HYDERABAD: The State government has decided to go ahead with its plans to introduce cooperative farming in spite of requests made by farmers’ organisations not to take hasty decision on the issue as it involved farmers’ rights on land.

Chief Minister Y.S. Rajasekhara Reddy has asked the officials concerned to issue an advertisement explaining all the aspects of cooperative farming in newspapers ‘positively by Sunday’. Further action would be taken on the introduction of the scheme based on the response from farmers.


Dr. Reddy who held a detailed discussion on the framework for cooperative farming with Ministers and senior officials, clarified that joining cooperative farming was purely voluntary and it would be implemented in two villages in each district on pilot basis. The villages that wish to opt for cooperative farming should pass unanimous resolution in their respective gram sabhas transferring all their land holding to a new organisation to be formed either under the Cooperative Societies Act or under Section 581 (a) and 581 (b) of the Companies Act, in return for a share capital for the value of the land transferred.

Income aspect

The government would put in place a fool-proof and transparent system for valuation of land and farmers would be guaranteed an assured income on the basis of the best income earned by them during the last five years. In addition, proper legislation would be enacted to see that no third party, particularly corporate sector entered these societies, Dr. Reddy said. The government’s role would be to select the responsive areas with a motto of maximum support and least interference. It would form special purpose vehicle to meet all promotional costs, handhold the formation, managerial subsidy at least for three years, guarantee land transfer mechanism and guarantee issue of loans required for running the coop.