatives

Several village-level co-operatives will join together to fom a
State-level federation. The main characteristic of a village
co-operative will be that the membership will consist of only those
growers who will sell their own produce to the co-operative and will
not engage • in oil business on their own account. The growers will
be paid fair and stable prices after sampling and testing each
member’s crop for oil and moisture content. The growers will through
the State-level federation own and operate their own processing
facilities and undertake the marketing of finished products. The
village-level co-operatives will arrange with the help of the
federation, the supply of inputs and services.
The NDDB’s Oilseed and Vegetable Oil Project is being implemented in
the first phase in eight districts. This phase will last between
two to three years. The project will then be reviewed and in the
second phase from the third to seventh year another 12 districts
will be coveredo
The major thrust of the project will be on its production enhance­
ment programme as the root cause of the low average productivity is
the lack of research and development and extension• There will be
an agronomic centre in each major oilseed growing area to conduct
applied research in oilseed production methods and to produce
foundation seeds., a district farm will be established to multiply
foundation seeds — and to be the base of mobile teams — in each
district covered by the project. On an averages two demonstrationcum—seed multiplication farms will be established in each village
covered by the project.
In an average village covered there will be two to four village­
level co-operative representatives who will visit the district
fams once every two weeks to receive instructions in agronomy,
soil chemistry etc. from concerned specialists. These specialists
will also serve as members of mobile teams • Each mobile team will
be responsible for providing training and supervision to about
20 villages. These villages will be visited by the mobile team
once every two weeks o

An important aspect of the project is the creation of a ’’Sinking Fund
which will be used to protect the interests of the growers and
their co-operatives in ’’bad” years when the growers find it
difficult even to recover, the cost of productions of inputs.

The production enhancement programme will .ensure a proper interface
between the growers and the various delivery systems. The quicker
transfer of technical knowhow fwm agricultural research stations
to the growers, supply of quality seeds, famers ’ training,
dependable arrangement for transportation and storage and similar

w

5
other steps would decrease the vulnerability of oilseed crops to
climatic variation, while also raising yields and offering year-toyear stability to growers and thereby increase their incomes.
.an operation research study is b^ing carried out by the Oilseeds
and Vegetable Oil Wing of the KDPB (which is responsible for
executing the project) to detail out the requirement of processing
capacity to be created under the project. Besides, the study would
also detail out the requirements for organising oilseed growers
co-operatives, inputs required for the production enhancement
programme, product and process development and the technologies
that should be adopted to ensure maximal returns to oilseeds
growers.

It is estimated thrt in the first phase the project will benefit
approximately 5*5 lakh growers in 8,000 villages spread over eight
districts in the major oilseed producing states. Ultimately, the
project will benefit 8.5 lakh growers in 20 districts in the
country. The major beneficiaries will primarily be small farmers
who grow the bulk of edible oilseeds on unirrigated and marginal
land. The project will also provide opportunity for employment
to a large number of people in the rural areas. It is estimated
that some 49 50,000 people including a large proportion of woman
will be employed. The EPS programme will provide employment mainly
to women.
Gujarat being a major oilseed producing state has a high place in
the edible oilseeds and oil project. The estimated production of
5 to 6 lakh tonnes of edible oils in the state leaves a surplus of
5 to 4 lakh tonnes after local consumption. Much of the surplus
is from groundnut oil produced in the Saurashtra region.
Saurashtra accounts for nearly 90 percent of groundnut production
in Gujarat ,
A modest beginning of the project implementation has been made in
Saurashtra. Seventy-three oilseed growers’ co-operatives, with a
total membership of 2,625 growers have been formed in 200 villages.
Total procurement of oilseeds from these co-operatives stand at
55 500 tonnes for crushing purposes and 400 tonnes for seed
purposes. Three mobile teams have started working in the area
A large number of oilseed producers have undergone farmers
induction programmes at KDDB’s headquarters at Anand. State-level
Federations of oilseed growers co-operatives have been set up in
Gujarat as well as in Madhya Pradesh. Several other State
governments are working out plans for implementation of the
project in their respective areas.

The major impact of the programme, in its first phase alone will be
in the form of an increase in the production of oilseeds by 4 lakh
tonnes. At the same time growers will be able to earn larger
margins, from 25*4 per cent at present to about 50 per cent by
1984-85. This will enable them to make greater investments in the
production of oilseeds.
Even though there is a limited possibility of achieving any
remarkable breakthrough in oilseed yields, the spread of
existing knowledge itself through production enhancement pro­
gramme can raise average yields to levels comparable to those in
other countries o

6
In the absence of a project such as the present one, prices of
edible oils are likely to rise to at least Rs.15~l6 kg by 1984-85•
A buffer stock of upto 15 per cent of the vegetable oil available
in a given1 year should be sufficient to keep the prices within
moderate limits o -Once the modus operandi is established a
programme with a two-to-three times greater coverage will be needed
to close the gap between supply and demand completely6

The principal attraction of the project is that the funds proposed
to be invested in the restructuring- of the oil industry - amounting
to nearly Rs .150 crores - will be generated out of gifted oil. In
the absence of the project funds for such purposes would have had
to be drawn from the overall funds available for national develop­
ment. In as much as such projects permit the influx of additional
funds without taxing the government reserves they must be considered
welcome additions to our development efforts.

The task of restructuring the edible oil and oilseed economy is a
difficult one with seemingly unsurmountable problems to be overcome
Some of these problems are, admittedly, unique to the oilseeds
sectoro Still, any progress that is made is not likely to be
confined to the sector alone. Every step forward in this area
will surely have wider and lasting impact on the entire rural
economy of the country.

/

£)EY y -

;

95 :

IWC. TANT POINTS/Ti:,3 FOR PROCUREMENT,
SAMPLING, (MING, PAYMENT AND 'IRANSPOR.T&TIO.^ OF 0iLStEDS THROUGH OGCS.
The following points should be kep-o in mind by the procure­
ment and other field staff responsible for procurement
activities.

Pro cure me nt sampling, testing, transportation.

1.

If^the produce (groundnut, soyabean, mustard etc.)^
offered for sale 'to society is observed to be mouldy,
damaged or adulterated, or”if" it tastes bitter (aflal
toxin affected) should not be accepted. Only good
produce without any of th a above mentioned defects
should be accepted.

2.

Small clear dots on the surface of pods indicate good
oil content in the groundnut.

<3 e

Black dots/mottles on the innerside of tie pods of
groundnut also indicate maturity and filling and good
oil content. Oil content can also be observed by
pressing nail into kernels.

4.

Thin testa on the kernels indicates better quality.
If testa does not get easily separated from kernels,
it indicates higher moisture content,

5.

M isture content can Iso be observer by crushing the
k-rnuls or grams undoi teeth. If they break crisply,
it means no excessive moisture.

6.

During determination of shelling (utara) the farmer
should not ba allowed to deshell the pods or wei^i.tho
kernels to chock the unfair practices (such as addition of ono or two kornols , changing the pods etc.) .
However, this may be done in his presence at the colleHowever
ctio.n contro of society.

7.

In case of doubt/Siswte, the weight of kernels and
broken shells should be
bo ^aken
taken separately and if it makes
the same as original it should be acceptable to the
member.

8.

Deter ruination of refraction or kamda should bo done
vary carefully. Necessary care should be taken to
check any mischief or unfair practices by the farmer,5
labour or errors by society staff in weighing of tho
foroigi matter. Utara and K&rada should be properly
recorded.



-L ±

J '-u

nil'll A IX J a

KJ O y

kjKJ

AV*

kJ

: 96 :

9.

In case of dispute over K a rad a at society lOvd., on..
■’ is selected at rand-'-n by the farmer should be consi­
dered for taking we? ^hf of Kareda. Then the ayarago
weirfit of the Karada of the two bags (one selected
cureni'3nt> assistant and
nrd
bv the society secretary or pro
procurement
one selected by former nimsslf), should be final and
birding.

'urthor doubt about Karada
Karuda or weiring,
wsi^iing, the
10. In case of further
rep oat u d st
at th^
the cost of the
concerned
process tnsy be
b^1 reportod
uho conc&rnoci
farmer,
n. The lute (gunny) bags supplied for procurement should
"
bo checked before filling to ensure that these uro not
coated with mud inside or do not contain stones or
brick pieces.
12

The
The weights and balance should be standardised. These
should bo checked before starting weiring. The unpty
pans should not show any variation. Procedure ror
woigiing should bo uniform in all the societies.

13. Necessary details pertaining to the sample drawn (sue...

as namo and address of the farmer, date, crop and
variety, weight, shelling, etc.) a Ion gw iw the sampio
should oc rotoined in the society for
a moH'nh
for reference if nocassary, Afterw^ids, tho Kerners
rnay bo sold cs decided by the Managing Goimittcc..

14

15

The small balance (Nanavote balance! and fractional
9 woi^its used for determination of shelling or grade
^nould bo kept properly in the society to avoid tne^r
rusting etc*
If the produce has to be left overnight with the iarmcr
or the society due to non-availability of uho truck or
somo otheir unavoidable reasons, the farmer or society,
will be responsible for any loss in weignt or damage.

16. At the time of lording the bags into truck, the count­
ing should bo dono carefully to avoid any dispute with
the truck drivor/transporter. If nccossary, some or
the bags selected at random shouldbo weired p.
presence of the driver and his signaturo be obtained
on tha despatch memo for rocoid. The society s* crot.r?
should also obtain signature of the driver on tie
office copy of the despatch mono for official recordo

17. For identification of the produce supplied by indivi“
dual members, different code nitnbsap should bo marked
by society staff on all the bags.

s

97 i

18.

To ensure proper ampling determination of refra­
cbion and shelling at the pant level, necessary
suparvi ion should be done. Random retesting
should also be exercised, Weight shortages if any
beyond the permissible limit should be recorded
and th.s signature of driver obtained for making
deduction from transport bill.

19.

Names of ths societies/merabers and figures of amount
in tho cheques should be written accurately and
legibly to "avoid delay in release of payment from
banks (preferably in words) .

20

Information about any dispute, damage or pilferage
etc. of ths produce procured, stored or transported
should be immediately given £o all concerned.

21.

The society sccretary/procurement staff should check
against supply of th a produce of non-members or
traders by tho members to the societies. Such
instances should be brought to the notice of the
Manasing Committee of the society for disciplinary
action.

22.

Tho purchase receipt must bo issued to the members
to acknowledge receipt of the oilseeds supplied to
society.
V

23.

The woi^t, refraction, shelling or grade, amount
of payment .and ad r nces made to society members
uld bj recorded in the purchase register.
sho ul<

24.

Signature or thumb impression of the members should
be ubtulred wherever necessary in tho records of the
society for issuance of empty gunny bags, sieve
etc. and for advance payments.

25.

Records of outri^ot, Jangfd & Pooling purchase
should be maintained separately.

2G.

Tho produce procured should be kept under watch and
w'-id in absence of proper storage’ facilities. At
pl.ant level it should be insured against
aga inst fire
fi ro,
theft, etc.

27.

Thu produce should be protected against loss by
rodents in the godown or store.

V
OQ
•> -J

o


S .^E IMPORTANT POINTS FOR CONSIDERA­
TION OF STAFF CONCERNED WITH OILSEEDS
COOTER ATI VE KWAHON.
For organisation of tho Oilsecris Growers' Cooperetivo
Societies, their smooth working and procurement of oilseeds
from society members, the concerned field staff should take
car& of the following important points.
Lnitinl contact with thu oilseeds growers
1.

To initiate contact with the farmers the mobile team
members should as far as possible communicate with >
them in their language. Knowledge of their cultural
and social background local customs and traditions
will b.< useful for effective communication.

2.

Relevant information about the progressive farmers,
opinion leaders or important parsons, if collected
before contacting them will bo helpful in initiating
tho dialogue with them. Area statistics of oilseeds
and information on cultivation practices should bo
obtained from the concerned departments.

3.

Personal contact with tho progressive farmers/op in ion
leaders in the villages can be very helpful to commu­
nicate the plan and programme to bo implomcntod.

4.

Caro should be taken that while collecting information
from the farmers or during tho course of communication/
discussion with them, the team members avoid imposing
their knowledge or skills on the farmers.

5.

IL
It is advisable to avoid identification with any of the
local groups or politically influential persons.

6.

carrying out tn
thoa survey wwork, help of local acouainFor c<-rrying
Ib&o level workers
workers, patw.anos and staff of
tuncus, village
agriculture/cooporation
department may bo
Panchayat, ;
' ' '
'
*
sought.

7.

Thu farmers should be motivated to take up the programmwith their maximum participation.

8.

For organisation of societies, the mobile team staff
of the fuderation should be proporly trained and
exposed to the Anand Pattern cooper atiyos.

; 99 :

9.

Necessary spade work must bo done in the potential or
identified villages by the mobile and spearhead teams
to convince the oilseeds growers and to create confi­
dence in them before actual start of societies.

10. Working of the 0G33 should be organised fully on the
lines aid philosophy of Anand Pattern and the model
bye-laws recommended for societies should bo adopted
by them.

11. To avoid group politics or influence in toe society,
members of managing committee should be so selected'
that each locality/community is represented.

pur liaison should
snoulct be
be maintained
maint.3inua with
wi^n the
we officials
oinci^s
12. Proper
0 -f* QM't
I™ ■ v-» 4- rx
->v-> rl
rr.oin r» n l ia orxvn
"WKiO ■'’1
T.n
Government.
Departments
and
agencies
concerned,
to
muw
uu«
1^
um
,
u
u
developments,
policies
and
programmes
know the latest developments
for agricultural development or information on any
subsidies available for the benefit of agriculturists
and societies. Proper contact should be made itb
the Primary agriculture Cooperative Societies (PuCS)
to get inputs for the members.
q

13, Staff for society (secretary and helper) should be

selected by the Han aging Committee and if necessary
in consultation with federation. They should prefer­
ably bo matriculates or 330 or diploma holders in
cooperation/agriculture and belong to the society
village.

14. Society staff should be properly trained in the oil­
seeds procurement s stem. procedures of vjaidning, test­
ing, storage, transportation, payment, maintanance
of records and corruspondanco with federation, coopora^
tivo department etc,
15. The mobile team with the guidance and help of spear­
head team should organise the training of soci<ty
staff, managing committee mombers/chairman & farmers
and make necessary arrangements for their trainings
16. The society staff and managing committee members
should know the quality standards of oilseeds and ths
rates proscribed by the federation and procedures of
sampling, determination of refraction and shellinIS
percentage or grade of oilseeds.

17. The society staff should be very careful in testing
of the material procured as any serious errors will
affect the viability of society.

s 100 !
18. Necessary sureties/securities of the society staff

should be obtained by the Managing Committee.

19. Standard weighing, sampling, testing equipment, stat­

ionery, registers, furniture and other‘specified mate­
rial must be supplied to societies prior’to commencement
of procurement.

20. Replacement of equipment should be obtained from federa­
tion and in consultation of the foderation to procure
only standard equipment.
0
I
r._j—

Frequent and close supervision of societies should bo
done after their start for a reasonable period to bo
followed by regular routine supervision.

22' For registration of societies, tha registration appli­

cation should havo rocommendation of the spearhead/
mobile team and for speedy clearance, necessary follow
up should be done with the district Registrar.

23. For review of the progress, programme implementation
and problems if any. r-gul^r'meetings of the field staff
and managing committees should be organised.
24

T!?. society staff und managing committoo members should
understand "det ails to be recorded in various registers
maintained by societies, issuance of collection state.onts, purchase rec pts and despatch memos for tran­
sport of the procure^ maturial to plunt/godown.

should be ensured that the truck driver si s th e
despatch memo's copy r-roainod by society uni he difforance in the weight' oft'"'
material“delivarod by Mm to
federation i§ recorded for payment.

25. It

2G„ The federation's concerned staff and mobile team should
ensure that payment to OGCS/membors is made without any
delay,...
'

27. Society secretary should verify the payments received
or issued for any errors.

28. The samples taken at. society and tested and also at the
ircservod for about a month for retest
plant should bo preserved
o r re fe re nee.

and circulars should
29. important instructions, guidelines
guiuo 1 —
be issued in writing to OGCS for information and action
of societies.
3 0. Pass books must bo provided to. members to record tho'-.r
transactions with the society.
31. The OGGS must got affiliated to federation after its
re gist rat ion.

V

I

I

f-

:

104 j

DUTIIS/RESPONSIBILIES OF CHAIR^^.JE®lfARYOZ_Q£CS,
The Chairman being an elected represent stive of the
oilseeds grower members and the Secretary a paid
employee of the society are the key parsons in tho
general administration, manegement and working of an
oilsuods growers1 coop ar at iv a so ci at y. Individually
as wall as jointly, they have to fulfill s^voral
responsibilities of the'societies and perform several
duties to make the society run economically, smoothly
and successfully
members and
sucossfully to the benefit of the mombors
village community in general. They have to discharge
achieve tho
the aims
airas
all those dutios/rcsponsibilituss to achieve,

Some
of
the.
import-nt
aid objectives of the society.
tho. important
duties/responsibilities of theo Chairman and Secfcotary
Sectctary
.are in di cut ad bo low:

rht>l'.:£>. nf th - Qhairman

f.

To remain present in the society at the time of
'
pro curemon:t (of~ oilseeds
for solving problems or
dispute, if sny, on the spot.

2.

To supervise) the routine working of society stsff
and to ensure following up of th Act Rules end
byelaws, h'
Also supervision of books of accounts
with the help of other managing committoe moniberso

3.

To ..g0^ implement i the roso lut ions/dec is ions of
the Managing Coanittuc and General Body.

4.

To verify or arrange verification of goods.material,
oquipmOTu 'nd dead stock at least oncu in three
mo nt ns.

5.

To take action for rectification of the objections
in the audit notes, inspection memos and super­
vision or visit notes.

6.

To arrange to furnish immediately all details and
progress or general information called for by tho
oilseed fedoration/union mi the cooperative de­
partment, the b"nk and the multipurpose coopera­
tive society.

7.

To srrango disposal of tho complaints whorover
possible or to place before the managing committee
for their solution.

:

105 s

8.

To S6^ . th? production enhancomant programmes 3
schemes or instructions of the fed oration
imp lorn unted.

9.

To .get prepared from tho Secretary of the socioty
tho statements of accounts such as income and
expenditure sales and purchase, stock of goods
and Annual Report for approval of the Managing
Co mmitt u o/G oner al Me ot ing.

JO.

Framing administrative rulos in consultation with
tho man .aging committee in keeping with the -Act/
Rules, bye-laws for officiant'working of the
so c lot y.

To deal with applications for membership, registra­
tion, issumcc/transftr and refusal of snares with
tho concurrence of mm^gihg committoo.
12

To check the cash in hand with the Secret ary and
to sign the cash-book overydny.

Duties of tho Secretary

Ovor Tni sbova tho duties of tho Socrot^ry for corraplineo as instructed by the Qhoirman/Mpncgipg
_ _ Committt ao
or those loid town in tho byelaws, Sumu
somG~of
uf tho import-'
ant duties of tho Secretary may bo as under:
1.

To call meetings of the Managing committoo, Grcnoral
body as
’ when instructed and to record resolut i on/min ut as th er oof.

2.

To remain present at the time of oilseeds procure­
ment in the society and to carry out its sampling
. and tosting/trading at tho socioty level and to
follow instructions of tho federation or its repre­
sentative (the> Procurement Assistant) present -.t
time of procurement.

3. To arrange gunny bags, twine for procurement of oil­

seeds and payment thereof from the federation.

4. To withdraw, rocover end spend money from society
funds or income according to the instructions of tho
M an aging Commit tee.
5. To take logoi action -s directed by the managing
commit too for recovery of 'ny duos and other disputes
if my.

: 106 i

6.

To rocoive ni act in all communications or instru­
ctions r-.civJ from fedorrtion/Cooporat ive Deportm­
ent with the knowl-lgo and decisions of the Managing
Commit to u.

7. To look ofter necessary correspondence pertaining to
routine working, •■dministration of the socioty and
to pro vide all the roquir-d information to members and
to correspond with prior apnroval of ths chairman.

8. To prepare fLl receipts, vouchers, Annual Reports,
Balance sheet aid other necessary statements of.the
Oilseed society and to furnish in time the required
information, records, clarifications etc. to tho
federation/Union, Cooperative Department, Baok and
Multipurpose co-operative society.
9. To write aid maintain financial books of account and
other records of the society regularly and produce
these records for supervision, audit and inspection.

To guide and control other employees,of the socioty
and'to supervise their work aid to fix up their
duties, responsibilities in consultation with the
Managing Committee.
11. To report the working, attondaice to duty aid per­
formance of society staff to the managing committee.

J2, To implement/heIp tho members in implementation of
production onchaic-raont’programmes,schemes and
instructions thereon recoivvd from federation.
13. To srraiga/orgnmsj extension activities as instru­
ct od by the federation or its reprosantativc like
meetings, film shows etc.
14. To do all other works !-s directed, by the Chairman
and the managing committGo,

Rosponsibilitics of society members.

Basically any cooperative soci-ty is by the mombers, of
the members and for tho members. It is thoroforo tho
members who can contribut o their best individually
and collectively for sucess or failure of tho socioty
apart from the overall man^cment, administration and
Tho General
G-onorsl Body
control of the man'iging commit too. The
comprising members of tho socioty has the Supreme

: 107 :
powers to run the society. It woull therefore, be
rolovunt to say that ". v amount of success of the
oilseois growers cooperative society will largely
'iupml an active and right participation aid coopera­
tion of its members. The society members should thus
consider themselves responsible for the lollowmg
points.
1.

Ths oilseeds growers, interested iio obtain and
continue their membership of an oilseeds society,
must know the essential conditions in the bye-laws
for society membership. Interested farmers may thus
obtain conies of the byelaws, road these bofore
seeking membership and make sure that they fulfil
all the conditions.

2.

They should obtain the duly signed money receipts
for the entrance fee and share money paid from
Secretary of the society and preserve these for
record. ' They should also obtain and preserve the
share certificates.

3.

Members should obtain pass books from the society
and see that their transactions with society are
properly entered into the passbooks. The pass book
should be kept properly by the members.

4.

Members interested in contesting election must know
whether they fulfill the necessary/conditions for
voting rights and contesting election to the manag­
ing committee of t/.e society.

5.

They shot’ld coo'oaratu in all matters particularly
relating to planning and implementation of pro curumont schedule. They should keep in mind the spirit
and principle of one for all and all for one ‘.or
prop er mwor king of the society.

6.

Members should have faith in th/ working of the
society staff and man aging commit tee particularly
in weighing, sampling and testing. They should
not interfere or pose any hurdlo into their work­
ing. However, in case of any doubt or dispute,
thv;y should have their doubts/disput as cl card
as per the recommended norms.

7.

Members should not supply the produce of non­
members or any traders as their own produce
to the society.

:

108 ;

8.

Mombars should not .ivort tnoir produce of oilsoods
uo the private trtuc or market yaads as this will
not bo in the in tcrest of tho society.

9.

Members should not, indulge into any default make
false statements, dishonour resolution or docosions
of managing committuo of the society.

ID,

^oifibcrs should follow instructions/guidolinos
circulated to them by the socloty/fodoration from
time to time regarding implementation of cultiva- tion practices, production onhancomont, domonstra~
tion programme' inccntivo schemes and any procure­
ment and inputs compaigns.

H.

Thw^ should -.setand their maximum cooperation gad
participation in the extension activities organised
by the society/federation .

12.

Members should attend group or mass mootings or
general mootings as rnd
"nd whan
when called and
aid respect,
regpecu and
cooperate in imploment at ion of decisions taken
at such mootings.

13.

Members though can have direct access to the chief
exo cut i vc/Board of the ftdoration, it will bo desi .
rable if they contact the society secretary,
Chairman or memo or s of managing committoe tho
officials/stoff coi orned in tho nearby office of
uhu federation jji oesv of any problem or dispute
related to society or payment etc. rather than
approaching them directly.

M.

They should have faith in tho policies of tho oil3 0 0'1 fid«iration.
fidieration
soul

, (>0

: 127 ;

PPJBLW3 RELATED TO PROCIPE'EMT 3
UUDING- AID transportation OF
0ILSEED3

The Cooperative Oilseeds Growers' Federation procures
oilseeds (groundnut, soyabean, mustard, rapeseed etc.)
offered by oilseeds growers through ’bho oilseeds growers
cooperative societies. The produce committed or offered
by grower members is weighed, tested at the society us well
as the pl-nt level of the federation and payment is deter­
mined on tho basis of quality and not only quantity. From
societies, the oilseeds ore transported to the storage '
godown/warohouse or processing unit of the federation by
hired or contractual transport. The weighing at the
village societies is done by hired labour in
presence of society secretary and procurement staff oi
tho federation. Variations," in weight and quality of
oilseeds, if not checked/minimi sod to tho satisfaction of
tho members, are likely to pose serious manegomant problems.
Those problems therefore, assume great importance, in oil­
seeds procurement. Some of those are described below.

1.

Weight difference at society and pl rob l-- vol

Thu oilseeds supplied by indiviiual members are weighed at
the society nr at mombors' house and the w-ight is recordod
in the purchase bill and purchase register maintained by
society. If the wuirfit of oilseeds received at the plant
or soi'own of fodorution i - reportod to be less than tho
weight recorded by society, the member will suffer a loss.
Thu difference in weight can occur duo to any of the follow­
ing reasons.
i

Duo to loss of moisture (and hence in weight) during
the period’ of storage at village society and transportation to the pi nt
_______

Unto a certain limit as fixed by tho Federation (say for
example upto 30 kg per truck carrying about 7 tonnes pi
groundnut) tho weight loss may be permissible. Any short­
age above the permissible limit will have to be borne by the
transporter. It will therefore be desirable that the tran­
sport contractor or-’his driver makes a random weight
chock before lifting the produce from socioties and signs
tho truck challan memo issued by the society.

. 12b ;

ii •

H<g to inaccurGt- •woi^ing ani error in rocoriing
.,'Gd^ht figures at ; e society.

Ths weight of produce may be wrong due to faulty
weighing by lebour, inaccurate weigh scale (the
weight of two pans may not be equal), sub-standard
weights or higher weigit figures are recorded in
respect of some members by the concerned staff. Ibis
Ih is
could be controlled through supervision of weiring
at the time of procurement by federation's procurement
staff/supervisor.

iii. Due to unfair n rapt ices by mho member-suppliers

If the produce after weighing has to be retained at
the house of th® farmer due to delay or failure in
arrival of transport vehicle or if it has to be
stored unprotected for want of proper and adequate
storage facilities with society, some farmers may fall
prey to the temptation of stealing soma groundnut from
the‘wei^ied bags and add inferior "quality produce or
stones or dust'or an y> other foreign matter'and even
water to nicks up the wci.dit. Instances of painting
the innerside oi gunny bags with mud or clay may also
come across. In such cases the member concerned should
be hold responsible, warned or punished as per the byc­
laws or decision of the federation. However, the pro­
curement and extension staff of federation must advise
the members not to indulge in such unfair practices.
iv.

