**Executive Summary**
This document is a response to Unstarred Question No. 2663 in the Lok Sabha regarding the procurement of fortified foodgrains by cooperative societies. The Minister of Cooperation clarifies that fortified foodgrains are not procured through specified Cooperative Societies/Federations. The Government has launched a centrally sponsored scheme for fortification of rice with Iron, Folic acid and Vitamin B12 to address micronutrient deficiency, which will be supplied under all schemes of the Government from July 2024 to December 2028.
**Key Points / Main Content**
* **Procurement of Fortified Foodgrains:**
* Fortified foodgrains (rice, pulses, lentils, and peas) are not procured through National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) and National Cooperative Consumers' Federation of India Ltd (NCCF).
* However, paddy and raw pulses are procured through NAFED & NCCF.
* **Centrally Sponsored Scheme for Fortification of Rice:**
* The Government of India has launched a scheme for fortifying rice with Iron, Folic acid, and Vitamin B12 to address micronutrient deficiency.
* Fortified rice will be distributed under various welfare schemes (Public Distribution System, ICDS, PM-POSHAN, PMGKAY, etc.).
* Universal supply of fortified rice under all schemes of the Government will continue from July 2024 to December 2028.
* **GST Reforms and Cooperative Societies:**
* A memorandum was received from the Government of Tamil Nadu regarding GST exemption for cooperative products and services.
* GST rates have been reduced on several food items (milk, paneer, butter, ghee, cheese, jams, jellies, fruit pulp, fruit juice-based beverages, chocolates, cornflakes, ice creams, pastries, cakes and biscuits).
* GST rates have been reduced on key fertiliser inputs (ammonia, sulphuric acid and nitric acid, bio-pesticides and micronutrients) and tractors below 1800 cc.
* These GST reductions are expected to improve the competitiveness and revenue of cooperatives.
**Impact Analysis**
**Stakeholder: Vulnerable Sections of Society**
* **Impact:** Improved access to micronutrients through fortified rice distributed under welfare schemes.
* **Action Required:** Benefit from the fortified rice provided through government schemes.
**Stakeholder: Farmers and Cooperatives**
* **Impact:** Reduced input costs due to lower GST rates on fertilizers and tractors. Improved competitiveness and revenue due to lower GST on various food products.
* **Action Required:** Take advantage of reduced GST rates to lower costs and potentially increase production and sales.
Key Entities Referenced
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): A Government of India scheme for welfare, specifically for food security.
National Agricultural Cooperative Marketing Federation of India Ltd (NAFED): An apex organization of marketing cooperatives for agricultural produce in India.
National Cooperative Consumers' Federation of India Ltd (NCCF): The national level cooperative society that promotes consumer cooperatives.
Public Distribution System: A government-sponsored chain of shops entrusted with the responsibility of distributing basic food and non-food commodities to the needy at subsidized prices.
Tamil Nadu: A state in India that has raised concerns regarding cooperative societies and GST exemption.
GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
LOK SABHA
UNSTARRED QUESTION NO. 2663
TO BE ANSWERED ON 16th DECEMBER, 2025
PROCUREMENT OF FORTIFIED FOODGRAINS BY COOPERATIVE SOCIETIES
2663. THIRU D M KATHIR ANAND:
Will the Minister of COOPERATION (सहकारिता मंत्री) be pleased to state:
(a) whether the Government is procuring fortified rice, pulses, lintel and peas through Cooperative
societies/Federations for public distribution to different types of ration cardholders in the
country and if so, the details thereof;
(b) the quantity and rate in INR per kg of fortified rice, pulses, lintels and peas purchased through
National level Cooperative societies/Federations during the last five years, State/UT wise;
(c) the total funds allocated, disbursed and spent for the same during the last five years by National
Cooperative societies/Federations; and
(d) whether the Government has received any plea regarding the issues and problems faced by
multi State cooperative societies and federations, particularly from Tamil Nadu and the action
taken by the Government in this regard and if so, the details thereof?
ANSWER
THE MINISTER OF COOPERATION
सहकारिता मंत्री (SHRI AMIT SHAH)
(a): Fortified foodgrains including rice, pulses, lentils and peas are not procured through
Cooperative Societies/Federations viz. National Agricultural Cooperative Marketing Federation
of India Ltd (NAFED) and National Cooperative Consumers' Federation of India Ltd (NCCF).
However, paddy and raw pulses are procured through them.
Government of India launched a centrally sponsored scheme for fortification of rice with Iron,
Folic acid and Vitamin B12. The objective of this scheme is to address the prevalence of
micronutrient deficiency in vulnerable section of society by distributing fortified rice under various
welfare schemes i.e. Public Distribution System, ICDS, PM-POSHAN, PMGKAY etc. Government
of India has approved continuation of the universal supply of Fortified Rice under all schemes of
the Government including Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and Other
Welfare Schemes etc. from July 2024 and upto December 2028.
(b) & (c): Not applicable, as no fortified foodgrains including rice, pulses, lentils and peas are
procured through NAFED & NCCF.(d): A memorandum was received from Government of Tamil Nadu with requests pertaining to
primary cooperative societies, cooperative banks and PACS. One request which is common to all
cooperative societies including multistate cooperative societies and federations is GST exemption
for cooperative products and services. The action taken by the Government on the same is as
follows:-
Under the recent GST reforms, the rate on milk and paneer has been reduced to nil, while the GST
on butter, ghee, cheese, milk cans etc. has been reduced from 12% to 5%. The GST on a broad
category of food items including jams, jellies, fruit pulp, fruit juice-based beverages, chocolates,
cornflakes, ice creams, pastries, cakes and biscuits has been reduced from 12%/18% to 5%. In the
agriculture sector, the GST on key fertiliser inputs such as ammonia, sulphuric acid and nitric acid,
as well as on various bio-pesticides and micronutrients has been reduced to 5%. Further, the GST
on tractors below 1800 cc and essential tractor components including tyres, tubes and hydraulic
pumps has been reduced to 5%, thereby lowering overall input costs for farmers and cooperatives.
The above reduced GST rates are expected to make the products of cooperatives competitive and
increase their revenue.
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