Union Home and Cooperation Minister Amit Shah announced that the central government will soon introduce a policy to expedite the liquidation of defunct Primary Agricultural Credit Societies (PACS) and facilitate the registration of new ones. This initiative aims to revitalize the cooperative sector, particularly in the dairy industry.
The government plans to establish 200,000 new PACS by 2029, integrating them with 22 designated business activities to ensure financial stability. These activities include cooperative-owned manufacturing units for dairy products like ice cream, paneer, and cheese. Additionally, the policy promotes a circular economy model in the dairy sector by encouraging cooperatives to process by-products such as skin, bones, and horns of deceased livestock.
Shah emphasized the need to rejuvenate the cooperative movement across India, drawing inspiration from Gujarat’s successful model. He highlighted the progress of the ‘cooperation among cooperatives’ pilot project, which has led to a ₹11,000 crore increase in cooperative bank deposits. The policy also encourages all members of cooperatives, dairies, and agricultural produce marketing committees to maintain accounts in cooperative banks.
Industry Insight:
This policy is poised to strengthen the dairy cooperative framework, offering new business opportunities and promoting sustainability through circular economy practices. It reflects a strategic move to bolster rural economies and enhance the viability of the dairy sector.
Source : Dairynews7x7 May 20th 2025