In a significant move to enhance inclusivity in India’s cooperative sector, Cooperation Minister Amit Shah announced on August 19, 2025, that two seats for women and one for Scheduled Castes (SC) or Scheduled Tribes (ST) have been reserved on the boards of multi-state cooperative societies. Responding to queries from Congress leader Rahul Gandhi in the Lok Sabha, Shah detailed the government’s efforts to increase SC/ST participation and promote equitable representation in cooperative institutions.

Shah explained that similar provisions have been incorporated into the model bye-laws for Primary Agricultural Credit Societies (PACS), which have been shared with all states to ensure broader inclusivity. These measures aim to empower women and marginalized communities by guaranteeing their representation in decision-making bodies of cooperatives, which play a vital role in India’s rural economy.

Addressing Gandhi’s question on exemptions under the SC/ST Sub-Plan for major schemes, Shah clarified that the Ministry of Cooperation’s initiatives, such as the computerization of PACS and IT interventions, benefit all farmers, including those from SC/ST communities. The exemptions were granted due to the unique nature of scheme implementation through cooperative societies, which prioritize collective welfare.

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Shah also highlighted the government’s financial support for cooperative sugar mills through the National Cooperative Development Corporation (NCDC). A one-time grant of Rs 1,000 crore, disbursed in two instalments of Rs 500 crore in FY 2022-23 and FY 2024-25, has enabled NCDC to secure Rs 10,000 crore in market borrowings. This funding has supported 109 loans for 56 cooperative sugar mills, facilitating the establishment of ethanol plants, cogeneration plants, and meeting working capital needs, with a total financial assistance of Rs 10,005 crore.

These efforts underscore the government’s commitment to strengthening the cooperative sector while promoting inclusivity and economic growth.

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