Major issues affecting the Gaon panchayat Level Cooperative Societies (GPCS) in Assam

Assam's GPCS aim to combat rural indebt and provide cheaper credit to the agriculture sector. Despite facing infrastructure, managerial, and financial challenges, these GPCS continue to function as integral development agents in the rural economy.

I. Infrastructural:

* The rural Assam region's poor transport and communication system is causing difficulties for the Gaon Panchayat Level Cooperative Societies (GPCS), particularly in transporting PDS goods. 

* Poor road conditions, particularly during rainy seasons, make it difficult for agents to transport goods, leading to high carrying costs and increased prices. 

* The long distance from society to district FCI offices/godowns also contributes to high transportation costs. 

* Insufficient storage facilities, despite government assistance, are also a significant issue.

* The slow growth and poor performance of GPCS are attributed to the lack of co-operative education among general members, who primarily focus on supplying subsidized food grains. 

* Despite the Vaidyanathan Committee's recommendation for the entire system to be computerized, GPCS is lagging behind other financial institutions in modernization and computerization. 

II. Financial:

* The growth and smooth functioning of GPCS have been hindered by insufficient capital finance, leading to poor service, slow growth, and eventual bankruptcy. 

* The working capital, which is crucial for implementing essential functions, is also inadequate. 

* The Act includes provisions to ensure financial discipline and keep administrative expenditure reasonable. 

* Non-repayment of loans and poor financial position have led to financing banks and the State Government stopping financing societies, resulting in a shortage of working capital for GPCS's essential functions. 

III. Managerial:

* Efficient management is crucial for a GPCS's growth and success. The Chairman inspires and motivates members, making them a key source of motivation for the cooperative society. However, only a mere members have nominal knowledge of cooperative principles, despite attending cooperative management training. 

* Some GPCs pay nominal allowances to Chairman and Board members, which is insufficient to attract them to GPCS affairs. 

* The three-year tenure of the Managing Committee is insufficient for acquiring cooperative business skills and demonstrating business performance. 

* The pay structure for cadre and non-cadre secretaries is insufficient, leading to malpractices and affecting the overall business of society.

IV. Excessive Government Control:

* Excessive government control has hindered the smooth functioning of GPCS and demoralized the cooperative spirit in the state. 

* Over domination of cooperative departments has hindered the development of non-official leadership and inhibited democratic management growth. 

* The state government's involvement in administration, planning, and finance has resulted in the loss of GPCS's autonomy and maladministration.

V. Diversification of PDS goods: 

* Members and shareholders have reported allegations regarding the diversification of essential consumer goods like rice, sugar, Atta, and kerosene. They claim that distribution is irregular, they do not receive these goods regularly, and GPCS has failed to supply the full quota of PDS goods to their members, leading to a significant portion of these goods being diverted to the open market.

VI. Apathy of General Members in Cooperative Affairs:

* Poor attendance of general members in state GPCs hinders their smooth functioning, signifying the failure of cooperative democracy and allowing few members with vested interests to dominate proceedings and elect candidates to control society's administration.