Karnataka Plans Revival of 14,000 Loss-Making Cooperative Societies, CM Siddaramaiah Orders Loan Recovery Push

Karnataka CM Siddaramaiah has directed officials to revive 14,670 loss-making cooperative societies, including 2,200 milk producers' units, by prioritizing loan recovery, strengthening monitoring, and ensuring timely farm loan disbursement.

Bengaluru: The Karnataka government is preparing a revival plan to financially empower more than 14,000 loss-making cooperative societies out of the 43,000+ functioning in the state. Chief Minister Siddaramaiah has directed officials to prioritize loan recovery, strengthen cooperative institutions, and ensure they play a more effective role in supporting farmers and the rural economy.

Focus on Loss-Making Societies

During a progress review meeting of the Cooperation Department at his home office, Krishna, on Thursday, CM Siddaramaiah revealed that 14,670 cooperative societies, including 2,200 milk producers’ societies, are currently running in losses. Calling the situation “unacceptable,” he attributed the financial distress mainly to poor loan recovery practices.

He instructed officials to assess loan recovery measures in detail and directed secretaries of milk producers’ societies to monitor expenses closely while working to increase milk production.

Agricultural Loan Disbursement

The government has set a target of distributing ₹28,000 crore in loans to 3.7 million farmers this financial year. By the end of July, ₹8,362 crore had already been disbursed to 869,000 farmers.

While NABARD reduced the concessional loan limit from ₹5,600 crore last year to ₹3,236.11 crore this year (a 42.21% cut), Siddaramaiah highlighted that the state had already achieved 96.07% progress in disbursement, an encouraging sign for the sector.

Recruitment and Digitisation of Cooperative Services

To strengthen administrative capacity, the Chief Minister directed officials to submit proposals for filling 126 vacant posts of senior inspectors and 403 inspector posts in cooperative societies. He also instructed the department to expedite the computerisation of services under the Registrar of Cooperative Societies to improve efficiency and transparency.

At present, Karnataka has 7,074 registered pawnbroker institutions and 1,468 registered lottery institutions. CM Siddaramaiah ordered stricter monitoring and action against unauthorized pawnbrokers and lottery operators functioning without valid registration.

Action Against Kannada Sahitya Parishat

Expressing displeasure over complaints that the Kannada Sahitya Parishat had cancelled the membership of some members even as the DRCS is investigating irregularities, the Chief Minister directed officials to initiate legal proceedings. The review meeting was attended by Additional Chief Secretary Ajum Parvez, Financial Advisor Basavaraj Ray Reddy, Political Secretary Naseer Ahmed, and other senior officials.