Hyderabad: The Telangana government has taken a significant step by transforming 311 Primary Agricultural Cooperative Societies (PACS) into Farmer Producer Organizations (FPOs). Agriculture Minister Tummala Nageswara Rao announced this at a conference at Professor Jayashankar Telangana Agricultural University. The event was organized by the National Cooperative Development Corporation (NCDC) and the Telangana Cooperative Union.
Minister Tummala addressed state representatives, emphasizing that cooperative credit societies should meet the changing agricultural needs. He suggested these societies become comprehensive service providers, offering everything from seed distribution to marketing and processing support to enhance farmer prosperity.
The conversion of PACS into FPOs is part of a wider strategy linked with the Government of India’s goal to form 10,000 FPOs nationwide. With support from the NCDC, Telangana’s Cooperative Union is now a Cluster-Based Business Organization, leading this change. Each new FPO will get an equity grant of Rs 15 lakh and management support of Rs 18 lakh, totaling Rs 33 lakh per unit. Overall, Rs 167.93 crore have been approved, and the first installment of Rs 9.85 crore was released on Tuesday.
Each FPO can also receive a loan guarantee of up to Rs 2 crore under the Central Government’s Credit Guarantee Scheme, boosting their financial strength.
Minister Tummala highlighted successful cooperatives like the Mulkanur Cooperative Credit Union. He noted that ethical governance can make cooperatives models of rural development. He praised the cooperative successes in Medchal and other districts, urging societies in Rangareddy and nearby areas to focus on vegetable and fruit farming, reduce chemicals, and support organic agriculture.
He stressed the need for holistic business models and advised societies to provide services such as seed distribution, storage, equipment rental, marketing, dairy, poultry, and soil testing. He also suggested inviting experts to society meetings for guidance.
The event saw participation from key officials, including NCDC Regional Director Shardul, TG Cooperative Union Chairman Mohana Reddy, TGCAB Chairman Ravinder Rao, DCCB chairpersons, cooperative officers, and leaders from 311 societies, all dedicated to advancing agricultural empowerment in Telangana.
