CHAPTER VI
BANKING TRADE AND COMMERCE
(A) Banking and Finance
(a) History of Indigenous Banking
In ancient times banking was a
special feature of economic life of people. The system of indigenous banking in
the past, though obscure in detail, was on the whole very different from the
present day of organized banking. Paucity of records make it difficult to trace
precisely the emergence growth of various systems of finance but the
banking system in
The system, however, received some jolt during the Muslim period in Indian history. There was uncertainty and insecurity felt by indigenous bankers during the new system of administration introduced by the Muslim rulers. Another set back felt on the indigenous banking
1 Sharma, A.G. State
in Relation to Commercial Banking in the Developing Economy of
system with the
advent of British rule in
Indebtedness in itself is not bad
and capital has emerged as a major factor in agricultural growth. Therefore,
credit can play a very important role in the development and progress of
agricultural sector. But the right type of credit is not available to the
farmer. A survey conducted by the Economic and Statistical Organisation, Punjab
for appraising the Utilization of Cooperative Loans for Agricultural Purposes
brought to light that even beneficiary members of the cooperative credit
societies had to loan heavily on sources other than cooperatives to meet their
credit requirements. It is evident from the survey that during 1966-67 and
1967-68 the cooperatives catered only 37.3 and 39.8 per cent of the credit
requirements, respectively. The balance of the credit needs were met mainly by
the moneylenders, friends and relatives. Another survey conducted by the
Economic and Statistical Organisation, Punjab in 1972, it was found that
cooperatives financed loans to 39.6 per cent households, whereas commission
agents to 21 per cent, moneylenders to 12.3 per cent, relatives to 9.1 per cent
and landlords to 8 per cent households. A study conducted by the
With the advent of British Rule, the old banking system declined. The sahukars, methods became outmoded and were by and large replaced by the modern system of banking. The need for borrowed money in the present Fatehgarh Sahib District has been met from indigenous bankers (moneylenders and commission agents), commercial banks and cooperative credit institutions.
Despite various laws, the moneylenders continued to by-pass the provisions of these laws. They indulged in various malpractices.
2 Pritam Singh,
Most
transactions were either oral or against ornaments, promissory notes were
obtained for a higher amount than what actually advanced even duplicate accounts
were kept. All moneylenders did not obtain licenses by getting them registered.
They did not maintain regular accounts. As on
The number of cooperative credit societies in the district as on
(b) General Credit Facilities
(i) Indebtedness- Rural and Urban
Considerable indebtedness prevails in the district in general and in rural areas in particular as an agriculturist is a man of small means, not able to look after his farming with the required care and resources especially during crop failure. In this situation he has to depend on credit. Indebtedness (rural and urban) means the amount of loan, which the people owe to the various agencies and individuals. Rural indebtedness is the amount of loan borrowed by the ruralists. Such loans are mostly unproductive, as these are taken for incurring expenditure on performing ceremonies, for meeting consumption needs and for indulging in bad practices and not much of the amount is used for the improvement in agriculture, for the purchase of improved agricultural implements, better seeds, fertilizers, etc.
Urban indebtedness implies the amount of loan taken by the urban people from various lending agencies, such as banks, insurance companies, private financial institutions, etc. But unlike the rural debt, the urban debt is highly productive because mostly the borrowers are either businessmen or traders or industrialists, who borrow either to start new ventures or to expand the existing ones. These debts thus result in increasing the income of the State and generate more employment.
Rate of Interest.- It is paid by the borrower to the lender. The rate of interest, varies from place to place, from one lending agency to another and is related to the purpose for which the amount has been borrowed. It differs with the nature of the loan, the period involved, the risk involved, the nature of surety, etc.
The commercial banks in the district charge rate of interest fixed
by the Reserve Bank of
|
Serial
No. |
Category
of Loan |
Interest Rates (Per cent) |
|
1 |
Composite
Integrated and Small Road Transport Operator Loan Scheme |
|
|
i |
Upto
Rs 25,000/- |
13.00 |
|
ii |
From
Rs 25,000/- to Rs 2 Lakhs |
13.50 |
|
iii |
Above
Rs 2.00 Lakhs |
14.50 |
|
2 |
Cash
credit facility to businessmen, traders, contractors and self employed
persons |
15.00 |
|
3 |
Vehicle
loans under bank scheme |
15.00 |
|
4 |
Scheme
for loans to students for professional courses |
14.00 |
|
5 |
Loan against National
Saving Certificates/ Kisan Vikas Patras |
14.00 |
|
6 |
Medium
term Loan for purchase of consumer durables |
14.50 |
|
7 |
Overdraft facility to the
employees of the Bank/Cooperative Department/Audit Department |
13.00 |
|
8 |
Loans
to Cooperative Central Banks |
|
|
I |
Working
capital loans |
13.50 |
|
ii |
Term
loans |
13.50 |
|
9 |
Loans
to other Apex Societies |
|
|
i |
Cash
Credit |
13.50 |
|
ii |
Term
loans |
15.50 |
(Source: Managing
Director, Punjab State Cooperative Bank Limited,
Indigenous moneylenders charge interest varying from 18 to 30 per cent or sometimes even more. The unregistered moneylenders advanced loans at still higher rate of interest.
