(iii) Cottage and Village Industries
The
cottage and village industries are of considerable importance in improving the
economic condition of the rural population, as they play an important role in
the rural economy and its reconstruction. In fact, the improvement of
agriculture largely depends upon the resuscitation of the small-scale rural
industries. These industries provide
the agriculturists with part-time jobs in the off-season and, thus, help to
mitigate unemployment to some extent.
The
important cottage and village industries in the District are described below :
(33) Handloom-Weaving --- It is an
important old cottage industry, carried on in almost all villages and towns. In
the past, the villagers used to meet their demand for cloth locally. The
home-grown cotton, and wool were spun by the womenfolk at home and got the yarn
woven by the village weaver who was paid some remuneration for his labour.
Blankets, kheses of various types and designs, and coarse cloth, called
khaddar, were the main products of the handloom-weaving industry. Durries were
woven by the womenflok themselves for their domestic needs.
After
1947 and, especially with the implementation of the Five-Year-Plans, the
products of the handloom-weaning industry have improved. The State Government
gives concessions and facilities. The Village and Khadi Board Commission, set
up by the Government of India, also helps to develop cottage and village
industries. The main raw materials required for the industry are cotton and wollen yarn, hand-and
mill-spun.
In
1979-80, the industry gave employment to 785 workers and produced goods worth
6.84 lakhs of rupees. Mostly, backward classes are engaged in this industry.
The number of units engaged in handloom-weaving have, however, been on the
decrease. Only 438 units were engaged
in the industry in the District in 1979-80 as against 968 units before 1947.
(34) Leather-Training—Leather-training is
also an important village industry. The main raw materials required for it are
hides, skins and bark of the kikar (Acacia arabica) tree, which is used for
treating raw hides and skins. In 1979-80
there were 536 units engaged in the industry, which gave employment to 1,241
persons and produced goods worth 21.82 lakhs of rupees.
(35) Jutti-Making --- Jutti (country shoes)
making is also another important industry located at Fazilkla. The main raw
materials required for industry are tanned leather, nails, thread, etc. A good
number of units were engaged in the industry.
(36) Ghani Oil --- In 1979-80, 32, units
were engaged in this industry which gave employment to 49 persons and produced
goods worth Rs. 72.000. The number of kohlus, i.e. oil-presses, is on the
decrease.
(37) Gur ahd Khandsari --- The making of gur
and khandsari is also an important industry of the rural areas. In 1979-80,
85 units were engaged in the production
of gur and khandsari in the District.
The industry produced goods worth 9.01 lakhs of rupees and gave
employment to 135 persons.
(38) Ban
and Rope making --- This district is known for this industry as the basic
raw material, i.e. munj, is available in abundance in the belt along the Satluj River and the canals. Previously, ban was made with hands, but now
hand-driven and power-driven machines are used in its production. In 1979-80, 548 units were engaged in the production
of ban and ropes. These units produced goods worth 4.33 lakhs of rupees and gave
employment to 683 persons.
(iv) Jail Industries
The prisoners
in the Central Jail, Firozpur, are given training in the various trades to
enable them to earn their livelihood by doing some useful productive work after
their release and, thereby, become good citizens. The different trades, in
which training is given in the jail, are carpentry (furniture-making),
textiles, durrie weaving, tailoring (rison and hospital uniforms), niwar and
tape, tags and laces, munj and hemp,
bamboo products (chicks, brooms, etc.), oil and oilcakes and poultry.
The
articles manufactured in the above-mentioned trades in the jail are sold mainly
to jails, government departments and
private individuals. The following was the outturn of the industries, during
1974 to 1980 ;
Year Amount
(Rs)
1973 5,52,924
1974 6,23,849
1975 5,35,665
1976 6,39,691
1977 5,15,324
1978 6,11,536
1979 10,62,825
(Source: Superintendent Central Jail, Firozpur)
(h) Role of Industrial
Co-operatives
The role of industrial co-operatives in the development of industries
in a basically agricultural District, such as Firozpur, is all the more
important, because the people here do not invest much in industries. Capital is
shy not only in the rural but also in the urban areas. The industrial
co-operatives help to set up village industries in the rural areas, because an
average industrial worker does not posses sufficient capital for installing
modern machinery. Apart from the fixed investment difficulties, he is also
unable to meet the requirements of the working capital. Besides, he procures raw materials at higher rates and markets
his goods at lower rates, because he
cannot compete in the open market with bigger producers on account of his
smaller scale of production, higher cost
of production, lower degree of bargaining power, etc. The formation of
industrial co-operatives by individual workers obviates most of their
handicaps. The societies purchase raw materials in bulk at lower prices from the wholesalers.. the products are also
disposed of at reasonable rates. Credit
facilities are readily given by private entrepreneurs in the case of societies. the co-operative
societies also get subsidies , grants-in-ais and loans from the Government for
the purchase of machinery, equipment, etc. Moreover, the development of village industries in this agricultural
district, where farmers remain unemployed or disguisedly unemployed, will give
full-time employment.
