(h) Role of Industrial Co-operatives
Keeping in view the significance of industrial co-operatives, the Government of India passed of first Co-operative Credit Societies Act in 1904. Since this Act could not cope with the fast growing co-operative movement, the Co-operative Societies Act of 1912 was passed which recognized three types of Central Societies in addition to the primary societies recognized by the 1904 Act. The object of this Act was to encourage thrift, self-help and co-operation among the agriculturists as well as the industrialists. IN the post-independent India greater emphasis has been laid on industrial planning which has ushered in an era of development of industrial co-operatives and the establishment of industrial society. These societies are the only source for the artisans through which they avail of the facilities such as financial assistance, supply of raw material, technical guidance and marketing. Thus, industrial co-operatives play a vital role in the development of industries.
The particulars regarding the industrial co-operative societies in the Hoshiarpur District, during 1973-74, are given in the following table: -
Number
and Membership of the Industrial Co-operative Societies and the Value of Goods
Produced by These in the Hoshiarpur District, 1973-74
|
Name of Industry |
|
No.
of Indus-trial Co-operative Societies |
Membership |
Value
of goods produced (Rs) |
|
Union |
.. |
1 |
130 |
- |
|
Handloom Weaving |
.. |
106 |
1,747 |
2,24,110 |
|
Khadi and Village Industries |
.. |
178 |
3,014 |
3,50,482 |
|
Small-Scale Industries |
.. |
3 |
1,415 |
21,21,016 |
|
Handicraft |
.. |
7 |
81 |
10,263 |
|
Women |
.. |
|
|
|
|
Khadi and Village Industries |
.. |
3 |
68 |
- |
|
Handicraft |
.. |
34 |
1,240 |
- |
(Source: Industrial Assistant Registrar, Co-operative Societies, Jullundur)
The industrial co-operatives in the State were under the Co-operative Department up to April 1963, when the industrial co-operative wing was transferred to the Industries Department. The Industrial Assistant Registrar, Co-operative Societies, Jullundur, is in charge of the industrial Co-operative Societies in the Hoshiarpur District.
The amount of loans and subsidies given by the Government to the industrial co-operative societies in the district, during 1969-70 to 1973-74, is given below:
|
|
|
1969-70 (Rs) |
1970-71 (Rs) |
1971-72 (Rs) |
1972-73 (Rs) |
1973-74 (Rs) |
|
Loans Advanced |
.. |
3,52,153 |
1,84,014 |
1,75,384 |
1,21,389 |
3,20,699 |
|
Subsidies Given |
.. |
19,000 |
17,000 |
5,000 |
20,000 |
41,000 |
(Source: Industrial Assistant Registrar, Co-operative Societies, Jullundur)
The following table shows the progress made by the industrial co-operatives in the district, during 1969-70 to 1973-74: -
|
Particulars |
|
Year |
||||
|
1969-70 |
1970-71 |
1971-72 |
1972-73 |
1973-74 |
||
|
No. of Industrial Co-operative Societies |
.. |
364 |
372 |
413 |
422 |
450 |
|
Membership |
.. |
6,152 |
6,026 |
7,184 |
7,375 |
7,695 |
|
Share Capital (in Rs) |
.. |
8,96,316 |
9,87,639 |
11,14,828 |
12,24,377 |
14,77,535 |
|
Working Capital (in Rs) |
.. |
25,35,332 |
26,52,634 |
29,30,343 |
28,64,756 |
33,98,596 |
|
Production (in Rs) |
.. |
12,30,332 |
16,04,592 |
21,21,588 |
22,45,946 |
37,05,871 |
|
Sales (in Rs) |
.. |
11,33,597 |
17,04,000 |
18,99,.812 |
21,45,770 |
26,91,155 |
(Source: Industrial Assistant Registrar, Co-operative Societies, Jullundur)
(i) Labour and Employers’ Organizations
Labur Organizations. –For the protection of workers against oppression or exploitation by capitalist organizations or employers without sentiment, the institution of the trade union is a powerful weapon of defence. Exploitation of the workers led to dissatisfaction, which in turn, led to the workers forming unions for the protection of their own interests.
For a considerable time, trade unions were regarded as illegal bodies and their members were rendered liable to punishment. But in spite of all the hardships against the trade unionists, they continued their efforts which ultimately led them to success and legal recognition of trade unions. The law ultimately came to realize that trade unions serve a useful social and economic purpose, in so far as they were meant for settling wages and bringing about harmonious relations between capital and labour.
