Initiatives since inception of Ministry of Cooperation: model bye-laws for PACS, White Revolution 2.0, tax relief and financial support (ethanol/EBS, GST on molasses, revival of sugar mills)
Ministry of Cooperation cites reforms in cooperative dairy, sugar, PACS and ethanol policy since July 2021
- The Ministry of Cooperation’s model bye-laws allow Primary Agricultural Credit Societies to expand from a narrow credit role into a multi-service rural platform.
- Cooperative sugar mills are linked to farmer payments, ethanol procurement, molasses taxation and working-capital support in the Ministry of Cooperation’s policy package.
- The National Cooperative Development Corporation is the financial channel used for support to cooperative sugar mills in the Ministry of Cooperation’s package.
The Ministry of Cooperation has presented a bundle of measures aimed at strengthening the cooperative economy in dairy, sugar and agricultural services. The measures matter because they connect rural credit institutions, farmer-linked processing, ethanol policy and cooperative governance under the idea of Sahakar-se-Samriddhi.
What the Ministry of Cooperation has said
The Ministry of Cooperation said that, since its inception on 06 July 2021, it has taken steps in eight areas to support cooperatives across the country, including Maharashtra. The stated objective is to strengthen cooperative viability, expand business options for cooperative institutions and improve value realisation for farmers.
UPSC can frame questions on the design of cooperative institutions, the role of Primary Agricultural Credit Societies in rural service delivery, and the policy trade-offs in supporting sugar cooperatives while promoting ethanol blending and farmer payments.
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