The
following table shows the number and membership of the industrial co-operative
societies in the District as in June, 1980 :
|
Serial No. |
Name of Industry |
Number of Industrial
co-operative societies |
Member-ship |
|
1 |
Handloom-weaving |
11 |
233 |
|
2 |
Small-scale industries |
177 |
3,314 |
|
3 |
Khadi and village industries |
30 |
1,093 |
|
4 |
Handicrafts |
4 |
60 |
(Source : Assistant, Co-operative Societies, Firozpur),
|
Serial No. |
Industrial
Co-operatives |
Amount(Rs) |
|
1 |
Handloom-weaving |
20,000 |
|
2 |
Small-scale industries |
15,36,000 |
|
3 |
Khadi and village industries |
1,05,000 |
|
4 |
Handicrafts |
15,000 |
(Source : Assistant Registrar, Co-operative Societies, Firozpur)
Before April 1963, the industrial co-operatives were
under the control of the Co-operative Department. Since then, these
co-operatives have been transferred to the Industries Department. The Assistant
Registrar Co-operative Societies , Firozpur, is in charge of the Industrial
Co-operative Societies in the Firozpur, is in charge is Industrial
Co-operative Societies in the Firozpur District. He is under the
administrative control of the Deputy Registrar, Industrial co-operatives,
Firozpur.
The following table shows the amount of loans
advanced and the subsidies given by the Government to the Industrial
co-operative Societies in the District during 1978-79 and 1979-80 :
|
Industrial Co-operative |
1978-79 |
1979-80 |
||
|
Loan (Rs.) |
Subsidy (Rs.) |
Loan (Rs.) |
Subsidy (Rs.) |
|
|
Weaver's Societies |
-- |
-- |
-- |
-- |
|
Small-Scale Industries |
7,900 |
-- |
7,900 |
-- |
|
Khadi Societies |
8,200 |
-- |
8,200 |
-- |
|
Handicrafts Societies |
-- |
-- |
-- |
-- |
(Source : Assistant Registrar, Co-operative Societies, Firozpur)
The following
table shows the progress made by the industrial Co-operative in the district
during 1978-79 to 1979-80:
|
Particulars |
Year |
|
|
1978-79 |
1979-80 |
|
|
Number of Industrial
Co-operative Societies |
224 |
233 |
|
Membership |
4,548 |
4,700 |
|
Share Capital (in Rs.) |
19,61,000 |
19,89,000 |
|
Working Capital (in Rs.) |
35,43,000 |
36,67,000 |
|
Production (in Rs.) |
9,48,000 |
16,76,000 |
|
Sales (in Rs.) |
9,27,000 |
15,53,000 |
(Source : Assistant Registrar, Co-operative Societies, Firozpur)
The
above table shows that there has not been any appreciable progress in the working
of the industrial co-operatives in the District, mainly due to its close
proximity to the Pakistan border. The
District suffered great set-back during the Indo-Pakistan conflicts of 1965 and
1971. A number of schemes have therefore, been initiated by the Government to
provide the Co-operative societies with financial assistance. The Central
Co-operative Banks also advance loans.
(i) Labour and Employers
Organizations
Labour Organizations --- The following
is the list of registered trade unions of workers employed in different
industries in the District .