The primary function of a trade union is to promote and protect the interests of its members. Welfare activities like organizing mutual benefit societies, co-operatives, employment assistance, libraries, games and cultural programmes have been recognized as the normal activities of a trade union in the Trade Unions Act, 1926. Since the independence of the country in 1947, there has been a considerable growth of trade union movement in the Hoshiarpur District and, as a result, there has been a constant increase in the number of registered trade unions. The particulars of trade unions, registered under the Indian Trade Unions Act, 1926, functioning in the district are given in the Appendix at the end of this chapter at page 166.
Manufacturers’ Associations. –These associations play an important role in the development and growth of industries and in looking after interests of their respective members. These also help in removing other difficulties of the members and in procurement of raw materials, etc. The following are the manufacturing associations existing in the district: -
1. Rosin and Turpentine Association, Hoshiarpur
2. Hoshiarpur District Stockholder’s Association, Hoshiarpur
3. Hoshiarpur Sugar Syndicate, Hoshiarpur]
4. Hoshiarpur Wholesale Co-operative Sugar Syndicate, Hoshiarpur
5. Hoshiarpur Wholesale Co-operative Foodgrains Syndicate, Hoshiarpur
6. Hoshiarpur Foodgrains Syndicate, Hoshiarpur
7. Hoshiarpur Shoe Merchants’ Association, Hoshiarpur
8. Hoshiarpur Cloth Merchants’ Association, Hoshiarpur
9. Hoshiarpur Karyana Merchants’ Association, Hoshiarpur
(j) Welfare of Industrial Labour
The welfare of the industrial labour is mainly of two types, viz. statutory and voluntary. In the first type fall those concessions which are to be provided under law and secondly which are provided voluntarily by the management on humanitarian grounds or other allied and varied reasons. Industrialization in India took place in the middle of the nineteenth century when there were no statutory provisions for labour welfare. Consequently, the workers were forced to work in dungy and unhygienic conditions on meager salaries wit long working hours. These factors severely affected the efficiency of the workers. It was only after the World War I (1914-19) that the labour welfare problem was seriously thought of. With the appointment of the Royal Commission in 1931 and other allied committees constituted from time to time, the labour welfare was more seriously looked into. After independence, more and more stress was laid on labour welfare. Statutory provisions, i.e. fixed working hours, hygienic conditions, fixed salaries, provision of crèche, etc. have substantially contributed to the welfare of the labour. Provisions of canteens, sports and games and other allied concessions are voluntary which management provides.
So far as the Hoshiarpur District is concerned, welfare of labour is no problem. Previously, the district was devoid of large-scale and small-scale industries. It was only in 1970 that with the declaration of the district as industrially backward by the Government of India, it was brought on industrial map. Three large-scale industrial units have been set up in the district. Since these units are also running other large-scale concerns in other parts of the country, these are fully alive to the labour welfare problems. All the desired statutory and voluntary concessions are invariably granted by them to the workers.
APPENDIX
(Vide page 164)
List of
Registered Trade Unions in the Hoshiarpur District, as on March 31,1975
|
SN |
Name
of Trade Union |
|
Date
of Registration |
|
1. |
Commercial and Trade Employees’ Union, Hoshiarpur |
.. |
5th September, 1958 |
|
2. |
Workers’ Union Beas Dam’ Union, Township |
.. |
24th October, 1961 |
|
3. |
Municipal Subordinate Employees’ Union, Dasuya |
.. |
21st July, 1962 |
|
4. |
Special Foremen Association, Talwara Township |
.. |
19th October, 1962 |
|
5. |
Pong Dam Mazdoor Union, Talwara Township |
.. |
27th February, 1963 |
|
6. |
P.G.A. Employees’ Union, Hoshiarpur |
.. |
8th January, 1964 |
|
7. |
Rosin Labour Union, Hoshiarpur |
.. |
11th February, 1965 |
|
8. |
Beas Dam Project Employees’ Talwara Township |
.. |
2nd January, 1967 |
|
9. |
Beas Dam Karamchari Sangh, Talwara Township |
.. |
24th February, 1968 |
|
10. |
The Depressed Class Employees’ Federation, Talwra Township |
.. |
6th June,1969 |
|
11. |
Hoshiarpur Central Co-operative Bank Employees’ Union, Hoshiarpur |
.. |
26th May, 1970 |
|
12. |
Store Keepers’ Association, Punjab State Electricity Board Store, Hoshiarpur |
.. |
19th January, 1971 |
|
13. |
Heavy Earth Moving Operators’ Union, Talwara Township |
.. |
24th May, 1971 |
|
14. |
Beas Project Ekta Mazdoor Union, Talwara Township |
.. |
15th May, 1972 |
|
15. |
Kabir Textile Mills Workers’ Union, Hoshiarpur |
.. |
6th November, 1972 |
|
16. |
Project Earth Moving Operators’ Union, Talwara Township |
.. |
24th August, 1973 |
|
17. |
Biroza Terpentine & Chemical Workers’ Union, Hoshiarpur |
.. |
27th January, 1975 |
BANKING, TRADE AND COMMERCE
|
(i) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(ii) |
|
|
|
(a) Course of Trade |
|
|
(b) Trade Centre |
|
|
|
|
|
(d) State Trading |
|
|
(e) Merchants’
and Consumers’ Associations and Organs for the Dissemination of Trade News |
|
|
|
|
|
(a) History of Indigenous Banking
The history of banking in India has been as old as trade. In ancient Indian literature, i.e. the Vedas and the Manusmriti, there are quite a number of references to the indigenous banking system which finance the Indian trade and commerce in an age when the West had not even envolved the monetary system1. Kautilya’s Arthashastra –a famous treatise on the science of politics and economics –mentions the presence of bankers in the time Chandragupt Maurya. The fact that Manu fixed the minimum and maximum rate of interest shows that the institution of money-lending was in vogue during his days.
