Gujarat Provides ₹1,500 Crore Relief to Sugar Cooperatives and Farmers
Gujarat Chief Minister Bhupendra Patel approved a ₹1,500 crore financial-relief package for sugar cooperative societies. The relief addresses past Income Tax demands on cooperatives and benefits over two lakh sugarcane farmers. The decision was enabled by a 2023 amendment by the Union Ministry of Cooperation, which allowed state governments to approve sugarcane prices paid by cooperative societies.
Key Facts & Details
9 points- 1Gujarat approves ₹1,500 crore relief to sugar cooperatives
- 2Beneficiaries: over 2 lakh sugarcane farmers
- 3Addresses past Income Tax demands on cooperatives
- 4Enabled by 2023 amendment by Ministry of Cooperation
Deep Dive
- +Ministry of Cooperation was set up in July 2021 — Amit Shah is the Union Minister
- +97th Constitutional Amendment, 2011 inserted Article 43B (Promotion of cooperative societies)
- +Cooperatives is in the State List (Entry 32) for state-level societies
- +India's largest sugar-producing state: Maharashtra (Uttar Pradesh #1 by 2025-26 estimates)
- +FRP (Fair and Remunerative Price) of sugarcane is set by CCEA on CACP recommendations
Exam Focus
Likely MCQ: When was the Union Ministry of Cooperation set up? → Answer: July 2021
Related Topics
Exam Relevance & Angle
Cooperatives, sugar industry and constitutional amendments are core for UPSC, Banking and SSC.
Target Exams
Background & Context
Sugar industry is one of India's most politically sensitive sectors. India is the second-largest producer of sugar globally (after Brazil). Major producing states are Maharashtra, Uttar Pradesh, Karnataka and Tamil Nadu.
Cooperative sugar mills dominate Maharashtra's sugar industry. Sugarcane prices are determined by:
• Fair and Remunerative Price (FRP) — set by the Central Government on recommendations of CACP, approved by CCEA. This is the minimum price
• State Advised Price (SAP) — set by individual states (often higher than FRP)
The Ministry of Cooperation was created on 6 July 2021, separated from the Ministry of Agriculture. Union Home Minister Amit Shah also holds the Cooperation portfolio.
The 97th Constitutional Amendment Act, 2011 inserted Article 43B (Directive Principle on promotion of cooperatives) and Part IXB (Articles 243ZH–243ZT) on cooperative societies. The Supreme Court in 2021 struck down Part IXB as it applies to state cooperatives, ruling that 'cooperative societies' is in the State List.
Related GK Concepts
Must KnowTest Yourself
1 / 3When was the Union Ministry of Cooperation set up?
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