In a landmark decision aimed at strengthening the cooperative movement, the Punjab government has removed all restrictions on the formation of new cooperative societies, including Primary Agricultural Credit Societies (PACS), milk societies, and labour societies.
The order, issued by the Registrar of Cooperative Societies, Punjab, withdraws earlier directions that restricted the registration of new societies based on the presence of existing ones or by imposing artificial conditions such as maintaining an 8 km distance between labour societies.
Going forward, the registration of cooperative societies will strictly follow the provisions of the Punjab Cooperative Societies Act, 1961 and the guiding principles of the cooperative movement, voluntary association, democratic control, and open access.
Welcoming the move, Sahakar Bharati founder and veteran cooperative leader Satish Marathe described it as a “welcome and laudable decision” deserving full congratulations and support. He urged other state governments to follow Punjab’s bold initiative.
The state government noted that earlier restrictions were contrary to the objectives of the recently announced National Cooperative Policy 2025, which seeks to expand the reach of cooperatives to over 50 crore members and establish 2 lakh new PACS in the coming years.
Punjab is also in the process of finalizing its own state cooperative policy aligned with these goals, with the aim of increasing participation, reducing entry barriers, and promoting fair competition.
Officials pointed out that restrictions often created monopolistic tendencies. For example, in villages with only one milk society, farmers were compelled to supply exclusively to that society, leaving them vulnerable to unfair practices.
Removing such barriers, they said, will empower farmers, workers, and producers by giving them greater choice and opportunities.
The decision has been circulated to all concerned authorities for immediate compliance, marking a significant step toward revitalizing the cooperative sector in Punjab.