1 Jathar, G.B., and Beri, S.G., Indian Economics, Vol. II (Madras, 1949), pp 327-328
The Muslim invasions of India initiated a period of disturbance and insecurity fatal to the indigenous system of banking. Individual bankers, however, continued to prosper and they usually combined commerce with banking. They advanced loans to the State, and many influential bankers families were attached to one or other of the native courts2.
2 Ibid., p. 328
With the advent of the British rule, indigenous banking received a great set back. The indigenous bankers received a jolt with the establishment of European types of banks and the introduction of a uniform currency which hit the important money-changing part of their business. They, however, managed to survive.
As in
other parts of the country, need for borrowed money in the Hoshiarpur District
has been met from two main sources –the conservative part of banking
represented by the indigenous bankers and the modern part represented by the
commercial banks and co-operative banks.
Indigenous part has been by far the largest constituent of the Indian
banking and credit system, especially before the coming into existence of the
joint stock banks. It comprised village
money-lender and indigenous bankers in the cities.
The money-lender has been operating in the villages since times immemorial and providing credit to the cultivators and others for all sorts of purpose. The history of the money-lenders in this district can hardly be distinguished from the history in the rest of the country. In the absence of an organized system of banking and credit, he had been financing the rural population. During the pre-British period, the number of money-lenders was small and equally inadequate was the extent credit. Various factors were responsible for the inadequacy of credit. There was generally less security of life and property; land was of not much value; the importance of agriculture had not been realized and there was very little money with the people for loaning purposes. There fore, there was neither any incentive to lend nor were the circumstances favourable for effecting an increase in the overall credit. The position changed with the coming of the British rule. Value of land increased manifold, life and property became secure, law courts came to the protection of the money-lenders’ debt, incentive for production increased, and the amount available for money-lending multiplied.
A comparative study of the condition s prevalent in this district and those in other parts of the Punjab shows that the conditions for money-lending have been better here than elsewhere. In this connection, it is interesting to reproduce the impressions of Sir Malcolm Darling1, “The security of British rule and a legal system in which the spoils are ever to the astute gave him an opportunity which he was quick to seize; and in the submontane tract the richness of the soil, the regularity of the harvests, and the want of vigour in the people, provided him with an almost ideal field for his demoralizing activities. It was, too, one of the earliest fields to attract his attention. Before the days of the canal, the districts with an abundant rainfall were the most inviting: a dense population made business easy, good crops made it remunerative, and the comparatively high value of land made it safe. At a time when land in Sirsa (Haryana) was selling for six annas an acre, land in Hoshiarpur was fetching nearly thirty rupees, an amount which was high enough to admit of mortgage.” This extract shows that at the turn of the last century, Hoshiarpur was on of the highly indebted districts and the number of mortgages was the largest here. The indebtedness which had been a problem throughout the province had assumed comparatively serious proportions in this district and all this showed the importance and influence wielded by the money-lender.
1 Darling, Sir Malcolm, The Punjab
Peasant in Prosperity and debt, p. 32
To quota Sir Malcolm Darling again2: “the very prosperity and the security of the tract –Ambala and Hoshiarpur …………………have made it a happy hunting ground of the money-lender, who turns as surely to wealth as the fly to honey”, and further: “the money-lender alone thrives. For him conditions are perfect: the people are too happy-go-lucky to resist his wiles and sufficiently prosperous to repay his loans”3.