D'lL_t£LJjischiJLof„t<r.sport-jr or driver
Shortage in weight due to pilferage and sale of produce
enroute may be caused by the transporter or driver. To
chock such' mis chief surprise checks maybe done onrouto
by staff of federation and the weight figures recorded
in the truck challun should bo tallied with th- weight
observed at plant and godown. Difference observed should
be re co id-d and informed to thro society or area office
concerned, Short'-go occuring enroute should bo ro cove­
red from the transport contractor or adjusted from
amount of transport bill.

2.

(hrunrjsjnt-'.tiv^ sampling

Though seed triers are -ivailablu for drawing samplos of
small sized gr ms or su.mls, generally samples are drawn
by hard by the concerned stuff. Despite all the c«rc
taken to draw a sample from all sides of a big heap (lot)
of oilsj.ds offered' by individual members, it is diffi­
cult to draw th? grains or pods from the bottom layers of

t 129 s

tho hoap. So mu of thu f.rmors may dump the inferior quality
produce" at the bottom of the hasp. Therefore it b/comos
difficult to t"ko u truly representative sample from big
heaps or from bags. Determination of quality (for example
shelling percuntugu or ut '.ra in case of groundnut) by
analysis of an unrepresentative sample of oilseeds may bmisleading (i.u. may be unduly high-r or lower than the
prescribed standard). In absence of a suitable trior for
rods, care should b- taken to drew sample from all sides,
Dodo
middle and bottom layers as far as possible.
3.

Diffb^nco m quality tasting at society and plant..

Groundnut supplied by members is tested for its quality .
(foreign matter or karada .nd shelling porconragc or
ut'-ira as pur the procedure laid down by federation) gt the
society. Soy^bo® is tilso tested for ctoterminstion of its
quality on tL tosis of its purity, forcigi matter and
moisture content. Howvor, the amount payable to society/
members is dot orminod ^t the pl nt/godown of the federation.
Inaccurate determination of shelling percontuge and refra­
ction in groundnut and grade of soyabean or must aid by we
staff of society or federation in the collection centre
end at the plant, is likely to infuse resentment and comp­
laints from societies and members. It should bo there tore,
ensured that quality testing is done very carefully,
properly and accurately by the concerned staff in the
absence of any quality testing machines at the village
level. The weigh scale should be properly cleaned and
chocked for dot Irmin ut ion of shelling percentage, a.tra­
ction and shelling percentage determination done at the
plant level should be supervised. The concerned senior
officer muy do random ro-tuating in addition to routine
testing.
4, Interference or pressurisation by influentialjnsmbqra

Existing pro cud urus for quality determination do not permit
any member farmers to do the testing themselves. Aoithor
are they allowed to participate in refraction, shelling
or grade determination. They may however, remain present
at the collection centre to see the testing being done by
the concerned so ci ety/pro curemen t staff. But some oi the
big or influential farmers may attempt to influence- or
pressurise the staff to determine higheriquality ci uheir
produce. Failing in their motive they will ten*.-, to inter­
fere into the working of society or staff and instigate
other members to raise undesirable disputes or contro­
versies. Such elements should be curbed through motiva­
tion and pursuation or by taking action against them as
pur the proscribed rules and regulations.

j



13 0 .

Onf-dr t actics of f ,n: ■.rs

Wing the course of qudity testing of oilseeds some of
the members may play mischief or unfair tricks to get
udv^tago of 'nighcr quality. For example - they may
one or dvo kornlls in the kernels extracted by deshe] ring the
weighed groundnut pels by'localving the tester to mcroeso
the weight of ktiruncls or they may ruplace shrive lied and
small kernels with good onus. They may hide extra weight
in empty gunny bags to blame the procurement st iff on the
pretext'of weighing extra quantities of their produce.
Some of tho farmers m&y indulge into those undesirable
tricks at the instance’of certain private oilseed tr-dors
oporating in the are?, as well. Such elements or tricks ii
noticed should bo strongly condemned and suitable action
can be taken against them by society.
6.

Supply of non-membsrs1 or traders’ oilseeds to society
by members—■

Unless the federation has a policy to procure only members'
oilseeds produce some pf the non-mombers also supply their
produce to societies. However, if only members’ oilseeds
production is to be procured as par federation's policy,
some of the non-members or even private traders or mischief
mongers try to push their produce to society witq the help
of Some unscrupulous members. 3uch cases, if observed need
be dealt with properly by the managing comimttco 01 wc
soci'ty. In case of doubt, the members' register indicat­
ing the area of production records can be referred to.

7.

Backing out from commitment to supply oilseeds to
society
tor
Due to temptation/ higher prices offered by private traders
some of tho members may tend to supply their produce to
traders. They will therefore back out from the commitment
made o.rlior for supply of produce to society. Such members
should ba pursuadod hot to divert their produce to other
channels for temporary temptations whatsoever. However,
persistant defaulters “may bo ivarncd and called for disci­
plinary action by time managing committee..

8.

Failure of the transport company or agent to provide
trucks as requisitioned.

fenorallv t,b^ trucks for transport of oilseed from colle­
ction centres to fed. ration’s pl^jt/godown are requisitioned
by the federation or its suthorisod represontativo keeping

; 131 S

in iow the daily procu; - ;rr^nt Gxpoctcd from SOCiOti^:5.
uu coitain occasions. fejvi brans port company
—r — , or tnc agent
On
i ■
fails to send the trucks to the rill-ff- collection
centres
Tho reasons of f'lluro
failure on
as promised or roquisitionod. The
tho part of transport company/agent coulo. bo soyurol
moro r-cmuncrativo
includ ing d 1 vcrsion of vo'iiilos
f 2. — to t
,'7", 7’ trade
,r
or pressing for higher rates than the precommitted rates
etc. Failure on their part will pose problem to^the
federation, for making alternative arrangement and risk
tha^procured
prone storage of thia
procured material at village level
leve.x.
in absence of proper storage facilities. The arrangements
arran^pments
transportation
should
betterr^ b^
be made on contractual rr
fo r trans
po rtatioh g>ho
uld bette
basis
and
events
of
failure
should
be penalised according
basis i../'
.
"
3
to agreed terms and conditions.


Lack of storage facilities^

Lack of storage facilities with tha sociotias
------ - c^usos a
serious problem daring the procurement season, If tha
oilseeds procured on any day cannot b^ transported. 130
tho processing unit of tho federation or dCb- to peak
arrivals, the societies have to leave the procured,
material at the farmers1 house or keep it wherever
nossiblo. Sometimes societies are loft witn no ^Iturnative than to scale down procurement or store the matcri’ i
just in the open which involves great risk. The produce
left at farmsrs1 door is exposed to pilfcrage5 admixture
or adultoration. Necessary arran^ments,therefore should,
bo made to storo the raw mat..rial at society level,

10. 1 mproper drying of erpducc

Weight losses during the course of exposed storage shd
transit- occur du.- to reduction in the moisture cony nt,
Such losses will arise dispute over occuracy of weigh­
ing tho produce. Alternatively, tho societies will
t-nd to weish a little more than the exact quantity
to bo weighed. To avoid this problem, the members have
to be advised on method of drying the produce after
harvest and advantagos of supplying the produce without
ex cos si vo moisture content,
11. Tempt-Aions of th? private tradersi

Procurement of oilseeds from th<.- oilseeds glowers thro­
ugh their own cooperative socioties at remunerative price
poses a serious sot back to spurious operations of the
pricata traders in the villsgos. They find it quite
uneconomic::! to operate. Howevur. some oi them try to
disrupt the working of societies by distracting some,
of th’- members by not only offering thorn a higher prico
(may bo only once) for th dr oilseeds but also arran-

: 132 :

gir to lift uv n uncl n produce from fnrm.T's door
witiriout d: ■-...rmiiung its quality or gr do, -s they cun
gffoed to s v - th.tr margin in several -siys.
Of, troy
would supply Phot produce to the society as a non-irrnibdr
or in the nase of a number with his connivance) to chall­
enge th- t-,sting done by socioty’s/fodu^rtion’s st 'ff«
They ''Iso try to convince- th.' farmers of ths dis adz mt ages
of testing or grading done t society. If such eases
arc obs-.-rv .d, the m rnb.rs should be advised to shun
t omnt at ions of the privet - t’r'uWs end their espluitativ'c designs. Advant.g<s of grading should also bo thro­
ughly uxplainud to them.
12.

Difficultios related to,,psympnt.to Mbergj

Unlike the milk payment system, th- mumbers cannot bo
paid cash (except under om.rgont circumstancas) by soci­
eties at the. time of oilmed procurement as the amount
involv d is consider .bly largo. Payment to members is
made by cheques to th ir individual bank iccounts.
many farmers cannot get the cheques encashed bn the- day
thuso are issued, it takes thum a couple of days to gob
the psym-.nt from bank. Whereas, in th., market yard er
from th? traders, they g-t c-sh payment on the spot.
To avoid delay in payment to farmer-members from th '
bank, the implUm-onting agency should make some arrange­
ment with the bank-rs (such as Immediate Bmk Payment') .
In some of th bank branches having limit.d daily esn
transaction facility, th b-uking authoriti ,s should
inc oasa the limit to r ' ot the r jquirummt of formers.,
13.

Error or ommission in th- ch-quosj

v„Titliqg the
Errors or oramissions m y crucp in while writing
required information in' th , cheques. Sometimes th re may
bo errors or overwriting
in the amount figures
of th? cheques issued by societies. The society 3.-?crutary should bo very c-.ruful in this aspect to avoid
inconvunioncu to former-members in getting payment
from the bank.
14.

Cornel unto by the v-st d interests.

Tho vested interests somotimos, complainjg'-.inst the,,
managing commit too or secrotary of th . OGGS and st ff
of federation through anonymous letters. Sometimes,
the members do so :t th - instance of traders to create
problems in looking of the society or
unst policy
decisions of the f-... duration. The concur nod officers
or staff should look into tho ganossis of such compl­
aints to analyse the genuine ones ?nd fictitious complaints to clarify th s metturs. However, if unnoticed,

; 133 s

tho ccmplsints m-»y 1 :i to unwenrtjd. complications.
15

D.-]?.y in supply of equipment other mat 'riol
LJ2uir.4^or„ProcurunenL„—
_____

Gonorally, oil th- equipment, stationery, registers
and other material such as gunny bs§s ate are supplied
to societies prior to start up of oilseed procurement.
Delay in making supply of those items, arrangement of
odaquoto amount of funis ■;nd completion of formoliti js
iiyith banks for payment to societies after announcing
th..- dot..; of prncurjmunt could result into low
pro cur omont.

INDIAN

DAIRY

CORPORATION

The Indian Dairy Corporation (iDC) was set up under company’s Act? on 1Jth
February 19/0-

It is a Government of India undertaking.

The immediate need

to set up IDC was to handle the commercial and financial transactions of

’India-TOP Project-618 ’ ? popularly known as ’Operation Flood’,

Thus it became

mainly a financing-cum-promotional agency of the Central Government.

Objectives

The main objectives of IDG ares
(1)

To promote dairy industry in the country.

(2)

To assist the State Government and other organizations including

cooperative societies interested in the promotion of dairy
industry to meet the requirements of milk and milk products.

(3)

To provide a package of technical inputs for enhancement of milk
production.

(4) Resettlement of city based cattle in the rural areas.
(5)

To assist in expanding the capacity and operations of existing
dairie'- in big cities and rural areas.

(6)

To assist in development of allied industry required to meet the
needs of dairy development.

(7)

To act as liaising agency of Government of India, with foreign

agencies and institutions.

Organizational Structure

Board

Chairman

Managing Director

Finance &
Accounts

Personnel &
Administra­
tion

Movement &
S torage

Projects

In order to have better coordination and smooth implementation of dairy
development Projects in India9 the Government of India decided to have
a common Board and Chairman of both IDC and NDDB, IDC carries out its

activities through head office at Baroda, and regional offices at Delhi 9
Calcutta, x.^mbay, Midras and Ban galore, The regional offices take care
of respective regions for implementation of Projects. The NDDB acts as
the Technical Consultant to IDC on all matters related to dairy
development.

Activities
IDC is mainly involved in the implementation of Operation Flood projects»

As such the main jobs of IDC are s

(1 )

Indenting the commodities (WFP gifted skim milk powder SMP) and
Butter Oil (BO) and indigenously manufactured SMP and Butter,

3
(2)

Receiving the commodities ,

(3) Quality control and storage of commodities

9

(4) Distribution of commodities as per requirement to different dairies ,
(5) Accounting,
(6) Ploughing back the funds so generated to the rural areas for dairy
development.

This way the IDC is helping the Indian Dairy Industry to grow without
taxing the Indian public and simultaneously improving the economy of

rural areas.

Progress

(1)

The IDC has built a special nutrition fund to cover the children upto

three years of age through subsidized distribution of double tonned

milk.

(2) A Jhpc

laminating Plant with a total outlay of Rs.4.78 crores is

being established at Itoda near Baroda.

(5)

Aseptic milk packaging stations are being set up , one each at
Jaipur, Bhopal, Surat and Guntur-

r
(4)

Foot and Mouth Disease Vaccine Plant at a total cost of Rs. 18.11 crores

is being established at Hyderabad.

This will manufacture 2.5 million

quadrivalent doses of vaccine Per year-

(5)

Animal Disease Diagnostic laboratory and Surveillance Unit at a
total cost of Rs.74*75 lakhs has been established with NDDB at Anand-

(6)

National Milk Grid has been established, connecting major milksheds
through broad gauge, meter gauge & road milk tankers.

are also fabricated in India now.

These tankers

4

(7) The XDC is also channelising the funds for the IDA funded projects
in Karnataka, Madhya Pradesh and Rajasthan.

(a) A pilot milk marketing project (Sugam Unit) has been established
in Baroda.
This unit is helping in the quality manufacture and popularisation
of traditional Indian milk products, like Shrikhand, Gulab Jamun?
Peda9 etc.

The experience gained at Sugam Unit will be utilized

in other urban areas tocbvelop traditional markets.

(9) The IDG has set up a Dairy ft&chinery NMnufacturing Company at
Vidyanagar, Anand.
likewise IDC is progressing in all spheres»

t&mcUopt s ta j 222 ix8j

1

/
/
I

r

:

lUTIOUL DAIRY DEVELOPMENT BOARD

At the time of inauguration of Cattle Feed Factory at Kanjari in

October 1%49 the late Shri lai Bahadur Shastri 9 the then Prime Minister
of India paid an unscheduled visit to Milk Producers’ Co-operative
Society9 Ajarpura and stayed there overnight.

Impressed by the socio­

economic changes brought by milk cooperatives in Kaira District9 Shri

Shastri desired to have a national level organisation to replicate

Anands in other parts of the country.

Thus the National Dairy

Development Board was set up under the aegis of the Ministry of
Agriculture and Irrigation? Government of India in September 1965?
under the societies Registration Act 1860 and the Bombay Public Trusts

Act 195O»

Its Board of Directors including Chairman arc nominated by

the President of India.

Secretary? NDDB is the Chief Executive of

the organisation who is supported by professionals to carry out Board’s
activities.

Objectives
1.

To promote projects of general public utility relating to dairy­
ing? animal husbandry ? food and agriculture ? fisheries and cold
storaL ,□

2.

To make available? on request? the information? skills and

technical services needed to increase production of milk and
dairy technical inputs and to speed up procurement 9 processing

and distribution of milk.

3-

To prepare initial feasibility studies and to design 9 plan and
start-up of operations.

4-

To provide manpower development services for dairy and allied projects
by organising technical programmes for training personnel.

5-

To help in the selection of equipment and undertake bulk
procurement services»

2

6.

To offer consultation services on dairy and allied operations in the
field of planning? control? including quality control? organisation

and marketing? back up? v/herevc-r necessary by research within the NDDB
and outside? in other organisations.

7-

To serve as international liaison to other National Dairy Boards and
International agencies and to facilitate the exchange of information

and personnel as also to assist other countries dairy development? and
8.

To conduct research in the field of dairying and animal husbandry

The package of services which the NDDB offers helps in the creation of
viable cooperative farmers organisations with facilities for procuring?

processing and marketing of milk and milk products.
The NDDB's above approach towards the modernisation of dairying has been
well accepted under India’s various Five Year Plans and the

aided projects in India and abroad.

Wxrld Bmk

The ’Operation Flood’ is the largest

dairy development project in the world? conceived? planned and implemented

by NDDB.
Structure

The National Dairy Development Board carries out its functions through its
seven functional divisions-- Planning? Engineering? Purchase? Manpower

Development? Applied Research & Development? Farmers’ Organisation and
Animal Hustandry and Computer Services.

These functional divisions are

supported by the Administration Division? Accounts Division? Audit Section?

Management and Economics Unit? and Sugam Unit.

The NDDB also has an Oil

Seeds & Vegetable Oil Wing for restructuring oilseeds and edible oil
production and marketing on the model of Operation Flood.

The NDDB carries out its activities through its head office at Anand

and its regional and cell offices at Delhi? Calcutta? Bangalore? Bombay?
Madras and Bhopal,

Projects in the Western States like Gujarat?

Nkharashtra and Goa are managed directly from NDDBfs Head Office.

3
Projects in Tamil Nadu , Kerala, Andhra Pradesh & Karnataka are managed
by Regional Office , Kings lore. Projects in Uttar Pradesh, Haryana,
Pun j ah •; Ra jas than 9 J&K and Himachal Pradesh are managed by the Regional

Office j Delhi.

.Projects in Bihar 9
Assam, Sikkim, West Bengal, Orissa
and states covered under W.Co are
__ _
managed by the Regional umut;,
Office
Calcutta o lairy and Vegetable Oilseed Projects in Madhya Pradesh are
managed by the Regional Office,9 Hiopal.

Activities
To achieve its objectives, the NDDB undertakes activities such as Project
Planning, Ifenpower Development 9 Procurement of equipments and supplies
9
Design Engineering, Product & Process development, and consultation
through its various functional divisions.
The HDDS has been involved in the execution of dairy development projects
In most cases, the projects have heen basically

all over the country.

integrated in nature consisting of milk plant, cattle feed plant, and

farmers ' organisation for rural milk procurement and marketing of

technical inputs.

The Engineering division is engaged, besides

diary projects, in other

Projects s ,h as the Goa meat complex,frozen storage. Foot and Mouth

Vaccine Plant, Paper laminating Plant, installation and maintenance of
liquid nitrogen plants.

In addition, it also undertakes design and

development of new or improved equipment for dairy and cattle feed plants
and encourages small industries to indigenously manufacture the equipment
required for dairy and cattle feed plants.

The designs developed by the

NDDB include the Bulk Vending system for milk, for which the NDDB was

awarded a silver shield for import substitution.

The bulk vending units

have been installed in Delhi, Madras, Calcutta, Boroda , Jaipur and many

other places in the country.
The Purchase division of the NDDB procures equipment, materials and

supplies to the various projects being handled by it and for its

client organisations.

The HDDS has formulated a bulk purchase scheme

4
which has not only helped, the dairies to standardise their requirement

of equipment and obtain them at lower costs ? but also helped the
manufacturers to streamline their production activities.

The NUM has

obtained important licences to import equipment not available loyally.
The NDDB offers consultancy services on dairy allied operations,

These
include the preparation of master plans in different area, feasibility

studies, market research studies and inplant studies of dairy and cattle

feed plants to recommend suitable strategies to improve their performance.
The NDDB undertakes market studies as per requirement.

These studies

provide the basis for the build up of milk processing and marketing

facilities in towns/cities.

The NDDB also conducts rural and urban

household survey to assess the impact of technical inputs services
rendered under Operation Flood.

The NDDB also helps the Indian Dairy

Corporation in monitoring the progress of "Operation Flood".

The

Computer Services division works on development of systems related to
feasibility studies, milk production, procurement and technical inputs,
least cost cattle feed formulation, etc.

The FO&uH division of the NDDB providies trained persons to assist in

field work involved in the setting up of Cooperative Farmers * Organi­

sations ir different milksheds for procurement and marketing of milk

and provision of Technical Inputs for milk production enhancement.

Such

teams have provided assistance in organising "Anand Pattern" Cooperatives

at Curgaon9 Rohtak, Alwar, Bikaner, Ludhiana9 Bhatinda9 Jalgaon, Erode 9

Beldanga, Darjeeling, Midnapur, Minipal, Patna, Meerut, Varanasi 9. Patiala9
Jullundur, Sangrur , Ropar, Sangamjagarlamudi , Bangalore, Mysore ? Tumkur 9
Hassan 9 Bhopalj Indore, Ujjain, Kolhapur and Gangtok.

A veterinary Diagnostic Laboratory and Disease Surveillance Unit has
started functioning on a pilot basis at Anand® The laboratory will also
serve as a training centre for technical manpower development for
monitoring the health of developing population of improved milch animals
under Operation Flood®

5
The NBDB s research and development activities also include product and
process development.

A well equipped laboratory and pilot plant has been

established for undertaking such work.

The laboratory has been set up

with a view to carry out analytical work on milk and milk products

includings standardization of^analytical methods.

The work on process

standardization and mechanization of indigenous dairy products is in
progress.

The NDDB is also working on distribution of Solar Energy and utilization
of Go tar gas energy for milk processing activities.

The manpower development division of NDDB has developed facilities for
imparting training to personnel at various levels of technical and

managerial cadre involved in implementation of integrated cooperative
dairy enterprise.

These training programmes are organised at four

places i.e. NDDB’s headquarters at Anand, Binsinh Institute of Training

at Mehsana and Sabarmati Ashram Gaushala Bidaj and Regional Demonstration

and Training Centres at Erode, Siliguri & Jullundur supported by A.I.
Training Centre at Surat.

For practical training macro centres are

established in the cooperative societies in the milkshed nearby all the

training centres.

For job training the facilities of district milk

producers cooperative unions in different States are utilised.

The

training facilities oi NDDB have also been availed of by many developing
countries.

TOBB also organises national and international workshops and seminars

for the benefit of the developing countrieso
Ch behalf of the Government of India 9 the ODB organised the XIX
International Dairy Congress in Delhi in December 1974. Tliis was the
first such congress to be hiId in a developing country.

Ch request from the Government of India and respective state govern­
ments , NDDB is managing the Mother Dairies at Delhi and Calcutta

and Feeder Bilancing Dairy at Patna.

6

The NDM took over the management of the Sabarme ti Ashram Qaushala from
its trustees in July 1973 for a period of 20 years-

The unit, is developed

as a model for maintenance and enhancement of productivity of .cattle and.,

agriculture farm, production of high yielding-cattle & crop seeds for
farmers ? adoption of new agricultural technology and modern technique

of animal husbandry, and dissemination of knowledge gained in these
l

fields.

£

X

Ch the suggestion of the Government of Indict,? to app^^the principles
i

of the Operation Flood in other■■ sectors“ of Agriculture^a project

entitled "Restructuring Edible .Oil-Oilseeks production and marketing"

was prepared.?.. The project Proposed., by the ifBBB envisaged'a National

Federation of Oilseed Growers 1 Cooperative Supported by the..primary
societies at village-level in maj-or-o.ilseed' productioir^ireas- of the

country-

The Project funds are being -generated through the sale of

2,50,000 MT of donated oil to be received by the NDDB-over a period

of seven years from the Cooperative league pf the IEA-^LUSA) and
Cooperative Union of Candad (c.U-C-)^.

The project is of 7 years

duration having an outlay of Rs.150 crores mfeant to cover 8 Project

districts in -6 States of the country.

‘ths end of project period

it is estima.ted that some 3?47jOOO oilaeed 'growers will, participate'
in the programme-

In order to train young executives in cooperative management and

integrated rural development, an Institute ' of Rural lianagement has
been set up at Anand with active promotion Jfcy the Government of India,

the Government of Gujarat, the NKDB and theflBCo

Thiaminstitute will

also provide consultancy services .to.’cooperatives and other agencies
engaged in economic and social development :of rural communi-ties , with
special reference to rural poor.

fe..-

t&md sopt s ta j s21 ix83

'

COL'IPOSITION OF WBILE T2AM

Wm^^oxAQP^LglJSSS
P^signatj.on

•K-

No.

District Manager/Distxict Officer

1

Area Officers/Production Officers

6

Procurement cum Technical Assistants

20

Accounts & Office Assistants

5

© Size.M aJfekUS.

Area Officer/Production Officer

1

Procurement cw. Technical Assistants

5-6

•K-

May be on temporary basis but not as a component of the Pol Staff
recruited by Federation.

@ Number of Production Cum Technical Assistants may be decided, on the
basis of number of villages covered in one society.

NATIONAL DAIRY DBVELOPTiSNT BOi_l:D’S PROJECT ON
OILSESDS G. dVERS' CCOFEIUTI’TES

Int.rofac.tion
Close on the heels of foodgrains, edible oilscconstitute the most

important source of calories in the Indian diet.

However,
I io we vex the per
capita consumption of fats and oils in the Indian diet is less tiian
half the assessed nutritional requirement. Even though, a sizeable
area (about 16 million hectares) is under oilseeds cultivation, the per

hectire production is extremely low and stagnant, resulting in
dependance on the import of ovex one million tonnes of edible oil,
every year, to meet the country’s growing demand. Gxovjn on marginal
lands, under rainfed conditions, without improved technology,
unsupported by proper and timely credit-input-extension facilities, iand.

faced with highly unstable product prices, oilseeds in India are
considered to be ’’orphan” crops. Oilseeds processing is highly

inefficient, with per unit production costs considerably higher than
the world average. It has also failed to tsp the high protein content
of oilseeds, whicn can help the farmer to obtain stable, remunerative
returns, and fox consumers a quality product.

2^cl-^ro.ynd
The major

°fS

.1 seeds grown in India axe groundnut, rapeseed and mustard,

sesamum, castor, linseed, sunflower, soybean etc.

Among the edible oilseeds 9

groundnut accounts for nearly 65 percent of the area, and nearl.y half of

the indigenous edible oil production.
which accounts for nearly

This is followed by rapeseed-mustard

per cent of the area.

In the post-green

revolution period, yields of rapeseed-mustard improved, but groundnut

yields have not experienced such improvement, except in irrigated areas

and in certain tracts, where improved farm practices are applied. During
the planning period, the overall groundnut production has increased

slightly above 2 per cent per year but progress has been uneven.

For

example, Saurashtra Region of Gujarat State recorded a rise of about 5
per cent, while in vast tracts of Jfeharashtxa, Karnataka and North Gujarat,
production ins declined, in recent years.
Highly unstable yields and highly fluctuating prices are the crux of the

groundnut problem.