Name of Trade Union Date of registration
1. Satluj Flour-Mil Workers Union, Firozpur City 19 January 1956
2. Indian Enamel Worker's Union, Firozpur City 22 February 1957
3. Cotton-Mill Mazdoor Union, Abohar 23 August 1959
4. Cotton-Textile Mazdoor Union, Abohar 27 May 1962
5. Cotton-Mill Mazdoor Union, Fazilka 25 August 1967
6. Bhiwani Cotton-Mills Karmchari Sangh, Abohar 11 March 1969
7. Bakery-Workers Union, Ferozpur 17 March 1971
8. Biscuit Bakery-Workers' Union, Fazlika 7, November 1973
9. Zila Ferozpur Cotton and Ginnning-Mill Mazdoor 14 April
10. Cotton-Mill Labour Union, Abohar 25 October 1977
Manufacturer’s Associations --- These
associations play an important role in the development of industries and help
the members to removes their difficulties, besides the procurement of scare raw
materials. A list of the associations registered in the District, along with
the dates of their registration, are given below :
1. Abohar cotton and Grain Merchants
Association, 8 January 1969 Abohar.
2.
Northern Railway welding and Trading 2 June 1976 Contractor’s
Association, Ferozpur.
Besides the above associations, a number of unregistered association are also functioning in the District.
(j) Welfare of the
Industrial Labour
Activities
relating to the intellectual, physical, moral and economic betterment of the
workers, whether by the employers, by the government or by other agencies, over
and above what is laid down by law or what is normally expected as part of
contractual benefits, for which the workers may have bargained are known as
welfare activities. These activities
may include housing, medical and
educational facilities, nutrition (including provision of canteens), facilities
for rest recreation, co-operative societies, day nurseries and crèches, the
provision of sanitary accommodation, schemes of social security, etc. The
growing attention that is being paid to labour problems at the present time is
an indication of the increasing importance of the working class in the economic
and social structure of modern communities.
Industrialization
began comparatively late in India and its progress has been neither repaid nor
smooth. the origin of the labour-welfare work in the country may be traced back
to the time of the World War 1 (1914-1918). Till then, the welfare of the
workers was hardly thought of owing to the ignorance and illiteracy of the
workers themselves, the short-sightedness of the employers, the carelessness of
the State and the indifference of the public. But, since the World War I, it
has been expanding steadily, mostly on a
voluntary basis. The economic
depression also did much to temper the
interest which the war had kindled. The Government and the industrialists were
prompted to take active interest in welfare work owing to the discontent and
industrial unrest that prevailed in the country and to some extent owing to the
moral pressure brought to bear on them
by the work of the International Labour Office. The World War II (1939-1945)
revived and strengthened the welfare movement and the benefits resulting
from a proper regard for the health and
well-being of the employees were gradually recognized, and the employers
co-operated with the Government in the provision of improved amenities.
It was only during the World War II that the Government of India
started taking active interest in promoting welfare schemes for industrial
workers. Efforts in this direction were redoubled with the achievement of
Independence in 1947 and the emergence of India as a Republic in 1950, wedded
to the idea of a Welfare State. The Government has also passed various labor laws, mainly with a view to
making the lives of the workers happier and healthier. The salient features of
the various labour laws in force and the labour-welfare schemes introduced
thereunder are discussed in Chapter XVII, ‘Other Social Services’.
(A) Banking and Finance
(a) History of Indigenous
Banking
Banking
was known and practised in India at a time when the rest of the world had yet
to evolve a medium of exchange in the form of money. “From time immemorial”,
says M.L. Tannan, “ the banker has been an indispensable pillar of Indian
Society. There is plenty of evidence to show that even prior to the advent of
accidental ideas, India as no stranger to the conception of banking.” Traces can
be found of banking in India in the Vedic Period (about 2000 B.C.) in the form
of money-lending. the Buddhist Jatakas (or birth stories), the Mahabharata,
Kautilaya’s Arthshastra and earlier dharmshastas also refer to the practising
of banking in those periods. Manu also testifies to the existence of banking
and he devotes two chapters to deposits and pledges and the recovery of
debt’. Similarly, the Muslim historians
of the twelfth century also refer to
the existence of Multanis and Shroffs, who financed the trade and commerce of
the country and also acted as bankers to the then rulers. The indigenous
banking system is still continuing,
despite the fact that the joint-stock banks have made a remarkable progress.
