Telangana has set national precedent by transforming PACS into FPOs: Tummala
While addressing representatives from across the state, Minister Tummala emphasized that cooperative credit societies must adapt to the evolving needs of the agricultural sector. Instead of restricting themselves to conventional lending practices, these societies should transform into one-stop centers, providing a wide range of services—from seed distribution and soil analysis to marketing and processing support—to promote farmer prosperity.
Tummala revealed that the transition of PACS into FPOs is part of a larger strategy aligned with the Government of India's plan to establish 10,000 FPOs nationwide. With support from the NCDC, Telangana's Cooperative Union has been designated a Cluster-Based Business Organization (CBBO), enabling it to spearhead this transformation. Each of the 311 newly formed FPOs will receive an equity grant of Rs 15 lakh and a management cost support of Rs 18 lakh, totaling Rs 33 lakh per unit. In aggregate, Rs 167.93 crore have been sanctioned, with the first tranche of Rs 9.85 crore disbursed on Tuesday.
Additionally, every FPO will be eligible for a loan guarantee of up to Rs 2 crore under the Central Government's Credit Guarantee Scheme, strengthening financial resilience and operational capacity.
Highlighting success stories such as the Mulkanur Cooperative Credit Union, the Minister said ethical and transparent governance can turn cooperatives into models of rural development. He commended the cooperative achievements in Medchal and other districts and called on societies in Rangareddy and neighboring areas to promote vegetable and fruit cultivation, reduce chemical usage, and support organic farming.
Tummala stressed the importance of adopting holistic business models. He urged societies to offer services like seed distribution, storage, equipment rental, marketing, dairy, poultry, and soil testing. He also recommended inviting experts from various sectors to society meetings for guidance and innovation.
The event witnessed participation from prominent officials, including NCDC Regional Director Shardul, TG Cooperative Union Chairman Mohana Reddy, TGCAB Chairman Ravinder Rao, DCCB chairpersons, cooperative officers, and 311 society leaders—collectively committing to a new era of agricultural empowerment in Telangana.
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