The unstable trends in groundnut yields are due to

..J

G)Tnuf +

2
its total dependence on rainfall, which itself is erratic, spatially as well

as temporally.

This, in turn, makes the returns from groundnut, low, very

risky, and highly volatile.

Therefore, the farmer does not invest in much

needed inputs, such as improved seeds, seed treatment chemicals, rhizobium
culture, pesticides and fungicides, fertilizers etc', which are very necessary
to raise tne per hectare yield. To encourage him to invest in these inputs 9
it is necessary not only to make him aware of the benefits of such inputs,
but make all of tiieni available at the right time, and in appropriate
quantities, at a price which is within his reacn. The farmer also needs to
be assured of reasonable prices for . lis produce, This may be realised only

if the oilseed processing and marketing of oilseed products ? are done by the
farmers themselves.

Speculative marketing practices and .dgli profit margins characterise the
industry.

The traders and other intermediaries have a powerful hold in the

oilseeds and oil trade, both in the domestic, as well as export markets.
They nave contributed to the nigh degree of instability in the edible oil
market, tiirough Hoarding, illegal forward treding and speculation,

Tlie
speculative operations of the private trade lias deleterious effects on the

incentive of the farmers during the years of good production and on the
welfare of consumers in a period of shortages. Oilseeds in general, are

grovn as a rainfed crop, resulting in marked seasonality in arrival of the
CxOp in tne markets. The bulk of the crop is received in the ’’mandis1’
during October-November, when the traders, by collective action, depress

i

prices. The price decreases all the more if there is a bumper crop, as in
1975-76. Taey tend to avoid purchases till the farmers are ready to accept

prices dictated by them.

The farmers, unable to with-holdttheir produce,

as tney need casn immediately after narvest, are at the mercy of the hardened
traders. The reward for increasing production is often ruin.
The
intermedialies take double advantage of seasonality of oilseeds crops when
they artificially jack up prices, especially of edible oil, in the offseason period, and particularly more when the oncoming year is not
expected to be a normal one. Thus the marketing of oilseeds and their
products are subject to a high degree of exploitation, and is self
degenerating. These problems are too complex to be solved by ad-hoc

measures, and call for an integrated approach towards restructuring the
complete edible oil sector - oilseeds production, processing and marketing

I
I

il


so that growers' ore not robbed of their returns, and consumers are also
saved from exploitation.

..5

1=
I

5

IMJngndModgl
A similar situation though of lesser intensity, prevailed in the case of
milk about 50 years ago, when the exploitive nature of middlemen had forced

the milk producers to sell milk at ’ tlirow^away1 prices. The answer for
such a situation, was found, in developing a system which would enable the
milk producers to own and operate not only their processing facility, but
also the inputs delivery machinery, and the marketing of finished products.
The integrated approach had proved very successful in Kaira - AMDL - and,

in fact, the Operation Flood programme, aimed at establishing similar

farmers organisations in 18 districts in the country.

The programme, when

implemented, did face some preliminary problems, but then cai^h'-t up, so
much so that when the International Bank for Reconstruction and Development
and the World Ban!: came forward to finance dairy projects ir Karnataka 5
Rajasthan and Madliya Pradesh, tl.*.ey saw to it tnat similar farmers*
organisations were created in milksheds of these States. The result was
that 12 milk producers’ cooperative unions were established Jn these milk­
sheds. Based on the success of these 50 unions - the farmers’ owned body
- the other phase of dairy development - Operation Flood II - is being
implemented, to bring the total num >er of such district: unions to 155, and
cover some 10 million farmers. The success of these 50 unions have further

demonstrated that such problems can be best solved if the agency implementing it, is owned and operated by tne producers’ themselves (only then
can it be sensitive to Vicix needs) s who employ tne best professionals

to carry out their policies.

It lias also proved, that the responsibility

of such an organisation is not only to guarantee a remunerative market

for the rurally produced commodity (milk in this case), by its member
producers, but also guarantees a package of inputs for enhancing
production (milk) and ploughs back the profit for further development.

Again, in case of milk, since marketing of the product (especially milk
for city supplies) was largely controlled by middlemen/trader^/cattle
keepers, etc, xvho were capable, of using any means (fair or fool), the
organised dairy was not in a position to make 3 commanding share of the
market (thereby enabling them to pay a better price to the milk producers)
Market intervention was therefore required, whicn would enable these
dairies to supply milk to the consumers at reasonable prices. This was
the first time when food aid (skim milk powder and butter oil in this
case) was used to prime the pump of trie modern dairies in 4 metropolitan

4
cities (Calcutta, Bombay, Dellii and. Madias), and permit them to meet
the demand on a much larger scale,

The funds generated out of the sale
of this food (skim milk powder and butter oil) wqs used to build up
farmers’ organisations in the milksheds, which fed these metropolitan
cities.

At about the same time, the Government was viewing the situation of
the edible oil industry, very seriously.

Wide fluctuations in the

prices of edible oils and oil cakes produced repercussions in the dairy
sector (and thus, on the total availability of fats and oils in the

Indian diet ) - and had also resulted in stagnancy in the production of

oilseeds. The question was, could the experience gained in milk be
utilized for oils and oilseeds as well ? Although tne nature of
production and the commodity itself was Quite different from milk, other
situations, such as lack of bargaining power of the producers, the
organised actions of tne traders/middlemen, allowed the situation to
continue in their faszouii 2m integrated approach to tne entire situation
indicated t-iat the experience gained by the National Dairy Development
Board in organising milk producers and using the food aid, to prime the

pump, as
11 as generate funds fox further investmen ts in the programme
can very well be utilized to restructure the oilseeds/oil industry as
well.

At the request of the Government of India, the WB formulated a project
Restructuring of Oil and Oilseeds Production and Marketing” in

Octooer, 1977 again using food aid (edible oils) to generate funds and
use it for agricultural development in the oilseeds sector with th<i
following objectives?
(1.)

-G coordinate the modernisation of oilseeds production, processing

and marketing of vegetable oils and oilseeds and by-products, in
areas covered by the project.

I

• .5

5
(2)

To procure and market imported vegetable oils, in such a way, as

would contribute to the stabilisation of supplies at levels which
will be fair to consumer and growers.

(5)

To increase the opportunities for productive and remunerative
eefflployment in the selected major oilseeds growing areas.

(4)

To generate tne funds required for the establishment of a modernised
oilseeds and vegetable oil industry based on oilseed growers’
cooperatives, which will put the functions of oilseeds processing
and marketing into the producers own hands and*

(5)

To devise and implement a programme of investment and development
wnich will enable growers to increase their oilseeds production, and
their returns, wnile also increasing the efficiency of the processing
and marketing functions. through tae growers' own cooperatives.

It is expected, that oilseeds production in the areas covered by the project

would, increase by about 305^ by the end of the project period.

©^Scopg, of j^J£pJ.cci
The project spreads over a seven year period with a total outlay of around
Rs.2500 million, and lias two phases. (Earlier tn.c project was of Rs. 1500
million but looking at the current issue price of donated oil, it is

estimated that over Rs.2500 million would be generated).

The first phase

of the project is of tliree years, and will cover eight contiguous areas,
each having approximately 2,50,000 hectares under oilseed cultivation.

At

the end of Phase I, the progress made under the project will be reviewed,
and, may be extended to cover another twelve contiguous areas in major

oilseeds growing States. At the end of the project period, it is expected
that the project will cover 5,50,000 oilseeds growers organised in about

8,000 villages, located in the States of Gujarat, IViadhya Pradesh, Andlixa
Pradesh, Tamil Nadu, pfeiiiarashtxa and Orissa.
The requisite funds (around Rs. 2500) would be generated through the sale

of 295O9OOO tonnes of gifted edible oils, received during the seven ye.-.z
period. The funds generated from the sale of these commodities would be
invested on the following action items:

6

Invef •ment(Tentative)
(Rs, in million;
1.
p

Creation of Processing Facilities

90C.00

Operations Research & CIS Studies

20.00

5.

Market Research & Testing

25.00

4.

Oilseeds Growers’ Cooperative

5.
6.
7.

Organisation & Production Enhancement

450.00

Product and Process Development
Manpower Development
Project Imp 1omentotion

12.00
55.00

120.00
•i 560.00

Se cPM gp qc^JJ^/c

1.

Pcd-Qsation Sharo capital

85.00

2.

^rocvxemGHt support

11.00

3.

Operational losses

50.00

4.

fenagcrnont training

5.00

5.

Cooperative development

5.00

349.00

Tho project was approved by the Grvemnient of India ^n September , 1978.
It was launched in Gujarat, in
1979, in fedhya xiadesh in October,
1979, in AndJ'ira Pradesh in October, 1980,
1980 Tamil Nadu in January, 1981
and Orissa in May 1982. Maharashtra and Karnataka arc also going to be
covered shortly.
j no project

envisages the setting up of village level primary oilseeds

growers’ cooperative societies, affiliated to a State level cooperative
oilseeds growers’ federation. This farmers1 organisation will not only
ov.n and operate tne facilities for procurement, processing and marketing
of oilseeds and their products, but will also have ties for provision of
teennieal inputs for increased production of oilseeds (mainly through

rise in txio current per hectare yield in the project area). The project
envisages that the growers members, through their elected Boards of
producers will control and manage, with t-iic l elp of hired professionals,
all activities, rignt from production to processing, .so that the

producers’ interests are represented all along the Mcrarchy, All the
functions that the traders anc. other inter.iodic ries were pc-rfoz’- -Ing
will be taken over by the farmers own organisation, in the
tere to of

7

7
farmers themselves.

The bye-laws of the village level oilseeds growers
cooperative societies and the State level Federations have been drawn in

a manner so as to ensure participation of only genuine oilseeds growers
in the running of the cooperatives. One third of the members of the Board
retire each year by rotation, thereby providing an opportunity for entry
of new leadership through democratic process. In case a member does not

supply a specified minimum quantity of oilseeds to the village cooperative
or engages himself dixectlyoxor indirectly in trading activities, he loses
voting rigxits. Continuous and concurrent audit is yet anotJier feature
which would make such cooperatives more aware of the need to follow' strict
financial practices in their day to day operations.

The State level Cooperative Oilseeds Crowers’ Federations created as
implementing agencies under the project have two major components for
investment.
1.0

s

The funds allocated^. Rs.900.CO million - wbuld be spent for hiring existing
processing facilities, renovating them if necessary, and for creating

modern processing, storage, movemen ■ ••nd packing facilities.

The money

would be advanced to the project implementing agency - State level

Federations - on a $0 per cent grant and 70 per cent loan basis. It is
expected that by the seventh year of the project farmer owned oilseeds
processing units would handle some 1.5 million tonnes of oilseeds.
2.0 Growers^ Cooperative Organisation and Oilseeds
..Production. Ihliancement Pxogxa.nHne.g;. aUJt,

The funds allocated, Rs.450 million would, be made available to the

Cooperative Oilseeds Growers’ Federations to enable them undertake a
number of activities at the micro and macro levels of project operations.
2.1
The first step in the production enhancement process will be to organise
the oilseed growers into village level cooperative societies. A
promotional and educational effort will be undertaken by a ’’Iviobile Team”,
which normally consists of technicians, cooperative specialists, and

.6

8

agricultural extension workers etc.

Generally, a mobile team will be

required t& look after 2Q villages=

The mobile team ill hold meetings
with villagers, exhibiting film showing how milk producers liavo been able
to form and operate their 'Anand Pattern' Cooperatives. Eventually,
two or more receptive farmers will be selected to participate in NPBB's

Parmers* Induction Programme (which lias already trained over 15,000
farmers in tne last decade). These farmers will be brought to Anand,
or any other similar training centre for about 2-5 days - to sec for

themselves how 'Anand Pattern’ Cooperative functions, and what benefits
they provide to their members.
Normally, a tillage level Cooperative Oilseeds Growers’ Society will

cover an area of approximately 400 hectares.

Initially, societies will

be assisted by the NDW Mobile Team in organising its business, and in
their record keeping system (v/hich. consists of trading, financial and
operational activities). A local resident is hired by the society to be
its paxd manager (called Secretary), The project provides an initial two

year subsidy for expenses on salaries of the Secretary, his helper, and
rent of office building, to help it become viable, relatively quickly.
The village level oilseeds growers cooperative society undertakes
procurement of oilseeds from grower members based on quality and also
provides tV\< much needed infrastru. ture enabling the ilseeds growers
federation implement production enhancement programme.

2.2

An effort will be he de to mobilise the resources already available from
various agencies, especially the Government.

The purpose is to avoid

duplication in manpower and financial investments. In fact, most of the
inputs available are not properly utilised by the farmers for various
reasons. The aim is, therefore, to assure maximum utilisation of the
available resources, laying a strong foundation fox future utilisation
of tae inputs envisaged in tne project, at the optimum level. The
oilseed growers cooperatives will arrange supply of improved seed,

rhizobium culture, fungicides for seed treatment, fertilizer, insecticides,
and other inputs on cash payment basis or in kind.

Where such facilities

do not exist, mobile team members will assist oilseed growers to obtsin
finance from other sources for input purchases.

9

9
The technical input programme of the ilseeds federation involves a three
pronged, action involving oilseeds growers, extension and other professional

stafi nired by tne growers own organisation, and links with existing and on
going rcsearcn institutions at the State and National level.
5 Sgmonstration Plots

In each village or in each cooperative society s one or more village
cooperative representative will be selected to serve as a demonstration oilseed

grower. Two demonstraticn plots of about one acre each, will be establislicd
in each village, to demonstrate the advantages of improved oilseed cultivation

techniques.

Tne plots will be periodically supervised and inspected by

the agricultural specialists of the mobile team. During the growing season,
field-day’ demonstration programmes will be organised at the demonstration

plots to introduce cooperative members to innovative practices and test
results. The grower demonstrator will be given a subsidy (in various forms)
upto, approximately, 25 per cent of his total cost of production or Hs.500/-

per acre.

The produce from tixesc demonstration plots, if meeting the

prescribed field standard, vill be procured as seed material on an incentive
price of, say, 5-10 per cent over the market price. After cleaning, grading

and testing for physical purity and germination, these seeds will be
supplied to tne members of the society.
2 .4

(a)

Subsiiji6s and .
Lacn organised cooperative society^ during its first two years of

operation, will be provided an organisational and managerial subsidy,
equivalent to Ps^5,000/ year. This is to assist the society in hiring a
Manager(Secretary), and in meeting start-up costs. Each cooperative also
receives equipment e.g.9 large hanging bar scale for weighing the oilseed
;ta’|
produce, a moisture meter, a small balance - for testing produce to Calcutta

calculate shelling percentage, refraction, and impurity discounts.

This

protisioniW'hecn. made mainly to help ensure the viability of village level
cooperatives in their initial years of operations, when the oilseeds procured
through these societies may not be adequate to generate incomes earned in the
form of society commission from the federation to meet their running costs.
Grants to develop local storage facilities are also given to the
cooperatives.

.•10

/

10

When the societies axe organised and before procurement of oilseeds starts,
in tne society, a set of weighing equipment, generally consisting or 100

leg beam scale, with weights, a small pan balance of 200 gms, with a set of
weights and sieves of required size, as may be necessary, are provided by
state federations. After the federations obtain necessary acknov/ledgements
fxom societies, along with the fund utilisation certificates from the
federations, certified by a firm of chartered accountants, the bills received

at OVOVZ are forxvarded to the Accounts division of NDDB, authorising the
release of funds to the federation.

The fund utilisation certificate

proforma is prescribed by OVOV/. Under this grant, a provision of Rs.5>000
eacii, for tne growers co-operatives, is made under the project.
c) .

A provision of Rs.5?000 per society is made in tlie project for creating

small scale storage facility at the village level.

The federations will

prepare, on an annual basis, a plan for building of storage facilities at
the societies, witn details of capacity, schedule of completion, list of
materials required, etc.

Those plans will be submitted to OVOW for

appraisal anc’ approval, OVOV/ will then scrutinise the proposals and advise
NDDB Accounts division for release of funds to Ibhe federations.
On

completion of work, the federations will send to OVOW, fund utilisation
as certified by a firm of cl'iartoxed accountants, in the
certificates,9 as
prescribedi/proforma, along with a certificate of work completion by a
teclmically qualified person.

5 Bsj£ic<t_garms

In ecca contiguous area of 2,50,000 lectures, where project implementation
.All be initiated, the project authority will seek to acquire a farm of
5OO-4OO hectares (to be donated by the State Government) to serve the
purpose of a District Farm. In the absence of such large farms, the
project envisages to have a cluster of smaller farms, belonging to rural
community councils (Pancbnyats), State Department of Agriculture,

Agricultural High Schools, etc. to be operated on a joint management
basis, muse ft^rms are expected not only to demonstrate improved
cultivation methods and ways of dealing witn local cultivation problems,

but also serve as a training base for farmers and extension workers

..11

11

serving on the mobile teams and. would, play an important role in
multiplication of foundation seeds.

^•6

Area Agronomic Centres

It is planned to establish one Area Agronomic Centre during Pliase-I
of the project and one to two additional centres during the Jrd-Tth year

of the project.
The Area Agronomic Centres will serve several purposes.

First, they will

help in applied production research by conducting local trials of oilseeds
technology developed at regional and possibly international agronomic

research stations.

Second, they will produce foundation seeds for

multiplication by the District Farms.

Third, they will disseminate

recent research findings in oilseeds to project participants,

Land

for these centres are tobe provided by the State Governments,

Each centre

is proposed to riave a total land area of about 500 hectares.
In the project? provision lias also been made to meet expenditure likely

to be incurred on Operations Research Studies, ?4arket Research and Testing,
Product end Process Development ot -

The manpower de e.lopment component

of the project provides funds to meet training costs of farmers, staff

employed by the fedoratif?ns and also for setting up centralised training

facilities.

fo •: vo: aks: ppb 21OCh 1 SUB. 8 5

. I ^7

transactions

of Primary Oilseed Growers Cooperative

. .

Society

Prepare the cash book? general
-.L. tiral balance ? trading account
Profit and loss account and balance sheet on the basis of following
transactions of Bhadrod Oilseeds Growers Cooperative Society Ltd.

Date

j

Transactions

1.1.83

2.1.83

1.

Received share capital and entrance fee from 55 oilseed
grower members? amount of share and entrance fee are Rs.50/and Rs.1/- each respectively. (Receipt No. 1-55 issued to
members).

2.

Weighing equipments worth of Rs.2000/— received from
’GROPED’ as an equipment grant (voucher N0.1).

5-

Stationary purchased worth of Rs.200/- from Bharat
Stationary Mart.

1.

Furniture purchased worth of Rs.800/- from Godrej Company
on credit (Bill Mo.254).

2.

Deposited R3.28O5/- in current account opened in Branch of
Btiavnagar District Cooperative Bank (voucher Mo. 4).

5» .Received a- sum of Rs.2000/—-as an advance from the Chairman>
Shri Pithabhai Hirabhai (Receipt No. 56).
4-

3.1.83

Travelling allowance paid to secretary for visiting 'GRCFED*
area office > IvUhuva in connection with settlement of
groundnut deal (voucher No. 5).

Purchased groundnut pr>ds from the fo 1 low i ng me mbers.
Maine
1.

2.
54.

Tulsi Go pal
Ranchhod Hira
Kanji Jadav
Ramji laxman

Mo. of
bags

Met'
weight

Shelling

100
200
50
150

2900.00;
5800.00
1450.00
345O.OO
73600.00

71.0
69.0
75.O
68.0

w

Vo

Amount

12963.00
18560.00
6597.53
14835.00
52955-50

On the
VU
uiie same aay
day we
the aabove
cove mentioned quantity of groundnut pods was
sold to 'GROPED* at a rate of Rs.91.00, per 20 kg as base price and
same price given
to members
given.to
members.
’GROPED’ has fixed to providerservice /1^
charges and fe.O.50 per bag as a labour charges to the OGCS.

(Groundnut was despatched to ’GROPED’ in two trucks, There ’
was shortage of 25 kgs in the first truck and excess of 29
kgs in the second truck.)

2

4.1.85 &)Soybean purchased from the following members.

Name
'Tulsi Ga nda .
Bhayji Shiva

1

2

Net .weight (Kg)

Amount (Ks. )
2100.00
4200.00

700
1400

10
20

~65OO7OO

(b> Mustard purchased from the following members.
1.
2.

Vira Manda
Raghunath Anand

100
50

21000.00
10500,00

6000
5OOO

yf^OO.OO

5-1-85

Above mentioned quantity of Soybean and Mustard sold at the same
price as fixed by ’GROPED*. Federation fixed 1^ service charges
and Rs.l/-- per bag as labour charges? for the society-

6.1.85

Rs.566.00 paid to Shri Ghanman Pohmal as labour charges @Rs.0.70
per big of groundnut and 0 20 per bag of soybean and mustard-

7.1.85

Groundnut purchased under ’J.hangad ’ system from the following
: members and supplied to ’GRCFED*

No. of
bags

8.1.85

10,1.85

5OOO
6000

Shelling %
68.0
71.0

1.
2.

Earji Chabu
Ram Natha

1.

Rs.5/- paid, towards the expense of framing the society’s
registration certificate.
Rs.20/~ and Rs.15/- paid towards licence fee of fertilizer and
groundnut oil sale respectively-

2.
9-1-85

100
200

Net v/eight (kg)

1.

Deposited RS.5OO/- in the post office for purchase of National
Saving Certificate vide cheque No.78580 of Bhavnagar District
Cooperative Bank.

2.

Received a cheque of Rs.52955-50 from ’GROPED* for the groundnut
sold on 5.1.85 and the cheque deposited to Bhavnagar District
Cooperative Bink, (cheque
No. 783802 to 7858O5) were issued to
the members for payment of their groundnut sold to POGCS on
5.1.85.

1.

Purchased 200 bags of DAP fertilizer from ’GROPED ’ on credit
(Rate Rs.284.45 per bag, transportation charges paid by GSFC).
labour charges @ Rs.0.20 per bag paid by the society-

2.

issued cheque (No. 7858O6) of Rs.525/- towards entrance fee
and one share of ’GROPED* for becoming member.

i

3
11.1.83

12.1O83

13.1.83

15.1.83

1.

The cheque received worth Rs.400/~ towards service charge from
’GROPED1 and deposited in bank-

2.

Received cheque worth Rs.430/- from ’GROPED’ towards labour
charges and deposited in the bank.

3-

Received Rs.46400/- as advance from the members towards the
supply of ’KIRAN’ groundnut oil.

4-

Sent a draft of Rs.46400/- to ’GROPED’ and paid Rs.5/- to the
Bank for its commission.

1.

Received a cheque, value of FS.378OO/- from ’GROPED* against the
soybean and mustard sold on 5*1 °83 aud the same amount was
distributed to respective members.

2.

Rs.10.00 paid to secretary towards his travelling expenses to
sales tax adviser in connection with sales tax certificate.

1.

DAP fertilizer 10 bags sold @ Rs.187*45 (since this fertilizer
was sold to the members, a cash discount of Rs.l/- per bag
was given and remaining amount was deposited in the B.D.C. Bank.

2.

Received 200 tins; of ’KZRAN’ groundnut oil from ‘GROPED’
Rs.230/- per tin. Rs.200/- paid towards transport charges and
Rs.20/- to Shri Pohmal towards labour charges. These all tins
v^ere sold to members who deposited advance on 11.1.83 at the
rate of Rs.232/- per tin. A sum of Rs.20/- paid towards travelling
expenses.

1

Sesamum (Til) purchased from following members
1.
2.

Devashi Vira
Kala G-anda

15°
100

Net weight

Amount (Rs. )

9000
6000

58,500.00
39,000.00
97,500.00

The above quantity sold to ’GRCFed’.
’GRCFED’ fixed the
commission @ 1% and labour charges @Rs.l/- per bag to be.
paid to society.
16.1.83

Groundnut purchased from the following members.
Name
No. of
Net
Shelling
bags
v/e ight (kg )
%
Dhira Vira
1
200
6140
72.0
2Chaku Kai a
100
3000
71.0
Phula Vitthal
100
3000
3
71.0
Jagmal Vithai
200
4
72.0
614O
Tri Kam Kuraji
60
1200
5
67.0
6
Migan Bharmal
1200
67.0,
40
7
Chhagan Rrabhu
200
6140
68.0'

Amount (cis. )
27691.40
I353O.OO
I353O.OO
2769O.4O
_ 5100.00
’5100.00
26402.00
121683.80

The above quantity of groundnutsold to the GROPED
’GROPED’ with Rs.O.50
cis.O.5O
per bag as labour charges and 1% commission on the sold quantity.

4
17«>1’85

18.1085

19o1-85

20.1.85

1 o

Received cheque for the sum of Rso22 ^00/- from TGRCFEi)’ towards
the ’Jhangad Advance* for the groundnut supplied on 7*1 •83°

2c

Issued two cheques to Shri Harji Chaku and Shri Ramu Natha for
the sum of Rs.22 ,500/- and Rs.75^/“ respectively/against the
groundnut supplied in ’Jhangad’ on 7’1/83°
/as advance



Cheque value Rs.10,000/- recd. from Shri Ratilal Motilal Seth
as a donation towards the construction of society building
and deposited in B.D.C. Bank.

1 o

Received Rs.97?5®0/“ and ”3.250/“ towards the sesamum supplied
on 15’1.83 and labour charges respectively* Cheque was deposited
in B.D.C. Ba.nko

2.

Rs.£50/- paid in cash for labour charges (sesamum).

1.

100 bags of DAP fertilizer was sold to non-members @Rs. 187«45/
bag in cash and money was deposited in the B.D.C. Bank.

2-

Rs.97)5^8/t paid to the members supplied .sesamum on 15.1.85.

1.

Received membership application from 15 groundnut growers'and
membership was granted with the collection of Rs.50/- and Rs.l/as share capital and entrance fee respectively from each.

2.

Received cheque from ’GROPED’ towards the groundnut sold on
16.1.85 (Rs.i ,21 ,685.80).,

3-

Received cheque for the sum of 3s.45O/“ from ’GROPED’ towards
labour charges. Cheque deposited in B.D.C. Bank.

4. : J&id fe.450/- in cash to Ran l/Ml towards labour charges.
21.1.85

Following members supplied groundnut in pooling.
.... Name
1.
2.

3-

Doftsang
Nabji Kenji
Kana IVkna

No. of
bags
• 100
200
50

Net
weight

Shelling %

5OOO
6000
1500

67.0
72.0
71.0

Above quantity of groundnut despatched to !GR0FED’ for pooling.

22.1.85

25.1.85

1).

Ufawn a draft for Rs.e.56,000/- in the favour? of ’GROPED* from
Bank towards the payment of balance of fertilizer purchased.
4 sum of Rs.5.60/- was deducted by the bank as a commission
for the draft.

2)

Rs.15/- Paid in cash for the subscription of ’Sahkar * magazine.