The
institution of indigenous banking in this part of the country is as old as
anywhere else. The lack of peace, and the insecurity of life in the region due
to the successive invasions from the north-west disturbed the economy and , as
such, there was slump in trade and industry and also in the agricultural
sector. The position, however, improved much with the rise an of the Sikh power. Moreover, agriculture was
a low-paying occupation and depended upon the vagaries of nature. The failure
of crops, either due to the spread of crop
diseases or due to the failure of rains, was not uncommon. There were no
subsidiary occupations in the villages.
Hence the income of the farmer was low. The people of the urban and
rural areas had, therefore, to resort to credit for survival.
In
the urban areas, there were banks who provided the people with finance for
trade and industry. They advanced money mostly against security to lessen risk.
The rate of interest charged by them
was also low, i.e. 6 to 9 per cent annum. They gave loans, keeping in view the
objective of the borrower. Then there were urban money-lenders who advanced
loans for purposes of consumption. Such loan, being mostly without security,
involved greater risk. Moreover, the clients
were irregular and unpunctual in repaying the loans. Accordingly, the rate of interest charged on
such loans was higher.
The
rural money-lender occupied a very prominent position in the rural economy. He
served the agriculturist in a variety of ways by advancing money to him for
buying food and other necessaries of life, for performing social and religious
ceremonies and for securing agricultural
requisites, such as seeds and bullocks. During drought and famine, the
agriculturist took loans from the money-lender against the security of
agricultural land and paid them back at the time of harvest.
In
course of time, the ‘friend in need’ became actuated by greed and usury and
exploited the agriculturist, by charging exorbitant rates of interest. In some cases, interest was many
times the principal and the poor borrower was unable to pay off the debt, with
the result that the usurer deprived him, of his land and other belongings. From
1870 onwards, when the value of land began to rise, the money-lender imposed
such hard terms of mortgaging land that a mortgage always ended in the land
being sold to him by the agriculturist to clear off his debt. To safeguard the
interests of the cultivators (borrowers), the Government passed the Punjab
Alienation of Land Act, 1900. This Act no doubt curbed the malpractices of the
village-money-lender, but it did not improve the lot of the peasant. It merely replaced the sahukar by the
agriculturist money-lender.
The
Commission on Agriculture recommended the starting of the co-operative movement
and, consequently, the first Co-operative Societies Act was passed in 1904. Under this Act, the first co-operative
credit society in the District was registered on 4 October 1911, in the village
of Khilichi Qadim (Firozpur Tehsil). The progress of co-operative
societies in the Punjab encouraged the
Government to pass the Co-operative Societies Act, 1912, which widened the
scope and permitted the registration of secondary societies. Thus there came
into existence the Fazilka Central Co-operative Bank, Fazlika, in 1915,
followed by the Firozpur Central Co-operative Bank, Firozpur, in 1924.
The
position of the village money-lender was further worsened by 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-lender’s Act, 1938. These enactments resulted in the
contraction of credit operations by the money-lenders. But the needs of the
agriculturist were not lessened. So some agency, which could provide the
agriculturist with funds was needed.
The passage of the above-mentioned enactments by the Government also
affected the agriculturist money-lender. He, therefore, explored other avenues
to invest his surplus funds and , finally, he was effectively checked, when the
Punjab Alienation of Land Act, 1900, was repealed with the enforcement of the Constitution of India on 26 January
1950,
(b) General Credit
Facilities
(i) Indebtedness, Rural and Urban
Indebtedness
means the amount of loan which the people owe to the various agencies and
individuals. It may be studied under two heads: rural indebtedness and urban
indebtedness. 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, such as drinking and not much of the borrowed money
is used for improving land and its productivity or for mechanizing farming. The
main agency for borrowing money is the village money-lender. Borrowing
continues despite the co-operative movement having progressed much and banking facilities having been
extended. On the other hand, urban indebtedness implies the amount of loan taken
by the urban people from various lending agencies, such as banks, insurance
companies and chit fund companies. 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. This debt, thus, results in increasing the
income of the State and may generate more employment.
Rate of Interest --- Interest is paid by the
borrower to the lender. As there are different lending agencies in the District,
the rate of interest charged by them is not uniform. It differs with the nature
of the loan, the period involved (i.e. a higher rate of interest for a short
period and a lower rate for a long period), the risk involved, the nature of
surety, etc. In the District, the commercial banks charge that rate of interest
which is fixed by the Government of India from time to time. However, the
loaning policies of the co-operatives are being increasingly orientated to
serve the needs of the weaker sections.