With the advancement of literacy and the availability of adequate banking facilities the system of usury have become outdated. However, in the remote areas where people are still backward, the moneylenders take advantage of their ignorance and helplessness by charging high rate of interest.
(ii) Role of
Private Moneylenders and Financiers
Moneylenders.- The moneylender played a role of cardinal importance in the village economy. Though the institution of private money lending has lost its importance, yet it has not been completely eliminated. The moneylenders or the banians and the commission agents (arhtias) still dominate the rural sector of the economy of the district. The business of the moneylender is generally a family concern. His working capital is his own. He grants loans against all kinds of securities such as gold, jewellery, land, promissory notes, etc. He also lends against personal credit of the borrowers.
In the absence of any adequate protection to the debtor in the form of State regulation, the moneylender indulged in a number of malpractices and caused hardships to the debtors. The Government had, therefore, to intervene to prevent moneylenders from indulging in malpractices. The Government regulated indigenous financing through various legislative measures such as: the Usurious Loan Act, 1918 ; the Punjab Regulation of Accounts Act, 1930; the Punjab Relief of Indebtedness Act, 1934, the Punjab Debtors’ Property Act, 1936 and the Punjab Registration of Money Lenders Act,1938. Moneylenders now operate under severe restrictions imposed by the Punjab Registration of Money Lenders’ Act, 1938. By this Act, the moneylender is required to register himself with the concerned Sub Divisional Officer (Civil) and obtain a licence for carrying on the business. He is also required to maintain regular account books.
(iii) Government and Semi-Government Credit
Agencies
In addition to sahukars or
moneylenders, a number of Government and Semi-Government agencies have also
been established in the State to save the loanee from the clutches of moneylenders
and to provide finance in urban as well as rural areas on fair terms and on
reasonable rate of interest. These agencies include the Punjab Financial
Corporation, Punjab State Industrial Development Corporation. The
The Punjab Financial
Corporation was established in 1953 with the object of providing medium and
long term loans to the industrial concerns located in the State of
The Punjab State Industrial Development Corporation was incorporated in 1966 to act as a catalyst for the development of large and medium-scale industries in the State. Since then, it has been acting as prime mover in the State for promotion of industrial ventures and helps the entrepreneur to identify and investigate projects and to obtain letter of intent/ registration from the Government; provides financial support, both equity and term loan assistance; acts as an agent of Industrial Development Bank of India, Small Industries Development Bank of India and State Government for providing assistance to industry under various schemes, etc.
The Punjab Khadi and Village Industries Board established in 1955 is actively engaged in the economic uplift of the rural masses of the Punjab State, particularly the village industries and artisans belonging to Scheduled Castes, Backward Classes, weaker sections of the society and yellow card holders through the programme and scheme of Khadi and Village Industries Commission.
(iv) Commercial Banks
The
integrated history of banking can be traced about the middle of 19th
century when organized banking institutions started developing in the country.
There was enormous expansion of joint stock banking system during the first
decade of the 20th century. The first commercial bank established in
There are 16 commercial banks operating in the district apart from regional rural banks, central cooperative banks and primary agricultural development banks. Banking facilities are available in all the towns and major villages in the district.
According to Reserve Bank of
The commercial banks alongwith
number of branches functioning in the Fatehgarh Sahib district as on
|
Name of the Bank |
Number of Branches |
|
State Bank of |
2 |
|
Bank of |
1 |
|
State Bank of |
1 |
|
State Bank of |
14 |
|
Malwa Gramin Bank |
5 |
|
Bank of |
2 |
|
Allahabad Bank |
2 |
|
Bank of |
1 |
|
Canara Bank |
1 |
|
Central Bank
of |
1 |
|
Union Bank of |
1 |
|
Punjab National Bank |
6 |
|
UCO Bank |
2 |
|
Bank of Rajasthan, Ltd. |
1 |
|
Oriental Bank of Commerce |
3 |
|
|
10 |
(Source:
Reserve Bank of
The bank wise list of bank branches functioning
as on
The total deposits and advances in
the district as on
(v) Post Office
Savings Bank Accounts
The
Post Office Savings Banks Scheme was started with a view to extend the banking
facilities to everybody at their door steps. Post offices are the most
important outlets for the savings of the people especially in the rural areas
of the district. With the spread of post offices in towns and bigger villages,
these savings banks got a wider area of operation. After the
The number of new post office saving bank accounts opened in Fatehgarh Sahib District during 1998-99 was 37 which increased to 99 during 2000-2001. The details of new accounts opened and amount deposited in these accounts during 1992-93 to 2000-2001 is given below:
|
Year |
New Savings Banks* Accounts Opened |
Amount Deposited* (Rs) |
|
1992-93 |
.. |
.. |
|
1996-97 |
.. |
.. |
|
1997-98 |
.. |
.. |
|
1998-99 |
37 |
2,22,472 |
|
1999-2000 |
25 |
4,06,630 |
|
2000-2001 |
37 |
8,88,675 |
(Source:
Superintendent Post Offices,
*Only relates to the area included from Patiala District.
