Lucknow: Uttar Pradesh is moving towards a “one district, one cooperative bank” framework as the state intensifies reforms in the cooperative sector, Chief Minister Yogi Adityanath said on Sunday while inaugurating the Youth Cooperative Conference and UP Cooperative Expo 2025 at Indira Gandhi Pratishthan.

Addressing the gathering at Jupiter Hall, the Chief Minister announced a major interest relief for small and marginal farmers. Loans from the UP Cooperative Rural Development Bank, which currently carry an interest rate of around 11.5 percent, will now be available at six percent under the Mukhyamantri Krishak Samridhi Yojana. The remaining interest burden will be borne by the state government.

Speaking on the broader vision for cooperation, CM Yogi said, “Under the leadership of Prime Minister Narendra Modi, the central government constituted a separate Ministry of Cooperation for the first time, which was earlier only a small department under the Ministry of Agriculture. As the country’s first Union Minister for Cooperation, Amit Shah has taken the cooperative movement to new heights.”

Referring to the global context, he said, “The United Nations has declared 2025 as the International Year of Cooperatives, and inspired by the Prime Minister, India has taken several decisive steps to strengthen the cooperative ecosystem. Cooperation, he said, is a pillar of mutual trust, social equality, and self-reliance.”

Highlighting India’s scale in the sector, the Chief Minister said, “Nearly one-fourth of the world’s cooperative societies are in India, with over 8.44 lakh societies and more than 30 crore members forming a powerful collective force.” He added, “Over the past 11 years, India has witnessed transformative change, with technology being leveraged to simplify lives and ensure a transparent, corruption-free system.”

He noted that reforms have also reached grassroots institutions. “Digitalisation, e-governance, and transparent policies have strengthened accountability and good governance in the cooperative sector as well. Through PACS, the membership of multipurpose primary rural cooperative societies has expanded, financial inclusion has deepened, agriculture and rural development have gained momentum, and the cooperative movement has been further reinforced,” CM Yogi said.

The Chief Minister outlined a series of initiatives undertaken during the International Year of Cooperatives. “Uttar Pradesh undertook several landmark initiatives for the first time during the International Year of Cooperatives. The year was launched on January 26 with a ‘Run for Cooperation’, which saw participation from thousands. On March 21, 2025, the UP State Cooperative Limited organised its AGM, during which an online dividend of Rs 76 crore was distributed to stakeholders. On July 6, 2025, marking the fourth foundation day of the Union Ministry of Cooperation, certificates were distributed to 266 ‘Drone Didis’,” he said.

He added that a mega PACS membership drive between September 12 and November 30 brought in 24 lakh new members and generated a share capital of Rs 43 crore. “Earlier, in September 2023, the state had conducted its first PACS membership campaign, enrolling 30 lakh new members and mobilising a share capital of Rs 70 crore. At present, district cooperative banks have over two lakh bank accounts with deposits totalling Rs 550 crore,” he said.

Drawing a contrast with the pre-2017 period, CM Yogi said, “16 district cooperative banks had been declared defaulters and had even lost their RBI licences. Today, however, cooperative banks in Uttar Pradesh are no longer ailing institutions but financially sound entities contributing to the prosperity of farmers and members, while actively supporting government schemes.”

He said the government has extended interest-free loans of up to Rs 10 lakh to PACS, with plans to raise the limit to Rs 15 lakh after addressing manpower shortages. “Interest-free loans of Rs 10 lakh have already been sanctioned to 6,760 PACS for fertilizer distribution, ensuring an uninterrupted supply,” he said, adding that nearly 50 percent of fertilizer, pesticide, and chemical distribution is planned to be routed through cooperatives.

According to the Chief Minister, PACS across the state have conducted business worth Rs 6,400 crore and earned profits of Rs 191 crore. He also pointed to diversification of services, noting that 161 PACS are running Jan Aushadhi Kendras, which have recorded business of over Rs 1.86 crore.

“The cooperative sector in Uttar Pradesh has undergone a transformative change, especially in the areas of storage, energy, and infrastructure,” CM Yogi said. He cited the development of large warehouses, solar rooftop installations in 502 M-PACS, and financial support for reviving ageing storage facilities. Strengthening works have been completed in 980 M-PACS at a cost of Rs 70 crore, with another Rs 30 crore allocated for 2025–26.

On the financial health of cooperative banks, he said, “The Uttar Pradesh State Cooperative Bank has now secured ‘A’ category status from NABARD and is currently operating through 40 branches across the state. All 50 District Cooperative Banks are now running in profit.” He added that in 2024–25 alone, the Cooperative Bank posted profits of over Rs 162.02 crore.

Referring to systemic changes, the Chief Minister said, “Previous governments promoted a ‘one district, one mafia’ system, which devastated the cooperative sector and trapped farmers’ capital.” He added, “Through sustained efforts, Rs 4,700 crore of farmers’ money has been recovered.” With cooperative banks expanding again, he said the state is moving firmly towards a “one district, one cooperative bank” structure, with a new district cooperative bank already being established in Balrampur.

Calling upon young people to take the movement forward, CM Yogi said, “The youth are the future architects of the cooperative movement,” and expressed confidence that the Youth Cooperative Conference would contribute to the state’s prosperity. He referred to the Prime Minister’s vision of ‘Prosperity through Cooperation’ and ‘Self-reliance through Cooperation’, urging the youth to acquire skills, work with integrity, and strengthen cooperatives through collective effort.

Several ministers, legislators, members of Parliament, and senior officials from the cooperative sector attended the event, where individuals and institutions were also honoured for their contributions.

BI Bureau