The co-operative societies advance loans at the rate of interest ranging
from 10.5 to 13.05 per cent. The loans
advanced under the State Aid to Industries Act 1935, carry only 4 per cent rate
of interest. The local money-lenders charge
a much higher rate, varying from 18 to 25 percent or even more. In some
cases, the interest is recovered in kind at the harvest time. The rate of
interest is decided at the time of advancing the loan which ordinarily is taken
during lean months and is repaid at the
harvest time. Generally, the borrower has to repay 1-1/4 or 1-1/2 times the
quantity borrowed. Such loans are without security and are taken by landless
borrowed. Such loans are without security and are taken by landless labourers.
This method of advancing loans is vanishing fast.
(ii) Role of Private
Money-lenders and Financiers
Money-lenders—Although the importance of
private money-lender, at one time the only lending agency, has not completely
vanished, it is definitely declining fast. There was a time when other lending agencies, such as banks, were not
sufficiently developed. Then the money-lender was holding the key position with
respect to the providing of finance not
only in the rural areas, but also in the urban areas. The banian, who had
a relatively adequate level of literacy, exploited the rural people to the maximum; so much so that even a
number of generations of innocent,
ignorant and illiterate farmers continued to remain in his clutches. He used to
charge a very high rate of interest. He
was mainly interested in realizing the
interest and not in recovering the principal. At times, he either
usurped the land or did not leave even a single grain of corn to the poor
farmer after harvest. But all this does not happen now because of the spread of
education and the imposition of legal restrictions on the money-lenders, the
co-operative movement and the development of other lending agencies, such as
banks (joint-stock as well as co-operative).
There
were several methods of advancing loans, such as loans on personal surety
against produce, land, ornaments and property.
Generally, the banian or money-lender had a grocery shop in the
village and advanced money to the needy
persons and collected the loan at the
time of harvest by taking the produce.
he sued to charge different rates of interest from different persons.
Generally, he advanced 60 to 70 per cent of the face value of the property
pledged against the loan advanced. Higher rates of interest were charged for the loans advanced against intangible
surety, than those against the tangible one. After the passing of the Punjab Regulation of Accounts Act, 1930,
which made it binding on the part of the money-lender to maintain accounts,
most of the transaction were carried on either orally or against ornaments. The
village money-lender, of course came to the rescue of the villagers at the time
of famine, scarcity or at the birth of a soon or at the time of the
marriage of a son or a daughter, when a lot of extravagant
expenditure was to be incurred. Keeping in view these circumstances, a Punjabi
saying, Guru bina gat nahin, shah bina pat nahin (No Salvation without a guru,
and no respectability in society in society without a money-lender), holds
goods even to-day.
With the spread of other financial institutions and the change in the
policies of the Government , the money-lenders’ business is decreasing and they
are leaving it altogether. The hereditary money-lenders, however, still
continue the business, because they fined it quite profitable. Their chief
importance lies in their simple procedure of advancing loans, as against the
lengthy and cumbersome process of joint-stock and co-operative banks, which the
illiterate and ignorant villagers cannot easily comprehend. In 1979-80, there
were 361 registered money-tenders in the district, besides a number of
unregistered ones.
(iii) Government and
Semi-Government Credit Agencies.
With
the decay of the system of indigenous money-lending as a source of finance in rural
as well as in urban areas, the gap has been filled by the
governmental/semi-governmental credit agencies. These are the Punjab Financial Corporation, the Kahdi and Village
Industries Commission, joint-stock banks, Co-operative bank and Co-operative societies.
The Punjab Financial Corporation provides medium and long-term loans to
industrial concerns established in the State. It provides finances up to 20
lakhs of rupees in the case of public limited company or a registered
co-operative society and up to 10 lakhs in other cases. The Corporation charges
rates of interest from 10.25 to 13.50 per cent. The loans advanced by the
Corporation are repayable in 10 years. These loans are advanced against
hypothecation of land, buildings, plants machinery etc., with a margin of 40
per cent of the net assessed value. In the case Government guarantee, the
margin is reduced from 40 to 20 per cent.
The Khadi and Village Industries Commission and Industries Department
also advance loan.