(vi) Cooperative Credit
In the
beginning of the 20th Century the Government have come forward to
provide credit facilities to the cultivators through cooperative credit
societies with an Apex Cooperative Bank at the top. The cooperative credit
institutions provide facilities for short and medium-term credit under crop
loan scheme for fertilizers, improved seeds, agricultural implements,
marketing, storage, and extension of advanced agricultural techniques. The
usual sources of short-term finance of the farmers were the moneylenders who
charged exorbitant rates of interest and resorted to many malpractices to cheat
the ignorant and illiterate cultivators. The idea of using cooperation in
The progress made by cooperative
institutions in the Fatehgarh Sahib District has been impressive, they compete
with the commercial banks in mobilizing savings and also providing credit
facilities to the agricultural sector. As on
Cooperative Credit Societies.- These societies mobilize savings of the members and advance loans at reasonable rate of interest for productive purposes. Previously, the moneylenders advanced loans and other essential commodities on credit to the borrowers and preferred to buy the produce of the latter, in lieu thereof at confessional rates. This exploitation of the cultivators acted like a double-edged blade, i.e. high rate interest on the loans advanced to the poor cultivators, and the low price given for their produce. The powers of the moneylenders were curtailed with the passage of the Punjab Registration of Moneylenders Act, 1938. The cooperative societies aim at eliminating the moneylenders, as a class.
The agricultural credit societies
save the agriculturists from the exploitation of the private moneylenders.
These societies inculcate the habit of thrift and with that end in view, they
mobilize rural savings, so that they serve the twin purpose of thrift and
credit. The Reserve Bank of
The non-agricultural credit societies comprise mostly employees’ credit societies catering to the credit requirements of persons outside agriculture. These societies also eliminate the exploitation of the artisans by the middlemen and help the artisans in the purchase of raw materials and disposal of finished products. Efforts have been made to organize small-scale and cottage industries on cooperative lines. Tanning, shoe making and handloom industry have been selected for this purpose.
The details regarding the membership and the working of agricultural and non-agricultural cooperative credit societies, functioning in the district during 1992-93 and 1996-97 to 2000-2001 are given in the Appendix II and III on pages 188 and 189 respectively.
(c)
Insurance and Small Savings
Insurance.- Prior to the
formation of Life Insurance Corporation of India (LIC) in 1956, the Life
Insurance business was carried out by a number of private insurance companies through
their agents. With the nationalization of life insurance business the Life
Insurance Corporation of India became the sole agency for life insurance and
its main objectives are: spread of life insurance more widely and in particular
to rural areas and to the socially and economically backward classes with a
view to reaching all insurable persons in the country and providing them
adequate financial cover on death at reasonable cost, maximise mobilization of
people’s saving by making insurance linked saving on attractive returns act as
trustees of the insured public in their individual and collective capacities,
meet the various life insurance needs of the community to promote amongst all
agents and employees of the corporation a sense of pride, participation and job
satisfaction through discharge of their duties with dedication towards
achievements of corporate objectives. After the nationalization, the first
major diversification took place when LIC began to transact general insurance
business in 1964. The Life Insurance
Corporation of
The Life Insurance Corporation of
|
Year |
Number of Policies |
Sum Assured (Rs in lakhs) |
|
1992-93 |
5,234 |
2,628 |
|
1995-96 |
5,565 |
3,228 |
|
1996-97 |
6,257 |
3,692 |
|
1997-98 |
7,046 |
4,549 |
|
1998-99 |
7,151 |
4,969 |
|
1999-2000 |
9,036 |
6,802 |
|
2000-2001 |
10,016 |
9,682 |
(Source: Manager,
Life Insurance Corporation of
Before the nationalization of general
insurance on
All types of general insurance policies are issued for only one year and are renewable every year. The risks covered under the general insurance are broadly of three types, viz. fire, marine (transportation of goods) and miscellaneous insurance. Under the miscellaneous insurance, there are about 20 to 25 types of insurance including motor insurance and all other types of insurance like fidelity guarantee, aviation insurance, burglary, personal accidents, etc. Besides, cattle and poultry insurance has also been introduced from 1974.
