Corruption Allegations Plague Agricultural Cooperatives in Jajpur: Farmers Demand Action

Farmers in Jajpur are raising serious allegations of corruption within the Primary Agricultural Cooperative Societies (PACS). Reports indicate widespread irregularities in paddy procurement and fraudulent loan practices, with many farmers claiming that government benefits are contingent on bribery. Despite complaints to higher authorities, little action has been taken. The situation at Dharapur and Haripur PACS highlights the urgent need for investigation and reform. Farmers are demanding accountability and transparency in the management of agricultural cooperatives to ensure fair treatment and access to government support. The local DRCS has promised a thorough investigation into these allegations.

By Narendra Chaudhary Jun 26, 2025, 10:31 IST

Corruption Issues in Agricultural Cooperatives

Jajpur: The local government has initiated various programs via Primary Agricultural Cooperative Societies (PACS) aimed at enhancing agricultural practices and supporting farmers. However, numerous PACS in the region are reportedly entangled in corruption. Despite numerous complaints and orders from higher officials, there has been little action taken, particularly evident in the cases of Dharapur PACS in the Bari block and Haripur PACS in the Korei block. Farmers have raised concerns about significant irregularities in paddy procurement, fraudulent issuance of short-term crop loans based on fake land documents, and weight deductions, with government assistance being withheld unless bribes are paid.

Written grievances have been forwarded to the state’s Cooperation Minister. The Registrar of Cooperative Societies has instructed the Deputy Registrar of Cooperative Societies (DRCS) in Jajpur to conduct a comprehensive investigation and report back by May 22, 2025. Previous complaints highlighted the exploitation of impoverished farmers due to fraudulent activities in agricultural loan accounts. In 2022, departmental regulations prohibited PACS secretaries or managing directors from retaining loan passbooks or cheque books for personal use. Regular audits of passbooks, direct communication with borrowers, and SMS notifications regarding loan approvals were mandated, yet these protocols appear to be poorly enforced.

Farmers from Dharapur PACS, including Ashis Kumar Jena, Kshirod Kumar Jena, Manoj Kumar Sahu, Himanshu Jena, Mihir Kumar Pani, and Srikant Parida, have claimed that the president and secretary issued short-term crop loans to ineligible individuals using forged land documents. In some cases, loans were granted to multiple applicants for the same piece of land, disregarding clear guidelines from the Revenue department. Although the government covers the expenses for weighing and transporting paddy to mills, farmers are charged Rs 40 per quintal.

Even for clean and dry paddy, they experience deductions of five to ten kilograms per quintal. Allegedly, the PACS president and secretary collect payments from millers at a rate of 2 kg per quintal. The current secretary's appointment is also under scrutiny due to allegations of falsified educational credentials, with farmers calling for verification of his qualifications. In Haripur village, farmers have reported corruption within the local PACS for over a decade. Only those who pay bribes are recognized as farmers and granted access to government benefits. One secretary has held office for more than ten years, amassing considerable wealth through the misappropriation of public funds. Villagers are demanding the immediate transfer of the secretary and a vigilance investigation against him. When approached, Jajpur DRCS officer Amulya Kumar Sethi assured that a thorough investigation would be conducted, and appropriate actions would follow the directives from higher authorities.