Assam and Gujarat recently discussed sugar-price stability and strengthening the cooperative sector, with Gujarat’s experience offering potential lessons for Assam. Gujarat’s cooperative model emphasises farmer ownership and village-level participation, while linking rural producers directly with larger markets to improve returns. Cooperatives also provide inputs such as cattle feed, veterinary services, artificial insemination and credit.
Cooperative sugar mills can pay farmers above the central Fair and Remunerative Price (FRP) while diversifying into ethanol and green energy. The Model Cooperative Villages (MCV) approach, developed with NABARD through PACS, seeks to strengthen household livelihoods and expand access to financial and welfare schemes.
APSC Relevance: Cooperative Sector; Rural Development.
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