Mumbai, May 12 (PTI) Union minister Nitin Gadkari on Monday suggested the Maharashtra government to formulate a new law for the cooperative sector in the state considering the evolving economic conditions.

The cooperative sector would play a key role in improving the financial condition of people from rural areas, he said, and urged the Maharashtra State Cooperative Bank, the apex cooperative bank in the state, to study the socio-economic impact of the cooperative movement in the state.

Addressing a public function here, Gadkari said, "It is my request to Maharashtra chief minister and deputy chief minister to come up with a revised act for the cooperative sector. We must find a golden mean between the Cooperative Act and the Companies Act and formulate a new legislation accordingly." "There is a need to amend the laws governing cooperative establishments to align with evolving economic conditions," he said.

The Road Transport and Highways Minister said the Maharashtra State Cooperative Bank should conduct a comprehensive study on the socio-economic impact of the cooperative movement in the state.

"The socio-economic impact of the cooperative movement in Maharashtra should be studied across the state at the tehsil and district levels. It should measure employment, per capita income and growth rate," he said.

Highlighting the economic imbalance between sectors, Gadkari said while the manufacturing sector contributes 22 to 24 per cent, the services sector 52 to 54 per cent to the GDP generating maximum Goods and Services Tax (GST). The agriculture and rural development sector contributes only 12 per cent despite employing 60 per cent of the population, he said.

"Nearly 30 per cent of people have migrated to cities out of compulsion due to lack of education, jobs and facilities in rural areas," Gadkari said.

He described the dairy sector as a model to boost the income of the rural population.

Pointing to regional disparities in terms of milk production, he said, "Ahilyanagar district produces 50 lakh litres of milk, while Kolhapur produces 70-80 lakh litres. This has brought prosperity to villages. However, the milk production of the entire Vidarbha region is not even as much as that of Ahilyanagar," he claimed.

Gadkari said a Rs 750 crore-worth Mother Dairy plant had been established in Vidarbha, which could significantly boost milk production.

"If we can reach 50 lakh litres in the next three years, farmers' suicides will stop. The cooperative sector will play a huge role in uplifting rural areas and improving their financial condition," he said.

The minister also praised the emergence of farmer-producer companies involved in processing food grains.

"Now, many farmer-producers companies have come forward and started food processing. This will add value and create rural employment," he added.

Reflecting on his political journey, Gadkari said the ideologies which once dominated the political scene, gradually became weaker.

"When I was the BJP state president, socialism and Left parties were strong. However, they gradually disappeared. There is no alternative to capitalism. We must adapt with changing times," he asserted.

He shared insights from international observations to emphasise the importance of reform.

"I had seen the same thing during my Shanghai visit as BJP national president. China had only a red flag, but their entire economic policy underwent a change," Gadkari said.

He stressed the limitations of the state's control over agricultural pricing, and said, "In the global economy, the government no longer decides prices.

"If we do not adapt to the changing times, there is a risk of us being left behind," he said. PTI ND NP

Cooperative sector law reform urged to align cooperative governance with evolving economic conditions and boost rural livelihoods. A proposal to revise the statutory framework governing cooperatives by formulating a new cooperative sector law that reconciles the Cooperative Act with the Companies Act. Legislative amendment is recommended to modernise governance and organisational forms, and the Maharashtra State Cooperative Bank is to conduct a comprehensive socio economic impact study at tehsil and district levels measuring employment, per capita income and growth to guide reform.