Agriculturists
and industrialist also get loans from the Government. to agriculturist, loans
are advanced for the purchase of seed, cattle, tractors, agricultural
implements, etc. Loans are also advanced to small-scale industries under the
State Aid to Industries Act, 1935. These are mentioned in chapters on
‘Agriculture and Irrigation’ and ‘Industries’. In addition to these,
co-operative societies advance loans against promissory notes. After the
nationalization of certain banks in 1969 and 1980, the joint-stock banks have
extended the loan facilities to the agriculturists, industrialists, traders and
consumers against personal sureties, shares, agricultural commodities and other
easily marketable goods.
(iv) Joint Stock Banks
Banking
has played a very important part in the economic development all over the
world. In India, banking on Western lines started from the beginning of the
nineteenth century. The first attempts were however, not successful.
The
first joint-stock bank to be established at Firozpur was the Punjab National
Bank, which was opened in 1895. Another branch of it was opened in 1902. The
Swadeshi Movement in 1905 gave great stimulus to the starting of Indian banks
and their number increased remarkably during the boom of 1906-13. The boom
continued till it was overtaken by the crash of 1913-17, when several banks
failed. In 1932, again there were back failures. During the World Was II
(1939-45) and the immediate post-war years, the Indian joint-stock banking made
rapid progress. The partition of India in 1947 and its aftermath gave it a
temporary set-back.
The Banking Companies Act, 1949, did much to improve
the efficiency and the tone of the tone of the banking system
No. of Bankings
offices
State Bank of India
15
State Bank of Patiala
2
Punjab National Bank 17
Other Commercial Banks 33
Co-operative Banks 35
102
(Statistical
Abstract of Punjab, 1980, p. 523)
The
different leading joint banks which have their branches in the District, are as
under :
1.
Punjab National Bank
2.
State Bank of India
3.
State Bank of Patiala
4.
State Bank of Bikaner and Jaipur
5.
Allahabad Bank
6.
Bank of Baroda
7.
Bank of India
8.
Bank of Maharashtra
9.
Canara Bank
10.
Indian Overseas Bank
11.
Union Bank of India
12.
United Commercial Bank
13.
Laxami Commercial Bank
14.
Oriental Bank of Commerce
15.
Punjab and Sind Bank
16.
New Bank of India
17.
Central Bank of India
18.
The Firozpur Central Co-operative Bank, Ltd.
19.
The Fazlika Central Co-operative Bank, Ltd.
Total deposits and bank credit in the
District as on 31 March 1980 amounted to Rs. 5,593 lakhs and Rs. 6,048 lakhs
respectively.
(v) Co-operative Credit
The idea of using co-operation in India as a means of combating rural
indebtedness and the supplying of credit was first suggested by Sir Frederick
Nicholson in 1897. he pleaded forcefully for the introduction of co-operative credit societies in India. Although no action was taken on his report,
yet some districts established a few pioneer co-operative societies on their
own initiative.
The
passage of the Co-operative Societies Acts of 1904 and 1912 gave birth to the
co-operative credit societies in the country.
Credit co-operative occupy a predominant position in the Indian
co-operative movement. Among these, the agricultural credit societies
constitute the most important part and they by far outnumber all other types of
co-operatives. Agricultural credit may be either short-term or long-term. The
short-term co-operative credit has a sort of federal structure, a
three-storeyed organization. In every State, this structure consists of the
State Co-operative Banks at the apex or top, Primary Credit Societies at the
village level, with Central Co-operative Banks coming in between at the
district level.
Co-operative Credit Societies --- The
Co-operative movement in the district was started in 1912. It was received with
great enthusiasm by the poorer agriculturists. The movement received a great
impetus from two generous gifts of Rs. 8,000 each, made in 1912 and 1914
by a former Settlement Officer of the
District, Mr. E.B. Francis (ICS, retired).
By
1914, the operations had started in Zira, Firozpur and Fazilka tehsils. As on
31st July 1914, there existed 171 societies, all of which, except
one, were agricultural and of unlimited liability as per particulars given
below :
Class
of Societies Societies Members Working
capital
Rs.
Agricultural 170
5,886 5,33,676
Non-agricultural 1 360 21,136
In
1978-79, there were 422 co-operative credit (308 agricultural and 114
non-agricultural) societies in the District.
