Mumbai (Maharashtra) [India], June 20 : Union Home Minister and Minister of Cooperation Amit Shah on Friday addressed a national seminar organised in Mumbai on the occasion of the International Year of Cooperatives 2025.
Union Minister Shah said that while cooperatives can be an economic system for the entire world, for India, cooperation is a traditional philosophy of life. Living together, thinking together, working together, moving toward a common goal, and standing by each other in joy and sorrow are part of the soul of Indian philosophy. He stated that the nearly 125-year-old cooperative movement has been a support for the country's poor, farmers, rural citizens, and especially women, through many ups and downs.
Amit Shah said that under the cooperative movement, organizations like Amul, Indian Farmers Fertiliser Cooperative Limited (IFFCO), Krishak Bharati Cooperative Limited (KRIBHCO), and National Agricultural Cooperative Marketing Federation (NAFED) have created numerous success stories. Today, 36 lakh poor rural women are associated with Amul, who have invested no more than 100 rupees in capital, yet due to their hard work, Amul's turnover is 80,000 crore rupees, with profits directly deposited into these women's bank accounts.
He added that whether it is IFFCO or KRIBHCO, small farmers toil in their fields and supply their produce to the Government of India at Minimum Support Price (MSP), and the same grain is distributed to the poor as 5 kilos of free ration every month. The backbone of this entire scheme is NCCF and, in particular, NAFED.
Union Minister of Cooperation stated that if farmers register on the NAFED App, NAFED will purchase 100 percent of their pulses and maize at the Minimum Support Price (MSP). He said that if the market price is higher, farmers can sell their produce in the market and earn greater profits. Shah added that, seeing the success of the model App, NAFED will soon start direct procurement from farmers. This system will enable farmers to effectively plan for all three of their crops.
Amit Shah said that today's event formalized agreements for NAFED's new products, grants to Farmer Producer Organizations (FPOs), and the construction of warehouses with new Primary Agricultural Credit Societies (PACS), reflecting NAFED's farmer-centric activities. He noted that Modi Ji established the Ministry of Cooperation at the center to empower our farmers and create an ecosystem for their prosperity. He added that the Ministry of Cooperation has undertaken several initiatives since its establishment.
Union Minister of Cooperation stated that the cooperative movement in our country has become uneven. In the western region, including Maharashtra, Gujarat, and even Goa, the cooperative movement has flourished, but it has weakened in the northern and eastern regions, leading to an uneven progress of the cooperative movement.
Amit Shah said that today, the Ministry of Cooperation and every state's Cooperative Registrar have detailed data on cooperative institutions. This means the ministry is aware of where the shortcomings are and where the cooperative movement needs to be expanded.
He stated that by identifying vacuum areas through the cooperative database, the government plans to establish two lakh Primary Agricultural Credit Societies (PACS) across the country. Once these two lakh PACS are established, there will not be a single panchayat in the country without a PACS or any other primary cooperative society. All these cooperative societies will be multifaceted.
Union Minister of Cooperation stated that nearly all Primary Agricultural Credit Societies (PACS) have been computerized, with approximately 52,000 PACS already live. Model bylaws for PACS have been prepared and sent to the states, which have also accepted them. Under these bylaws, PACS have been permitted to undertake 24 different types of activities. Previously, PACS were limited to providing short-term agricultural loans, but now they function as Common Service Centers. Additionally, they can establish Jan Aushadhi Kendras, petrol pumps, undertake gas distribution, maintain water supply under the Har Ghar Nal Se Jal scheme, build warehouses, engage with cooperative taxi services, and even facilitate air and rail ticket bookings.
He emphasized that by linking PACS with these 24 types of activities, they have been made more practical and viable. Post-computerization, the entire accounting system has been made available on their computers in the local language of the respective state. Today, PACS have become the hub for 300 types of schemes.
The Union Minister said that the government has decided to establish the Tribhuvan Sahkari University, and its foundation stone laying ceremony will take place soon. "A taxi service based on the cooperative model will also be launched, in which taxi drivers will not only be made members but will also act as the owners, with profits directly credited to their bank accounts. He added that by increasing the cooperative sector's share in insurance, a fully cooperative-owned insurance company will soon be established, opening up many new opportunities."
Union Minister of Cooperation stated that significant efforts have been made to improve technology, with a key focus on aligning corporate and cooperative sectors under income tax laws. "The surcharge has been reduced from 12 per cent to 7 per cent and the Minimum Alternate Tax (MAT) has been lowered from 18.5 per cent to 15 per cent. PACS have also been exempted from income tax penalties on transactions below 2 lakh rupees, and tax disputes related to sugarcane mills have been resolved."
Union Minister Shah announced that within three years, the government has established the National Cooperative Exports Limited (NCEL), National Cooperative Organics Limited (NCOL), and Bhartiya Beej Sahakari Samiti Limited (BBSSL). These national cooperatives will sell farmers' produce in global markets, with profits directly credited to farmers' accounts.
He added that organic products, tested and sold under the 'Bharat' brand as 'Bharat Organic' in domestic and international markets, will benefit farmers practicing organic, traditional, and bio-farming, while ensuring consumers receive reliable organic products. "Efforts are also underway to conserve, promote, and enhance the productivity of seeds. He expressed confidence that in the next ten years, these three new national cooperatives will become major institutions for farmers, akin to Amul, NAFED, IFFCO, and KRIBHCO."
The Minister highlighted transformative changes in the National Cooperative Development Corporation (NCDC), through which financial assistance of approximately 1.38 lakh crore rupees has been provided. In fisheries, 44 deep-sea trawlers are being supported through cooperatives. "The dairy sector is being strengthened under White Revolution 2.0. Shri Shah noted that the Government of India has increased ethanol prices derived from maize to ensure fair prices for farmers. Currently, 20 per cent ethanol blending has been achieved for use in vehicles, thereby significantly reducing the country's import bill. Efforts are also being made to promote a circular economy in the dairy sector in the coming days."
Amit Shah emphasized that India cannot become strong solely based on GDP. In a country with a population of 140 crore, while GDP growth is essential, employment for all is equally critical. He stated that cooperatives are the only mechanism capable of providing employment to the rural poor, youth, and women by connecting large numbers of people to businesses with minimal capital, achieving the mantra of high profits with low investment.
He noted that this is why the International Cooperative Alliance decided to celebrate the International Year of Cooperatives 2025, with its inauguration held in India by Prime Minister Modi Ji. The Cooperation Minister affirmed that the goal is to make this a landmark year by strengthening cooperatives in every village, state, district, and tehsil, and he is confident of achieving this target.
On this occasion, Maharashtra Chief Minister Devendra Fadnavis, Union Minister of State for Cooperation Murlidhar Mohol, and several other dignitaries were present.