Union Home and Cooperation Minister Amit Shah delivered a compelling address at a national seminar in Mumbai marking the International Year of Cooperatives 2025. He emphasized that while cooperation may be seen globally as an economic model, for India, it is embedded in the cultural fabric, a traditional philosophy of life rooted in collective progress and mutual support.
He urged that the year 2025 be made a landmark in the cooperative sector by expanding and empowering cooperatives down to every village, district, and tehsil in the country. Shah placed special emphasis on the pivotal role played by NAFED (National Agricultural Cooperative Marketing Federation of India) in the government’s mission to empower farmers.
He highlighted how NAFED, alongside other cooperative giants like Amul, IFFCO, and KRIBHCO, has consistently supported small and marginal farmers. NAFED’s innovative initiatives, including direct procurement of pulses and maize at MSP through a farmer-friendly app, have ensured better price realization and planning for the agricultural community.
At the event, key agreements were formalized under NAFED’s leadership: introduction of new farmer-oriented products, financial grants to Farmer Producer Organizations (FPOs), and contracts with newly formed Primary Agricultural Credit Societies (PACS) for building scientific warehouses.
These moves underline NAFED’s shift from a traditional procurement agency to a comprehensive enabler of rural agri-economies. Shah stressed that this transformation aligns with Prime Minister Modi’s vision, who established the Ministry of Cooperation specifically to create a strong ecosystem for farmers and rural stakeholders.
Shah added that nearly all PACS across India have now been computerized, with 52,000 already live and
connected through a unified digital platform. Model bylaws for PACS have been rolled out, enabling them to operate as Common Service Centers (CSCs) and diversify into 24 sectors, from running Jan Aushadhi Kendras and petrol pumps to offering water supply services, gas distribution, and ticket booking.
The Minister also announced the soon-to-be-launched cooperative-based taxi service, where drivers will act as cooperative owners. This model ensures that profits are directly credited to their bank accounts, demonstrating the power of decentralized and people-owned businesses. In addition, a fully cooperative-owned insurance company is in the pipeline to increase the sector’s presence in financial services.
Shah noted that within just three years, the government has established key national cooperatives, National Cooperative Exports Limited (NCEL), National Cooperative Organics Limited (NCOL), and Bhartiya Beej Sahakari Samiti Limited (BBSSL). These are geared to market farmers’ produce globally under the ‘Bharat Organic’ label and to conserve native seed varieties, with NAFED expected to play a key supporting role in their operations.
Union Minister Amit Shah highlighted that the NCDC has extended Rs 1.38 lakh crore in support, aiding sectors like fisheries with 44 deep-sea trawlers and boosting dairying under White Revolution 2.0. He noted increased ethanol prices from maize to benefit farmers, with 20% blending achieved. The government also aims to foster a circular economy in the dairy sector to enhance sustainability.
He concluded by asserting that India’s true strength lies not only in GDP growth but also in equitable employment generation. The cooperative model, he said, is uniquely positioned to generate livelihoods for rural youth, women, and the poor with minimal capital and maximum participation.
Shah called on stakeholders to work unitedly to ensure the International Year of Cooperatives 2025 becomes a turning point in India’s cooperative resurgence, with NAFED leading from the front as a farmer-first institution.