2 Ibid., p. 24
3 Ibid., p. 25
The indigenous system of banking was full of malpractices like high rate of interest, defective accountancy, etc. The money-lender used to safeguard the debt by keeping him the agricultural land, ornaments, houses, etc. of the clients. The result was that once a borrower got into the clutches of the money-lender, he would live in debt and die in debt, leaving the debt to his next generation. Moreover, the land of the agriculturists went on passing in the hands of the non-agricultural moneyed men.
The various malpractices in the business of the money-lending attracted the attention of the Government. To safeguard the interests of the cultivators, the Government passed the Punjab Alienation of Land Act, 1900. The Act, however, failed to improve the lot of the tillers. Though the money-lender had now to be content with the produce, yet a new class of agriculturist money-lenders came to the fore. According to the Act, credit could be given by the sahukar up to the limit of the produce raised on the land, but the agriculturist money-lender, to whom the Act did not apply, could lend up to the value of the land. Thus, the Act merely changed the name of the money-lender from sahukar to agriculturist money-lenders and aggravated the difficulties of the borrowers instead of lessening them.
The passage of the Punjab Regulation of Accounts Act, 1930, the Punjab Relief of Indebtedness Act, 1934, the Punjab Debtors’ Protection Act, 1936, and the Punjab Registration of Money-Lenders’ Act, 1938, adversely affected the village money-lenders. This created a scare in the minds of the money-lenders who began to restrict their credit operations.
Need was, therefore, felt to create some agency for providing finance to the agriculturists. The Royal Commission on Agriculture in its recommendations stressed the necessity of developing the co-operative movement for the progress and prosperity of rural India. The Hoshiarpur District is known to have been the first to put the principles of co-operation into practice. It was here that even before the passage of the first Co-operative Societies Act, 1904, the first Co-operative Agricultural Credit Society was formed in the village Panjwar (Tahsil Una, Himachal Pradesh) in the then district of Hoshiarpur. There was a rapid growth in the number and activities of the societies between 1906 and 1911.
The Act of 1904, which pioneered the co-operative movement in India was found insufficient to meet the growing needs of the movement. The Co-operative Societies Act, 1912, was, therefore, passed which widened the scope of the co-operative movement by permitting the formation and registration of non-credit forms of societies and central institutions like central co-operative banks, provincial banks and unions –consisting of primary societies –for control and audit. The distinction between rural and urban societies was abolished and in its place was substituted the classification of societies with unlimited or limited liability. Despite the passing of Act of 1912, the co-operative movement remained essentially a credit movement and the non-credit societies, did not develop to the same extent as credit societies. However, the number of co-operative societies formed for the purpose of consumption, sale, insurance, purchase or production has been steadily on the increase. All the same, the credit side of the movement still continues to occupy a predominant position. This is evident from the fact that during 1974-75, there were 1,215 agricultural credit societies in the district with a membership of 1,98,441.
(i) Indebtedness, Rural and Urban:
Indebtedness means the amount borrowed by the people from various sources for investment in various fields. Rural indebtedness is the amount borrowed by the agriculturists from various sources. This amount is to be used for improvement in agriculture, for the purchase of improved agricultural implements, better seeds, fertilizers, etc. But the amount, thus borrowed, is not generally used for the purpose for which it is borrowed. The funds are utilized for un-productive purposes such as observance of orthodox customs, heavy expenditure on weddings, festivals etc.
By urban indebtedness is meant the amount borrowed by the industrialists, traders and other business community. Their business needs are met to some extent by the commercial banks and government agencies, but for incurring non-productive expenditure, they have to resort to borrowing from the money-lenders. Contrary to the rural indebtedness, the amount borrowed is generally utilized for the proper use in the respective establishments.
Rate of Interest. –The rates of interest charged in the district vary from place to place, from one lending agency to another and from purpose to purpose. It also varies with respect to surety or security offered.
The commercial banks in the district charge rate of interest fixed by the Reserve Bank of India, from time to time. Their rates also differ from person to person and according to the amount advanced and for the purpose it is lent. The co-operative societies advance loans at the lower rates of interest ranging from 2½ to 8½ per cent. The amounts advanced under the State Aid to Industries Act, 1935, also carry lower rates of interest ranging from 2½ to 6½ per cent.
The indigenous money-lenders charge interest varying from 12 to 25 per cent or even more. The unregistered money-lenders advance loans at a still higher rate of interest. The interest is also sometimes calculated in kind in rural areas, when the loan is advanced in kind. For instance, a sahukar may advance loan in the form of a quintal of wheat and in return he recovers quintal and a half in lieu thereof at the time of harvest. This practice is, however disappearing by and by because of the coming up of the institutions which extend financial assistance liberally in the rural areas.
Since people have become literate and there are adequate banking facilities available to meet their requirements, the system of usury has become outdated. However, in the remote areas where people are still backward, the money-lenders take advantage of their ignorance and helplessness by the charging high rate of interest.
