Tamil Nadu to unveil State Cooperative Policy, allocates over ₹12,000 crore for sector overhaul

Chennai, August 20: Tamil Nadu Minister for Co-operation V. Gandhiraj on Thursday announced that the State government will formulate a comprehensive State Cooperative Policy aimed at transforming cooperatives into people-centric, transparent, and economically sustainable institutions. The policy is designed to ensure the long-term growth and stability of the cooperative sector while enhancing its competitiveness in the market.

Making the announcement in the State Assembly, the Minister detailed a series of measures for the Cooperation Department. To promote women entrepreneurs, the government will implement the 'Singa Pengal Loan Scheme' through cooperative banks, with a substantial allocation of ₹7,015 crore. This initiative is expected to provide financial support to women looking to start or expand their own businesses, a key step towards gender-inclusive economic development.

Addressing the needs of the agricultural community, the Minister announced that rural business loans would be extended to farmers at a 9% interest rate to help them establish agriculture-allied enterprises. A sum of ₹5,000 crore has been earmarked for this purpose, which is likely to boost rural entrepreneurship and reduce dependence on traditional farming alone.

In a move to improve the quality and marketability of products manufactured by cooperatives, a common business brand named 'Vettri' will be introduced. The objective is to increase the market share and profitability of cooperative products. The Minister also stated that new permanent buildings would be constructed for 150 public distribution system (PDS) outlets currently operating from rented premises, at a total cost of ₹15 crore. This will provide better infrastructure and stability for these essential services.

To facilitate the marketing of agricultural produce, an auction centre will be established on 5,084 square feet of land at Aykudi village in Koothanallur taluk, Tiruvarur district, at a cost of ₹53 lakh. Additionally, petrol, diesel, and CNG filling stations will be set up at cooperative society premises in Mayiladuthurai and Dindigul districts, with a combined investment of ₹50 lakh. These stations are intended to generate revenue for the societies and provide convenient services to the public.

The Minister also announced the introduction of e-auction systems in 80 cooperative producers' marketing societies, at an estimated cost of ₹25 lakh. This digital intervention is expected to bring transparency and efficiency to the marketing of agricultural commodities. Furthermore, women will be given priority in the appointment of salespersons for 105 newly established fair-price shops, aligning with the government's commitment to women's empowerment.

In a significant push for agricultural inputs, the sales of fertilisers and seeds supplied to farmers through TANFED are slated to increase from the current ₹898 crore to ₹2,500 crore. This ambitious target reflects the government's intent to strengthen the supply chain and ensure that farmers have access to quality inputs.

To enhance transparency in the PDS system, LED boards will be installed at 100 fair-price shops in the first phase, at an estimated cost of ₹20 lakh. These boards will display stock details to the public, ensuring accountability and reducing the possibility of malpractices. Additionally, a real-time vehicle tracking service for vehicles transporting essential commodities will be implemented at a cost of ₹2 crore, which will help in monitoring the distribution network and ensuring timely delivery.

The announcements come at a time when the cooperative sector in Tamil Nadu is being revitalised to play a larger role in the State's economy. The new policy is expected to focus on governance reforms, financial discipline, and technological integration, aligning with constitutional values of social justice and economic democracy. The emphasis on women's entrepreneurship and rural business loans underscores the government's commitment to inclusive growth.

Experts believe that the policy, once formulated, will provide a clear roadmap for cooperatives to adapt to changing market conditions. The introduction of a common brand and e-auction systems are seen as forward-looking steps that could increase farmers' incomes and improve the efficiency of cooperative institutions. The government's investment in infrastructure, such as buildings for PDS outlets and vehicle tracking, is aimed at building a robust support system for the sector.

The Minister's announcements were met with a mixed response in the Assembly, with opposition members seeking more details on the implementation timeline and monitoring mechanisms. However, the overall direction of the policy has been welcomed as a positive move towards strengthening the cooperative movement in Tamil Nadu.