Their functions are to mobilize the savings of their members and to
advance loans to them at a very reasonable rate of interest from productive
purposes.
The
details pertaining to the working of the agricultural and non-agricultural
co-operative credit societies in the District during 1972-73 to 1979-80 are
given in Appendices I and II at pages 187 and 188 respectively.
(c) Insurance and Small Savings
Insurance --- Before the
nationalization of the life insurance business by the Government of India in
1956, a number of companies, covering life and other risks, were doing business
in the District, though they had no regular office here. Only the agents and
inspectors of these companies procured business for their respective insurance
companies.
The
first branch of the Life Insurance Corporation of India was opened in the
District at Firozpur on 1 September 1956. Later on, it opened its branch at
Abohar on 20 September 1958 to cater for the insurance needs of the people in
the District. In order to intensify the drive for insurance in the rural areas,
the Corporation appointed development officers and agents at different centres
in the District.
Their
branch-wise number, as on 31 March 1980, was as follows :
Branch Number of Number of
Development agents
Officer
Firozpur 11 137
Abohar 12 101
The
Life Insurance Corporation advance loans to the policy holders as well as to
the Government and semi-Government concerns. It charge interest at the rate of
9 per cent and 11.5 per cent against policies and houses respectively.
The
business secured by the Life Insurance Corporation of India in the District
during 1972-73 to 1979-80 is given in Appendix III on page 189.
Before
the nationalization of the general insurance companies on 1 January 1973, the
Insurance Corporation had also started the general insurance business on 1
January 1964, in addition to life insurance. But after their nationalization,
the general insurance companies emerged as an apex body, known as the General
Insurance Corporation. Under this Corporation, the general insurance business
is done by four companies, viz. the Oriental Fire and General Insurance Company
Ltd., The New India Insurance Company Ltd., The National Insurance Company
Ltd., and the United India Fire and General Insurance Company Ltd. According to
the functioning of these companies, the general insurance policies of all types
are issued for only one year and these are renewable every year. under the
general insurance, the risks covered are
of three types, viz. fire, marine (transportation of goods),
miscellaneous insurance. Miscellaneous insurance includes motor insurance,
besides other types of insurance, each as fidelity guarantee, aviation
insurance, burglary, personal accidents etc.
Small
Saving --- Small Saving is a scheme sponsored by the Central Government and
is controlled by the Ministry of Finance (Department of Economic Affairs). The
headquarter of the Head of the Department of National Savings Organization,
i.e., the National Savings Commissioner for India, are at Nagpur. The scheme
has been started to induce people to save. The funds, thus raised, are used for
the development of the country. In the
States, the national Savings Organization is controlled by the Regional
Director, National Saving, Government of India. In the Punjab, the Regional
Director’s office is at Chandigarh. the Regional Director, National Savings
(Government of India), Punjab, has under his four Assistant Regional Directors,
National Savings, i.e. at Amritsar, Jalandhar, Ludhiana and Chandigarh.
Generally, there is one District Savings Officer, national Savings Scheme, in
each district but in some districts there are two. In the Firozpur District, there is one District Savings Officer
at Firozpur.
The Director, Small Savings, Punjab, Chandigarh, is the head of the
State Government’s Small Savings Department. This Directorate has been set up
to have better co-ordination between the Central Organization and the State
Government. At the district level, the District Savings Officer is the
co-ordinating agency between the Central Organization and the district
authorities.
On 31
March 1980, there were 96 agents in the
District, for convassing, and for propagating the Small Savings Scheme on
commission basis. The gross and net investments of the Small Savings Scheme in
the District during 1972-73 to 1979-80 are given :
Investment Investment
(Rs) (Rs)
1972-73 2,79,66,000 +42,74,000
1973-74 2,82,02,000 +36,07,000
1974-75 3,83,72,000 +86,98,000
1975-76 4,27,24,000 -3,65,000
1976-77 3,03,70,000 -73,33,000
1977-78 3,32,89,000 +14,18,000
1978-79 4,48,84,000 +135,79,000
1979-80 5,33,97,000 +186,51,000
(Source : District Savings Officers, Firozpur)
(d) Currency and Coinage
Before
the introduction of the system of decimal coinage, the system of old coinage,
inherited from the British, was in vogue. Under the old system, a rupee was divided into 2 half-rupee coins (dheli
or athanni), 4 quarters (pauli or choaani), 8 two-anna coins(duani) 16 annas,
32 takas, 64 paise and 192 pies.
