Free Press Journal reports MP cooperative minister Govind Singh recently met Chief Minister Kamal Nath to apprise him of the crisis arising of non-payment of funds to cooperative bodies in the wake of the farm loan waiver scheme launched by the state government.
The farm loan waiver scheme imperils the existence of cooperative banks and cooperative societies as they are cash strapped.
Meanwhile, angered by the denial of funds cooperative bodies are on the war path. Sahakari Samiti Karmachari Mahasangh has threatened to go on strike if a proper formula of payment is not prepared soon.
90 per cent of farmers whose loans have been waived belong to cooperative banks and societies.