Tamil Nadu government to formulate State Cooperative Policy: Minister Gandhiraj

Tamil Nadu administration to formulate State Cooperative Policy: Minister Gandhiraj The aim is to transform cooperatives in Tamil Nadu into people-centric, transparent and economically sustainable institutions, with the objective of ensuring their sustainable expansion and stability and enhancing their market competitiveness.

Key points

• He remarked 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.
• E-auction systems would be introduced in 80 cooperative producers' cooperative marketing societies at an estimated cost of ₹25 lakh.
• Making announcements for the Cooperation Department in the Assembly, Mr.
• A real-time vehicle tracking service for vehicles transporting essential commodities would be implemented at a cost of ₹2 crore, he continued.

Tamil Nadu Minister for Co-operation V. Gandhiraj on Thursday (August 20, 2026) confirmed that the State administration 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 expansion and stability and enhancing their market competitiveness.

Making announcements for the Cooperation Department in the Assembly, Mr. Gandhiraj remarked 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 remarked rural business loans would be extended to farmers at an interest rate of 9% to assist 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 remarked 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 remarked.

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, at present valued at ₹898 crore, would be climbed to ₹2, 500 crore, the Minister noted.

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 continued.

Taken together, the developments around tamil Nadu government to formulate State Cooperative Policy: Minister Gandhiraj point to a situation that is still moving, and the coming days should bring more clarity.