Primary cooperative societies must evolve into farmer service hubs: Minister Tummala

Hyderabad: Agriculture Minister Tummala Nageswara Rao on Tuesday called for a complete transformation of primary cooperative credit societies into one-stop service centres for farmers, capable of offering comprehensive agricultural support.

Speaking at a conference organised by the National Cooperative Development Corporation (NCDC) and Telangana Cooperative Union at Prof. Jayashankar Agricultural University, the minister urged cooperatives to move beyond basic lending functions and embrace a wider mandate that includes services like soil testing, seed supply, equipment, marketing, dairy, and poultry.

Rao cited the example of the Mulkanur Cooperative Credit Society, which he said had emerged as a national model of ethical and effective functioning. He stressed that other societies could replicate this success through honest management and a community-first approach.

In line with the Centre’s goal of creating 10,000 Farmers’ Producer Organisations (FPOs), the Telangana government has decided to convert existing primary cooperative societies into FPOs. The Telangana Cooperative Union has been identified as a Cluster-Based Business Organisation (CBBO), through which 311 cooperative credit societies have now been selected as FPOs.

Each of these FPOs will receive an equity grant of ₹15 lakh and a management cost of ₹18 lakh bringing the total financial outlay to ₹167.93 crore. The first tranche of ₹9.85 crore has already been disbursed.

Under the central Credit Guarantee Scheme, each FPO is also eligible for credit guarantees up to ₹2 crore. Rao assured that the state government would provide every possible support to make these societies financially viable.

He urged societies to reduce chemical inputs in farming and promote vegetable and fruit cultivation near urban zones like Rangareddy. He also encouraged them to invite experts to cooperative meetings to guide members on sustainable agriculture practices.