Shri Ramu Natha who supplied groundnut (200 bags) on 7•1•85 in
’Jhangad’ sold his produce to society at the rate of Rs.91 /- (base
rate)’ The total amount payable was Rs.27s3^8/-. On the advance
already taken (Rs. 15 ,000/-) an interest @ 15% Bor the period of
month (^9-3-’75) was deducted by the ’GROPED’ and. cheque for the
balance amount Rs. 12 ,266.25 was given-which in turn was paid to
the member.

5

24-1.85

tea
Rs.15/- paid in cash for the/served during Managing Committee meeting.

25.1.85

Issued cheque for the sum of Rs.200/- in the form of Hiarat Stationary
I ’-rt against the stations y supplied earlier-

27.1.85

1.

Purchased 10,000 kgs. of groundnut seed .
variety
JL-24 (on credit) from GRCFED @Rs.5.5O per kilogram.

2.

Distributed sweets to children on3the occasion of Republic
lay (expense Rs.25/-).

1.

5OOO kgs of groundnut seed sold to the members (JL-24) @Rs.6/per kilogram (Total amount Rs.50,000/-) and 1000 kgs of groundnut
seed sold to non-members @ Rs.6.5° per kilogram and the money
was deposited in B.B.C. Bank.

2.

Draft drawn in the favour of ’OROPEL’ for a sum of Rs.55,000.00
against the seed (JL-24) purchased on 27.1.855. Rs.5.59 paid to the
bank as commission«

5-

Received cheque for sum given below as advance for the groundnut
supplied in pooling- on 21.1.85.
21o1.85

28.1.85

Name

1.
2.

3-

Lansang Virsang
Nanji Kanji
Kana Mana

Amount (Rs. )
10,500.00
21 ,000.00
5,250.00
““56,750.00

The money was paid to the respective members as given above.
29.1.85

5O.I.85

31.1.83

1.

Received cheque for Rs.25,428/- from PROPEL* rebate @ Rs.0.20
per kilogram for the groundnut (1,17,14° kgs) supplied during
1981-82 and deposited in B.D.C. Bank.

2.

Cheques issued for the 25% of the total money received as
rebate and for the balance amount (75% or Rs.17,500) shares
issued to the members. A cheque of Rs.17,500 issued to ’GRQFEB’
for the purchase of additional shares.

1.

Sold 5OOO kg and 1000 kg of groundnut seed to members and non­
members at the rate of Rs.6/- and Rs.6.50 per kilogram respectively
and money deposited in bank.

2.

Paid Rs.50/- for electricity bill.

1.

Following amouit.was paid (in cash) for the expenses incurred
in the month of January 1982.

Office rent
Salary (Secretary)
(Clerk)
Sweeper/attendent
Newspaper (Phoolchap)

p£rcgraUve acts” b00k
2.

Rs. 100/Rs.300/Rs.150/Rs. 30/Rs. 19.10
Rs.15/-

Received 4% sales tax from GROPED on the Groundnut, Mustard,
Soybean and sesamum sold during January 1982 and same amount
was deposited with Sales tax office.

7

Transactions

of Primary Oilseed Growers Cooperative
Society

Prepare the cash book ? general ledger? tiral balance? ■trading

account?
Profit and loss account and balance sheet on the basis of following
transactions of Bhadrod Oilseeds
--------- Growers
---------- ,j Cooperative Society Ltd.

Date

Transactions

1.1.85

2.1.85

5.1.85

1.

Received share capital and entrance fee from 55 oilseed
grower members s amount of
_f share and entrance fee are Rs.5O/and Rs.l/- each respectively,
\ • (Receipt No. I-55 issued to
members ).

2.

Weighing equipments worth of Rs.2000/— received from
’GROPED1 as an equipment grant (voucher No.l).

5-

Stationary purchased worth of Rs.200/- from Bharat
Stationary Lfert.

1.

Furniture purchased worth of Rs.800/- from Godrej Company
on credit (Bill No.254).

2.

Deposited R3.28O5/- in current account opened in Branch of
Bhavnagar District Cooperative Bank (Voucher No. 4).

3-

Received a sum of Rs.2000/- as an advance from the Chairman?
Shri Pithabhai Hirabhai (Receipt No. 56).

4-

Travelling allowance paid to secretary for visiting 'GRCFED*
area office? Mahuva in connection with settlement of
groundnut deal (Voucher No. 5).

Purchased groundnut pods from the following members.
Name
No. of
Net
Shelling
bags
weight
%
Amount

1.
2.

34.

Tulsi Gopal
Hanchhod Hira
Kanji Jadav
Ramji I^xman

100
200
50
150

2900.00
5800.00
1450.00
545O.OO

500

75600.00

71.0
69-0
75.0
680O

12965.00
1856O.OO
6597.5^
I4855.OO

52955.50

On the same day the above mentioned quantity of groundnut pods was
soid to. 'GHQFED' at a rate of Rs.91.00 per 20 kg as base price and
same Price given to members
’GRQFED1 has fixed to provide/service
charges and R3.O.5O per bag as a labour charges to the OGGS.
o

(Groundnut was despatched to ’GRQFED* in two trucks. There
was shortage of 25 kgs in the first truck and excess of 29
kgs in the second truck.)

I

I

2

4.1.83

)Soybean purchased from the following members

1.
2.

Name

Bags

Tulsi Gan da
Bhavji Shiva

10
20

Net weight (Kg)

Amount (Rs. )
2100.00
4200.00

700
1400

63OO.OO
(b) Mustard purchased from the following members.

1.
2.

Vira Manda
Raghunath Anand

100
100
$050

21000.00

6000
5OOO

IO5OO0OO

3T5OO.OO

5.1.83

Above mentioned quantity of Soybean and Mustard sold at the same
price as fixed by ’GROPED’. Federation fixed 1% service charges
and Rs.l/- per bag as labour charges, for the society.

601.85

Rs.566.00 paid to Shri Ghanman Pohmal as labour charges ©RsaCLyO
per lag of groundnut and 0 20 per bag of soybean and mustard

7.1.85

Groundnut purchased under ’J.hangad ’ system from the following
members and supplied to ’GROPED’.

8.1O83

9.1-85

10,1.83

i

Name

No. of
bags

1.
2.

Harji Chabu
Ram Nat ha

100
200

1.

Rs.5/- paid towards the expense of framing the society’s
registration certificate.

2.

Rs.20/- and Rs.15/- Paid towards licence fee of fertilizer and
groundnut oil sale respectively.

1

Deposited RS.5OO/- in the post office for purchase of National
Saving Certificate vide cheque N0.7858O of Bhavnagar District
Cooperative Bink.

2.

Received a cheque of Rs.$2955*50 from 'GROPED* for the groundnut
sold on 3.1.83 and the cheque deposited to Bhavnagar District
Cooperative Bink, (cheque
No. 7838O2 to 7838O5) were issued to
the members for payment of their groundnut sold to PCGCS on
5.1.83.

1.

Purchased 200 bags of DAP fertilizer from ’GROPED’ on credit
(Rate Rs.284.45 per bag, transportation charges paid by GSFC).
labour charges @ Rs.0.20 per bag paid by the society.

2.

Issued cheque (No. 7838O6) of Rs.525/- towards entrance fee
and one share of ’GROPED’ for becoming member.

Net weight (kg)

3OOO
6000

Shelling %
68.0
71.0

3
11.1.85

1.

lhe cheque received worth Rs.400/- towards service charge from
’GROPED1 and deposited in bank.

Received cheque worth Rs.45O/”' from ’GROPED’ towards labour
charges and deposited in the bank.

12.1.85

15.1-85

15.1.85

3-

Received Rs.46400/- as advance from the members towards the
supply of ’KIRAN’ groundnut oil.

4-

Sent a draft of Rs.46400/- to ’GROPED’ and paid 'is.5/- to the
Bank for its commissiono

1.

Received a cheque, value of Rs.57800/- from ‘GROPED’ against the
soybean and mustard sold on 5.1.85 and the same amount was
distributed to respective members.

2.

Rs. 10.00 paid to secretary towards his travelling expenses to
sales tax adviser in connection with sales tax certificate.

1.

DAP fertilizer 10 bags sold @Rs.187.45 (since this fertilizer
was sold to the members, a cash discount of Rs.l/- per bag
was given and remaining amount was deposited in the B.D.C. Bank

2.

tins of ’KIRAN’ groundnut oil from ‘GROPED’ @
Rs.250/” —
Per tin.
—’ IRs._200/- paid towards transport charges and
Rs.20/- to.Shri Pohmal towards labour charges. These all tins
V
- n .
v^re sold to members who deposited advance on 11.1.85 at the
rate of Rs.252/- per tin. A sum of Rs.20/- paid towards travelling
expenses.

1.

Sesamum (Til) purchased from following members
1.
2.

Name

Ba-g

Net weight

Amount (Rs. )

Devashi Vira
Kala Ganda

150
100

9000
6000

58,500.00
59?000.00

97,500.00

The above quantity sold to !GRCFe:D'-.
1’GRCFED’ fixed the
commission @1% and labour charges @Rs.l/~
. • Per bag to be.
paid to society.
16.1.85

Groundnut purchased from the following members.

Name
1.
2.
34.
56.
7.

Dhira Vira
Chaku Kaia
Phula Vitthal
Jagmal Vithal
Tri Kam Kuraji
Ma-gan Bharmal
Chhagan Rrabhu

No. of
bags
200
100
100
2 00
60
40
200

Net
Shelling
weight(kg) __ 1
614O
72.0
5000
71'.0
5000
71.0
6140
72.0
1200
67.0
1200
67.0
6140
68.0

Amount (fts. )
27691.40
I555O.OO
I555O.OO
27690.40
.5100.00
’5100.00
26402.00

121685.80

The above quantity of groundnutsold to the ‘‘GROPED
GRQFEB’’ with
with Rs.O.50
Rs.O.5O
per bag as labour charges and 1% commission on the sold quantity.

4
17-1-85

18.1.85

19-1-85

20.1.85

21.1.85

1

Received cheque for the sum of Rs.22 >500/- from ’GROPED* towards
the ’Jhangad Advance* for ,the groundnut supplied on 7*1•83°

2.

Issued two cheques to 3hri Harji Chaku and Shri Ramu Natha for
the sum of Rs.22,500/- and Rs.7500/- respectively/against the
groundnut supplied in ’Jhangad’ on 7.1°85O
/as advance



Cheque value Rs.10,000/- recd. from Shri Ratilal Motilal Seth
as a donation towards the construction of society building
and deposited in B.D.C. Bink.

1.

Received Rs.97 9500/- and R3.25O/- towards the sesamum supplied
on 15.1.85 and labour charges respectively. Cheque was deposited
in B.D.C. Bank.

2.

^•250/“ paid in cash for labour charges(sesamum).

1.

100 bags of DAP fertilizer was sold to non-members @ Rs.187.45/
bag in cash and money was deposited in the B.D.Co Bink.

2.

Rs.97,500/- paid to the members supplied sesamum on 15.1.85.

1.

Received membership application from 15 groundnut growers and
membership was granted with the collection of Rs.50/- and Rs.l/as share'capital and entrance fee respectively from each.

2.

Received.cheque from ’GROPED’ towards the groundnut sold on
16.1.85 (Rs. 1 ,21 9685.80).'

3-

Received cheque for the sum of Rs.45^/“ from ’GROPED’ towards
labour charges. Cheque deposited in B.D.C. Bank.

4-

!&id cfe.450/- in cash to Ran Jfe.1 towards labour charges.

Fallowing members supplied groundnut in pooling.

1.
2.
3-

Name

No. of
bags

Net
weight

Shelling %

Donsang
Nanai Kanji
Kana JVkna

100
200
50

5OOO
6000
1500

67.0
72.0
71.0

Above quantity of groundnut despatched to JGROFED’ for pooling.

22.1.85

l). Drawn a draft for Rs.569000/- in the favour of ’GROPED* from
Bank towards, the'payment, of balance of fertilizer purchased.
A sum of Rs.5.60/- -was deducted by .the bank as a commission
for the draft..

2 ) Rs.15/- Paid in cash for the subscription of 'Sahkar * magazine

25.1.85

Shri Ramu Natha who supplied groundnut (200 bags) on 7•1•85 in
’Jhangad* sold his produce to society at the rate of Rs4 9l/“ (base
rate). The total amount payable was Rs.27936O/-. On the advance
already taken (Rs. 15 ,000/-) an interest @ 15% Bor ihe period of -gmonth. (Rs.95.75) was deducted by the ’GROPED’ and cheque for the
balance amount Rs.129266.25 was given which in turn was paid to
the member.

5
24.1.85

tea
Rs.15/- paid in cash for the/served during Managing Committee meeting.

25.1.83

Issued cheque for the sum of Rs.200/- in the form of Bharat Stationary
I.' rt against the stations y supplied earlier.

27.1.83

1.

Purchased 10,000 kgs. of groundnut seed .
variety
JL-24 (on credit) from GRCFER @03.5.50 per kilogram.

2.

Distributed sweets to children on-1 the occasion of Republic
lay (expense Rs.25/-).

1.

5OOO kgs of groundnut seed sold to the members (JL-24) @Rs.6/per kilogram (Total amount its.30,000/-) and 1000 kgs of groundnut
seed sold to non-members @Rs.6.5O Per kilogram and the money
was deposited in B.D.C. Bank.

2.

Draft drawn in the favour of ’GROPED1 for a sum of Rs.35,000.00
against the seed (JL-24) purchased on 27.1.83. Rs.3.59 paid to the
bank as commission.

5-

Received cheque for sum given below as advance for the groundnut
supplied in fooling on 21-1.83.

28.1 .83

Name
1.
v 2.
3-

Lansang Virsang
Nanji Kanji
Kana Mana

Amount (Rs. )
10,500.00
21 ,000.00
5,250.00
56? 750* 00

The money was paid to the respective members as given above.

29.1.83

3O.I.83

31.1.83

1.

Received cheque for Rs.23,428/- from ’GRCFED1 rebate @ Rs.0.20
per kilogram for the groundnut (l,17s14O kgs) supplied during
1981-82 and deposited in B.L.C. Bank.,

2.

Cheques issued for the 25$ of the total money received as
rebate and for the balance amount (75% or Rs.17,500) shares
issued to the members. A cheque of Rs.17,500 issued to TGRCFED’
for the purchase of additional shares.

1.

Sold 3OOO kg and 1000 kg of groundnut seed to members and non­
members at the rate of Rs.6/- and Rs.6.50 per kilogram respectively
and money deposited in bank.

2.

Paid Rs.50/- for electricity bill.

1.

Following amowt.was paid (in cash) for the expenses incurred
in the month of January 1982-

Office rent
Salary (Secretary)
(Clerk )

Sweeper/attendent
Newspaper (Phoolchap)

pS?3Mtive acts"t00k
2.

fte.100/Rs. JOO/Rs.150/Rs. 30/Rs. 19.10
Rs.15/-

Received 4% sales tax from GROFEL on the Groundnut, Mustard,
Soybean and sesamum sold during January 1982 and same amount
was deposited with Sales tax office.

JOB REQUIREMENT OF SUPWISORS
1. Organisation of Oilseed Ordwers* Societies.

2. 0 oirm • tment mobilisation.
5. Streamlining of despatch of procured material.

4. Society supervision.
- Role of Society Secretary

- Functions of Management Committee.

- Proper implementation of bye-laws.
- Preparing proposal papers for registration of societies.

- Help the society in meeting other statutory requirements
e.g. licences/cess/levy.etc.

- Implementation of MIS at Society Level.
- Ensuring implementation of federation^ policies.
- Follow up of Audit Reports.

5. Arranging equipments/material needed by society,
6. Checking of records at the time of each visit to Societies.

7. Reconcilation accounts statements maintained at society,
8. Ensuring for flow and proper distribution of inputs.
9. Extension activities.

-

Farmers* meeting.
Individual farmer contact and visit their fields for T&V work,

-

T'qIIov/ up of recommendations for package of practices at

demonstration farms.

-

FIP
Bridging between subject matter specialist and fanners.

- Audio Visuals.
- Supervision of Soil sampling and conveying results to farmers.

- Resolution of problems related with grading, quality, weight etc0
10. Conveying/Explaining the federations over all policies with regard

to procurement, inputs and also problems faced by federation from
vested interests etc.

'll. Trouble shooting.

l •

Iriff

■ if

’ ^-C_°X _Qf_

-to be, maintained, at PCGCS

1. Money Receipt Book.
2. Resolution Book ( two, one for MC and other for AGM),
Member information card.
4. Cash Book.
5. General ledger.
(6) Individual member ledger.

(7) Oilseeds purchase and payment register.
8. Acknowledgement/Receipt for oilseeds received.
Direct purebase/Jhangad purchase register.
(7q). Pooling purchase register.

11. Despatch memo.
12. Collection book (oilseed collection and fund position
statement)
15. Gunny bag stock and despatch register.
14. Inward and Outward register ( or receipt and despatch
register )

15. Stock register •- General
16» Input viz. Seed , Implement, Insecticides and culture
Stock and supply register.
(7?) Fertilizer stock and supply register.

18. Soil sample register.
19. Demonstration Register.
20. Incentive and Subsidy register.
21. Membership application forms.
22. Share transfer application forms.
2$. Commitment forms.
24. Share certificate.

s ns/men

8

Audit System

In general, audit means checking.and the auditor is considered to be a fault­
finder or fraud-detector.

Bit, responsibility of an auditor is not confined

only finding faults or irregularities, he has to verify books of accounts and
other records maintained by the organisation in sufficient details.

He is

also responsible to see whether the final accounts depict a true picture of

the state of affairs of an organisation.

Accounting

Preparation of statement of accounts and maintenance of books

and accounts

for the transaction entered into by the organisation.

Auditing

Accounting is followed by auditing. "Auditing means systematic examination of
the books and records of business or other organisation, in order to ascertain
or verify and to report; upon the facts regarding the financial operation ard
the results thereof’1.

It also includes verification of s

1.

Assets and liabilities.

2.

Whether financial position indicated in the balance sheet and

working results indicated in the profit and loss accounts are
truely presented or not.

Investigations-

Investigation implies the examination of accounts for

special purpose,

Hence9 the scope of investigation has to be different
from that of an audit, An investigation mainly consists of collecting?
analysing and presenting facts in a manner which may enable the parties

concerned to know the essential facts regarding the matter under investigation.

Objectives of audit
1.

Verification of accounts and statements.

2.

Detection of errors and frauds

3-

Prevention of occurance of errors and frauds

2

4-

To ascertain the exact and correct financial position of the society
as on a particular date.

The primary objective of an audit is to establish? by an examination of books?

vouchers and other appropriate records that the balance sheet at a given date

is properly drawn up so as to show a true picture of the state of affairs of
the business and the profit and loss,

In the process of such an examination

of accounts, certain frauds or errors may be detected.

be regarded as the main objective of audit.

However 9 it must not
However?

Detection of errors? irregularities

and even frauds is only a subsidiary advantage or benefit flowing from audit.

Functions of audit

The functions of audit may be devided into two broad categoriess

1.

1.

General function

2.

Specific functions

General functions
a)

To examine the system of internal check

h)

To check the arthimetical accuracy of the books of accounts by the
verification of postings, costings, balancing and by tallying the

receipt and payment statement of trial balance.
To verify the authenticity and validity of transactions by an
examination of the entries in books with the relevant supporting

documents.
d)

To ascertain that a proper distinction has been made between items

of capital nature and those of a revenue nature.
e)

2.

To confirm the exercise and value of assets and to verify liabilities.

Specific to Primary Oilseed Growers Co-operative Society

a)

To check that register of oilseed purchase and payment?
stock & despatch are properly maintained.

3
b)

To ensure members are correctly paid on the basis of the quality of

the produce supplied by them and also in timeo

c)

To see that transportation of oilseed from society to godown/
plant is satisfactory and economical«

d.)

To see that all statutory requirements of co-operative society’s act
and rules and regulations prescribed in bye-laws of the society are

duly complied withe)

To ensure that the records of sample drawn? refraction and testing
to determine grade/quality are made everyday by the society­

f)

To ensure that important information or instructions received from

federation are properly communicated to members to avoid misunder­

standing-

Audit Categories
1.

Statutory audit

2.

Internal audit

Statutory audits
the statue

in the case of some organisation audit is compulsory under

Audit is compulsory in case of undertakings mentioned below 3

a)

Joint stock companies registered under the Companies Act-

b)

Banking companies governed by banking Companies Act-

c)

Insurance companies governed by the Insurance act

d.)

Co-operative societies registered under Co-operative Societies Act-

e)

Public and charitable trusts registered under various religious

and other endowment acts Internal audits

Internal audit is a review of operations? systema and

records within a business by specially assigned staff-

It may differ in

its scope and emphasis? which may be more managerial than accounting'in

nature as listed below s

4
a)

To ensure that the standards of

b)

Inte nal auditor maintain a

economy and efficiency are maintained.

litable system of .eternal control by a

continuous examination of accounting, procedures, receipts and dis­

bursements and to provide adequate safeguard against misappropriation
of assets.
Audit System
Audit systems are classified into two s

a)

Final audit

b)

Continuous audit

tinal audits

It is commonlyunderstood to be an audit which will not be

until the books are closed at the end of the accounting period and is then

carried on continuously until completed.
Continuous audits

Is the one in which audit staff is occupied continuously
in checking the accounts , for whole year around.
Advantages of continuous audit

1

Errors which are discovered at an early stage may rectified in time.

2.

Chances of fraud are minimised "'Je to continuous

3-

Constant attendance of auditors acts as a moral check on employees of
the organisation

4-

Accounts are always kept up to date.

5-

Checking of accounts in detail is possible.

6.

Final accounts can be prepared and reported upon much earlier without

.■'esence of audit staff.

facing any difficulty.

Since co-operative societies are prone to public criticism due to their
democratic set up, it is essential that continuous audit should be done

for co-operative societies in order to affirm faith of member-farmers
in the management of the society.

5
Internal Control

It comprises the whole system of controls 9 financial and otherwise ?
It includes
established by the management in the conduct of the business

internal check? internal audit and various other forms of contro* both
financial and otherwise.

Internal Check for Co-operative .Society.

A system of internal check implies organisation of the' system of hook
keeping and arrangement of staff duties in a manner that no one person
is allowed to carry through and record every aspect of a transaction.
I
Its objective is to prevent or bring about an early detection of frauds
allocation of
and errorso Internal check is organised by a proper
authorities and integration of the functions of different members of

staff in such a v/ay that they are complementary to one another and
thereby each acts as a check upon the other.

■While framing the internal check system? the following considerations
should be kept in mind 2

1.

All acts of every employee should? during normal coarse?

come under

the review of other.

2.

3-

Duties of members of staff-should be changed from time to time without
does not perform the same
any previous notice so that same person
function for a cosiderable length of time.
leave at least
Members of the staff should be encouraged to go on
unearthed during
once a year so that frauds successfully concealed may
his absence.

4.

Persons having physical custody of assets should not have access
to books of accounts.

Z

6

5-

Cash collected from federation or from member farmer from the sale of

input or as service charges must be deposited in the bank on the same
day o- the next day. It shou:.’’ not fall into tt hands of persons
hog responsible

6e

for its accounting.

It should be esnured that Persons duly appointed by the society are

paid the salary only for the days they worked*

Attendance of each

employee must be marked every day0

7.

Only printed receipts with serial numbers shall be issued for amounts

collected»
8.

Amount of cash collected and paid should be checked everyday and
physical cash should be reconciled in the entries in the cash book.

9-

Payments should be made only after proper verification of documents
evidence and authorisation.

Test Checks
I

If the volume of transactions of the same type is large , the auditor may.,

reduce the extent of inquiry by test checking or sampling some of the
transactions.

The following points shall be taken into account for determining the
extent of

jt check»

I
1.

Entries selected for the test check must be representable of the whole

2.

The test check should cover entries of every description*
It must lower the work of every official connected with maintenance
of accounts»

4-

Selection of period or areas should vary and not follow any obvious
sequence
Where suspicion is aroused? the auditor must examine the transactions
in their entry*

i

i

7
The method of test checking should be applied only when satisfactory

internal c. ck system exist in the organisation.

resorting to test check methods the scope and area of checking can be
extended and a moral check on the staff is kept as there is uncertainty
regarding the period of work which will be examined
Auditor has to submit his report after each audit,

It is the responsibility
of the society management to rectify/clarify the doubts raised in the audit

report.

A format to this effect is given in the annexure

C( I

»

ANKEXURE

Statement,of Rectification of Audit Discrepancies

Name of the Society
Ta Iuka
Paragraph
No o of the
audit memo

District
Discrepancies mentioned
in the audit memo

t&md srkgstajs6i085

Date of Audit

Date of receipt of audit
memo by society

The action taken by Reference of remarks
the society and
sent to the society
actions remaining
to be taken

Remarks passed by the auditor to
the society or the remarks sent
by the Asstt- Registrar in
connection with supervision of the
society

ZpEV ■ & .IXp

i J.C1 ;

IliPORTOT POIL'TS ID BE TAKEN CARE
C7 BY IHE KANuJirS CCOTSEE^ CH.JRM^
- ‘ J 3T-BE OF SC HYTY F® PROPER ■ '
%)RKING OF ThY QGC$.■

J.,

j.x3:jjion centre of the oilseeds growers* cooper­
ative society should be egaily approachable by
bullock caros, tractors and trucks for transport
oi oilseeds to and from the society.

2.,

Office of the society be kept clean and properly
maintained.

3O

Managing- Committee should distribute the work among
society Secretary and helpers and observe its proper
follow up.

4•

Chairman or onu of tho managing committee members
sftould remain present at the time of procurement
of oilseeds by tho society to observe the working
of nhc Secretary and helper and siplvo any dispute,
misunderstanding or problem on the spot.

5e

The weighing end testing equipment aftur use should
bo cleaned and kept properly in the OGGS. Society's
name should be written on the weighing scales and
o’Gnsr items whichever possible,

6.

■fc the end of a day's procurement, a collection
suatamunt should bo prepared by Secretary to know
□ he mat.rial supp ’■ od by individual members and
i-o u al pro cur cmoht.

7.

Socrutsry and Chairm.^ must daily sign all such
lotiors, cheques, rugisteres or records wherever
t noir signat urarb roquirnd.

80

Tho C h sir man/man aging committee members should
ensure that the records of samples drawn,rafracdon (K ar ad a) and testing to determine grade
are made everyday by the Secretary,

9.

They should be also observe and chock whether tho
oilseed purchase register cash book, lodger etc.
arc rcgul'-rly updat d by tho Secretary or not.

X).

Random retesting (for example utara of groundnut)
may bo got done by tho Chairman or managing
committee momber.

102 :

1^.

The Managing Com-ittes should ensure that the
required number of files are opened and main­
tained oy society Secretary subject wise. The
correspondancu and vouchcr" files should bo prop­
erly maintained.