Small Savings.-The small saving scheme was introduced in order to inculcate the
habit of saving particularly amongst the rural people and to mobilize public
saving for planning and development purposes. After
The
Directorate of Small Savings have been set up in all the states to ensure
better co-ordination between the Central Organisation and the State
Governments. The Director, Small Savings,
The network of post offices in the district mobilize small savings in rural as well as in the urban areas. Post Office Savings Banks extend banking facilities virtually at everybody’s doorstep.
Post
offices savings bank accounts, cumulative time deposits, recurring deposits,
National Saving Certificates, 15 Year Public Provident Fund, Kisan Vikas
Patras, Indira Vikas Patras, etc. constitute small savings schemes in the post
offices. These schemes have been introduced to instill the savings habit among
people and to mobilize resources for a developing economy and at the same time
these give them an opportunity to build capital assets out of their savings.The
number of agents who canvassed and propagated for the small savings schemes on
commission basis in the Fatehgarh Sahib District as on 31 March 2001 was 125. There was only
one district administrator in the district as on
The net investment under the Small Savings Schemes in the district during 1998-99 to 2000-2001 are given below:
|
Year |
Gross Investments (Rs in Crores) |
Net Investments (Rs in Crores) |
|
1998-99 |
29.22 |
29.22 |
|
1999-2000 |
59.65 |
39.14 |
|
2000-2001 |
78.46 |
51.03 |
(Source
: Deputy Director, Small Savings , Fatehgarh Sahib )
The National Savings Schemes offer certain unique facilities including nomination, immediate encashment by nominee on death of account holder, interest accrued on yearly basis for income tax purpose in the case of National Savings Certificates (VI issue); Social Security Certificates and no tax deduction at source. Amounts invested in these schemes are exempt from wealth tax up to Rs 5 lakhs for an individual.
National Savings Certificates.-
The Government of India have released National Savings Certificates Series
VIII. An investment in these certificates entitles an investor to get income
tax exemption under Section 88 of the Income Tax Act, 1961. The interest
accruing annually but deemed to be reinvested will also qualify for tax rebate
under Section 88 of Income Tax Act. Such interest will be entitled to exemption
under section 80-L of Income Tax Act. There is no upper limit for investment in
these series. As on
(d) Currency and
Coinage
The area
presently falling in Fatehgarh Sahib District was part of Princely States of
* As on
**
A process of coinization of Re 1, Rs 2
and Rs 5 denominations was initiated in
1991 and these had been fully coinized from 1996.However, in consultation with
Government of India, the Rs 5
denomination notes has been reintroduced in May 2001 to supplément Rs 5 coins.
denomination notes i.e. Rs 1,000, Rs 5,000 and Rs 10,000
were demonetized for the second time on
The decimal system of coinage was introduced
in the district on
Almost all countries in the world, therefore, have adopted decimal system of currency and coinage with a view to bring about uniformity and facilitating comparison with currencies of other countries of the world. Under this decimal coinage system, coins and paper currency of different denominations are in circulation. Now a rupee consists of 100 paisa, with coins in the denominations of 1, 2, 3, 5, 10, 20, 25 and 50 paisa. Minting of coins of 1, 2, 3 and 5 paisa has been restricted to control the circulation of small paisas. Currency notes are issued in the denominations Rs 5, 10, 20, 50, 100, 500 and 1,000.
At the initial stage of the introduction of the new currency, the public in general and rural masses in particular, faced some difficulties, as the old system was deep-rooted in them. In course of time, people have now fully adopted the decimal system of coinage.
The decimal coinage system has brought about a great transformation in the whole accounting procedure. Undoubtly, it has made the accountancy and book keeping much easier, quicker and simpler.
(B) Trade and
Commerce
The district is surplus in agricultural produce and has good markets at Sirhind, Mandi Gobindgarh and Bassi Pathana where the
♣ The Coinage Act was amended in 1969
surplus commodities
are brought for sale. Rice, refined oil, iron & steel products and
medicines are main items of export which are exported to
(a) Course of
Trade
The usual course of trade in the district for agricultural produce from producer to consumer is through middlemen who are wholesalers, retailers and arhtias (commission agents).The growers bring their agricultural produce to a nearby regulated market and the dealers sell it to the traders. Commission agents (arhtias), wholesalers and retailers act as middlemen between the growers and the consumers as there is no direct link between them.
