Thiruvananthapuram: The Union Government has issued a directive to establish cooperative societies across all panchayat levels to facilitate the implementation of its schemes. 

The focus will be on forming groups in the agriculture, fisheries, and dairy sectors. According to the model bylaws prepared by the Centre, a plan will be developed to ensure these groups receive financial assistance from various union ministries.

National Bank for Agriculture and Rural Development (NABARD) will play a key role in this initiative by forming 1,572 cooperative societies within the next five years. 

Additionally, it has been mandated that Primary Agricultural Credit Societies be established in panchayats and transitioned into multi-purpose credit societies to manage various schemes effectively.

Currently, Kerala has 1,680 agricultural credit unions, which serve as primary cooperative banks. However, the state has yet to approve the model bill prepared by the Centre, limiting access to significant central assistance for agriculture, dairy, and fisheries.

According to the Centre, 48 panchayats in the state are struggling to provide effective services through existing cooperatives, while 58 panchayats are experiencing an existential crisis. The proposal includes establishing 106 new multi-purpose agricultural credit societies in these areas.

The state also boasts 3,098 dairy societies across 1,666 villages, with a directive to establish an additional 1,003 dairy societies to enhance direct benefits for farmers.