(ii) Role of
Private Money-lenders and Financiers
Money-lenders. –The money-lenders have been by far the most important credit agency since times immemorial. The money-lender or the bania still dominates the rural sector of the district economy. Though the co-operative movement has given a death blow to the money-lenders yet their existence has not eliminated. Several method of advancing loans are employed by the rural money-lender such as loans an personal surety, against produce, land, ornaments, property, etc. The village money-lender mainly advances loans to the needy and he is responsible for a good amount of banking credit available in the rural areas of the district. Generally, he runs his grocery shop in the village and advances loans to the village people for consumption purposes. The clearance of the debt is generally done at the harvesting time. The village money-lender still continues to be the refuge of the indigent cultivator in times of need.]
The money-lenders are now required to get themselves registered with the concerned Sub Divisional Officer (Civil) and get a licence under the provision of the Punjab Registration of Money-lenders Act, 1938. Besides, they are required to maintain regular accounts in the books prescribed under the Act. The number of registered money-lenders in the district, as on March 31, 1975, was 3. Besides, there are 1 number of unregistered money-lenders.
(iii) Government
and Semi-Government Credit Agencies
The Government and semi-Government credit agencies advance loans and provide finance in rural as well as in urban areas and these have affected adversely the indigenous bankers like sahukars and money-lenders. These agencies include; The Punjab Financial Corporation, The Khadi and Village Industries Commission, joint stock banks, co-operative banks and co-operative societies.
The Punjab Financial Corporation was established in 1953 under the State Financial Corporation Act, 1951, for providing medium and long-term loans to industrial concerns established in the vicinity of the Punjab State. It provides finances up to Rs 20 lakhs in the case of public limited company or registered co-operative society and Rs 10 lakhs in other cases. The rate of interest charged by the Punjab Financial Corporation is 3 per cent above the bank rate with a minimum of 9 per cent per annum. The loans are repayable in 10 years and there are advanced against hypothetation of land, buildings, plant and machinery, etc. with a margin of 40 per cent of the net assessed value. In case the Government stands guarantee, the margin is reduced from 40 to 25 per cent.
The Khadi and Village Industries Commission meets the financial needs of the khadi and village industries for short-term loans. The Industries Department also gives financial assistance to the industries for setting up new industrial units and for extension/modernization of existing units under the State Aid to Industries Act, 1935, on nominal rates of interest. Loans are also advanced by the Government to the agriculturists for the purchase of agricultural implements, seeds, fertilizers, tractors, etc. The co-operative societies also advance loans against promissory notes, whereas banks do so against gold, shares and securities, agricultural commodities and other easily marketable goods. The joint stock banks and co-operative banks have gone a long way in meeting the financial requirements of the agriculturist, industrialists, petty shopkeepers, traders and other needy persons.
(iv) Commercial
Banks
Modern organized system of banking was brought into being in this district when the Hoshiarpur Central Co-operative Bank was established here on July 27, 1910 as a deposit bank. It was converted into a full-fledged Central Co-operative Bank after the enactment of Indian Co-operative Societies Act, 1912. Among the joint stock banks, the Bari Doab Bank Limited was the first to be set up in 1915 in this district. If had its head office at Lahore (Pakistan) which in 1947 was transferred to Hoshiarpur. The Punjab National Bank opened its branch at Hoshiarpur in 1918. Later on, the State Bank of India also opened its branch at Hoshiarpur. The Central Bank of India and the Punjab and Sind Bank Ltd. Also opened their branches at Hoshiarpur in 1950 and 1951, respectively. With the passage of time, all the banks engaged themselves in expansion activities and opened their respective branches at various places in the district
The number of banking offices at various places in the district, as on March 31, 1975, is given in Appendix I on pages 185-187 at the end of the chapter
The total deposits and banking credit in the district, as on June 30, 1975, amounted to Rs 43.3 crores and Rs 7.15 crores, respectively.
(v) Post
Offices Savings Bank Account
In 1974-75, the number of depositors who opened new accounts with the post office savings bank in the district was 1,29,850. The gross deposits in all the accounts with the post office savings bank in the district, as on March 31, 1975, amounted to Rs 14,06,31,370.