The purchasers of the agricultural produce gather at the shop of kachcha arhtias and the sale of commodities starts in open auction under the supervision of the auctioneers appointed by the market committee. Such sales are conducted daily during the hours fixed for this purpose. Kachcha arhtias, who sell the commodities on behalf of the cultivators, receive commission on fixed rates, permissible under the bye-laws of the market committee and are responsible for the payments to the sellers. The commission is paid to the arhtias by the purchasers. The rate of commission during 2000-2001 was 2.5 per cent. The delivery of the goods is made at the shop of the kachcha arhtia.
(b) Trade Centres
(i) Regulated and Unregulated Markets
At the
time of Independence, in the absence of adequate institutional finance for
agriculture on easy terms and conditions, the absence of regulated markets, the
standard weights and measures, absence of facilities like ware-housing,
standardization and grading, etc., posed as impediments to producers in getting
fair prices for their produce. In order to help the agriculturists overcome these difficulties and save them
from the evils of un- healthy market practices and ensure fair price to
the cultivators for their produce the Government has regulated the markets
under the Punjab Agricultural Produce Market Act, 1961. Under this Act, the
Punjab Agricultural Marketing Board (popularly known as Punjab Mandi Board) has
been set up at the apex level with headquarters at
In the regulated markets, all commodities brought by the growers, village traders, etc, are sold in open auction in the presence of dealers under the supervision of the auctioneers, appointed by the market committee. Auction is held during the market hours at each shop turn by turn. When the auction is over, a receipt showing the weight, rate and net price after making necessary deductions is issued to the cultivators who later on showing the same, receives payment for the arhtias.
In Fatehgarh Sahib District the agricultural
produce is sold in regulated markets through commission agents. Each village of
the district have been attached with a regulated market and the provisions of
the Act are applicable to the whole of the area where transaction, delivery and
weighment are done. Every market has a principal market yard. In addition,
there are a number of sub-market yards in big villages of the district. As on
(i)
Fairs (Melas) and
other Rural Marketing Centres
Fairs (Melas).-
The Fairs held in the district are mainly religious
type. Fairs and melas play an important role in business transactions. Fairs
have long been part of the district’s religious life and agricultural economy
and have also assumed commercial importance. People of the district are quite
enthusiastic about celebration of fairs and festivals and participate in them in
large number. These are held at various places in the district. Besides, normal
activities at a fair, many kinds of trading activities also take place. The
important fairs held in the district are Shahidi Jor Mela, (Martyrdom day) of
Younger Sons of Guru Gobind Singh at Fatehgarh Sahib, Urs (Death Anniversary)
of Sheikh Ahmed Muzaddian Alf-i-Sani at Sirhind/Fatehgarh Sahib and Sil Chapper
fair of village Sil. The important fairs held and festivals celebrated in the
district are mentioned in Chapter III, 'People'.
Cattle Fairs.- Like agricultural commodities, the marketing of live stock has also been regulated in the State. District authorities arrange cattle markets at regular intervals. These markets are arranged on different dates every month at different places in the district. Most of the cattle trade in this district consists of buffaloes, cows, etc. The cattle fairs in the district are held twice in a month at Sirhind, once in a month at Gobindgarh, Chunni Kalan, Ranva and Peer Jain and in addition to above one major cattle fair is held once in year at Gobindgarh. Apart from providing marketing facilities to the farmers and encouragement to the breeders, these fairs brought handsome income to the authorities concerned in the form of market fee, which is charged 4 per cent of the sale proceeds from the purchaser and Rs 10 per cattle head from the seller.
(c) Co-operation
in Trade
(i)
Cooperative Marketing
The idea
of cooperation in the sphere of marketing was primarily introduced with the
hope that it would bring prosperity to the cultivators and consumers by
improving the system of agricultural marketing and distribution of essential
commodities at reasonable rates. Consequently, a number of cooperative
marketing societies were set up at various regulated market committees falling
in the area of present Fatehgarh Sahib District. The cultivators can now store
their marketing produce in the godowns of these marketing societies.
Previously, they had to dispose it off immediately after harvesting. These societies
act as a check against malpractices such as under-weighing, unauthorized
deductions and delayed payment by the arhtias. The first Cooperative
Marketing-cum-Processing Society in the district came into existence at Sirhind
on
At apex level, the Punjab State Cooperative Supply and Marketing Federation (MARKFED), federates these institutions. The details of cooperative marketing and supply societies functioning in the district are given below:
|
Serial
No |
Name of the society |
Date of Registration |
|
1 |
The Sirhind Cooperative
Marketing-cum-Processing Society Ltd., Sirhind |
|
|
2 |
The Amloh Cooperative
Marketing-cum- Processing Society, Ltd., Amloh |
|
|
3 |
The Bassi Pathana Cooperative
Marketing-cum-Processing Society Ltd., Bassi Pathana |
|
(Source:
Deputy Registrar Cooperative Societies, Fatehgarh Sahib)
Besides cooperative marketing societies, 255 milk supply societies, 48 weavers’ societies, 9 farming societies, 20, women societies and 11 housing societies were functioning in cooperative sector in the Fatehgarh Sahib District during 2000-2001. These societies serve the interests of the farming and other sections of the community in the district in an effective manner.
