Amit Shah Highlights Five Years of Cooperative Reforms

Shah said model by-laws have now been adopted across the country, enabling PACS to diversify their activities beyond agricultural lending.

Union Home Minister and Minister of Cooperation Amit Shah marked the fifth Foundation Day of the Ministry of Cooperation by outlining the transformation of India's cooperative sector over the past five years. Addressing stakeholders from across the country in New Delhi, he said the ministry has modernised cooperative institutions, expanded their role beyond agriculture and strengthened their contribution to rural development, financial inclusion and farmers' incomes.

Ministry celebrates five years of cooperative transformation

Speaking at the anniversary event, Shah said the creation of the Ministry of Cooperation in 2021 ended decades of neglect of the cooperative sector and provided a dedicated platform for more than 32 crore members associated with over 8.5 lakh cooperative institutions across India. He rejected concerns raised when the ministry was formed that it would interfere in matters handled by states, saying the past five years have demonstrated that the Centre's role has been to support states through policy development, institutional reforms and capacity building rather than encroach on their responsibilities.

According to Shah, the ministry has focused on strengthening cooperative institutions from the village level to national organisations while expanding their role into sectors such as logistics, digital services, banking, renewable energy, exports, seed production and organic farming. He said nine national-level cooperative societies now connect villages with national markets across multiple sectors, adding that these institutions are expected to grow into globally recognised cooperative organisations.

PACS, banking and digital reforms gain momentum

A major focus of the ministry has been the strengthening of Primary Agricultural Credit Societies (PACS). Shah said model by-laws have now been adopted across the country, enabling PACS to diversify their activities beyond agricultural lending.

Around 55,000 PACS are currently providing more than 300 digital citizen services through Common Service Centres, while thousands have been converted into Kisan Samriddhi Kendras, Jan Aushadhi Kendras and fuel retail outlets. The government has also invested ₹3,000 crore to computerise PACS, with 50,000 societies now functioning as e-PACS using fully digital operations and electronic audits.

Shah also highlighted reforms in cooperative banking, saying district cooperative banks have increased their business from ₹19.6 lakh crore to over ₹25 lakh crore. He added that gross non-performing assets in urban cooperative banks have declined significantly while digital banking services, e-KYC and cyber security measures have strengthened public confidence in the sector.

New initiatives target agriculture, dairy and rural prosperity

The Minister said the ministry has expanded cooperative activities into seed production, organic farming, dairy, sugar, logistics and green energy as part of a broader strategy to improve farmers' incomes and create sustainable rural enterprises. He announced the launch of Gomay Cooperative Society Multi-State Limited, which will promote a circular economy in the dairy sector through cattle feed, organic fertilisers, renewable energy and animal health services. White Revolution 2.0, he said, aims to significantly increase the number of milk-producing farmers and expand dairy cooperatives across the country.

Shah also urged farmers to adopt organic fertilisers produced through cooperative initiatives, arguing that reducing dependence on chemical fertilisers can improve both productivity and soil health. During the event, he launched and inaugurated several major projects, including new foodgrain storage facilities, tissue culture centres in Uttar Pradesh and Maharashtra, digital platforms for dairy and cooperative banking, productivity initiatives for dairy animals, and the conversion of 50,000 PACS into e-PACS. A memorandum of understanding between the Bharatiya Beej Sahakari Samiti Limited (BBSSL) and the Indian Council of Agricultural Research (ICAR) was also signed to strengthen India's seed systems.