Multi-State Cooperative Societies (MSCS) have sought urgent policy intervention to secure their formal inclusion in procurement operations under the Price Support Scheme (PSS) for pulses and oilseeds, including procurement undertaken as part of Atmanirbhar Bharat initiatives. The demand has been raised through a detailed representation submitted to Union Minister of Cooperation Amit Shah, highlighting what the sector describes as a structural exclusion from the current procurement framework.
The representation, submitted by the Farmers Federation of Cooperatives, points out that existing PSS procurement guidelines largely restrict participation to Farmer Producer Organisations (FPOs) and Primary Agricultural Credit Societies (PACS). As a result, multi-state cooperatives, despite their statutory status and nationwide operational capabilities, remain outside the ambit of procurement operations supported by the central government.
The letter underscores that this exclusion persists even though multi-state cooperatives are established under the Multi-State Cooperative Societies Act, 2002, a legislation enacted by Parliament. Unlike FPOs, which are registered as private limited companies, and PACS, which operate under the administrative control of state governments, MSCS are people-owned, democratically governed institutions functioning under the direct administrative framework of the Ministry of Cooperation.
According to the representation, multi-state cooperatives possess extensive procurement, storage, logistics and marketing infrastructure across states, making them well-suited to support large-scale procurement operations. Their exclusion from PSS, the federation argues, not only limits competition and institutional diversity but also undermines the potential to reach a wider base of farmers across regions.
The continued exclusion has also resulted in operational and financial stress for several multi-state cooperatives, the letter notes. Many such institutions have invested in infrastructure and human resources aligned with national agricultural procurement objectives but remain unable to deploy these capacities effectively. This situation, it argues, runs counter to the stated objective of strengthening, professionalising and expanding the cooperative movement at the national level.
The representation further points out that the Ministry of Cooperation was created with the explicit mandate of enabling cooperatives to function as strong economic institutions and to reduce structural disadvantages vis-à-vis private and state-controlled entities. However, the current procurement framework, by design or interpretation, has inadvertently placed nationally registered cooperatives at a disadvantage.
Calling for an urgent policy correction, the federation has urged the Ministry to issue clear and explicit directions allowing multi-state cooperatives to participate in PSS procurement operations. It has also proposed the creation of a dedicated or parallel procurement window for nationally registered cooperative institutions to ensure equitable participation alongside PACS and FPOs.
Such a policy intervention, the representation argues, would help restore institutional balance in procurement operations, expand farmer outreach across states, and improve the efficiency and scale of procurement under PSS. It would also align closely with the Prime Minister’s vision of “Sahakar se Samriddhi,” which seeks to place cooperatives at the centre of inclusive rural and agricultural development.
The federation expressed confidence that a calibrated policy response would not only strengthen procurement outcomes but also reaffirm the role of cooperatives as key partners in achieving national food security and farmer income stability.
