Cooperatives 2025: Amit Shah Unveils Bold Reforms for Rural India
Union Home Minister and Minister of Cooperation Shri Amit Shah addressed a national seminar in Mumbai on June 20, 2025, marking the International Year of Cooperatives 2025. He emphasized that while cooperation is a global economic model, for India it is a deep-rooted philosophy of life.
Prime Minister Narendra Modi had envisioned the Ministry of Cooperation to support farmers and develop an integrated ecosystem. Shah highlighted this vision as central to empowering rural communities across states.
Transformative Role of PACS and NAFED
Shah revealed that Primary Agricultural Credit Societies (PACS) are no longer limited to short-term farm loans. Over 52,000 PACS are now live, offering over 24 new services like:
- Jan Aushadhi Kendras
- Petrol pumps and gas distribution
- Ticketing for rail and air travel
- Warehouse development and water supply projects
Each PACS is now a hub for 300 government schemes with computerized accounting in local languages.
Farmer Empowerment via NAFED and FPOs
Shri Shah announced that NAFED will procure 100% of pulses and maize at Minimum Support Price (MSP) via its app. Farmers can also sell on the open market when prices are higher. Agreements for FPO grants and warehouse building with PACS were formalized at the event.
NAFED, IFFCO, KRIBHCO, and AMUL were praised for their massive rural impact. AMUL, with 36 lakh women shareholders, has reached a turnover of ₹80,000 crore, with profits directly deposited in their accounts.
Upcoming Cooperative Taxi Service & Insurance
The Ministry will soon launch a cooperative-based taxi service where drivers will own their vehicles and earn direct profits. Also, plans are underway to create a cooperative-owned insurance company to increase the sector’s stake in insurance.
Major Announcements for Cooperative Growth
- Foundation stone of Tribhuvan Sahkari University to be laid soon.
- Creation of 2 lakh new PACS to cover every panchayat.
- Tax reforms: MAT reduced to 15%, surcharge down to 7%.
- Income tax exemptions for PACS on small transactions.
Global Expansion through National Cooperatives
New entities like National Cooperative Exports Limited (NCEL), National Cooperative Organics Limited (NCOL), and Bhartiya Beej Sahakari Samiti Limited (BBSSL) will sell farmers’ organic produce globally under the “Bharat Organic” label. These initiatives aim to replicate the success of AMUL and NAFED.
Final Words: Cooperatives as Employment Engines
Concluding the address, Shah said, “India can’t rely on GDP alone. Cooperatives will ensure employment for rural poor, youth, and women by connecting them to scalable businesses with minimal capital.”
He called on stakeholders to make 2025 a landmark year by strengthening cooperative systems across every village, district, and state.