Co-operatives are backbone of rural India: Karnataka Chief Minister

Chief Minister Siddaramaiah said that Jawaharlal Nehru’s vision and encouragement for the co-operative sector played an important role in the progress of rural India.

Launching the 72nd All India Co-operative Week on November 14 and presenting the Sahakara Ratna awards to achievers in the sector, he emphasised that the co-operative movement has become the economic backbone for millions of families across the country.

Highlighting Karnataka’s long-standing leadership in the co-operative space, the Chief Minister stated that Asia’s first co-operative bank was established in the State. “This is why Karnataka is often called the co-operative capital of India,” he remarked.

Mr. Siddaramaiah recalled Nehru’s belief that a village could develop only when it had a school, a co-operative society, and a hospital. “Both Nehru and Mahatma Gandhi strengthened the co-operative movement with this vision,” he said.

The Chief Minister praised the success of Karnataka’s milk co-operatives, noting that the State records an annual turnover of ₹25,000 crore and produces one crore litres of milk every day. The co-operative model, he said, has enabled farmers to supply milk directly to producers’ unions, eliminating middlemen and ensuring better income.

“Co-operatives have brought vitality not only to agriculture but to several other sectors as well,” he said, adding that the movement has uplifted countless rural families.

Mr. Siddaramaiah also reiterated his government’s commitment to supporting dairy farmers. “During my previous term as Chief Minister, I increased the milk incentive to ₹3 per litre. Now we have raised it to ₹5 per litre. Every day, the government provides a subsidy of ₹5 crore directly to farmers’ bank accounts,” he said. This benefits nearly 40 lakh farmers across Karnataka, he added, crediting the Karnataka Milk Federation for playing a role in this achievement.