Union Home and Cooperation Minister Amit Shah underlined the transformative role of cooperatives in making Indian agriculture sustainable and profitable, asserting that the convergence of farming, animal husbandry and cooperative institutions is scripting a new chapter of rural prosperity.
Addressing a Cooperative Conference on the ‘Role of Cooperation in Sustainable Agriculture’, organised by KRIBHCO in Panchkula, Haryana, Shah said the state, deeply rooted in history, religion and traditions, is today emerging as a model for farmer-centric growth driven by cooperative strength.
He said nearly 70 per cent of India’s population resides in rural areas and a majority of livelihoods depend directly or indirectly on agriculture and animal husbandry. While these sectors are among the largest employment generators, Shah noted that their true potential is realised only when they are linked with cooperation.
This integration, he said, shifts the focus from mere employment to prosperity, benefiting the entire rural population. He credited Prime Minister Narendra Modi for institutionalising this vision by creating the Ministry of Cooperation and giving the country the mantra of ‘Prosperity through Cooperation’.
Citing the example of Amul, Shah highlighted the economic power of cooperative models. He said Amul today distributes around Rs 90,000 crore annually to nearly 36 lakh women milk producers, whereas the same quantity of milk sold at open market rates would fetch only about Rs 12,000 crore. The wide gap, he said, demonstrates how cooperative structures ensure that the maximum value reaches producers. According to him, this principle is now being extended across agriculture and allied sectors to ensure farmers receive fair returns.
Shah emphasised that Indian agriculture is moving away from subsidy-dependence towards sustainability and profitability. He outlined three pillars of modern agriculture: minimal water usage, natural or low-chemical farming, and reduced risk. Scientific irrigation, soil testing, crop selection based on local conditions and natural farming practices are central to this shift.
He said the government is strengthening soil health, water security, institutional credit, market access and value addition through processing, packaging and marketing, while promoting initiatives such as the Digital Agriculture Mission, climate-resilient farming and organic agriculture.
Highlighting the scale of public investment, Shah said the agriculture budget has risen more than five-fold over the past 11 years, from Rs 22,000 crore in 2014 to Rs 1.27 lakh crore today, while the rural development budget has more than doubled.
He said programmes like PM-Kisan, crop insurance reforms, the Agriculture Infrastructure Fund, e-NAM and targeted missions for millets, pulses and oilseeds have significantly improved income security for farmers. Expanded irrigation coverage, he added, has brought an additional one lakh hectares under assured water supply.
The Union Minister said the Ministry of Cooperation has strengthened grassroots institutions by modernising Primary Agricultural Credit Societies. Model by-laws have enabled PACS to function as multipurpose entities linked to nearly 30 activities, including fertiliser and pesticide distribution, storage, grading, marketing, fuel outlets, gas agencies and water management.
At the national level, new cooperative institutions such as NCEL for exports, NCOL for organic products and BBSSL for seeds have been established to ensure scale, market access and better price realisation for farmers.
Shah also pointed to innovative cooperative initiatives beyond agriculture, including the proposed ‘Bharat Taxi’ service, where profits will go directly to driver-members rather than corporate owners. Drivers will receive insurance and additional income opportunities, reinforcing the cooperative principle of shared prosperity.
During the event, Shah inaugurated a milk chilling centre, a HAFED flour mill, distributed RuPay Platinum Cards, issued registration certificates to model PACS and launched a portal for the International Year of Cooperatives.
He praised Haryana for being the first state to procure 24 crops at MSP with payments made within 48 hours and for offering the highest prices to sugarcane farmers. He also lauded the state’s contribution to national food security, defence services and sports, describing Haryana’s farmers, soldiers and athletes as symbols of national pride.
