Punjab lifts curbs on registering new cooperative societies; state to unveil its Cooperative Policy soon
Chandigarh, September 25, 2025: Chief Minister Bhagwant Singh Mann announced the withdrawal of earlier restrictions on registering new cooperative societies in Punjab—including PACS, milk and dairy cooperatives, and labour societies—in a bid to expand the cooperative ecosystem and deepen participation across rural communities.
Framing the move as a return to first principles of the cooperative movement—voluntarism, democratic member control, and open access—the Chief Minister said the state is drafting a comprehensive Cooperative Policy to attach more people to cooperatives, widen opportunities for participation, and ensure fair competition.
What changes immediately
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All restrictive instructions have been withdrawn with immediate effect, including blanket bars on registering a new society where one already exists, rigidly defined areas of operation, and minimum‑distance norms (such as the 8‑km condition for labour societies).
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New registrations will proceed strictly under the Punjab Cooperative Societies Act, 1961, without artificial barriers that curtail member choice or create monopolistic situations.
Why the shift
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The government assessed that prior curbs ran contrary to the spirit of the 1961 Act and discouraged voluntary participation by limiting competition and locking in monopoly providers within an area.
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The objective is to make cooperatives a central pillar of Punjab’s rural and economic development so that benefits accrue directly to farmers, workers, and micro‑entrepreneurs.
Affordability push
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Registration fees for PACS, dairy, and fishery cooperatives will be reduced to enable small and marginal farmers and weaker sections to join and benefit.
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The state says this cost relief is part of a broader effort to revitalise the cooperative sector through inclusivity, healthy competition, and grassroots empowerment.