Cabinet Approves National Multi State Cooperative Society for Organic Products

The Union Cabinet has approved a landmark decision that will pave the way for the establishment and promotion of a National-Level Co-operative Society for Organic Products, which will serve as an umbrella organisation for the aggregation, procurement, certification, testing, branding, and marketing of organic products with the support of relevant Union Ministries.

Union Agriculture Minister Bhupendra Yadav announced the Cabinet's decision, chaired by Prime Minister Narendra Modi, that the body will be established under the Multi State Cooperative Societies (MSCS) Act, 2002, with support from relevant Ministries, particularly the Ministries of Commerce and Industry, Agriculture and Farmers Welfare, Food Processing Industries, Health and Family Welfare, and Development of North Eastern Region (M/Doner) through their policies, schemes & agencies following the ‘Whole of the Government Approach’.

The move, dubbed PACS to Apex (primary to top), will assist primary societies, district, state, and national level federations, multi-state cooperative societies, and Farmers Producer Organizations (FPOs) in becoming members of the umbrella organisation, represented by their elected representatives in the society's Board of Directors in accordance with its bye-laws.

It will aid in unlocking the demand and consumption potential of organic products in both domestic and global markets. This society will also assist cooperatives and, ultimately, their farmer members in reaping the benefits of the high price of organic products through large-scale aggregation, branding, and marketing by facilitating testing and certification at a low cost.

Yadav stated that the move is in line with the Prime Minister's vision, which has been emphasising the importance of leveraging cooperative strengths and transforming them into successful and vibrant business enterprises in order to realise the vision of "Sahakar-se-Samriddhi" through the inclusive growth model of cooperatives. "The step would also assist cooperatives in thinking globally and acting locally in order to leverage their comparative advantage," Yadav added.

The umbrella cooperative society will also provide institutional support for organic product aggregation, certification, testing, procurement, storage, processing, branding, labelling, packaging, logistics, and marketing.

There would also be arrangements for financial assistance to organic farmers through its member cooperatives, including Primary Agricultural Credit Societies and FPOs, and the organisation would undertake all organic product promotion and development activities with the assistance of various government schemes and agencies.