Under
the system of decimal coinage, started on 1 April 1957, a rupee consists of 100
consists of 100 paise, with different coins of the denominations of 1, 2, 3, 5,
10, 20, 25, 50 and paise. Currency notes are issued in the denominations of 1,
2, 5, 10, 20, 50, and 100 rupees. The use of both old and new coins continued
side by side up to 1 April 1964, after which the old system was entirely
replaced by the new one. For some time, the people felt a little difficulty in
transactions as they had been accustomed to counting according to the old
system. But, in course of time, they became acquainted with the decimal system
which is more convenient for transactions.
(B)
Trade and Commerce
The
Firozpur District has never been an industrial, although it importance as an
agricultural tract has not been inconsiderable. There was a lot of trading activity in agricultural produce but
very little in industrial goods. The District had to meet its requirement,
other than agricultural goods from outside.
Before
the introduction of the railways into the District in the beginning of the
twentieth century, the trade in it was concentrated at Friozpur and Fazilka. It
was carried on with country boats, as
both the towns are situated very near the Satluj. But, with the opening up of
the railways the trade via the river
almost came to an e3nd. The trade of
the District was concentrated in the numerous markets along the
different railways, the most important of them being Firozpur, Fazilka and
Abohar. There were also markets at Talwandi Bhai, Jalalabad, Guru Har Sahai and
Zira, but these places did not flourish well. A good deal of the trade was also
carried on by other markets, viz. Jagraon, Moga, Kot Kapura, Faridkot, Malaut
and Muktsar.
Fazilka
was renowned for its trade in wool, for which it formed an international
market. Fazilka claims to be the largest wool mart in the Punjab. Besides, a
large quantity from Bikaner, wool came here from the greater part of the
Punjab. England’s patent press and two local presses, started by private
enterprise, were used for balling the wool. After that it was forwarded to
Liverpool, Kanpur and elsewhere. The gain trade also was quite considerable.
Altogether, a good deal of goods were exported from Fazilka by the two railways
the narrow-gauge line via Kot Kapura and Bathinda and the broad-gauge line via
Macleod Ganj to Karachi. Fazilka was also the headquarter of a Central
Co-operative Bank.
The
partition of the country in 1947 placed the District on the Indo-Pak border.
Both the important markets of the District, namely Firozpur and Fazilka, are
quite near the border. The trade of the District, naturally, received a great
set-back. However, with the passage of time, the position has improved to some
extent. There are 10 regulated markets in the District for handling
agricultural produce.
The
principal items brought into the District are cloth (cotton), synthetic,
woollen and silken), machinery of almost ever kind, karyana items, luxury, etc.
The principal items sent out of its are foodgrains, wheat, rice, cotton,
agricultural implements, etc.
(a) Course of Trade
The
usual course of trade in the District is , as elsewhere from the producer to
the consumer via the middlemen . There is no direct link between the producer
and the consumer. The main types of middlemen are wholesalers, retailers and
commission agents or arhtias.
Being
an agricultural tract, the main trade of the District is agricultural produce,
which is disposed of through the dealers, who are members of a regulated market
committee. The bulk of the agricultural produce is brought to the nearby mandis
and is sold to the traders, who mostly send it to other mandis by road or by
rail. A few traders have also opened
their branches in the villages to procure the agricultural produce at cheaper
rates. This procedure also helps the farmers who are saved from the botheration
of brining the produce to the mandis. the District has a few big mandis at
Makhu, Dharamkot , Talwandi Bhai, Firozpur, Fazilka, Abohar and Zira, where
agricultural commodities are marketed on a large scale.
The District is known for the production of cotton, wheat, rice oilseeds, etc. it can be divided into various sectors as regards the production of major crops, viz. the riverine tract of the Firozpur and Zira tehsils for rice; the Zira Tehsil and parts of the Firozpur Tehsil for wheat and the Fazilka Tehsil for cotton. Abohar in the Failka Tehsil has emerged as an industrial town, with half a dozen cotton factories. Cultivation and trade of citrus fruit is also steadily developing in this town.