12

4ny purchases done by the authorised staff should
bo' checked for their bills/cash memos, quality
and price. No objoctional purchase should be
done by society staff or menacing committe
members without proper authority and approval.

13

All correspondence should bo signed by the
Chairman or Secretary of tho OCCS.

14.

Secretary should chock all statement ofi payment
or cheques received from Fodcration. Ha should
snould
issue correct cheques to tho members.

15.

Managing Committoo members & Chairman should
ensure that important information or instructions
receivod from federation are properly communicate
od to members to avoid any misunderstanding.

16.

Tho byelaws of society should bo studied by
Socrotary and Managing Committee mambers for
propor follow up ahdtb know any amendments, additions
or deletions.

v.

Managing Committ i should have the Sacrotary and
helper properly trained at Fadoration’s training
contra or with^the help of EDobila taam,

18.

Society staff must bo polite and courteous in
their dealings with the farmers and staff and
officers of federation and other organisations.

19.

In case of detection of any mischief, fraud or
misappropriation by the members and society staff,
tho Managing Committae should take necessary
action without delay.

20.

All cooporation should be extended to tho staff
of federation and mombers.

21.

The Managing Committee should unsure; that share
certificates arc issued to mombors in time.

:

103 :

22..

Tho Mansigirg CoranittcQ must moot atloast once a
month snd rocoivo progress and accounts reports
from Secretary.

23.

Manesing Committao should ensure audit of tho
03CS7

24.

Managing Commit too should also ensure that
Secretary takes necessary action on supervision
reports proparod by the procurement staff.

i

i

V•

• 1V

VIABILITY OF A PRIMARY QIISEEDS GROWERS COOPERATIVE SOCIETY

The word ’’viable" means capable of surviving or living and hence viability of
an oilseeds growers. cooperative society, in simpler terms, may be defined as
its ability to survive. However, an OGCS primarily a business centre of the
oilseeds growers, by the growers and for the growers, should be viable bo+h
in social and economic aspects both for itself as the cooperative business
entity and for its members. In other words, an OGCS capable of earning
sufficient amount from its business activities to meet its expenditure and
save areasonable margin of profit to sustain its existence may be said to a
viable society.

.example2 Assuming that the land area under groundnut crop in a society
village is 1000 acres (or about 4OO hectares) and the average production of
groundnut is 1 tonne Per hectare , the total production of groundnut will work
out to be 400 tonnes. Assuming that the society will procure some I5O tonnes
(i.e. about 57’5$) of the total groundnut produced for supply to the oilseed
federation at an average Price of Rs.4,000/- tonne, the total value of 150
each of Diammonium Phosphate (DAP) and Super Phosphate (SP) to its members,
the income of society and expenditure incurred by it could be compared as
indicated below to know its economic feasibility..
INCOME

EXPENDITURE

Quantity supplied by society (MT)
150
»»

Expenditure on salary of society Secretary
including benefits @ Rs.200/- month
(1x200x12)
= Rs. 2,400.00

Value of 150 MT groundnut @
Rs.4,000/- MT
Rs.6 ,00,000

Salary to helper for 8 months @Rs.1OO/month (1x10'0x8)
= Rs.
800.00

Commission accrued @ 1%
on total vcvlue
Rs.

6 9 000

Rent for office building of society
@Rs.5O/- month (50x12)=
(50x12 ): Rs.
600.00

Service charge @Rs.2/Per bag of DAP
Rs.

400

Trave Hi ng/daily allowance
expenditure
=? Rs.

Service charges @Rs.2/per bag of SP.
Rs.

4OO

Expenditure on stationary = Rs.200.00
etc.

Saving on incidental charges
@ 5 Raise per bag on 5000 bags of
groundnut (jO kg.each) supplied
to Federation
Rs.
25O
Doss s

Rs.

Total (1-5)

Rs.

7,050

Miscellaneous expenditure
@ Rs.25/- month (25x12) = Rs

200.00

500.00

Profit (+)

= Rs. 2 ,550.00

Total (1-6)

Rs. 7,050.00

The above example indicates that the Procurement level of 150 tonnes of
groundnut, the society will earn a profit of Rs.2,550/-. leaving the amount
spent on audit fee or taxes and interests if any, the society is likely to
save a good amount.

2

However ? if the managerial subsidy and grant for purchase of statunery items
required for office of the society are provided? there will be further saving
on the expenditure of the society. Further? some income will accrue from sale
of groundnut samples and commission on sale of edible oil or vanaspatighes 9
if any? sold by society.
As such the OGGS may be said to be viable

Factors affecting Viability of Society
Precisely? the viability of an OGGS will depend upon the system of organisation
and procurement itself apart from the approach of the programme implementors '
and the participants to be benefitted. The factors affecting the viability
of a society may therefore be discussed keeping in view the system, the imple­
mentors and the beneficiaries i.e. the oilseed growers members of the society.
A.

The Systems

The systems adopted for organisation of OG-CS should be producer-oriented and
based, on the philosophy and principles of the ’’Anand Eh-ttern” cooperatives.
Care should be taken that the oilseed growers are motivated to accept the
system for adoption rather than imposing it on them. The system should be
based on certain facts and figures and not alone on wishes or emotions of the
Producers*
Therefore? organisation of society? the following factors should
be taken into consideration.
1.

Selection of village depending upon its location and area under oil seed
production-village(s ) should possess a minimum 1000 average under oilseeds
to ensure the viability of the society.

2.

The minimum membership of society - There should be atleast 51 member as
per the bye-laws of the society.

5-

Price Cfered and procurement nd payment system - There should be a clear
cut policy for price fixation of oilseeds and all payment should be made
promptly to ensure the faith or members in society.

4-

Society staffs- their selection and training - Farmers of the village
should have full reliance in the staff. The selection of those persons
should be decided by the IVhnaging Committee and not by those who organise
the society. In addition? training of the staff of the society should be
undertaken before starting a new society. Hence ? no haste should be done
in organising and starting.

5-

The rules and regulations (bye-laws) which bind the Producers? the Managing
Committee? the General Body? the workers etc- of the society and the
organisation with which society has entered into business (The federation)
should be such that oil seeds producers are given the right to operate
the business. No unwanted element with vested-interests should be allowed.

6.

Quality Control i.e. Sampling and grading equipment used in society for
business purpose should be of standard quality to ensure the fair dealing
with its members and federation.

3

7-

There should be an efficient communication system between the society and
the organisers
so that the problem/difficulties of producers/soci­
eties can be heard and rectified at the right time. When the producers
given faith on the society? and the society workers given faith in the
federation? nothing can stop the society from achieving success.

8.

Keeping up of committment and promises - A promise once made with the
producers should be fulfilled in due time. False promises may help the
organisers to organise more societies and the society to procure more
oilseeds but in long turn when growers realise the facts? it is going
to be a flop.

B)

The Implementors

Implementors means all those who are entrusted or associated with the
implementation of the programme of the lines of the system recommended to be
adopted. That will include the staff of the federation and society of coarse
with the co-operation of the participants members. All those connected with
implementation of the programme should have full faith in the system itself
as otherwise they may not be able to contribute to its successful adoption by
the members.
While organising the society or during implementation of the programme; the
implementors should do their best to avoid political pressures? influences
or such interfrence into their working and working of the society. It will
always be advisable to set up a society on the basis of its viability factors
rather under any political influence or pressure.
The dedication of the implementors without any personal interest or gain is
very important. The staff or officers concerned with the programme implement­
ation should be result-oriented. They should have good relations with other
agencies etc.

C)

The Beneficiaries

The member of the oilseeds growers cooperative societies will be the benefici­
aries. The members should have proper understanding of the system, programme,
objectives the role they are supposed to play, their duties and responsibilities.

The members may have to be exposed to the activities of other successful
cooperatives (may be through farmers induction programme) in their project
area or outside the state for developing their confidence and faith in the
system they have to accept for adoption. They should be motivated in the
manner to respond to the programme without any feeding of imposition.
The beneficiaries should extend their maximum cooperation in implementing
the policies and programme of the Federation"

They should cooperate in running the society on democratic lines without
interfere into its working due to personal or political advantages.

..

ORGMiISAlIOlM O1‘ PRIMARY OIL SKEDS GROWhltS CO-OPhfi.ATIVE SOCIETY
DCo.R.K. Gupta
FO&AH

In organisation of primary oilseeds growers co-operative society one should
ensure that it has participation from all section in the village and that
they all strive together to progress towards a better social and economic
good.
rollowing- are the steps involved in organisation of a primary oil seeds
growers cooperative society.
1
2

5
4
5
6

Village survey
Gram Sabha and Selection of promoters.
Proposal preparation and hegistration.
First General body meeting
Managing- Committee meeting
Affiliation with Oilseed growers federation

1) Village Survey: Before organising- a society in a particular village, a
survey with the help of a questionnaire and other survey formats is carried
out. These formats are then subjected for the analysis for viability esti­
mation of the society to be organised there.
2) Gram Sabha and Selection of Premotors: If the analysis of the survey leads
to a favourable decision for organising a society, a general meeting- of the
whole -village i.e. Gram Sabha by announcement is held under the Chairmanship
of the any popular village leader.

This gramsabha is very vital from the point of view of society organisation
and its development. Here federation representative deliver talks on the
local problems in oilseed production and marketing, achievement made by
cooperati
from the experiences ...lined in Hairy Co-operatives and Socio­
economic changes brought by them. .

Later, cfallowing resolutions are passed :1.
2.

5.

4.

5.
6.

7.
8.

To elect a Chairman of the meeting.
OGCS will be started on the lines of approved bye-laws.
A tempertary managing committee will be constituted for a period of
5 months i.e. till the society is registered.
An acting Chairman (Chief Promotor) will be elected till the society
is registered.
.
The Chairman (Chief Promotor)and honourary Secretary will be authorised
to transact oil seed^business of the society.
The joint Bank, account will be opened with the nearest branch of the
district cooperative bank and only acting chairman and the secretary of
the society will be authorised to operate the bank account jointly.
The Chairman and the Secretary will have to give a tangible Security
with Rs.6,000/- .each to became eligible to operate the bank account.
The oilseed-procurement will be stopped if the oilseeds growers federation
directs the society to do so. The conditions and suggestions of the
federation will be binding on the society.

2

9.

Only one member from a family can sign as promoter. One male and one
female (adult; can be enrolled as a member of a society from one family.

10.

If t.-e transport vehicle ca^ not approach the villageoilseeds will be
transported to the nearest truck point for onward despatch to federation
godown/unit.

11

Share capital and entrance fee from interested farmers will be collected
and for that acting Chairman and Secretary will be authorised.

5)

Proposal Preparation and kc-gi strati on: Proposed society will not have any
identity unless it is registered. Registration proposals are prepared by
the society and are submitted to ADR office. Following are the documents
needed for proposal prepatation.

4 Copies of bye-laws duly signed by twelve promoters.
List of members with the number of share held by them.
3. Copy of resolution of 'promoters meeting' requesting the ADR to
register the society.
4. Copy of the resolution authorising one man as Chief Promoter
(Acting Chairman;.
Copy of society's bank balance certificate issued from the bank.
5o
6. Copy of accounts for the period society has operated.
7. Certificate regarding jurisdiction of village panchayat under which
this village falls.
8.
Certificate from Panchayat office regarding’ area under- oilseeds
in that ’“illage.
9. ■ Certificate from Chief Promotor - certifying' that all promoter
belongs to different families and do not have any relation amongs
them.
10, Viability certificate - by Federation representative.
11. Forwarding' letter^ by Federation's authorised person.
1.
2.

Once above documents are collected, they are submitted to Registrar's
office for Registration of the society. Application for registration
of the society is to be made on an application form which would be
available with the district registrar of co-operative societies. Only the
format approved by the District Registrar is to be used to/make an
application.

Socie-ty is considered registered only after a registration number has
been issued by the District Registrar. ■
4)

First General Body Meeting; After receipt of Registration certificate
within 90 dayss a first general body meeting is called. To call this
meeting a agenda is prepared and apart from dispalying it on the
village notice board, one copy is send to each of the followings
(a; federation Office; (b; Registrar's Office and ^c) Co-operative
Bank's Office.

The general body meeting- passes following- re solutions

t; Flection of the Chairman of the first general body meeting,.
2)
5)

To accept the registered bye-laws.
To elect a regular Managing Committee.

4.
5.
6.
7.
5J

To enroll new members.
To pass resolution for application with oilseed growers cooperative
federation.
To approve the books and accounts of the society.
To pass resolution for the transfer of society accounts in bank
from the name of Chief Promotor to the name of society.

Managing- Committee Meeting-;
\ elected‘ Managing Committee should sit
flewly
to frame general out line of running' of the societyr on sound footing.
following are the resolutions passed in it. Selection of Chairman and
process of their retirement is also decided in it.
1.
2.

5.
4.

5.

To elect a Chairman of the society.
To appoint the office bearers of the society.
Io authorise the chairman and the Secretary of the society to
operate bank account on behalf of the society.
To approve the amount (cash; can be kept in hand and also the
responsibilities oi the office bearers of the society.
To pass a resolution to get affiliation with the oil seeds
growers federation.

Affiliation with Oilseeds Growers federation; After
After the
the society
society is
is
registered, it will seek its affiliation with the concerning federation
as per the resolution passed in first general body and managing committee
meeting. T
1’* affiliation will
— enable the society to draw all benefits
the
and previlages declared by the federation for its
v members. To
--s c_li
ordinary
get this affillation, society will need to purchase at leas
—it one share
(generally of Rs. 500/-) of the federation. A <copy of the concerning
resolutions of generaly body and managing committee meeting; and entrance
fee is also attached with the request form.
Some of the important points for consideration in organising and efficient
runnir^ of a society may be puT as

1.

Before starting- the society proper spade work must be done in the
villages to create confidence in the farmers/producers.

2.

When a society is organised in a particular village, the members of
the Managing1 Committee should be elected in such a manner, that each
locality/community of the village is represented. This would avoid
any party politics and the whole marketable oilseeds produced in
that village can be brought to the society.

3.

farmers of the village should have full reliance in the staff, the
selection of these persons should be decided by the Managing- Committee
and not by those who organise the societies.

4.

draining of the staff of the society should be undertaken before starting a new society. Hence 9 no haste should be done in organising- and
starting.

5.

After the start of the society regular supervision should, be done
every 4th and 5th day for atleast four months.

6.

Managing Committee members should meet every month, where profit and
loss account, breakage of equipments, miscellaneous expenditure etc.
are produced by the Secretary and proper resolution is passed and
recorded. lor any loss, the person responsible should be punished
accordingly.

Zb t V

Mgmms AM) PitlCIAG 0±‘ OiES^.Tk-- rxiOCUWE^T

Oilseeds

op occupy an important position in India’s agricultural

economy.

xne prices of oilseeds record substantial declines at harvest
“ is
times and m most cases the farmer/compelled.. to sell his produce

imnediately after harvest either because he <does not have adequate
storage acconiEodation or he is badly in need of cash,

Moreover, a

majority of the producers, especially small farmers are indebted to
the local money-lenders cum trader for their need of money.
Speculative marketing practices and high profit margins characterise
the edible oilseed industry.

The traders and other intermediaries have

a powerful hold in the oilseeds and oil trade, both in the domestic sas
well as export markets.

They have contributed to the high degree of

instability in the edible oil market, through hoarding, illegal forward

trading and speculation.

The fazmers need protection from exploitation by the traders and oil
millers,. This
bo overcome by creating single commodity oilseeds
cooperative which can play a vital role in creating favourable market
conditions for the growers of edible oilseeds,

The growers, can,through
the co'peratix cs.-control and. manage all activities right from production
to processing with the help of hired professionals.
r







The IWLB’s oilseed project has been taken up with the specific aim to help
the growers in increasing their oilseeds productions and also fetching a
remunerative prices for their produce.

The pricing and procurement system

in case of groundnut and soyabean as adopted by the Gujarat and Madhya

Pradesh Cooperative Oilseeds Growers’ Federation are as under:
Procurement pricing of Groundnut as adopted by GCOGF

1.

Quj-^ight purchases based on quality: This system has been introduced
by tne.GCOGF to safeguard the interest of small and marginal farmers

who cannot hold their produce for a long time and are in need of

immediate cash to meet their daily necessities.

Under this system

the primary oilseed growers cooperative society purchases the

groundnut outright from the producer members and pay them
immediately after despatch of the material(groundnut; so that these

t

2

small and marginal farmers have -otto sell their produce to local

traders/money lenders at distress prices.

This system is based on

quality parameter viz. shelling percentage (Utara) and refraction

(Karada).

In addition, physical look of the produce, moisture in the

kernals /pods and oil content is also taken into consideration while

procuring the groundnut material.

After it is decided to procure the

material, few random samples, depending upon the number of bags are
drawn with the help of a trier or if the produce is stored loose in

bulk, samples from each corner and centre of heap are taken out and
collected in a polythene bag.

The drawn sample is mixed thoroughly

and all- the foreign materials such as dust particles, stones and thrash
are taken out.

Then 200 grams of the sample is taken for determining

the shelling % (Utara;.

It is very important that all precautions are

taken so as to make the sample a representative one.

Any mistake in

sampling may result in loss to the society/federation.

The 200 gms

pods are -hand shelled and the kernels are weighed on an accurate
weighing bajanqe, called as Na .avati Balance which measures upto two

decimal point.

For^crass checking, the empty shells are also weighed

just to know whether the weight of kernels and shells put together
makes 200 gm or not.
Shelling percentage(Utara %) = Ueight of kernels x 100
Weight of sample

eg.

if the kernals weigh 150 gms out of 200 gm of pod,
then the shelling percentage will be as under:

15,0 x 100
200

= 75% shelling (utara percentage).

For determining refraction (Karada percentage) one bag is randomly

chosen and the produce is spread on taurpoline or on cloth piece.
Stones, dust particles, leaves, mud balls, leaves, twigs and other

foreign material are taken out and weighed on the (hlanawatij balance.
The weight of Karada per bag is ascertained and deducted from the gross
weight of each bag.

For exariiple if the refraction material weighed

200 gms per 55 kg bag so that net weight of produce will be 54*800 gms

per bag.

In case of any dispute about refraction(Karada) or selection

of bags/determination of Karada, the another bag may be selected to

ascertain the Karada percentage\

PricB Fixation: The base price of groundnut is obtained from the nearest
market yard.

The price to be paid to the farmer is linked with the

market price prevailing in the nearest market yard.

Fixing the price of groundnut: Based on prevailing market prices, the
cost of groundnut per metric tonni or per 20 kg is tj^ed by the federation
as under:
standard (Utara standard,)

Season

Kharif
Summer

Type of variety

^Erect (Bunch)
Spreading
Erect(Bunch)
Semi spreading/spreading

utara %
7?/c
72.5P/O
72.5P/b
70.0%

For every one percent decrease or' increase in the shelling percentage, as
per the base standard, specified above, 80 paisa for 20 kg for each point
is reduced or increased depending upon the shelling percentage. Upto
6^0 shelling (Utara) the deduction is considered .at the rate of 80 paisa

per point. If the Utara is less than 68 percent then the deduction is
done @ Hs.1/- per point for all the points less than 72.5/t. For example
at 64.5 percent utara, the deduction of fis.8/- will be made for 8 points

(8 points below 72.J percent;.

If the shelling percentage(utara; is as

per the above standard, then full price is paid.

Full price means the

minimum price prevalent in the nearest market yard on the previous day

. minus Ws.2/- for (20 kgs) eg. transportation charges.

The rates declared

in the locu.1 newspaper are considered as mill delivery rates.

Suppose

a market price for bunch type groundnut for standard shelling(utara)
is Rs.88/- then the rate admissible to the member would be Rs.88.00 -

Hs.2.00 = Rs.86.00 per 20 kg produce.

Jangad System;

Oilseeds cooperatives as well as few private traders

adopts this system.

It is uniquely designed system in which the payment

of the produce is not based on any particular fixed price but based on
any particular days

price,(any 'days'price upto JOth June for Khar if

harvested produce and JI st August for summer harvested produce) whichever
the producer chooses.

Under this system, the producer

delivers his

produces to the cooperative or traders at any date and observes the
trend of market price and then decides to sell his produce.

The main

feature of this system is that it helps the producer to have some share
in the profits of the buyer arising out of the rise in. prices.

There

4
are many variations to this system.

Some agencies, private traders

give 70-75% advance against the goods based on base rate(predicted price)
and the fiance is settled as and when the farmer finally wants to sell ‘
his produce.

farmers.

A rate of interest varying from 12-1 J/o is charged from the

Under the Gujarat Cooperative Oilseeds Growers Federation's

Jangad system, an advance payment @ Hs.50/20 kg or 70% of the base price
is paid to the member farmer of primary oilseeds growers cooperative

society. The interest & 15% per annum is charged from the member farmer
for a period not less than 15 days or at 12% per annum plus 25 paise per­
bag of groundnut per month towards storage and insurance premium.
Pooling system:

This is one of the ideal methods of disposal of the

produce by the members.

Under this system the ownership of the
groundnut remains with the members till it is processed and sold as
finished products.

About 7^ of the amount is paid as advance against

the groundnut supplied by the members and the rest is paid at the end
of the year after the Oilseeds Growers Federation declares the final

price.

Under this system, the members get the benefit of profit in terms

price difference.

The actual incidental, processing charges etc. is

deducted from the final payment.

Under the GCOGF pooling system, the

advance of HS.70/- per 20 kg of groundnut is released seven days after
despatch of the produce.

Godown charges and interest on the advance paid

rnhe average rate wU1 be fixed after 5ist October

1S not

(Federation year is 1st Movember - Jlst October),

while making payment,

the average, rate and the shelling %(utara) will be taken into

consideration.
Market Yards;

Market yard is a common place for buyers and sellers,
In market yards, auction takes place and the highest bidder gets the

The producer has to bear the expenses, like transport(cost of
bringing the produce to the i ’ '
market yard, commission, loading, unloading
produce.

and other miscellaneous charges)•

This is better than selling the produce

to a private trader, as there is

open auction of the produce, weighment
is done by the market yard employee
, account of sale proceeds is taken,
payment is made on very same day, no octroi is paid by the farmers.
The auction timings in the market yards are 8-12 noon and 2-6 PM in

the evening.

At the time of auction, the buyers(registered merchants)

judge the quality of the prodwe by taking the sample from the lot by
hand and assess the shelling(utara) by inspection, based on their

practical experience.

• li*

5

The various market yards come under State Agricultural produce
Marketing Act.

Every market yard has

one marketing committee which
consists of representation of producers,
traders, bank represen—
tative, local authority and Govt,
nominee. Elections are held every
four years. The function^- <of* this committee is to regulate sale and
purchase of the produce which
—i comes to the market yard.

Procurement. .pricing of Soyabean

as.adopted by MP_Qil Federation

The procurement system and rate fixation of
soyabean by MP Cooperative
Oilseeds Growers Federation are as under.

The procurement system of Soyabean fro. th. ...bsrs of the Oilseeds
rowers' Cooperative Society 1. based on goallty parameters. It
consist, of SAy(Superior Average Quality), yAQfr.ir Average Quality)
Grade I and Grade II.

fil s thie cate;o^

*_ SAQ(Super ior Averap'p Dim-i •«'mu

,

material, „o vri^!,, eeeds, „„

ma

zx

The moisture percentage of the seed should he less than 13,.

akgair Average Q„aW) The produce of
undeh thro category. The standard fired for this duality 1. the limit
he extent of one percent of for.ig„
to
wo percent of the damaged seed, upto 5 percent of the mechanical
damage (grain. .pllt
t-0 aM

the moisture in the seed.
3. Grade I: \he standard fixed "

for this grade is the limit to the extent
of 2 percent of foreign material, i ‘
> upto J percent of the discoloured and
weeviled affected, upto T/b of the mechanical
- damage and upto 12% of
the moisture.
4.

Grade II: Th^ standard fixed
for this grade is the limit to the
extent of >o of foreign material upto
of the discoloured
and
weeviled seed and upto 1C% the mechanical damage and 12% of the
moisture levelT

I
I

I
i

X

6
If the moisture in the soyabean seed is more than 12 percent, the
deductioi in price by 1% of the total value is made.

Incase, the

moisture limit increase beyond.14%, the material is rejected and
not procured by the oilseed growers cooperative society.

The moisture

soybean seed is tested by breaking the seed under the teeth.

If the

seed gives cracking sound, this indicates about 12% moisture.

If

the seed breaks without making any sound, thisindicates moisture

presence of more than 12 percent.

Accurate moisture estimation can

be done With the.help of stenlite moisture tester.
The price to be offered to the members of OSGS depends on the grades

of soybean:delivered by him.
SAQ,^Superior Average Quality):

Market rate per animal of the Superior

Average Quality of Soybean - ils.2/- per quintal
FAQ(Fair Average Quality) :

The rate per quintal as admissible for

SAQ - -Ks.?/- Per quintal

Grade I:

The rate pe\ quintal as admissible for FAQ - Rs.2/- per quintal

Grade II: The. rate per quintal as admissible for Grade I - ds.2/per quintal.
Each 0ils< ds Growers, ^operative Society get a commission at the rate
of 1 percent of the

total amount of Soybean procured by them.

In

addition the Oilseeds Grpyers’ Cooperative Society also gets the
incidental charges @ Rs.1.^ per quintal for weighing, stacking and
loading charges.

aks:ppb;100

\

i

BIE-LaWS OF GUJARAT COOPaRaTIVE OILsLujjS GROVtsRo* FEDERAI'ION LIMITED

1.0

NAME and aDDRBdo

1.1

The name of "Federation" shall be Gujarat Cooperative Oilseeds Growers f
Federation Limited and shall be referred to hereinafter as the
Federation.

1.2

The registered address of the.Federation shall be at Bhavnagar, Post
Bhavnagar, Taluka Bhavnagar, District Bhavnagar.

Any change in this address shall be notified to the Registrar,
Cooperative Societies, Gujarat within 30 days and shall also be
published in at least one local Newspaper.
1-3

The area of Operation of the Federation shall be the State of Gujarat.

2.0

DEFINITION^

2. 1

"Act"

2.2

"Board" means the Board of Directors of the Federation constituted as
per the bye-laws.

2.3

"Chairman11 means the Chairman of the Federation.

"Commodities" include all kinds of oil seeds and oils including
’ •
vegetable, deodorised and hydrogeneted oils as also oil products
and articles of which oil or oil products form a part; vegetable
goods or chemical or medicinal and pharmaceutical preparations or
perfumes and perfumeries and other articles as can be manufactured’ ’
from oil or oil produce; oil seed cakes; deoiled cakes; cattle
feed; all kind of soaps; and all other kind of saponaceous and
oilegenous substances; auxilliary products; byproducts and waste
produces; raw or processed ag cultural product; packaging material;
equipment and machinery required for the manufacture or preparation ■
of oil and allied products.