(vi) Co-operative
Credit
The co-operative movement was launched in the country in 1904 with the passing of the first Co-operative Societies Act, 1904. As this Act was found inadequate, a new Act was passed in 1912 which gave a fresh impetus specially to the formation of non-credit societies and central institutions unlike the former enactment which allowed only the formation of credit societies. The movement was introduced in the Hoshiarpur District in 1892 with the formation of an agricultural co-operative society at village Panjwar (tahsil and district Una, Himachal Pradesh). The movement gradually spread in whole of the district and the co-operative societies were set up at various places in the district. After the attainment of independence in 1947 and the passage of enactments of 1954 and 1961, this movement got a further fillip. On June 30, 1975 there were 2,455 co-operative societies in the district, of which 1,319 were co-operative credit societies (1,215 agricultural and 104 non-agricultural). Besides, a Central Co-operative Bank functions at Hoshiarpur with 22 branches at different places in the district.
Co-operative Credit Societies. –A co-operative credit society (bank) can be started with ten or more persons, normally belonging to a village. The value of each share is generally nominal, so as to allow even the poorest farmer to become a member. The members have unlimited liability, i.e. each member is fully responsible for the entire loss of the society in the event of its failure.
The usual sources of short-term finance for the farmers were the money-lenders who charged rates of interest and practiced fraudulent methods to deceive the ignorant and the illiterate cultivators. The Punjab Registration of Money-Lenders Act, 1938, curtailed to some extent the powers of the money-lenders. But the organization of co-operative societies aims at the elimination of the money-lenders as a class.
On June, 30, 1975, there were 1,319 Co-operative Credit Societies (1,215 agricultural and 104 non-agricultural) in the district. Their function is to mobilize savings and to advance loans to the members at reasonable rates of interest for productive purposes.
The details pertaining to the membership and the working of agricultural and non-agricultural co-operative credit societies, functioning in the district, during 1970-71 to 1974-75, are given in Appendices II and III on pages 188 and 189 at the end of the chapter.
(c) Insurance and Small Savings
Insurance. –The Hoshiarpur District has remained very backward so far as the insurance business is concerned. Prior to 1956, there was neither any branch office nor any chief agency of any insurance company in the district. Only the agents and inspectors of various insurance companies procured business for their respective insurance companies. With the establishment of Life Insurance Corporation of India on September 1, 1956, a branch of the corporation was set up here. There is only one branch of the Life Insurance Corporation of India at Hoshiarpur. The number of Development Officers and Agents in the Hoshiarpur District, as on March 31, 1975, was 19 and 244, respectively.
The Life Insurance Corporation advances loans to the policy holders and government and semi-government concerns. It charges 9½ per cent and 11½ per cent rate of interest against policies and houses, respectively.
The following statement shows the business secured by the Life Insurance Corporation of India in the district, during 1970-71 to 1974-75: -
|
Year |
|
Name of the branch |
Number of policies |
Sum assured Rs |
|
1970-71 |
.. |
Hoshiarpur |
2,403 |
2,03,35,500 |
|
1971-72 |
.. |
,, |
2,593 |
2,44,15,500 |
|
1972-73 |
.. |
,, |
3,112 |
2,82,66,000 |
|
1973-74 |
.. |
,, |
2,788 |
2,77,35,500 |
|
1974-75 |
.. |
,, |
2,458 |
2,55,53,500 |
(Source: Branch Manager, Life Insurance Corporation of India, Hoshiarpur)
Before the nationalization of the general insurance companies on January 1,1973, the Life Insurance Corporation had also started the general insurance business on January 1, 1964, in addition to the life insurance. On January 1,1973, the general insurance companies were also nationalised and an apex body, known as the General Insurance Corporation, came into existence. Under the General Insurance Corporation, four general insurance companies, viz. the Oriental Fire and General Insurance Company Ltd., the New India Assurance Company Ltd., the National Insurance Company Ltd. And the United India Fire and General Insurance Company Ltd., 1971, are working
The general insurance policies of every type 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 insurances including motor and all other types of insurances like fidelity guarantee, aviation insurance, burglary, personal accidents, etc.
Small Savings. –Originally, the Small Savings Schemes was introduced by the Government of India during the World War I (1914-18), as the postal cash certificates scheme. Later on in 1943, the Post Office National Savings Certificate Scheme was launched to meet the inflationary tendencies which had come to stay during the World-War II (1939-45). After the independence in 1947 this scheme was made more attractive for the people by offering higher rates of interest and inculcating in them the habit to save. This was done to meet the rising developmental expenditure for the Five-Year Plans of the country.
Small Savings is a Centrally-sponsored scheme and is controlled by the Ministry of Finance (Department of Economic Affairs), Government of India. The National Savings Commissioner, Government of India, with his headquarters at Nagpur, heads the National Savings Organization and looks after the small savings work in the country. Under his direct control, there are Regional Directors, National Savings, posted in the different States. In the Punjab, the Regional Director, National Savings, is posted at Chandigarh. He has under him four Assistant Regional Directors, National Savings, at Amritsar, Jullundur, Ludhiana and Chandigarh. In each district, there is a District Savings Officer, National Saving Scheme. In some of the important districts, however, there are two District Savings Officers. In the Hoshiarpur District, there is one District Savings Officer. All these officers are under the direct control of the National Savings Commissioner.
