Is Merger of Societies an Ultimate Solution ? (a Post Mortem Analysis of PACS in Vizianagaram Dist. AP.)

In fact, primary agricultural cooperative credit societies (pacs) are the root level credit lending institutions in cooperative structure. Success of a cooperative credit structure is intertwined with pacs performance. No.Of pacs was 11945 with 4045000 membership by the end of 197. In spite of good host of cooperatives in the state of andhra pradesh, most of pacs were defunct. No. Of societies come down to 4730 by the end yr. 2000. Its financial status was very poor. Many more parties are held responsible for failure of cooperative societies in the state like., government officials, bankers, politicians society executive body, as well as members of the societies. While the status of pacs in the district vizianagaram also same as a.P. State. Factors responsible for failure of pacs in the district vzm are., impractical announcements, no clear cut directions, improper assessment of drought, negligence of employees, misappropriation of funds, accruing imbalances, lethargic govt. Visits, routine auditing, lack of accounts knowledge, irresponsibility and un accountability, illiterate board members, lack of institutional interest, no post credit follow up, non resident employees, imbalances in staffing pattern, excessive expenditure, politicization of cooperatives, no agreement between supply and demand for credit, in this back drop the all most all the pacs in the district vizianagaram are became unviable. Consequently, state government of andhra pradesh had decided to merger of unviable societies into viable one. Even such a merger decision also invited certain operational issues connected with it. In spite of all such physical efforts in merger yet a sense of belongingness must be created. Also awareness among members shall also created