Amit Shah, Devendra Fadnavis Back Co-operatives As Key Rural Growth Engines

NDTV

20-06-2025

Mumbai:
In a bid to promote India's cooperative system and boost the rural economy, Home Minister Amit Shah addressed two high-profile events in Mumbai. The first event was hosted by the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), marked the celebration of the upcoming International Cooperative Year 2025. The second event commemorated 100 years of the Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA).
It was Amit Shah's second visit to Maharashtra in two consecutive months, which is also seen as an attempt to connect with the local voters, months before the civic body polls kickstart in the state.
NAFED Event: Strengthening Rural Economy Through Cooperatives
Addressing the gathering, Mr Shah stated that while cooperation is often seen as an economic system elsewhere, in India, it reflects a way of life rooted in shared tradition and collective progress. "To come together, live together, and move towards a common aim - to be together in happiness and sadness - is the soul of our country," the Home Minister said.
He underlined how successful cooperative models like AMUL, IFFCO, KRIBHCO, and NAFED have transformed lives. "In Gujarat, 36 lakh rural women are part of Amul. None of them invested more than Rs 100, yet they created a turnover of Rs 80,000 crore," he said, adding that money directly reaches them.
Mr Shah announced that NAFED had already started procuring crops such as corn and pulses on Minimum Support Price (MSP), with an app-based system enabling farmers to choose better prices in the open market if available. He said such digital platforms would help farmers efficiently plan all three seasonal crops and shared examples from Uttar Pradesh, where triple-cropping had increased rural engagement.
He noted that the ministry, long in demand but delayed due to its categorisation under the State List, has created a national cooperative database, increasing the chances of the cooperatives reaching across the country. This includes information about cooperatives in every village and helps identify regions for expansion. Plans are underway to set up two lakh new Primary Agricultural Credit Societies (PACS) with integrated services including dairies, fisheries, petrol pumps, gas agencies, warehouses, and even common service centres that offer everything from ticket booking to certificates.
"Corporate and cooperative tax laws have now been aligned," Mr Shah said, mentioning that even long-standing issues like the Rs 15,000 crore sugarcane mill tax dispute in Maharashtra were resolved under the Modi government.
He also laid out plans for ethanol blending using corn, incentivised with increased procurement prices, reducing import dependence and increasing farmer income.
Maharashtra Chief Minister Devendra Fadnavis, speaking at the same event, stated that no other place was more appropriate to celebrate the cooperative movement than Maharashtra, which boasts over 120 years of cooperative history.
Mr Fadnavis said the state had exceeded the central targets and created new rural economic linkages. He urged NAFED to resolve the issue of procurement shortfalls, especially regarding 'poti' (grain bags), and assured continued support for cooperative growth.
MACCIA 100 Years: Industry and Cooperative Growth Hand-in-Hand
At the centenary event of the Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA), all three - Amit Shah, Chief Minister Devendra Fadnavis and his deputy Eknath Shinde - underscored the role of cooperative and industrial synergy in Maharashtra's development.
Mr Shinde praised the government's proactive style: "Our government takes no-reason, on-the-spot decisions," he said. Referring to the earlier Maha Vikas Aghadi regime, Mr Shinde said, "The Chamber would meet them and ask them to act - I used to tell them, Amit Bhai would suggest something, we'd do it, and it would get done."
Amit Shah, speaking at MACCIA, noted that Maharashtra continues to lead industrial investment in the country, housing India's largest ports and boasting the highest number of women income tax payers.
He recalled concerns over Mumbai's traffic but said the Centre had allocated Rs 7,000 crore for the Metro project.
Without naming him, Mr Shah appeared to criticise former Chief Minister Uddhav Thackeray, asking rhetorically, "What has been done for Mumbai? What's your vision?"
Mr Shah traced the shift in governance focus, stating, "When I started in politics, farmer suicides were always being discussed." He highlighted the implementation of the Jalyukt Shivar Yojana in Marathwada and Vidarbha and contrasted earlier central assistance to Maharashtra - Rs 1.91 lakh crore - with the Modi-era figure of Rs 7 lakh crore.
He concluded by stating that only when both agriculture and industry function efficiently can development be meaningful. "It's this approach that has helped India become the fourth-largest economy in the world."