The work done by the cooperative marketing societies in the Fatehgarh Sahib District during the years 1992-93 and 1996-97 to 2000-2001 is given in Appendix IV at page 190.
(d) State
Trading
Major fluctuations in the prices
of essential commodities and the difficulties experienced by consumers have led
the Government to the State Trading Scheme in the State during 1958-59. For
distribution of food grains and other essential commodities, the Government
started a network of fair price shops in urban and rural areas. As on
(Metric tonnes)
|
Year |
Quantity purchased
|
|
|
1992-93 |
20,860 |
12,068 |
|
1996-97 |
19,391 |
32,189 |
|
1997-98 |
24,543 |
33,814 |
|
1998-99 |
20,638 |
31,223 |
|
1999-2000 |
15,108 |
29,265 |
|
2000-2001 |
21,932 |
35,400 |
(Source: District Food and Supplies Controller,
Fatehgarh Sahib)
(e) Merchants’
and Consumers’ Associations and Organs for
Dissemination
of Trade News
Merchants’ and Consumers’ Associations.- There is no merchant and Consumer association registered in the district
Marketing Intelligence.-
For efficient marketing and right coordination of the forces of demand and
supply, authentic information about the
volume marketable surplus, prices, arrivals, stocks and movements of the
agricultural commodities is very essential. Almost all the daily newspapers
disseminate market news to the public. In addition, there are some commercial
dailies and periodicals, which serve this purpose. The All India Radio is the
most important and effective instrument in this respect and daily broadcast the
rates of various commodities in different markets in the State. In these days
all main TV channels also replay daily market rates of different commodities. A
number of T.V channels provide special programmes on market analysis. Besides,
the market news about the rates of commodities are also disseminated to the
public through boards displaying rates outside the offices of the market
committees. In some of the marketing centres, market news are communicated to
dealers at different places through correspondence and trunk calls. Internet
provides market information round the world.
(f) Weights
& Measures
Weights and measures remained at the base of every field of human endeavour during all the period of history, Kautaly's Arthashastra indicates the existence of weights and measures system during the period of Chandragupt Maurya. This system though maintained during the later centuries even during the Mughal period but it had no uniformity and the standards not only differed from town to town, but also varied commodity to commodity. During the British period, several attempts were made to attain uniformity in the standards of weights and measures. But till 1941, there was no uniform use of standard weights and measures. The Punjab Weights and Measures Act, 1941 was passed which itself was a corollary of the standard of Weights and Measures Act,1939 passed by Government of India. Under this Act, both systems, viz. the Indian system i.e .tola, seer and maund and avoirdupois system i.e. lb, cwt. and tons were prescribed. The most significant was the establishment of 'tola' which was equal to 180 grains as unit of measurement of weight and deviations of other denomination such as 'seer' of 80 tolas, and 'maund' of 40 seers.
Before the enforcement of 1956 Act, the system of maunds, seers, Chhatanks, tolas, mashas and ratties, as established in the British period, was followed in the urban areas of this district, whereas in the rural areas, the system followed has standards derived from this system known as kachcha denominations :
2½ manns kachcha = 1
maund
1¼ manns kachcha = 20 seers
1 mann kachcha = 16 seers
1 dhari 10 ser kachcha = 4
seers
1 panjseri 5 ser kachcha = 2
seers
2½ ser kachcha = seer
Under the Seventh Schedule of the
Constitution of India, the weights and measures were included in the concurrent
list. The Standards of Weights and Measures Act,1956 was passed by the
Government of India to attain the uniformity with the International Standards.
The legislatures of different States were directed to enact the legislations
for the implementation of the same. The Act envisages the uniform system of
weights and measures, viz. the metric system, having following units of
measurement :-
Meter
(for
length);
Kilogram (for mass);
Second (for time);
Ampere (for
electric current);
Kelvin (for
thermodynamic temperatures) and
Candelo (for luminous
intensity);
The Punjab Government in November 1958 enacted, the Punjab Weights
and Measures (Enforcement) Act, 1958 and in February 1959 notified the Rules
for its enforcement. From October 1960 the use of metric weights and measures
was made compulsory. The Act was not
immediately enforced. The use of old weights and measures was permitted for a
period of two years. The metric measures were made obligatory from April 1967.