The Directorates of Small Savings have been setup in the States in order to have better co-ordination between the Central Organization and the State Governments. The Director, Small Saving, Punjab, Chandigarh, is the head of the State government Small Savings Department. At the district level, the District Savings Officer is the co-ordinating agency between the Central Organization and the district authorities in the promotion and growth of the movement.
The number of agents who canvassed and propagated for the small savings scheme on commission basis in the district, as on March 31, 1975, was 102.
The gross and net investments under the small savings scheme in the district, during 1970-71 to 1974-75, are given below:
|
Year |
|
Total Collection(Rs) |
Net Collection(Rs) |
|
1970-71 |
.. |
5,37,25,000 |
94,10,000 |
|
1971-72 |
.. |
5,58,76,000 |
94,33,000 |
|
1972-73 |
.. |
5,82,30,000 |
50,46,000 |
|
1973-74 |
.. |
6,69,77,000 |
97,01,000 |
|
1974-75 |
.. |
8,52,72,000 |
1,90,20,000 |
(Source: District Savings Officer, Hoshiarpur)
Before the introduction of the new decimal coinage system on April 1, 1957, the old silver rupee was divided into half a rupee (dheli or athani), one-fourth of a rupee (pauli or choani), one eighth of a rupee (dvani) and one-sixteenth of a rupee (anna). An anna was equal to 4 pice or 12 pies, and a pice was equal to 3 pies. The rupee had 32 takkas and 64 paise.
With a view to bringing about uniformity with the currencies of other countries of the world, decimal coinage system was introduced in the country in 1957. Under this system, a rupee consists of 100 paise with different coins of the denominations of 1,2,3,5,10,20,25 and 50 paise. Currency notes are issued in the denominations of 1,2,5,10,20,50 and 100 rupees.
The decimal coinage completely replaced the old prevalent coinage with effect from April 1, 1964. In the beginning, the people, especially in the rural areas, felt some difficulty in transactions, as they were accustomed to counting under the old coinage system. But gradually they started counting according to the new system, which became popular in the urban as well as in the rural areas. Naya paisa, named so in the beginning is now called paisa. With the withdrawal of the old coinage from circulation, the prefix ‘naya’ became redundant and was dropped from June 1,1964.
For centuries, Hoshiarpur has had been having trade with the hill as for as Tibet and Samarkand. Some families of the town have roaring business transactions with the rest of the country. The main trading commodities are cotton, silk and wool, phulkaris, shoes, copper and brass vessels, pottery, glass bangles, wood carvings, ivory inlay work and sugar.
Hoshiarpur, Garhshankar, Dasuya, Mukerian and Tanda Urmar are the important centres of trade and commerce in the district. The major items of export apart from the agricultural products are ivory inlay, wooden goods, resin and turpentine. In 1974-75, the resin and turpentine were exported to the tune of Rs 91.87 lakhs. The items of import consist mainly of industrial products as this district is deficient so far as the industrial set up is concerned. Hoshiarpur also acts as a trade centre for carrying goods to the neighbouring areas of Himachal Pradesh.
As elsewhere the usual course of trade for agricultural produce in the district is from the agriculturist to the consumers through the middle man. There is no direct link between the grower and the consumer. Commission agents or arhtias, whole-sellers and retailers act as middle men between the grower and the consumer.
The Purchasers of the grain market gather at the shop of Kutcha arhtia, and then the sale of the commodities is started in the open auction under the supervision of the auctioneers appointed by the market committee, through the commission agents turn by turn. Such sales are daily conducted during the hours fixed for this purpose. Kutcha arhtias, who sell the commodities on behalf of the cultivators, receive commission on fixed rates permissible under the bye-laws of the market committee. The delivery of the goods is made at the shop of the Kutcha arhtia and the purchaser himself arranges for their carriage to his premises at his own cost. The kachcha arhtia pays the sale price to the seller immediately after the transaction is completed.
(i) Regulated and Unregulated Markets
The regulated markets play an important role in helping the sale of commodities on fair and reasonable prices. The cultivator is now much safeguarded against the underhand and illegal practices which previously used to be adopted by the traders (beoparis) and other intermediaries. The charges and deductions are quite reasonable, uniform and well-standardised.
The whole of the district has been covered by the regulated markets and purchase centres to save the cultivators from the evil of unhealthy market practices and to ensure the fair price for his produce. The Punjab Agricultural Produce Markets Act, 1939, provides for the regularization of markets and formation of market committees.
