Amit Shah Announces Upcoming Policy for Streamlining Cooperative Liquidation

Swift Summary

• Union Home and Cooperation Minister Amit Shah announced the government’s plan to introduce a policy for the swift liquidation of defunct Primary Agricultural credit Societies (PACS) and registration of new ones.
• The target is to establish two lakh new PACS by 2029 with 22 designated business activities for financial stability and long-term viability.
• PACS play a vital role in providing affordable credit to farmers, promoting rural economic progress, and reducing reliance on informal moneylenders.
• At an event marking the International Year of Cooperatives in Ahmedabad, Shah proposed cooperative-owned production units for items like ice cream, paneer, and cheeses as potential business ventures for PACS. He also suggested creating dairy sector cooperatives focusing on circular economy practices like processing livestock remains.
• The minister noted that India’s cooperative movement had faltered in some parts but thriving examples exist in gujarat.Cooperative leaders were urged to make growth consistent across regions.
• progress of the “cooperation among cooperatives” pilot project was reviewed; it has achieved 60% completion statewide after originating from two districts (Banaskantha & Panchmahal).
• Deposits in cooperative banks increased by Rs 11,000 crore under this initiative. Shah stressed that all cooperative members should maintain accounts with these banks.

Indian Opinion Analysis

The introduction of a policy aimed at easing liquidation procedures for defunct PACS reflects concentrated efforts by the government to revitalize India’s cooperative movement as a critical agent of financial inclusion at rural levels. By establishing two lakh new societies tied to diverse revenue-generating activities over six years, this roadmap signals robust planning aligned with grassroots development goals.

Gujarat emerges as a model region underlining significant success within the wider narrative where other states face hurdles-a challenge requiring balanced growth strategies nationwide. the expansion of business scopes such as dairy-related circular economies coudl address environmental concerns while stimulating local manufacturing industries.

Additionally, increasing deposits in cooperative banks highlights trust restoration efforts between these institutions and communities they serve-a potentially transformative measure against rural financial instability if support systems remain inclusive. Continuous monitoring will be essential during execution given variabilities in regional implementation scales.

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