The Punjab Weights and Measures Act 1958 also covers the provisions of packed
commodities, Regulation Order 1975 which was issued under the Defence and
Internal Security of India Rules and made operative from 1977. The Government
of India adopted the Standards of Weights and Measures (Enforcement) Act, 1985
under the Standards of Weights and Measures Act, 1976 and directed all the
States to follow it.
The Organisation of Weights and Measures at the State/District level also looks after the provisions of Standards of Weights and Measures (Packaged Commodities) Rules, 1977 for enforcement on behalf of the Government of India and for the purpose, Controller of Weights and Measures as well as the other enforcement staff have been delegated powers under the rules. Under the Act of 1985 the designations of Controller, Weights and Measures, Assistant Controller, Weights and Measures and Inspector, Weights and Measures have been changed to Controller of Legal Meterology, Assistant Controller of Legal Meterology and Inspector, Legal Meterology respectively.
(g) Storage
and Warehousing
In ancient times, to suit the prevailing local conditions and climate different methods of conserving food grains and other commodities have been adopted, specially by the agriculturists and merchants. In villages, people store their produce in open in their houses, bharolas (earthen bins), earthen pots and in bags. In markets, the commission agents, wholesale dealers, merchants and traders maintain their own godowns. The mills and factories maintain godowns in their own premises to stock the raw material.
There was no organized system of storage of grains and the godowns maintained by private dealers were generally not of proper specification. These storing facilities were not only insufficient but the methods of storage were also unscientific. Keeping in view, the scientific storage of food grains and other commodities, the concept of public warehousing was conceived in the first half of the last century. Since 1928 beginning with the recommendations of Royal Commission till the All India Rural Credit Survey Committee Report of 1954, several agencies had stressed the need for the scientific storage of agricultural products and the utilization of warehouse receipts as negotiable credit instrument. Public warehouses were set up only in 1962 both by the Central and State Governments under the provision of Warehousing Corporation Act 1962. The warehousing receipts can serve as instruments of credit to the depositors to avail credit facilities from banks which enable them to wait for better bargaining in the market.
The
Punjab State Warehousing Corporation was established in January 1958 under the
Agriculture Produce (Develop and Warehousing) Corporation Act, 1956 which was
replaced by Warehousing Corporation Act, 1962. The Punjab State Warehousing
Corporation was reconstituted with effect from
As on
(In metric tones)
|
Serial No |
Name of Centre |
Date of opening of warehouses |
Total capacity
|
Total Utilization |
Percentage Occupancy |
|||
|
1 |
Shamsher Nagar |
1987 |
.. |
25,771 |
28,883 |
112 |
||
|
2 |
Bassi Pathana |
1972 |
19,800 |
5,464 |
30,066 |
119 |
||
|
3 |
Mandi Gobindgarh |
1972 |
.. |
24,950 |
28,118 |
112 |
||
|
4 |
Amloh |
1973 |
15,800 |
11,250 |
29,357 |
110 |
||
|
5 |
Sanghol 1984 |
16,200 |
.. |
20,869 |
129 |
|||
( Source : District Manager,
The main
functions of the Corporation are; to acquire and build godowns and warehouses;
to run warehouses for the storage of agricultural produce,
seeds, fertilizers and
notified commodities; to
* (Parliament Act No 58 of 1962, vide Punjab Government
Notification No. 1200
(G)-Agri-VIII/55/8602,dated
arrange
facilities for the transport of agricultural produce seeds, fertilizers and
notified commodities to and from warehouses and to act as an agent of the
Government of Punjab for the purchase, sale, storage and distribution of
agricultural produce, seeds, fertilizers and notified commodities.
The scheduled banks make advance to
the depositors on the pledge of warehouse receipts according to the credit
restrictions of the Reserve Bank of
.