In the regulated markets, all the 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 deducations is issued to the cultivator who later on, showing the same, receives payment from the arhtias.
There are 6 regulated markets in the district at Hoshiarpur, Garhshankar, Tanda Urmar, Dasuya, Mukerian and Balachaur with 12 sub-yards attached with them. The average number of villages per regulated market in the district, during 1974-75 was 264 and the average area served per regulated market was 646 sq. km1. In these regulated markets, the main commodities for which transactions usually take place are wheat, gram, maize, paddy and oil seeds, etc.
There is no unregulated market in the district as the whole of the Punjab State has been brought under the regulated markets.
(ii) Fairs (Melas)
and Other Rural Marketing Centres
Fairs (Melas). –A number of religious, social, recreational and seasonal fairs and festivals are held in the district at various places. At these fairs and festivals, people sell and purchase goods like sweets, fruit, general merchandize, etc. Thus some kind of trading activities take place. The important fairs and festivals held in the district are mentioned in Chapter III, ‘People’.
Cattle Fairs. –The cattle fairs serve a very useful purpose by bringing the breeders and buyers in direct touch with each other. These are also a source of income to the Government which charges fee on the sale/purchase of cattle and other animals. The cattle fairs are held at Mukerian, Tanda Urmar, Bhunga and Mahalpur in the district. At Mukerian and Tanda Urmar, these fairs are held every month, at Bhunga twice a year in the month of May and October and at Mahalpur once a year in the month of August.
(i) Co-operative Marketing. –Keeping in view the malpractices prevalent in the marketing of agricultural produce by the cultivators, the need for co-operative marketing was felt by the Government. Consequently, a number of co-operative marketing societies were set up at various places in the district. The main facility provided by these societies is that the cultivators can store their produce. Previously, they had to dispose it of immediately after harvesting. These societies act as a check against malpractices of under-weighing, delayed payments by the arhtias, unauthorized deductions, etc.
At the district headquarters, there is a District Wholesale Co-operative Marketing and Supply Society at Hoshiarpur which was registered on December 31, 1961. It assist the consumers in the supply of certain consumers’ goods like sugar, kerosene oil, soap, etc. It also meets the requirements of the agriculturists like chemical fertilizers, agricultural implements, seeds and insecticides. Besides, the following registered co-operative marketing societies are also functioning in the district: -
|
|
Name of Society |
|
Date of Registration |
|
1. |
The Hoshiarpur Co-operative Marketing Society, Hoshiarpur |
.. |
27-3-1967 |
|
2. |
The Garhdiwala Co-operative Marketing Society, Garhdiwala |
.. |
9-3-1973 |
|
3. |
The Tanda Urmar Co-operative Marketing Society, Tanda Urmar |
.. |
17-8-1957 |
|
4. |
The Dasuya Co-operative Marketing Society, Dasuya |
.. |
14-11-1960 |
|
5. |
The Mukerian Co-operative Marketing Society, Mukerian |
.. |
5-9-1957 |
|
6. |
The Mahalpur Co-operative Marketing Society, Mahalpur |
.. |
21-3-1973 |
|
7. |
The Garhshankar Co-operative Marketing Society, Garhshankar |
.. |
11-6-1958 |
|
8. |
The Balachaur Co-operative Marketing Society, Balachaur |
.. |
21-9-1958 |
The co-operative marketing societies have the primary co-operative credit societies, formed amongst the agriculturists in the rural areas, and also the individuals, as their affiliated members, who contribute shares and market their produce through these societies. These societies are duly registered under the Punjab Co-operative Societies Act, 1954.
The central co-operative banks are the main financing agencies for the co-operative marketing societies. A number of godowns have been constructed by the co-operative marketing societies, both in rural and urban areas, where storage facilities are provided to the members. The number of godowns owned by these societies in the district, as on June 30, 1975, was 9. These godowns are of much use in collecting the produce of the cultivators in villages, and arrangements are made for its transportation to the nearest marketing society. The storage charges in these godowns are quite nominal.
The work done by co-operative marketing societies in the district, during 1970-71 to 1974-75, is shown in Appendix IV at page 190.
(ii) Co-operative Consumers’ Stores. –There is only one co-operative consumers’ store, namely, the Hoshiarpur Central Co-operative, Consumers’ Store Ltd., Hoshiarpur, which was registered on August 19, 1963. Its aims are to ensure equitable distribution of various kinds of articles to the consumers at reasonable rates. On March 31, 1975, it was running six branches at various places in the district. The membership of the store, as on March 31, 1975, stood at 9,567 with a paid-up share capital of Rs 2,21,140.