I

I

means the Gujarat Cooperative societies Act, 1961.

2-5

"Consultative Committee" means the consultative committee
constituted as per the bye-laws.

2.6

"General Meeting"

includes ordinary or special general meetings.

2.7

"Managing Director"
the bye-laws.

means the Managing Director appointed as per

2.8

"Member" means members enrolled in the Federation as per the
bye-laws No.5.1.1; 5.1.2 and 5.1.3-

2.9

".NDDB" means the National fairy ravelopment Board, Anand

2.10

Registrar" means the Registrar of Cooperative Societies, Gujarat
State
J’ ,) as defined in the Gujarat Cooperative societies Act, 1961.

2
i

2.11

’’Bules” means the rules made under the Ciujarat Cooperative
Societies Act, 1971.

3.0

OBJECTIVES

3-1

The objectives of the federation are to carry out activities
conducive to economic and socio-economic development of
IgScultunsts by organising effectively production, procurement,
processing and marketing of commodities.

3.2

To achieve the aforesaid objectives, the Federation may;

3.2.1

ourchase, pool, process, manufacture, distribute and market
fmror+ed and/or locally produced commodities from the members
^Srd ±S; SS affecting the intent of member;

3.2.2

3-2.3

3-2.4

3.2.5

3.2.6

3.2.7

3.2.8

3.2.9

3.2.10

purchase ant/or assist in purchasing raw materials, processing
and packaging materials etc and manufacture these or
collaborate with others for the same when required,
purchase, erect and/or hire buildings, plants .and machinery and

other assets, etc;
lease or hire movable or immovable properties
own or hold on

1------ q the business of the Federation and to dispose off
to carry on
the same when not required for the business of the Federation;

organise and develop primary oil seeds growers cooperative
societies and to take over their management partially or fully
when necessary and if appointed as an administrator by the
Registrar or at the request of the member3;

suggest measures for increasing the productivity of the
commodities of the members and assist in implementing the
same;
provide/arrange seeds, fertilizers, pesticides and other technical
inputs either directly or through any approved association,

advise, assist, guide and control the members in all aspects of
management, supervision and audit function and for that
purpose fix and collect service charges;

render financial, technical, administrative and other necessary
assistance to the members and enter into- collaboration
agreements;

market its products under its ov/n and other Trade-mark/
Brand-name;

i

4

3.2.29

settle all matters of comi..on interest of the members and
further their interest;

3.2.30

carry out negotiations with the Government and other National
and International Agencies/Organisations;

3.2.31

subscribe to the shares of cooperatives and other institutions
if required for the business;

3.2.32

generally do whatever is necessary and proper or conducive or
incidental to the attainment of any of the objectives and
purpose of the Federation.

4.0

FUNDS

4.1

Funds may be raised by;

4.1.1

shares;

4.1.2

debentures;

4.1*3

depo sits;

4.1-4

loans;

4.1.5

grants, aids and subsides;

4.1.6

donations; and

4.1.7

entrance fees.

4.2

The authorised share capital of the Federation shall be rupees
five crores divided into 100,000 shares of Rs.500/- each and
shall be paid in full on allotment.

4-3

The funds of the kind specified in 4.1.2; 4-1-3 and 4-‘1-4 aoove
shall not exceed twelve times the total of the paid up share capital and he serve Fund less accumulated losses as provided
in the Act and Pules.

5.0

PlhiMBrj itoh IP

5.1

Th© Federation shall have the following categories of members;

5.1.1

ordinary;

5.1.2

special nominal;

5.1-3

nominal.

5.2

Ordinary member.-.

%

5

5.2-1 j

Any registered primary oil seed growers’ cooperative society.
The bye-laws of such primary societies should be in confirmity
'with the model bye-laws prepared by the Federation.

5.2.2

The National Dairy Development Board, Anand

a

4-^

5.2.3

The NDDB will continue to be a ordinary member till it holds the
shares of the Federation and has any financial arrangement anq/or
assistance/collaboration of any kind with the Federation.

5-3

The special nominal member.

5.3*1

Multipurpose cooperative societies and/or Agricultural Cooperative
Credit societies dealing in/or pooling the oil seeds produced
by their members and delivering entirely these to the Federation
on their .behalf.
I(7P 4

5-3.2

Special Nominal lumbers shall be eligible for all such benefits
as are available to the ordinary members regarding provisional '
and/or final price.

5.4

As and when the Primary Oil Jeed Growers’ Cooperative societies
would be organised in the area of operation of the special
nominal members, such special nominal membership shall cease
automatically.

5.5

A review for the continuation of such special nominal membership
will be carried out by the Board as per the norms laid down by
them.

5.6

The^Nominal Members^

5*6.1

Persons having financial cl, .lings with the Federation such as
supplies, contractors, selling agents _arid_J^heir sureties i

5.7

The special nominal members and nominal members shall have to
apply in writing to the Federation for enrolment in the prescribed
form along with an application fee of Rs.25/~ and the membership
fee of Rs. 100/-. These members will not be required to hold the ;
shares and will have no right to vote or participate in the
management of the Federation or in the distribution of its
profits, they shall continue only so long as they have business
relations. They shall incur no liabilities in the event of
the Federation being wound up.

5.8

Registered primary oilseed growers cooperative societies who Have
signed the bye-laws and the application of registration of the .
Federation will be deemed enrolled as ordinary member.

5.9

Ordinary members , other than those covered in bye-laws No. 5.8 shall
have to apply in writing for membership to the Federation and
shall have to pay an entrance fee of Rs. 25/"’ along with the amount
to purchase the required nos. of shares.

4

6

5-10

The Federation shall have the right to call upon ordinary members
subscribe either to share apital and/or debentures in proportion
to the business transacted through the Federation, as may be
prescribed by the Board from time to time.

5.11

If the amount of share and/or debentures remain unpaid for more
than six months from the due date, the Board may take suitable .
action against the ordinary members as it may deem fit.

6.0

LIABILITY

6.1

The liability of an ordinary member shall be limited to the
extent of the share capital subscribed by him.

7.0

A share certificate with distinctive numbers shall be issued for
the shares subscribed.

8.0

Duplicate share certificate/s shall be issued in the event of loss
of the share certificate/s by an ordinary member with the approval
4 of the Board on payment of Rs. KOO per share, against an indemnity
* bond to be furnished by the ordinary member.

9.0

Lo member once affiliated can seek disaffiliation without the
recommendation of the Board and the approval of the Registrar,
unless it is dissolved.

10.0

subject to the provision of the Act, any ordinary member may be
expelled by a resolution passed by 3/4^ majority of the members
present and voting in a general meeting for the following reasons.

10.1

If it is a persistent definiter and/or habitually fails to carry
out its obligations to th- le de ration.

10.2

If it wilfully deceives the Federation.

10.3

If it does any act likely to injure, the reputation of the Federation-

10.4

The Board shall give such member fourteen days written notice of
proposal to expel so as to give it an opportunity to represent
its case in the General Meeting.

10.5

Expulsion may involve forfeiture of all shares held by the members^

11.0

bhAhK HOLDH'jGS

11.1

Every ordinary member shall hold at least one share.

11.2

4 At the initial stage, at least more than 51% paid up share capital
shall be held by I\IDDB as an ordinary member. The remaining paid
up capital being held by the cooperatives.

11.3

The National Dairy Development Board shall hold more than 51% of
the paid up share capital of the federation till such time as it
is agreed upon between the Federation and NDDB.

i
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*

I

7
12.0

TRAI\iSF^H OF

12.1

With the development of th Primary Oilseed Grovers’ Cooperative
Societies and the growth of the ordinary members, WnuB shall
redeem its shares by transferring the same to these primary
societies on the terms mutually agreed to between the Federation
and the NDDB.

12.2

An ordinary member mcty transfer the shares after holding the same
for at least one year to another ordinary member with the approval
of the Board.

12.3

Wo transfer shall be considered complete, until the name of the
transferee has been entered into the share transfer register and
a fee of Re. 1.00 for transfer of shares paid.

13-0

CFoS^TIOi\J Of' inFfiBiSiiSnlP

13.1

An ordinary member shall cease to be a member;

13. i.r

on res ign ation;

13.1.2

on liqui dation;

13.1.3

on expulsion;

13.1.4

on failure to fulfill the obligations mentioned in the bye-laws -

Mo.14.

13.1.5

on failure to pay the shares and/or debentures as called upon
by the Board.

13.2

An ordinary member ceasing to be member shall be entitled to get
back the amount not exceeding the actual sum paid by it, on
account of shares within a period of one year from the date of ■
cessation of membership.

14.0

OBlilliAI'lUll'S Of this

14.1

Every member shall:

14.1. 1

Supply to the Federation all commodities procured on pooled from'
its members in which federation is dealing.

14.-1.2

Buy shares and or debentures as may be called upon by the Board
with the provision that the maximum amount to be so prescribed
shall not exceed 20% of the Value of commodities supplied by it '
to the Federation daring the previous accounting year.

14-1.3

Follow directions issued by the Federation with regard to delivery
of commodities such as place of delivery, time of delivery, mode
of transport and the like.

14.1.4

Collect commodities in pure and unadulterated condition from its
members, and enforce quailty/grading norms fixed by the Federation.

8

14-1.5

__3 as the Federation may issue from time to
Follow such directions

h
whatever
information the Federation may find
time and provide v-----for
the
promotion
of its objectives.
necessary :

14-2

Failure on the part of the meters to fulfill the above and such
other obligations shall make them liable for consequential losses
to the Federation as may be decided by the Board.

14.3

The NDDB not being an oil seed grower society, would however be
exempted from these obligations.

15.0

GKNEriAL MilETIhlG

15.1

General Meeting shall consist of the following-

15-1.1

Members of the Board.

15-1.2

Delegates from the different districts as per the bye-law ho.22.0

15.2

The supreme authority of the Federation shall be vested with the
General Meeting, subject to the Act, the Bules and the bye-laws.

15-3

The Chairman of the Board will preside over the General Meeting,.
’In the event of his absence, the Chairman will be elected from
amongst the members present.
. .

15.4

The General Meeting shall be called once in every year within, the
quarter ending on 31st January. This shall be called the Annual
General Meeting.

15-5

A special General Meeting may be called at any time :
by a majority of the Board; or

by the Board within one month.
a.

on requisition in writing from, not less than l/5th of the
ordinary members of the Federation.

b.

on requisition from the rieg^strar.

15*6

The first general meeting of the ordinary members after registration
shall have the same powers as are given to the Annual General Meeting-

16 .0

hi01'ICE FOri GnihlbhaL MWl'ING

16.1

The annual general meeting of the Federation shall be called by
the Board with not less than 14 days.’ notice which shall include the
date, time, place and the agenda. The notice shall be placed on
the Notice Board of the Registered Office of the Federation and
will also be sent for publication to at least one local newspaper.

16.2

A special general meeting of the Federation may be called with not
less than 7 days’ notice^ stating the date, time, place and the
agenda.
..
_ n . '.
•. . .

16.3

The accidental omission in sending a .Notice or the non receipt of
a notice by any member to whom it should have been given would not
invalidate the proceedings of such meeting.

17.0

aMmUaL GEftihxteL KlEETIhG

The annual General Me eting shall, among o her things, deal with
the following:
17.1

Io confirm the proceedings of the previous General Meeting.

17.2

To approve the excess expenditure over the sanctioned budget.

17.3

To receive from the Board the Annual deport together with the
Balance bheet as on 31st October and profit and loss account for
the preceding financial year of the Federation and to sanction the
app rop ri ation o f p rofi t s.

17.4

To approve budget and programme of activities of the Federation
for the next year as recommended by the Board.

17.5

To consider audit memorandum’and audit rectification report
received from the Board and any communication from the Registrar.

17.6

To fix the allowances to be paid to the members of the Board and
the delegates for attending the Board meetings and other meetings.

17.7

To consider the election rules as recommended by the Board and seek
their approval from-the Registrar.

17.8

To add, alter, vary or amend the bye-laws as and when necessary .

17.9

To consider the removal o the Managing Director as recommended
by the Board with the prior consent of the NuuB.

17-10.

To consider the expulsion of members if any, as recommended by
the Board in accordance with the provision of the bye-laws.

17.11

To appoint auditors and fix their remuneration.

17.12

To fix the limit of the outside borrowings which may be incurred
subject to the maximum limit fixed in the bye-laws.

17-13

To consider any other business brought forward by or with the
consent of the Chairman.

18.0

VOTING lilGHl'S

18.1

For giving weightage to the affiliated primary oilseed growers’
cooperative societies the qualifying norms and the number of . .
their votes shall be determined by the Board on the basis of
variation in the production of oil seed crop of the farmers
according to the season from year to year and its contribution .
towards the business of the Federation in the respective year.

10

18.1.1

The right of vote shall be exercisaole only on the fulfilment of
the obligation of the members as specified in the bye-law No.14-0.

18.2

Nominal and special nomina

18.3

The Registrar, the coopted expert and the Managing Director shall
have one vote each.

18.4

The representative of the NDDB will have voting powers equal to
the total voting powers of all other delegates.

19.0

The quorum of the General Meeting shall be 50 or l/4^ of the
members entitled to attend the General Meeting whichever is less.

20.0

If at any General Meeting, there is no quorum within 3O minutes
from the time fixed, the meeting shall stand adjourned to a date
to be fixed by the presiding officer and to be communicated to the
members by 7 days notice. At such adjourned meetings, if no quorum
is present, the members, present shall form the quorum, but no
business shall be transacted other than those specified in the
notice of the General Meeting.

21.0

Decision shall be taken by a majority of votes. In the case of
equality of votes, the Chairman shall have , a casting vote in
addition to his ordinary vote .

22.0

Initially the Board, in consultation with the NDDB, will select 6
districts from the Federation’s area of operation. The Chairman
of the affiliated primary oilseed growers’ cooperative societies
in each district shall elect among themselves delegates, nut
exceeding 20 in number, calculated on the basis of one delegate
for every five affiliated primary oilseed growers’ cooperative
societies ignoring fractions, to represent their districts on the
general body of the Federation which will alfX) constitute the
electoral college. These elected delegates would elect among
themselves one member to represent their district on the Board.

22.1

The districts would be reviewed and decided by the Board in consul­
tation with the NDDB from time to time. Five districts of
baurashtra region where the groundnut crop is largely produced
and the groundnut growing pockets from other parts of the area of
operation, which for the purpose of defination of a district will
constitute one district.

23.0

B0.aitD OF ULitECTORb

23.1

The Board of Directors shall consist of the following:

23-1.1

Six members from the elected, delegates representing general meeting
as ner the bye”law No- 22.0.

members shall not nave voting right.

23.1.2 * Registrar.
23.1.3

Three representatives of the NDDB

I

12&

3, , viope>
\

11

I

Hl)

jrefi-

CM

;XIOv

25.1.4

* One Oilseed Expert or K..nagement Expert to be ooopted by the Board.

25.1.5

’ Mans.ging Birector of the federation as member—secretary.

25.2

The first meeting of the Board after Annual General Meeting
shall be called within one mongh of the Annual General Meeting.

25.5

Every year the Board in its first meeting shall elect the
Chairman from amongst themselves. The. Chairman shall continue
to hold office till a new Chairman is elected as per the
bye-laws. The Chairman of the Federation shall be an honorary one.
The Chairman shall preside over the meeting of the Board.
In case of his absence, the directors present in the meeting
shall elect one among themselves as the Chairman of the meeting.

25.4

25.5

Each. Birector shall have one vote. The Chairman shall have
the right of casting vote in case of equality of votes.

25.6

The presennce of 5C^ of the Board memebrs shall form the
quorum for the'Board’s meeting.

25.7

The term of the elected directors of the Board shall be for a
period of three years, however, every year one third of them
shall retire oh rotation basis. The retiring members shall
be eligible to re'contest the election. The basis of
retiring 1/3rd directors of the 1 st elected Board shall
be decided by the lot.

25.8

The elections to fill in the vacancy of the retiring director
of the Board shall be conducted in the district from where
the retiring director was elected.

25.9

A casual/interim vacan'.,y( ies), caused amongst the elected
directors shall be filled up by the Board from the elected
delegates of the concerned district. Buch cooped director
shall hold office for the remaining period of the terms
of the members in whose place he is coopted.

25.10

Notwithstanding anvthing contained in these bye-laws the
first Board members including the Chairman shall be
nominated by the Registrar in consultation with the NBBB
for a period of five years which can be extended for another period
of three years by. the Registrar in consultation with the NBBBo

25.11

Casual vacancies in the nominated. Board members shall be filled
up by the Registrar in consultation with the NDDBo

25.12

No member shall, be allowed to participate or vote on the
proceedings of any matter in which he has. personal, direct
or indirect interest. This will
--- -however, not be applicable
to nominees of the NBBB and Registrar.

25.15

In case of urgency when a particular decision cannot await
the Board meeting, a decision can be obtained through a circular
circular resolution passed among all its.memeb^BS. Every
resolution so approved by a majority 'of members singing
in agreement shall be effective and binding as if such resolution
had been passed at a meeting of the Board and shall be
included in the minutes and read out in the next meeting.

12

25.14

All acts done by the 'Bo'rd i • any person acting in his capacity as a
member of the Board, not withstanding that, it is afterwards discovered
that there was some defect/error in the appointment of such person,shall
be valid as if the Board or any such person had been duly appointed.

25.15

The Board may meet as often as it considers necessary but it shall
meet at least once in every two months.

24.0

PO rERS

RESPONSIBILITIES AND FUNCTIONS OF THE BOARD

The entire administration, management and control of the Federation shall
be vested in the Board. The Bosrd shall have and exercise all powers
and. enter into all such agreements, make all such arrangements, take all
such proceedings and do all such acts and things as may be necessary or
proper for the due management of the Federation and for carrying out the
objectives for which the Federation is established and for securing and
furthering its interest subject to the provisions of the Act and the
Rules or such Act as shall hereafter take its place and any Rules which
may be passed by the State Government in persuance of said Act and Rules
and subject to these bye-laws and/or any bye-laws which may be duly made
by the Federation.

Without prejudice to the general powers conferred by these bye-laws, the
following powers and.authorities are expressely given to and confirmed
upon the Board”

24.1

To approve the proceedings of the previous meetings.

24.2

To appoint the Managing Director of the Federation, fix his remuneration,
terms of service and to suspend him; but not to remove him without the
approval of the NDDB and th General Meeting.

24.5

To dispose off applications’1 or membership, shares, debentures ?.nd
transfer of shares.

24.4

To call upon the members to subscribe to share capital and/or
debentures as per bye-laws No 5"10 in proportion to theiy business
with the Feders-tion..

24.5

To fix the qualifying norms and determine the number of votes of
ordinary memebrs as required in the bye-law No 18<,1.

24.6

To raise loans, debentures.; accept deposits. The board shall
take prior approval of NDBB in case at any time, the properties,
assets etc are to. put into charge as security against the loans
to raise funds for the business of the Federation. The Board
shall also determine the terms and conditions thereof in
consul -ation.with NDBB, except in matters relating to short-term
advances in working capital.

24.7

To purchase or take -on lease or otherwise acquire land and construct
building or buildings for value exceeding Rs 1.00 lakhs up to
Rs 10.00 lakhs. All cases/involving a pcapital expenditure
exceeding Rs 10 lakhs shall be referred to the NDDB for approval
before authorisation, but in cases where detailed project reports
have been pre pared with ’ estimates and duly approved by NDDB, the
Board shall be fully competent to.authorise the undertaking of all

works covered under the approved projects9 including variations in the
aaroved estimates, provided particular component parts of the
project a"d involve no substantial change in the scope of the project
as approved by NDDBo
24.8

To apply for and take out purchase or other-wise by way of licence
or otherwise, any patent, patent right of inventions, trade rights
copy rights, copy right of secret process or technical aid or
know-how which may be useful to abhieve the objectives 01 the
federation and to grant licence to use the same«

24.9

To approve the administrative set-up and frame necessary service rules
of the Federation in consultation with the NDDB.

24.10

To create trusts for the welfare of employees and raise funds support
and/or assist the same.

24.11

To institute, conduct, defend, compound or abandon any legal proceedings
by or gagainst the. Federation.or its officers or otherwise
bhc 0.11^1x3
concerning the
affairs of
c the Federation and also to allow time for
satisfaction
of any defats to settle any claims a.nd/or
payment or t
demands by or a-gi-inst the Federation by Arbitration or otherwise.

24.12

To appoint and/or remove or suspend Senior Executives of the Federation.

24.15

To recommend to the General Meeting expulsion of.-.any...member whose
conduct in the opinion of the Board is detrimental to the interests
of the Federation by 3/4 majority of the members present- and voting
at the General Meeting.

24.14
24.15
24.16

To receive Audit Note and approve its rectification report for placing
before the next General Meeting.
To approve the Annual Accounts, ivhnual Reports and to recommend appropriation
of profits.
To fix the rate of service charges for manufacturing, processing,
procuring and marketing of commodities through the Federation.

24.17

To decide taking over the,management of primary member societies as
and when recuested/required.

24.18

To approve purchases and erection, or hire of plant machinery ana other
assets for the business of the Federation.

land/machinery and other immovable
24.19 . To approve sale/disposal of any the business of the, Federation.

nrnnprties
nlf not'
properties'olf
not required for

24.20

To fix charges for use of Trade-Mark/Brand-Name .

24.21

To decide pricing policy for the commodities supplied by the members.

24.22

To consider applications for loans

24.23

To authorise the Managing Director to sell commodities on credit.

H.

14

24.24
To decide seal of the Federation to be used with the authority of the
24.24
Board and the Managing Director.

24.25

To delegate to the Managing Director and/or any office ar^y of its business
and/or powers and/or duties under the bye-laws.

24.26

To delegate its powers to Managing Director by a special resolution in case of
contingencies or any specific reason.

24.27

To frame, election and other subsidiary rules consistant with the provisions
of the Act, Rules and Bye-laws for the proper conduct/business of the
Federation. The election ruless shall be implemented after the approval of
the General Meeting Registrar.

23.0

Notwithstanding anything contained in these bye-laws, the NDDB so
long as it holds more than 51% of the paid-up share capital ofthe Federation,
may from time to time, issue such directives or instructions as may be
considered necessary in regard to the finance, conduct of business,functions
and affairs of the Federation or of the Directors thereof and in like manner
may vary and annul any such directive or instructions. The Board of Directors
shall give immediate effect to the directives or instructions so issued.

26.0

QUALIFICATIONS OF DELEGATE FOR CONTSSTING THE SECTION OF THE BOARD

26.1

No delegate shall be eligible for election as Director unless the Society he
represents;

26.1 .1

has fulfilled all the obligations ns mentioned in the bye-law No 14.0.

26.1 .2

has resolved authorising him to represent, and a copy.of the resolution
in this behalf is received by the Federation along with the declaration
that no other member is representing the society on the Board;

26.1.5

is placed in Audit Classification A or B during the last audit;

26.1 .4

is an ordinary member of the Federation.

26.2

No delegate of
unless he:

26.2.1

is the Chairman of the member—society as on 51st October, preceding;

26.2.2

is not a paid employee of any cooperative society or of the Federation;

26.2.5

is not a defaulter of cooperative society and also no arrears have been
convicted for any offence under section 147 of the Act;

26.2.4
26.2.4

26.2.5

primary membei? society shall be eligible for elections

is not held liable'under section 82, 90 and 95 of the Act or is not
convicted for any offence under section 147 of the Act;
is not dishonest, not proved bankrupt nor declared insolvent;

/
/

15

26.2.6

has no direct or indirect interest in any business contact”or
sub-contract nor does he have a partnership interest in any
sale or purchase transactions of the Federation or the
member society (except the investments made by him in the
primary society);

26.2.7

is not directly or indirectly engaged in the business, industry,
profession and allied activities similar to that of Federation
or who has no interest in any of such activities or shall not
not be ligible to retain the membership on acquisition
of such interest subsequently.
NOT£

A person or society engaged in sale/supplj of commodities
to.primary oilseed growers’ cooperative societies or to the
Federation, such sale/supply being a part of the Federation
activities will not be considered as a person directly or
indirectly engaged in the business, industry or vocations similar
to that of the Federation*
27.0

MAMGING DIRECTOR

27.1

The Managing Director shall be appointed by the Board of Directors
with the prior approval of the NDDB. His remuneration, terms
of service, suspension, recommendation for approval would be
effected by the Bo^rd of Directors with, the prior approval/recommen­
dations of the NDDB’o

27.2

The general powers, duties and responsibilities of the Managing
Director are as under:

27.2.1

He shall have General control over the administration and business of
the Federation.

27.2.2

He shall purchase or take on lease or acquire any land, ahy
building or other movable/immovable property not exceeding
the value of Rs 10 lakhs.

27.2.5

He shall be the officer to sue or to be sued on behalf of the
Federation and all bonds and agreements in favour of the Federation
shall be in his name.

27.2.4

Hee shall have power for and on behalf of the Federation to
endorse, sign, negotiate cheques, and other negotiable instruments
on behalf of the Federation. He shall also sign all deposit
receipts and operate on the accounts of the-Federation with any
Bank.

27.2.5

He shn.ll appoint members of staff within the sanctioned seal© of
establishment upto and inclusive of cadre of officers other than
the Senior Executives.

16

27.2.6

He shall award punishment including dismisal from service
to emnloyees whom he can appoint.

27.2.7

He shall allow credits to buyers within the limit fixed by the
Board from time to time.

27.2.8

He shall undertake import/export business of the Federation.

27.2.9

He shall carry out negotiations with the Government and other
National/lnternational Organ!sations/Agencies.

27.2.10 H. shall make arrangements for clearance,9 freight, forwarding,
transport and storage of commodities.
27.2.11 He shall arrange to insure against risk of all kinds of property
of the Federation.

27.2.12 He shall arrange the training of the staff members of the Federation
a.nd/or its members.
27.2.15 He shall enter into agreement or contracts for purchase, s-les,
lease of land. buildings required for the working of the Federation
and to execute documents on behalf of the Federation and. to
represent it in all legal actions instituted by or on behalf1of
of the Federation.

27.2.14

shall arrange to maintain proper accounts of the Federation.
27.2.15 He shall arrange to prepare annual report 9 balance sheet and
budget for placing before the Board.

27.2.16 He shall arrange.to convene the meeting of the Board as required
under the bye-laws and the General Meeting and such other
’ Board or found necessary
meetings as and when dir -oted by the
or on :receipt of requisition of 1/5th number of ordinary members
or upon reouisition from the Registrar.
_

/-N

1

T. It

I.

-1

_

_

_ J_ 1______ ,

1

27.2.17 He shall act.as the Secretary of the Board and the General
Meeting and arrange to record the proceedings of the Board
and other meetings in the minutes book.