APPENDIX I (Vide page 168 )
Banking Offices functioning at various places in the
Fatehgarh Sahib District as on
|
Serial No |
Name of the Bank |
|
Branches |
Date of Opening |
|
1 |
2 |
|
3 |
4 |
|
1 |
State Bank of |
1 |
Amloh |
|
|
|
|
2 |
Bassi Pathana |
|
|
|
|
3 |
Bassi Pathana ADB |
07 September1981 |
|
|
|
4 |
Burass |
31 October1981 |
|
|
|
5 |
Chanarthal kalan |
|
|
|
|
6 |
Chunni Kalan |
|
|
|
|
7 |
Jakhwali |
22 July1981 |
|
|
|
8 |
Khamano |
02 March1993 |
|
|
|
9 |
Mandi Gobindgarh |
16 February1949 |
|
|
|
10 |
Mandi Gobindgarh(Guru Ki
Nagri) |
|
|
|
|
11 |
Fatehgarh Sahib |
|
|
|
|
12 |
|
|
|
|
|
13 |
Sirhind Mandi |
|
|
|
|
14 |
Shamshpur |
|
|
II |
|
1 |
Amloh |
18 May1994 |
|
|
|
2 |
Bhari |
|
|
|
|
3 |
Chunni Kalan |
|
|
|
|
4 |
Fatehgarh Sahib |
10 October1969 |
|
|
|
5 |
Jassran (Mandi Gobindgarh) |
|
|
|
|
6 |
Khamano |
|
|
|
|
7 |
Kharoura |
|
|
|
|
8 |
Kheri Nodh Singh |
|
|
|
|
9 |
Kukar Majra |
|
|
|
|
10 |
Nogawan |
|
|
III |
Punjab National Bank |
1 |
|
|
|
|
|
2 |
Bassi Pathana |
21August1974 |
|
|
|
3 |
Mandi Gobindgarh |
|
|
|
|
4 |
Nandpur Kalour |
|
|
|
|
5 |
Sirhind Mandi |
27 May 1953 |
|
|
|
6 |
|
|
|
IV |
Oriental Bank of Commerce |
1 |
Fatehgarh Sahib |
|
|
|
2 |
Mandi Gobindgarh |
23 Janaury 1991 |
|
|
1 |
2 |
|
3 |
4 |
|
|
|
3 |
Sirhind Mandi |
08 April1985 |
|
V |
Bank of |
1 |
Amloh |
27 May 1981 |
|
|
|
2 |
Mandi Gobindgarh |
|
|
VI |
Allahabad Bank |
1 |
Khant |
|
|
|
|
2 |
Mandi Gobindgarh |
10
November1993 |
|
VII |
State Bank of |
1 2 |
Mandi Gobindgarh Nanewal |
29 Janaury 1990 09 February1981 |
|
VIII |
UCO Bank |
1 |
|
26 May1976 |
|
|
|
2 |
Sanghol |
|
|
IX |
Central Bank of |
1 |
Mandi Gobindgarh |
-- |
|
X |
Bank of |
1 |
Mandi Gobindgarh |
09 May 1983 |
|
XI |
Union Bank of |
1 |
Mandi Gobindgarh |
|
|
XII |
Canara Bank |
1 |
Salana |
07 May 1973 |
|
XIII |
State Bank of |
1 |
Mandi Gobindgarh |
|
|
XIV |
The Jammu & Kashmir Bank |
1 |
Mandi Gobindgarh |
|
|
XV |
Bank of Rajasthan |
1 |
Mandi Gobindgarh |
|
|
XVI |
Bank of |
1 |
Mandi Gobindgarh |
|
|
XVII |
Malwa Gramin Bank |
1 |
Badochi Kalan |
19 May 1989 |
|
|
|
2 |
Bhagrana |
|
|
|
|
3 |
Bhamarsi Buland |
|
|
|
|
4 |
Khera |
|
|
|
|
5 |
Pawala |
|
|
XVIII |
Primary Agricultural |
1 |
Amloh |
|
|
|
Land Development Bank |
2 |
Bassi Pathana |
|
|
|
|
3 |
Khamano |
|
|
|
|
4 |
Sirhind |
|
|
XIX |
Fatehgarh Sahib Central Co-operative Bank |
1 |
Amloh |
|
|
|
|
2 |
|
|
|
|
|
3 |
Barwali Khurd |
|
|
|
|
4 |
Bassi Pathana |
1957 |
|
|
|
5 |
Bhari |
|
|
|
|
6 |
Bugga Kalan |
|
|
|
|
7 |
Burass |
|
|
|
|
8 |
Chanarthal kalan |
|
|
|
|
9 |
Khamano |
|
|
1 |
2 |
|
3 |
4 |
|
|
|
10 |
Khant |
|
|
|
|
11 |
Kheri Nodh Singh |
16 May 1972 |
|
|
|
12 |
Mandi Gobindgarh |
18 August1970 |
|
|
|
13 |
Mulepur |
|
|
|
|
14 |
Nandpur Kalour |
|
|
|
|
15 |
Nanowal |
|
|
|
|
16 |
Rajindergarh |
|
|
|
|
17 |
Saddomajra |
30 May 1997 |
|
|
|
18 |
Sanghol |
|
|
|
|
19 |
Salana Dulla Singh |
15 April2001 |
|
|
|
20 |
Saundha |
|
|
|
|
21 |
Shamashpur |
|
|
|
|
22 |
Sirhind (Evening) |
|
|
|
|
23 |
Sirhind (main) |
1957 |
|
|
|
24 |
Nabipur |
27 November2001 |
(Source: Chief
Manager, Lead Bank,