Tamil Nadu Minister for Co-operation V. Gandhiraj on Thursday (August 20, 2026) announced that the State government would formulate a Cooperative Policy to transform cooperatives in Tamil Nadu into people-centric, transparent and economically sustainable institutions, with the objective of ensuring their sustainable growth and stability and enhancing their market competitiveness.

Making announcements for the Cooperation Department in the Assembly, Mr. Gandhiraj said to promote women as entrepreneurs, the Singa Pengal Loan Scheme would be implemented through cooperative banks with ₹7,015 crore allocated for the scheme. He said rural business loans would be extended to farmers at an interest rate of 9% to help them start agriculture-allied businesses, and ₹5,000 crore had been allocated for the initiative.

To improve the quality of products manufactured by cooperatives and with the objective of increasing their market share and profits, a common business brand called ‘Vettri’ would be introduced. He said new permanent buildings would be constructed for 150 public distribution system outlets functioning in rented premises at a cost of ₹15 crore.

To facilitate the marketing of agricultural produce, a new auction centre would be established on 5,084 sq. ft. of land at Aykudi village in Koothanallur taluk of Tiruvarur district at a cost of ₹53 lakh. Petrol, diesel and CNG filling stations would be established at cooperative society premises in Mayiladuthurai and Dindigul districts at a cost of ₹50 lakh, he said.

E-auction systems would be introduced in 80 cooperative producers’ cooperative marketing societies at an estimated cost of ₹25 lakh. Women would be given priority in the appointment of salespersons for the 105 newly established fair-price shops. The sales of fertilisers and seeds supplied to farmers through TANFED, currently valued at ₹898 crore, would be increased to ₹2,500 crore, the Minister said.

To ensure transparency, LED boards would be installed at 100 fair-price shops in the first phase at an estimated cost of ₹20 lakh to facilitate the public in knowing stock details. A real-time vehicle tracking service for vehicles transporting essential commodities would be implemented at a cost of ₹2 crore, he added.

Published - August 20, 2026 05:34 pm IST