27.2.18 He shall suggest service charges for manufacturing, processing
or marketing of the commodities to the Bo^rd and arrange
to collect the some.

27.2.19 He shall arrange for adequate security against embezzment,
stealing misappropriation, damaged by the employees handling*,
gash, goods and securities.
27.2.20 He shall arrange to examine and verify dash, stock and
stores of the Federation.

27.2.21 He shall appoint consultants/experts .and fix their remunerations.
27.2.22 He shall decide the terms for purchase/pool, price structure,
rate of commission to be paid to the primary members
sociities on procurement of ground—nut and other oilseeds.

t/

17

27<.2.25

He may delegate all or any of the power's authorities
and discretions vested in him, to
• any
„ employee ( s) . of the
Federation, subject to the ultimate control 9 authority
and’responsibility bei. , retained by him.

28.0

CONSULTATIV - COWilTTEE

28.1

The delegates of each district as per oye—laws No 22 will
elect among themselves seven persons to form the consultative
committee for that district every year. An authoris d employee
of the Federation will be the member secretary of this committee.

28.2

The consultative committee would suggest to the Federation
for its own district on matters pertaining to encouragement
for growing and/or procurement of commodities and/or
organicing technical inputs.

28.5

The consultative committee can meet as and.when required
but shall meet at least once in two months.

28.4

The terms of members of the consultative committee for
different district shall be for one year.

29.9

DISTRIBUTION OF PROFIT

29.1

At the annual general meeting, the net profit shall be
appropriated as follows?

29.1 .1

25X shall be carried to the reserve fund.

29.1 .2

To. .contribute towards the educational fund of the Gu
Gujarat State Coo.pera.tive Union as required under the Act.

29.1.5

Out of the then remaixulii^ 'profit a sum not exceeding 12%
per annum shall be distributed as dividend on the paid-up
share capital.

29.1.4

The balance amount of net profit after above mentioned
deductions hhall be taken to general reserve and will be
distributed as bonus to member societies in proportion to their
business of commodities transacted through the Federation or will
will be utilised for research and development as may
may be decided b; the General Meeting..

50.0

RESERVE FUND AND GENERAL RESERVE

50.1

In addition to the amount mentioned in the bye-laws 29.1
all entrance fees, donations, other than those for specific
purposes and receipts on account of forefeited shares and
fines other than those collected from employees shall
be carried to the reserve fund.

50.2

Over and above what is provided in the bye—lav; No 29.1.4
any income other than the normal trading income excess provision
and reserves can be carried out to the General and shall be
be utilised with the permission of the Board from time to time.

•••V ,'i

I •





I

I

M

18

$1 .0

ACCOUNTS AND RiJCOWlS

51

The accounting year of the Federation shall be from 1 st November
to 51st October. Books of accounts and other records shall be
maintained as prescribed in the Rules and also as directed by the
Registrar with such additions as the Board considers necessary.

52.0

Dividend not drawn within siz months from the date on which it is
announced at the General Meeting may be remitted to the share
holders by money orders at their own cost and/or can be credited
to their accounts with the Federation.

55.0

In cose of absence or orovisions or inconsistancy or repugnancy in
the bye-laws of the primary member societies the bye-laws of the
Federation shall prevail subject to the provisions of the -Act and
the Rules.

54-0

AMENDI/ENTS

54.1

Non of the bye-laws contained herein shall be altered or
rescinded and no bye—laws shall be added ezeept by vote of
majority consisting of at least 2/jrd ordinary members present
and voting at the general meeting. Tie notice convening the
meeting shall specify the proposed alteration, addition or
recission. The amendment shall not taken effect untill it is
approved by the Registrar.

54.2

Notwithstanding anyth?^g contained in these bye-laws, ?..s
long as NDDB continues to be a share } older of the Feder-tion,
amendment or repeal of any existing b^e—laws or the enactment
of any new bye-law shall be made by the Federation with
the prior approval of NDDB.

35.0

SERVICE NOTICE

Whereby in these bye-laws, it is proposed that written notice
shall be. given to by member, the despatch of such notice
from the office of the Federo-tion at the registered office
of any member shall be considered as sufficient service
of such notice.

>

CkficLiiisa. bion of Teciiriica.l Input Programme

The first step in the production enhancement process will be to

organise the oilseed growers into village level cooperative

societies.

The promotional and educational effort will be under-

taJcen by the concerned mobile teams of the federation.

The scope of the project for maximising-production of oilseeds

was based on increasing the productivity per unit area through
launching intensive cultivation measures and double cropping of

oilseeds viz. groundnut •

The development efforts will also be

supported by demonstrations to popularise scientific techniques
of cultivation.

The two dimension approach may be sought in this

direction - one -based on area and -the other on the production

problems.

Former is aimed to attain rapid growth in a relatively

short period while the later

consisted of -

a. Raising productivity per hectare through intensive cultivation

measures adopted in high potential areas.
b. Increasing irrigated ax'ea under oilseeds.

c. Insulating oilseed production from violent fluctuations through
suitable agronomic measures and development of draught

resistant and non-traditional oil^v.ed crops viz. lluuf lower,

Soybean etc.
The contribution of improved practices and technical jnruts -

including quality seed. fertilizer. pesticides and optimum spacing
and other cultivation practices are expected to raise oilseeds

,s 2

.

yield ( under rs.infect conditions > by JO percent over the period

of seven years of the project.

According to proposed plan the

inputs would be provided either on cash payment or as credit-in-

kind for the supply of both inputs and credit to finance them.
the project originally proposed that existing cooperative

infrastructure already present at village level i.e. multipurpose

cooperative credit societies, be utilised to the extent available 9
with back up from State Cooperative Bank.

This will avoir1

duplication in manpower and financial investments»

In practice the above mentioned reliance on institutions beyond

direct project control may apparently result in repeated breakdown in the supply of inputs and credit needed by oilseed
growers, because of -

1. Non-existance of cooperative societies in some of these

villages.
2. Loan balances outstanding with majority of member oilseed

growers.
J. Short supply at peak demand time and

4. vZhen available in sufficient quantity. not suited to local
conditions/requirement.

Looking at the above problem it may be advisable for the oilseed
federation to procure these inputs from re liable source and supply
to its members i.e. Primary Oilseeds Growers1 Cooperative Society.
The Primary Oilseed Society in turn will arrange supply of seed

Rhi z o bium c ul tur e 7 seed treatment chemical, fertilizers, pesticids

and other inputs on. cash payment or as credit-in.kind to its •
members at,their door step.

Where such facilities are not

available, mobile team members of the? oilseed federation will

assist oilseed growers to obtain finance from other sources for
input purposes.

The technical input programme of the oilseed federation involves

a •three dimensional

action involving oilseed growers, extension

and other professional staff hired by the; growers own organisation
and links with.existing and on going research Inst: tax-ion at the
state and national level.

The strategy of the technical input programme .shall be based.on

certain information gatlUired before hand for 'taking up input

programmes which are as under


u.-r :■

1. Cost effective production technology.
2. .Extent of awareness created among the farmers for improved

production practices and inputs.
3. Arrangement and or co-ordination of the credit facilities
to the member farmers through credit institutions.
4a Sources from where these inputs can be procured.

5- Subsidy ctnd/or assistance schemes proposed by State/Central

Government:?.

Some of the subsidy schemes proposed by the

State Governments are as under a

s 4 ®

I. Tamil Nadu
Kainfed condition - Rs. 100.00

1. Laying of 0.4 h®-. problem



oriented demonstration.

Irrigated condition-^s.175«^^

Rs. 320.00 ( per 0.5 ha )

2. Distribution of minikits.
3. Mass ground spraying «

i. Distribution of plant
protection chemicals at

ii.

50 percent subsidy.

fc. 25.00

Operational charges

- Rs. 15.00 <

(Total Rs. 40/- ha.)
4. Subsidy towards transport.

handling and processing

charges for groundnut seed
- Rs. 300/- per quintal.

procurement.
5. Subsidy for ■ccx/SO-i-dd

seeds of groundnut procured

-Rs. 1.5° Per

6. Subsidy for truthfully

- Rs. 1,00 per kg.

labelled seeds

2. Gujarat
1. Seed -certified © Rs.15O/quintal truthful, labelled

seed @ Rs.100/- per quintal
2. Seed treatment chemicals

« 4C^o on the cost of chemicals

;5s
Pesticides

(i) 50^ on the cost of chemical

a, Ground spraying

,

( ^imecron/Bavisten)

(ii) Rs. 15*00 per hecatre as operational

subsidy.

(i) 5^ on the cost of chemical

b. Areial spraying

( Bavisten/Dimecron)
(ii) Operational free of cost.

- @ Rs.200/- or 5^ of the cost of

4o Plant protection

the sprayer whichever is less •

equipment.

5. Multipurpose seed drill- A? Rs. 200/- per seed drill.

6. Sprinkler set

1

- Rs.- 5/000/--per set.

5* Hadhya Pradegh ( On Soybean crop )

1. Demonstration plot on

'.proved ■package of"’practices

@ Rs.500..00 per hectare on average type of land.

(Total money allocation Rs. 16 lakhs ).
2, Demonstration plot on improved package of practices
@ Rs.75O/*- per hectare on heavy type of soil (Total

money allocation is Rs. 9 lakhs )«

5. Control of weeds - Wee die ides demonstration © Rs. 415/-ha,
( Total allocation is Rs. 64,000/-).
4» Farmers field days on demonstration of weedicide-s @Rs.:1Q00/per demonstration .( To^al money allocation Rs. 40,000/-) .
5. Minikit demonstration
;

• -V ’

(0.5 hectare)
■■

Rs. 150 Per minikit

'.I •'-’.b •‘•‘d-..’;

( Total money allocated is Rs. 12 lakhs )•

'

-a

s6s

6. Seeds -(Total money allocated Rs. 72 lakhs /.

Certified seeds @ Rgo'iSO/- quintal( on 800 MT seeds -Rs. 12 lakhs;

Truthful labelled seed © Rs. dOO/- per quintal ( On J600 MT
seeds - Rs. J6 lakhs ) •

Ordinary seed © 60.00 /- per quintal( on 2000 MT seed -

Rs. 24 lakhs ).
7• Plant protection programme.

« Plant protection.chemicals @ Rs.JC/- per ha.
- Plant protection ..eqx;,laments

Ih.JOO/^- pec equipment.

~ weedicide © Rs.200/- per hectare.
8, In addition the. government a:?-sisiance for training of
staff, extension activity - films, slides etc. is also
admissible -under the scheme.

4. Wisjfei •'
1. Subsidy towards transport, processing

and. handling of .seed

For groirndnut and Sunfl over

Soyabean

2. Subsidy on seed s

- Certified seed

Rs. 3Q/- / Q.
- Rs. 20/- / Q.
- Rs. 150/- / Q.

- Truthful labelled
seed - Rs.100/- / Q.

5. Subsidy for plant protections - 5^ on chemical
- Rs. 15/— per hectare towards
operational expenses.

V

4. Seed treatment chemical
7. V

Rs. 6/- per hectare. .

oo 7
I oo

5. Provision for minikits for micronutrients, Rhizobium

culture sind varieties.

Once the .above information is collected, planning for
the supply of inputs may be done considering demand of

var ious inputs emerging from the information collected
on percentage of seed replacement every year,

reconditions, pest problems etc.

local

Planning for inputs

supply will consistute.

a. Arrangements for procurement of various inputs.
b. Arrangements of the transportation for various

destinations.
c. Arrangement of finances required lor procurement
of inputs, transportation, storage etc.
d. Arrangement for storage at district or society level.
e» Arrangement for distribution of inputs on cash/cre<^^

and settlement of accounts.

f. Monitoring of input distribution.
The supply of technical inputs will not increase the oilseed

production unless oilseed growers are trained properly as

regards the improved production technology.

Therefore, on

input programme well supported and linked with eftactive
extension programme can bring the desired results which

NDDB’s oilseed project envisages in its proposal.

rkg/mcn/5885

Introduction to Chemical Constitution of Oils & Oilseeds

Groundnut oil is consumed by a large group of people in different parts of the
country.

Other edible oils like, cotton seed, rapeseed, soyabean and Ealm

have also gained much importance due to their shortage.
grades other oils except groundnut as low.

Consumer, often,

Therefore, it appears essential

to know about the difference among different oils which is related to their
Chemical Constituents.

Oils and fats contain two major Chemical Components namely fatty acids and
glycerol.

(A)

What is fatty acid

Itetty acids contain carbon-hydrogen atoms as groups placed side by side
forming a chain ending with a (cOOH)
(COOH) group (Acid)
(Acid).

In a more simple

form it can be represented as

CHj.

CH2.

CH2.

COOH

(butyric acid)
In a chain? the number of carbon atoms may vary from 4 to 22.

majority of oils contain C-18 fatty acids,
fatt; acid group here.
Table I

Therefore, we discuss this

C-18 Fatty acids and
their structure

Sr.
No.

Chemical structure

1.

CHj. (CH2)16. COOH

2.

ch5.

3

CHj (C%)4 CH = CH.

Double
bonds

Name of the
fattj acid

Stearic

(c%)7ch = ch. (ci^)7. COOH

1

Oleic

2

Linoleic

3

Linolenic

CH? CH = CH
(c% )7 COOH

4-

Usually ?

CH^o CH2. CH = CH. 0%. CH = CH.

C% CH = CH. (C% )7 COOH

(1) Fatty acids - with no double bonds are known as saturate«
- with one or more than one double bond are known
as unsaturates.

2

(2)

Fats

- contain more saturated fatty acids and are solid at
room conditions

(5)

•Uls

- contain more unsaturated fatty acids and are liquids
at room conditions

(4) Shelf-life

(b)

i)

Fats having more saturated fatty acids have
good shelf-life

ii)

Oils having more oleic acid are stable than
other unsaturated fatty acids

iii)

Oils having more linolenic acid (j double
bonds) are least stable and undergoes faster
rate of oxidation

iv)

Raw oils are more stable than refined.

-

What is an oil

Usually9 fatty acids do not exist in free form

glycerol (ester linkage).

of same or different.

They are combined to

Glycerol can hold J fatty acids which may Lg_..

Then these are known as triglycerides,

All oils

and fats are tri-glycerides.
1
CH2 o

CHg- 0 -Fatty acid^

OH

1
CH. OH

1
2
CH. 0 - Fatty acid

1
CH2. OH

CI^ . 0 - Fatty acid

Glycerol
Table II

Sr.
No.
1.

“glyceride
Typical Composition of an oil

Particulars

%

Try-glycerides

a)
b)

Fatty acids 90%
Glycerol 10%

2.

Free fatty acids

0.5%

34.

Gums or phosphotides

0.5$ to 1.0%

Moisture

0.2%

5-

Other compounds like
- Colouring matter
- Waxes
- Sterols
- Partial glycerides
- Tocopherols
- etc*

0.8%

5
(C)

Classification of Oils
Basically, oils and fate are classified as Animal or Vegetable depending

upon their origon.

Animal fats are marine oils like whale oils, lard

and milk fats.
Vegetable oils are either non-edible oils such as Castor, Karanja, or

edible oils like groundnut. cottonseed etc*
Figure 1

Classification of Edible Oils
Oleic acid group

-

Ex. groundnut oil

Oleic linoleic acid - Ex. Cotton seed oil
Edible
oils

Table III

linoleic acid
group

- Ex. safflower
Sunflower
Sesame
Tobacco

linolenic acid
group

Ex. Soyabean
Rubber seed
linseed

Eruic acid

Ex. Rapeseed
Mustard

Palmitic

Ex. Paim oil

Important fatty acids and their level in common edible oils

Sr.
No.

Common oils

Major fatty
acid

level (%)

Special note

1.

Groundnut oil

Oleic

60 to 70

Excellent shelf-life

2.

Cottonseed oil

linoleic

50

Good shelf-life

5-

Safflower

linoleic

70

Moderate shelf-life

4.

Sunflower

linoleic

60

Moderate shelf-life

56.

Tobacco

linoleic

70

Moderate '-shelf-life

Sesame

linoleic

60

Good shelf-life

7*

Soybean

linoleic
Linolenic

40
3 to 12

Develops rancidity
(fioshy) during storage

8.

Mustard

Erucic

9.

Rapeseed

Erucic

45
45

Pungent smell
Develops rancidity
during storage

I

4
(d)

Oil seeds

India is a major oil seed producing country,

The important oil seeds

cultivated are groundnuts? cottonseed? safflower? sesame ? and soyabean;; □
Table IV Oil content of common oil seeds

(e)

Sr.
No.

Oil seed

1.

Groundnuts

48

2.

Cottonseed (whole )

18-19

54.

Soybean

17-18

Sesame

56.

Rapeseed

44
40

Mus tard

40

7-

Palm

Oil content

a)

Pulp

45

h)

Kernel

45

Oil Seed Processing
Oil from oil bearing materials is obtained by two methods (i) Mechanical
Extraction and (ii)

lable V

No.
1.

Mechanical

2-

(f)

Oil left in cake during processing by different extraction
me thods

Extraction
me thods

Sr o

Solvent extraction.

Oil left
in cake

Special features

a)

Ghanrics

14-20%

Difficult to collect the cake for
further processing as they are
distributed in villages, Usual
to animals.

b)

Expellors

7%

Cake is solvent extracted to
the reisdual oil.

Solvent Extraction 0.5-1.0%
(hexane)

Direct solvent extraction of oil
seeds is limited only to soybean.

Edible oil processing
Vi.
Usually includes the steps indicated in the following Table -

5

Table VI

Different stages in refining of edible oils

Sr.
No.

Processing
step

Purpose

Treatment

3ye-product

1.

Deguming

To remove gums

Treating with
0.25^ phosphoric
acid

lecithins

2.

Neutralization

To remove
acidity and
partly coloru

Sodium hydroxide
of different
strength and
excess

1 ) Soap-stock
2) Acid oil

5-

Bleaching

To remove
With 1*5% bleach- Spent bleachi^
colour and
ing earth and
earth (28% oil
traces of soap 0.2% carbon

4-

Deodrization

To remove
odour

Stripping with
steam under
vacuum

Sterols



t&md sopt s uj.j 7ix85

OILS^KDS PRuOESSING- INDUSTRY AND ITS BYE-PkGDUCTS

STORAGE OF OI-uSEEDS

r
1
Ju

<■

For each oilseed, there is a general set of conditions of
guidelines which experience has shown needs to be followed if
the seed is to be kept for any length of time without deterio­
ration. Most important of these is the moisture content of the
seed. Other factors are,

i



i
t

a)

presence of foreign materials such as green leaves, s bems ?
or weed seeds

b)

degree of maturity of the seed

c)

tempering time between harvest and placing in storage and

d)

ambient temperature of the atmosphere at the time of placing
the material in storage.

.•

Table I gives moisture levels generally considered safe for
storage.
TABLE I
maximum moisture (yt)

Soyabeans
Flax
Sunflore
Palm Kernel
Cottonseed
Mustarc/rapeseed
Groundnuts

15.0
10.5
8,5
8,0
10.0
7.0
11,0

.

It must be recognised that one of the factors listed above, other
than moisturu, can be the controlling factor for safe storage.
Under correct conditions, it is possible to safe store oil seeds
having a higher moisture content than listed as safe, good
warehousing practices should include



4.-

y

a)

controlled segregation or placement of various moisture
level materials

b;
c)

temperature analysis taken atleast once a week
aeration of higher moisture seed and

t

d)

good record keeping of the condition of the material
going to storage and of successive temperature shocks.

2.

EXTINCTION OF TATS 0; OILS

2.1

Mechani cal pre treatment g
i.

Cleaning - To remove sticks, stems, leaves, similar
trash, sand or dirt by screening.

ii.

Dehulling and Separation of Hulls - Wherever practicable,
oil seeds are preferably decorticated before they are
extracted. The hulls of oil bearing seeds are low in oil

o

O

O

(-

o

o

content, usually containing not more than about 1/o, although
contamination with kernels will, of cor ?se,‘'increase the
oil content with resultant loss of e^'Tl-ble oil. If the
hulls are not removed from the seeds before the latter are
extracted, they reduce the total yield of oil by absorbing
and retaining oil in the press cake eud, in audit".cu,
reduce the capacity of the extraction equipment.
iii. Reduction of Oil Seeds - The extraction oil from oil seeds,
either by mechanical expression of by means of solvents, is
facilitated by reduction of the seed to small particles.
2.2

Cooking of Oil Seeds
It is universally recognised that oil-seeds yield their oil
more readily to mechanical expression after cooking. It is certain
that the changes brought about by cooking are complex and that
they are both chemical and physicochemical in nature
The
primary objects of the cooking process may summerized as follows?
To coagulate the proteins in the seed causing coalscence of
oil droplets and making the seed permeable to the flow of oil.

ii

2.3

To decrease the affinity of the oil for the solids surfaces of
the seed so that the best possible yield of oil may be
obtained when the seed are subsequently pressed.

Mechanical Expression of Oil
Batch Pressing - Oldest method of oil extraction comprises
the application of pressure to batches of the oil bearing
material confined in bags, cloths, cages or other suitable
devices•

ii.

2.4

Continuous Pressing - Continuous expeller of screw press are
now used to the almost exclusion of hydraulic presses for the
mechanical extraction of cottonseed, gr_-^ndrut? rapeseed
in the country. A screw press is essentially continuous
device for gradually increasing the pressure of material fed
to it as latter progresses inside a closed barrel with
provisions for the oil to drain out as it is squeezed from
the feedstock. The first successful mechanical screw press
called an ’’EXi-'ELLEK” was made by Mr. V.D. Anderson in 1900. \

Solvent Extraction
The cake after breaking cracking and screening to get homogeneous
cake size or soyabean flakes are conveyed to the extraction by a
belt conveyor. The extractor consists mainly of a very slow
moving articulated band conveyor. Inside, .a herrn'etacally sealed
chamber the mass oi cake/flakes forms a slow moving bed. It is
washed continuously at various points with a fresh solvent in
counter current manner by means of sprayers through the perforated
bottom and is finally taken off for distillation. N. Hexane is
the commonly used solvent.

o
0

Z

o
o

T.xe miscella is filtered to remove fines and the solvent is
stripped from the crude ^il by passage through preheaters using
film evaporators and stripping column. The latter are usually
packed and are steamed counter currently under reduced pressure
remove hexane. The hexane which turns into vapour is j.ed to
ccndensor through an entrainment separator. The oistillation of
miscella is generally carried out in multistages and in the last
stage, open steam is introduced in the miscella, which is under
high vacuum to remove last'traces of■' hexane from oil.

For animal feed use the hexane-laden cake/flatves are passed through
a desolventizer toaster which removes the hexane and simulianeously
toasts the flakes to obtain the nutritive value. The desolventizer
toaster is vertical series of steam jacketed compartments with a
revolving centre shaft with blades. The blades move the flakes
around until they reach an opening in the floor of the compartment
and drop into next lower compartment. Steam is introduced to
vaporise the hexane and increase moisture content of cake/flakes.
As the cake descend, the temperature is gradually increased to
100oC. to lower the moisture to 15 to 15%® After drying and cooling
the flakes/cake are ground into meal. The cooking in presence,
of moisture destroys undesirable enzymes such as trypsum inhibitor.
High temperature attained toasts the material. The meal is then
cooled, dried and ground. It is subsequently screened and bagged.

2.5
J

I

I

defining.
io Neutralisation - Crude oil from the stripping columns may be
dried and sent directly to the refinery. Initially, the
suspended matters are.removed by filtering the oil through
polishing filters. It is then passed for alkali refining.
In this process with the treatment of alkali, free fatty
acids are converted into soap stocks and removed.

Alkali refining is usually conducted on a continuous basis by
caustic soda (NaOh) of soda ash (Na^CO-,) for a mixture of
these. Caustic s: da and degummed crude oil are continuously
metered into a motor driven mixer. The oil is warmed to 60°
to 70°C by passage through a steam heater. A battery.of
centrifuges separates the soap stock from,the oil. Final­
traces of alkali are removed by washing with 10% water
70° - 80°C. A second washing of dilute citric acid is often
given. The washed oil is dried in vacuum flash drier where
water is flash evaporated.

ii. Bleaching - Most of the oils are improved in flavour and.
stability if they are bleached prior to deodorisation. Since
it is easy to bleach oils like SEGN, soyabean etc.9 natural
bleaching earth (such as fullers earths, hydrated.aluminium
silicate) and activated clays are used for bleaching.
Continuous vacuum bleaching is being used.. Deaerated and
dried oil is continuously mixed with the clay. The slurry is
heated to 105 to 110°C for bleaching and sprayed into-an
evacuated chamber, The oil and clay are separated, in closed
filter presses. Bleached oil flows directly to either the
hadrogenator or to the deodorizer or both in sequence for
conversion into edible products.

o 4 2

ii_. Beodourization - Volatile organics not z amoved by previous
processes are removed by steam stripping at low pressure and
high temperature. A significant percent of the oil and of
volatile oil-soluble constituents are removed from the oil.
Much of the material is the mo'^o v^lalil^, sh^ut <n.ain length
fatty acids. Modern deodourizers are continuous multistage
systems. From the deodorizer the oil flows through filters
to storage tank cars or truexs for bulk shipping. In modern
plants nitrogen is used to blanket the oil during cooling
shipping and packing.

iv

5.

Hydrogenation - Many oils are hydrogenated for food purposes
to make margarine, base oils, shortening, cooking oils as
well as all-purpose cooking and salad oils. Nickel is the
preferred catalyst. Almost all the oils hydrogenated
commercially is processed in batch equipment. The reactor
proper is a tall cylindrical vessel, usually built to hold
20,000 - 60,000 Its. of oil, containing heating coils and a
distribution device in the bottom for breaking up the injected
hydrogen into small streams. It provides a blower or compressor
of large capacity that continuously withdraw... hydrogen from the
headspace of the reactor, force it through a purification train
and sparges it back into the oil. When catalyst is added with
the oil charge, as is usual, hydrogenation takes place during
the heating period, and thereafter as long as is required to
reduce the oil to desired iodine number? water is admitted to
the cooling coils to carry away heat of reaction and maintain
the temperature within proper limits. At the conclusion of the
reaction, hydrogenation is stopped by shutting down the blower;
and the finished charge is pumped out through an external cooler
to a filter press whore the catalyst \s removed and thence to
postbleacliing and to storage.

BYE-PKOBUCTS 0? QILSailbS rWUnSSING ±iwUSl’K±
Acid, oil for soap making.

ii.

Lecithin for confectionary, as' emulsifying agent and. in
medicines.

iiio Protien isolates for human consumption.

*

ivo

TVP (Texturised. Vegetable Products) as a substitute for
meat.

Vo

Be-oiled. cake for cattle feed..

