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Telangana Cooperatives: Nomination move sparks Democracy Concerns

PACS and DCCBs play a vital role in rural credit delivery

Ajay Jha by Ajay Jha
December 29, 2025
in From States
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Telangana Cooperatives: Nomination move sparks Democracy Concerns
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Speculation over a major change in the governance of cooperative institutions in Telangana has intensified, with media reports indicating that the ruling Congress is considering replacing elections in Primary Agricultural Cooperative Societies (PACS) and District Cooperative Central Banks (DCCBs) with a nomination-based system.

The move, if implemented, could mark a significant departure from the democratic ethos that has historically defined the cooperative movement in the state.

According to reports, newly appointed District Congress Committee presidents are likely to be accommodated in leadership positions within PACS and DCCBs under the proposed arrangement. This comes alongside plans to nominate several MLAs and senior party leaders to various corporation posts, suggesting a broader political realignment aimed at consolidating power at the district level through key institutions.

While party sources claim the shift is being considered to avoid factionalism and bitter contests that often accompany cooperative elections, critics warn that such a step could seriously undermine democratic principles in the cooperative sector.

Cooperatives were conceived as grassroots, member-driven institutions where farmers and stakeholders elect their own representatives. Replacing elections with nominations risks diluting member participation and reducing accountability to those whom these bodies are meant to serve.

Experts and cooperative leaders point out that PACS and DCCBs play a vital role in rural credit delivery, procurement, fertiliser and seed distribution, and implementation of welfare schemes. Control over these institutions has far-reaching implications for farmers and rural communities. A nomination-based leadership structure, they argue, could turn cooperatives into extensions of political machinery rather than autonomous, member-owned bodies.

There is also concern that bypassing elections may set a dangerous precedent. Once the principle of elected management is weakened, it could open the door to greater political interference, eroding the trust of members and weakening the cooperative movement over time. Several cooperative activists caution that efficiency and harmony cannot come at the cost of democratic rights, especially in institutions that handle public money and farmer savings.

Supporters within the ruling party, however, maintain that elections in cooperatives have often led to prolonged disputes, litigation and administrative paralysis. They argue that nominations could ensure stability and smoother functioning, at least in the short term, while strengthening the Congress party’s organisational base at the grassroots.

As of now, the state government has not made any formal announcement, but the reported deliberations have triggered sharp debate across political and cooperative circles. With cooperatives deeply embedded in Telangana’s rural economy, any move perceived as weakening democratic governance is likely to face strong resistance. The coming weeks are expected to be crucial in determining whether the government proceeds with a reform that many fear could fundamentally alter the character of the cooperative movement in the state.

Tags: BreakingCongresscooperativeDCCBs’MLAsNominationpacsSchemes
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