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S-Uf--.SWW.e- -r M,

RECEPTION OF
j SEED V/EIGHING
I SH-0 BATTERIES

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CLEANING OF'SE’eDl
(WEIGHING)
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IMPURITIES
FUEL
WASTE

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2XX
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‘■"“HUSKS ""'1
’ »wm»ftA»DITION OF MEAL)

DECORTICATION

L„_FJ.£L__ j

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</4fX)P 000
CRUSHir^G OFSEED
fa— -r >r?-t r- niiiiiiijjMTwnnoim^wnwnmi

GROpf 10 0
NEATMG OF SEED
DIRECT
EXTRACTION

■!
GROOP LOO
teWn3ING“0F^
|SEEO(EXFELLERS)

PRESSED CRUDE
OIL REFINING
SHIPPING

EXF iXLER CjAKES
pFLAKm

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GROOP ZOO’

EXTRACTION

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HEXANE

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GROOP^S00
r DROOP >00 —[ VAPC^W
DESOLVEN TIZ ING
DISTILLATION OF
OF MEAL
MISCELLA

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3<GR00P 700
[VAPORS
RECOVERY OF
SOLVENT
^CONDENSAT^r

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GROOP tJOO
L- »*

DRYING OF MEAL

"~GROOP 300

SCRysa^WATER

' SUBSIDIARY
EQUIPMENT

L_^_

I
GROOP 1000
SEPARAfIONOF '‘'‘A
Hj&'tjMcATION |

“production of
HIGH-PROTEIN
MEALS SHAPING

^~GROOP 900
COOUNGOFMEAL

MEAL
BAGGING
SHIPPING

1

^^JB55?J2£._

□t
PRODUCTION OF
LECITHIN

CRUDE OIL
REFINING
SHIPPING

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LECITHIN RECY­
CLING CLEANING
SHIPPING

L

SCHEMATIC DIAGRAM OF AN OIL SEED PROCESSING

PLANT

( EXCLUDING SUBSIDIARY EQUIPMENT FOR STEAM ELECTRIC POWER WATER ETC )

Confidential

FACTUAL POSITION ON THF POINTS RAISED BY CLAUDE ALVARES IN HIS ARTICLE
"TLE WHITE LIE” (ILLUSTRATED WEEKLY, OCTOBER 30 - NOVEMBER 5, 1983)-

1 o

Objectives of the Project

The major objective of Operation Flood (OF) is to replicate the "Anand
Mattern" milk cooperatives in the rural milksheds and link these with the
urban milk marketso This is to ensure progressive elimination of middlemen
and increase returns to milk producerso Operation Flood I was started in
July, 19/0 with the objective of setting up 18 Anand Pattern milk cooperative unions and linking them with the four metropolitan cities of Bombay,
Calcutta, Delhi and Madraso The project is assisting in the setting up of
farmer’s own organisation for milk production enhancement, procurement,
processing and marketing of milk and milk products on the Anand Pattern
-06 It
was never
i
the objective of the project to provide cheap milk to the urban
populaceJ o
2o

Cost of the Project

Claude Alvares is in the habit of exaggerating his figures to prove his
point o In one of his earlier reviews of' Operation Flood (Milk: The Conmen
of Anand ? Indian Express, August 22, 1982) he had blown up the assistance
to Amul Dairy from ,Rs o 1c86 crores to Rse18o6 crores and in this article he
has blown up the outlay of Operation Flood from Rs0480 crores to Rs04,800
croreso

Dependence on imports
It is alleged that NDDB failed, in achieving its objective enhancement of
milk production and catering to the needs of the urban consumerso The
article creates the impression that the country will become dependent on
import of milk powder o In fact, after the Operation Flood programme was
introduced there has been a trend in the increase of milk production and
availabilityo

Average annual import of milk powder which was 43,000 tonnes during I960 to
1969 before Operation Flood decreased to an average of 32,000 tonnes during
1970 to 1979 and is now around 41, 000 tonnes annuallyo Most of these
imports prior to Operation Flood were commercial,
which have been
completely stopped since 1975-76O_
The graph drawn by kr5 Claude Alvares does not include commercial import of
milk powdero On one hand, he quotes the official graph on import of milk
powder and on the other, he shows a graph that combines imports of milk
powder and butter oilo The article plays up the import of milk powder
during the year 1982, when there was a severe drought and the Indian Dairy

IWDB Staff Note dated November 29> 19S3o

-2-

Corporation re-scheduled the imports0 It would not he appropriate to pick­
up one particular year and draw conclusions about the failure of the
project from thiso The graph below shows the imports of the milk powder and
the indigenous milk powder production <.
The facilities created under Operation flood have helped in increasing the
production of milk powder from 22,000 MT in 1970-71 to an estimated 100,000
1'1 in 1902-85° The commercial import, which averaged 40,000 MT/year during
the 60’s and reached a peak of 55^000 MT in 1965-64 were completely stopped
from 1975-76° There have been no commercial imports thereafter0 had this
increase in indigenous milk powder production not taken place, our imports
would, surely, have been much higher» Imports now constitute less than 1/.;
of the country's milk production,. As against this, our imports of vegetable
oil and cereals account for 15-50/ and 6-8/$ of their domestic consumption
respectivelyo The current import of milk powder, and that too as a
gift remains at an average of 45?000 tonnes annually despite the tremendous
increase in milk and milk products consumption in the country□ In addition

MILK POWDER IMPORTS ARD DOMESTIC PRODUCTION (’OOO KT)':
100

Indigenous production

V

80

60
Imports

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A

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40

20

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OK

Imported
Indigenous
Estimated indigenous

Includes commercial imports upto 1975-76o
imports after that yearo

There have been no commercial

-5the processing facilities created under Operation Flood have helped to
increase the production of milk powder from 22,000 tonnes in 1970 to
100,000 tonnes in 1982-85* This is being further increased to 200,000 hT to
enable India reduce its imports progressively and substantially over the
next few years0 What has perhaps not been appreciated is that imports of
skim milk powder now constitute less than 1? of the country’s milk
productiono In contrast, while about 12 years ago, no vegetable was being
imported into the country, India now imports over 1 million tonnes,
draining our foreign exchange to the tunc of F.So 800 croreso We also import
some 5 million tonnes of curealso But our dependence on these commodities
is never criticised» Instead, the small quantity of milk powder which is
imported and that too as a gift is being repeatedly questioned0 Butter was
imported freely before 1955° Today India produces 15,000 MT of butter0 All
the baby food consumed in the country was imported until 1965<> Today we
produce 40,000 tonnes0 Condensed milk, cheese, malted milk food, chocolates
were all being imported□ Today we make them all and there are no imports o
These are major achievements envied by our neighbouring countries»

Food Aid is a double-edged sword — if not used properly, it can depress
local productiono Operation Flood has proved that if food aid is used
effectively, it can substantially increase indigenous milk productiono This
is because the commodities received under Operation Flood have been sold at
prices close to the prevailing prices for locally produced milko The- milk
procurement of the dairies which was less than 10 lakh litres/day in 1970
increased to a peak of 62 lakh litres/day in 1982-85o The earlier imports
were essentially used to support the city milk schemes (where the combined
throughput hardly exceeded 6-10 lakh litres/day) <■ The organised sector now
has a combi'.d throughput of nearly 00 lakh litres/d; □



Dependence on imports of dairy equipment

It is true that until 1970’s India relied heavily on foreign sources and on
a few foreign owned Indian Companies for as much as 70? of the dairy
equipmento This was generally a monopoly ’business In 1970, Operation flood
was launched and it required substantial equipment, for the new dairies and
for up-grading the existing oneso Most of the equipment used in the dairyindustry is sophisticated and requires very high level of precision in
manufacture o Therefore, the TOBB/IDC took great pains in encouraging small
enterprises develop their own skills to match the precision requirements of
the user industryo In many cases, the NDBB directly assisted private
industry in the development and evolution of equipment locallyc
Therefore, many local companies diversified to manufacture heav^
heavy dairy
machinery,allied equipment and ancillary equipmento Operation Flood II gave
further impetus to the local manufacturers, because equipment procured
under World Bank assistance is treated as deemed export. Therefore, the
local manufacturers get substantial export incentives<■,
This helped in
increasing investment in the manufacture of dairy equipment<>There- woreonly
15 manufacturers of dairy equipment in India before Operation Flood was
launched, now there are more than 150 including five large public sector
undertakings that are manufacturing dairy and allied equipment»

-4Under Operation Flood II most of the dairy and allied equipment is
purchased through International Competitive Bids and is financed by the
World Bank* The global tenders invited, clearly state that '’preference will
be given to the indigenous goods for easy coordination *" When the bids arc
evaluated, they are compared amongst themselves excluding any customs duty
and other import duties applicable, and any sales tax or similar taxes on
domestic goods* If the lowest party is non-Indian, the lowest Indian bidder
is given the preference by addition of the customs duties and other import
levies which a non-exempt importer has to pay on importation of goods, or
an amount equal to 15? of the GIF cost is added to the GIF prices*

Therefore, the Indian parties get a substantial preference even though the
purchase is made on international basis* In the past 11 years the total
import of equipment under Operation Flood has accounted for less than 16%
of the total procurement * Nearly Rs. SO crores worth of dairy equipment has
been supplied by local manufacturers against tough competition from the
foreign manufacturers *
An export order of Rs*25 crores secured recently by one of the Indian
manufacturers would more than balance the total imports of dairy equipment
so far made under Operation Flood* It is, however, to be expected that some
of the more specialised items like homogonisers, continuous butter making
machines, butter packaging machines, ice-cream freezers, etc* would need to
bo imported until indigenous facilities exist to manufacture them*

5«>

Factors responsible for increase in milk production

It has been alleged that the milk production increase is merely on papero
Claude Alvares thinks that there is something wrong with the figures and he
would rather believe an armchair study supposed to have been carried out by
Dr Tandon of ICAR which states that we would need to import US $ 140
million worth of frozen semen to increase the average milk production of a
milch animal from 700 gms to 1 kg- a dayc Frozen semen is already manufa­
ctured and available aplenty within the country and therefore does not need
to be imported in such large quantities□ Mro Alvares should also know that
it is possible to bring about short-term increase in production without
genetic improvement of the stock* Price incentive, feeding of balanced
cattle- feed, green fodder, health care and improved husbandry practices can
help in substantially increasing milk production *
6

Operation Flood has to draw away milk to the urban areas at
the expense of nutrition of the rural population

Claude Alvares has quoted the Union Minister of Agriculture, Shri Rao
Birendra Singh at a Seminar in Delhi, entirely out of context o The fact is
that the Union Minister in a debate raised in the Pajya Sabha (Starred
Question 85 to be answered on 18th March, 1985) has stated "The- aim of this
entire programme is to improve the income and standard of living of weaker
sections of rural populace» With thi s,the sma11 fa rmers, hari j ans, tribals

-5and others are benefited in two ways — one, that they are supplied with
improved breeds of animals thereby making cattle keeping profitable- o
Provision exists for animal health care veterinary services□ Vhcn they are
better fed, there will be increase in productivity and this in turn will
raise the income of farmers« This will result in tetter feeding of their
children» The greatest advantage of the programme is that it increases the
income of the farmers« If the villagers do not have enough resources, then
cattle rearing becomes absolutely difficult 0 If this programme* is not
implemented, all the good animals will find their way to towns/cities
Bombay, Calcutta,
Calcutta Madras and Delhi, etc0 The private dairy farms in cities
will purchase these milch animals and when go dry,they are culledc They are
not returned back to villages0 Maintaining animals in cities when they are
dry
is not economical,
therefore mostly they are slaughtered
villages
degenerating the. good breeds« By implementing this programme in villages,
milk can be produced there, and sold in cities at remunerative prices
making it possible to rear good animals in villageso As a result of these
programmes, a revolution is taking place in the villages and the number of
improved animals is increasingo They (farmers), are also being provided with
all facilitieso Milk collected from the villages is supplied to urban
consumers, who have,the means to pay for this milko Thus there is a flow of
money from urban to rural sector * This will increase the income level in
the villages resulting in a change in the life style of the villagerso
Their children will bo better fed than at presento"

It is alleged that there is no improvement in the nutritional status and
increase in the income of the farmers in Operation Flood areas c The
economic profile of a small milk producer under the traditional system is
that of low income, low purchasing power, low food consumption and resultant caloric - protein malnutrition. Operation Flood by providing a regular
ma rket and better prices is increasing the purchasing power of the rural
poor 9 thus enabling them to buy foods of relatively higher protein-calorie
value than milko Studies conducted by the National Nutritional Monitoring
Bureau prove that per capita protein and energy consumption is higher in
the households owning milch cattle than others» This does seem logical
because a litre of buffalo milk providing 1,000 kcal and 40 gm protein
could be sold at a price sufficient to buy foods yielding 5?25O kcal and
100 gm of proteino
7o Capacity utilisation of milk plants under Operation Flood
While the country is flooded with milk, Claude Alvares wants the reader to
believe that all the dairy plants set up under Operation Flood are lying
idle. The capacities of the four metropolitan dairies under Operation, blood
were enhanced from 10 lakh litres to 31 lakh litres per day
day0 The current
throughput of these dairies is 27<.5
27o5 lakh litres per day,
day0 The capacity
utilisation has therefore been 89%
89?o» The rural milk processing capacities
under Operation Flood were increased from 6»6 lakh litres to 71 <>34 lakh
litreso The peak throughput of the rural dairies was 62.31 lakh litres in
Similarly, the
March, 1983o
1983<> The capacity utilisation was therefore 87%<>
87%» Similarly
powder plants operated on average at 49% of their capacities and touched a
peak of 82% utilisation during the flush season.

-6-

There are a few milk plants where the capacity utilization has been low
particularly in the north and in Biharo This is primarily because the
respective state agencies implementing this project did not organize
infrastructure but procured milk through contractorso An example is that of
Patna Dairy0 In 1981, when the Bihar Government requested NDDB to take over
the management of the one lakh litre capacity Patna Feeder Balancing Dairy,
the dairy was collecting approximately 500 litres of milk/day through milk
contractorso Today 244 viable producer cooperatives have been organised and
the dairy is collecting 60,000 litres of milk/day.. This was possible by
following sound management practices and building; up a regular procurement
system through cooperatives
8.

Tetra Pak

Several doubts have been raised about the Tetra Pak systemThe feasibility
of introducing aseptic milk in tetra paks was studied in great detail by
the IDC before introducing the systemThe system offers the advantage of
being able to directly link the rural milk producers with the urban milk
consumers□ Currently, long life tetra pak milk is being marketed in Bombay
at the same price as the milk sold in sachets/bottles* Only about 10?
10? of
all the milk marketed under Operation Flood II is expected to be in Tetra
paks o To urban consumers, who are currently paying to the traditional
trade
prices 20-40? higher than the- prices charged by the organised
sector, tetra pak offers a much better alternative0 It also enables the
dairy industry to reach rc-motc areas» The introduction of long life milk in
paper cartons was also recommended by the National Commission on Agriculture and th­ Parliamentary Committee on Public Undertakings.,
Ten years ago the Government of India had issued a letter of intent to a
private firm (Kant & Co0) for setting up a paper laminating plant in
collaboration with M/s» Tetra Pak and the said letter of intent was
cancelled at the instance of IDC/NDDBo Since the packaging and marketing of
milk is largely with the Government/Co-operative dairies, it was only
logical that the paper laminating plant for packaging of milk in tetra pak
should be in the public sectoro

It is alleged that the plant to produce laminated paper for the project in
a special public sector unit was shelved and the contract given to a
private unite Obviously, Iiro Alvaros has been wrongly tutored about the
project as the plant has already been commissioned by the Indian Dairy
Corporation o

9c Cross-breeding policy
The article criticises the import of proven bulls under Operation flood and
alleges that good indigenous breeds are being neglected under the projecto
Cross-breeding is an accepted policy of the Government, as the fastest way
for increasing productivity and this is supported by IWDBo Under Operation
Flood, semen of both exotic and indigenous breeds is made available to the

-7various state cooperative federations depending on their requirements NDDE
also agrees that good indigenous breeds of cows and buffaloes should be
improved bjr selective breeding and arrangements for this have been provided
under Operation Floodo

10o

Export of milk products from India

Mention has been made that ‘’in 80-82, the Punjab Dairy Development
Corporation exported 100 tonnes of ghee to the Gulf countries, thus
providing indication of where surplus dairy stocks may soon goo” The export
of 100 tonnes of ghee over a period of two years is surely too negligible a
figure to conclude that the objective of Operation Flood is to export milk
commodities to the Gulf countrieso
It is a fact that under the Chairmanship of Drn Kurien , an attempt was made
to equalise the price of DNS and Mother Dairy milko Delhi is dependent on
the milksheds of the neighbouring states for its supply of milk and it is
only appropriate that the citizens of Delhi should pay atleast rhe same
rates as those paid by the consumers in the towns and cities of these
states o Today toned milk is priced from Rs02o80 to Rso3°00 in the towns and
cities around Delhi as against B.Sn2o70 in Delhi
Despite the recent price
increase of DNS milk from Rs<■ 1,80 to Rs,2.70, it is significant to note
that there has not been any appreciable decrease in the sale of milk­
through DNS and Mother Dairy which continues to remain around 9o25 lakh
litres per day- We are also not aware of any increase in the production of
cheese, milk delicacies and ice-cream, since this price increase
11 o

Export of oil cake and cattle feed

It is emphasised that export of cattle feed and oil cakes is at the expense
of our milk producerso This is not trueo Each rural dairy has a balanced
cattle feed plant set up under Operation Flood to meet the milk producers g
requirements of balanced cattle feed which is provided to them at cost, It
is reported that export of groundnut extraction and cottonseed which was
around 9=6 lakh MT in 1971-72 came down to 5«0 MT during the period 1 981 82O

No export of cattle feed has been made by any cattle feed plants set up
under Operation Floodo The export, if any, could only have been made by
private sector cattle feed plantse

In any case 9 the export of oil cakes and cattle feed are matters on
the Government takes its own decision-,
12o

which

Operation Flood - Gujarat

Claude Alvares contention that Gujarat is not a natural milkshed is
completely wrong» Ke is also wrong in assuming that Kaira began producing
milk in 1900<> Milk production has been a major occupation in Kaira for

-8centurieso The Anand-Bombay link was established 50 years ago long before
either Operation Flood or Amul were in existence because Kaira district had
surplus milk and servedI as a link to other places in the country.

is not true that Gujarat has been favoured at the expense of other
States in allocation of Operation Flood fundso Based on coverage of
nilksheds, original allocation to Gujarat was 9^ of the total Operation
Flood allocationo
However, towards the end of the project, on the advice
of the Joint GOI-WFP Mission, it was decided that funds should be released
to those States which were able to utilise more funds and complete the
project o This was done because many States failed to utilise the allocated
Operation Flood funds and any unused funds had to be repatriated to WFP as
per agreement. Thus, at the project-end, Gujarat accounted for 19p of the
total Operation Flood funds utilised by all States,
This is surely justified by the subsequent contribution made by Gujarat to
the success of
Flood
o r is’ also
Al. wrong in alleging
_ Operation
--- Claude
Alvares
that milk production in Gujarat has declined
'
"
----- J Cduring
the
period of Operation
Flood0 Official figures show that milk production has gone up from 17„86
lakhs in 1971-72 to 25o76
These ,are again official
25o76 lakhs in 1981-820o
figures and not claims made by
bv NDDB
imDDP>..0
if Claude Alvares wants to give a
distorted picture by taking up a particular year when milk production
was
affected by drought, it is his prerogative to do) SOo

Operation Flood and Amul
It is all; . ed by Claude Alvares ; nt Operation Flood was initiated
to
promote the interests of Aiiul.
n .-.net it was to replicate Amul all over
the country as directed by the late Prine Minister, Shri Lal Bahadur
Shastri
After his visit in 1964 NDDB and Operation Flood project
; were
conceived□
In fact Amul had af monopoly of milk products market before
Operation Flood project which hasj novi created competition for Amul,
Amul
has provided technical assistance and training facilities in their plant to
other copperatives to promote the true spirit of cooperationo

14o Working of the Mother Dairy, Delhi
Claude /"
Alvares has alleged that Ashish Dairy at Delhi got SKP stocks from
Mother Dairy to process into cheese on credit
This
iiixs is noT
not True
true and Dr,
AoKo Choudhury of the Ashish Dairy in Delhi has already written to the
to
Editor, Illustrated weekly
weekly of
of India
India that
that he
he is
is seriously contemplating
legal action against the author and the publisherso Mother Dairy has never
supplied any SMP to the Ashish Dairy either on cash or on
credito Claude
Alvares has also alleged that the Delhi Mother IDairy

paid the Gujarat Go­
operative’ Milk Marketing Federation prices higher' than
than those
those paid
dairies in Uttar Pradesh, Haryana and Punjab. Delhi Mother Dairy has to
to
procure fresh milk from tne federations in the northern milksheds.
Since
these federations are unable to supply sufficient quantity of milk
during
the lean season. the Gujarat Federation has been approached to meet
the

requiremento The Gujarat dairies are part of the Western milksheds and
supply liquid milk to Bombay and Ahmedabad, where prices are higher than in
Delhi o In sPite of ■fchis> the Gujarat Federation supplies milk to the Delhi
Mother Dairy
Also the pricing of milk is linked with its availability. Due to these
reasons 9 the basic prices paid to Gujarat Federation as the basic price
paid to federations in Uttar Pradesh, Haryana and Punjab. Sometimes, it is
more and at other times, it is less0 The variation, however, is marginal
and does not exceed 10-15 paise/kg0 Currently, the basic price being paid
to the Gujarat Federation is less than what is being paid to federations of
Uttar Pradesh, Haryana and Punjab0

In fact , supply of milk by Gujarat Federation to the Mother Dairy is a
favour done to the Mother Dairy in order to ensure a stable supply of milk
to the Delhi consumers. After all, a pipeline to a dairy organisation with
25 lakh litres of milk per day is a security to ensure a supply of milk
when it is required.
15= Concentration of dairy institutions in Gujarat

Claude Alvares thinks that there is something wrong in having the NDDB in
Anand and the IDC in Baroda.. He forgets that Dr. Kurien when he was the
General Manager of the Amul Dairy was specifically asked to replicate Anand
all over the country by the then Prime Minister of India late Shri Lal
Bahadur Shastri during his visit to Anand in 1964° And if one has to
replicate Anand it is important to show what Anand is. Alvares also somehow
believes th- t dairy development in ine country is the responsibility only
of the NDDB and the IDC. He does not realise that the implementation of the
Operation Flood programme is in fact the responsibility of the State
Cooperative Dairy Federations and he also does not realise that there are
several other institutions outside Anand who are responsible for the dairy
development programme in the country — like the National Dairy Research
Institute at karnal (Haryana), and its three regional stations in Bombay,
Bangalore and Haringhata (West Bengal), The Indian
Iridian Veterinary Research
Institute is at Izatnagar (Uttar Pradesh),s> and the National Cooperative
Dairy Federation of India is in Delhi.
16n Progress of cooperatives organised under Operation Flood
Claude Alvares dismisses the facts and figures brought out by the NDDB and
IDC and relies on his figures which, in several cases are as old as five
yearso Mro Alvares does not realise that Operation Flood has now covered so
much ground that what was achieved in the first seven years (5,000 co­
operative societies) of Operation Flood is now being achieved almost every
year. Even though he has access to the latest figures, he would not like to
use these figures as these do not suit his purpose. It may be pointed out
that out of some 25,000 co-operative societies set up under Operation Flood
(as of July, 1985), only 7,000 are in Gujarat□ The number of societies in
other States are: Andhra Pradesh 16005 Madhya Pradesh 11005 Maharashtra
1100; Punjab 2800; Rajasthan 1750, Tamil Madu 4000; Uttar Pradesh 750 and
West Bengal 750.

-10-

17o

NDDB Computer

It has been alleged that the computer ordered by HDDB was the wrong one for
the jobo In October 1978 an ICL-2950 third generation computer was received
under British Aid and got installed from the International Computers
The need for a computer and the specifications
Limited (ICL) at the NDDBo
were based on a study conducted by a British firm M/so PA Management
these
Consultants
LtdThe tender was invited on the basis of
consultation
with
specifications and the computer system was selected in
During
the
acceptance
the Department of Electronics, Government of India
tests, carried out jointly with the Department of Electronics
Electronics,9 it was
The
discovered that the computer did not meet the specifications ordered0
performance of the computer system was further studied by the Computer
Maintenance Corporation — a Government of India undertaking and F/s PA
They
lianagement Consultants,
who had drawn up the specificationso
concluded that the computer did not conform to the standards specified in
the tendero
This has been brought to the notice of the ICL, who have
agreed to modify the computer and upgrade it to the desired specifications
without additional costo
18o Quality of imported commodites

It has been alleged that the commodities with EEC were denatured and used
for feeding calves and these commodities have been gifted under Operation
Floodo

The Indian Fairy Corporation has posted a Senior Officer in Brussels who is
responsible for checking the quality of commodities before they are shipped
to Indiao
Further the agreement between Government of India and EEC
stipulates that the skim milk powder to be supplied by EEC should be freshs
manufactured not more than six months before date of shipment and of good
keeping cjualityo The commodities imported are further checked in India by
Public Health authorities on receipt at our Ports3
The Indian DairyCorporation Quality Control staff also regularly monitor the quality of
these commodities before releasing them to the dairies for recombinationo

19e

Operation Flood type programme in other countries

Mro Claude Alvares alleges that the replication of the Anand Pattern
Cooperatives on the basis of Operation Flood will make other countries
"also” dependent on milk powder "imports0” Obviously he does not know that
the Philippines is at present commercially importing 97? of its milk
requiremento The Philippines Government asked the EEC and the Government of
India to send a team to the Philippines headed by Dr<> Kurien to help them
evolve an Operation Flood type project, the main objective of which is to
reduce the milk imports by 10% by stimulating local milk production.. In
Pakistan, commercial imports of milk powder are made under Open General
Licenceo In Sri Lanka, milk powder is freely imported and the only milk­
product manufacturing plant is owned by a multinational which has also been
invited to manage the Government controlled Columbo Milk Scheme□
9

f
*

-11-

The authorities of all these countries after visiting India and understanding Operation Flood have expressed their admiration at the fact that
India has completely stopped commercial import of powder and butter and in
the manner in which gift commodities have been used to generate Rs <>500 to
600 crores which are being invested in dairy development to increase the
production of milk within the country^ It is no wonder that these countries
now want to judiciously deploy the import of gift milk powder for the
development of their own dairy industry on the style of Operation Floodo
Both these countries have approached NDDB through the World Bank to assist
them in developing Operation Flood type projects»

20o Authenticity of milk production and per capita
consumption figures used by NDDB/lDC
All figures quoted at any point of time or used in graphs by NDDB/lDC on
milk production and per capita consumption of milk have been official
figures published by the Ministry of Agriculture

Position: 227 (22 views)