Home India Ministry of Cooperation Procurement of fortified foodgrains by Cooperative Societies...
Date: 2025-12-16 Category: Press Release State: Union Government Country: India

Procurement of fortified foodgrains by Cooperative Societies

Issued by Ministry of Cooperation · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The document outlines the procurement of fortified foodgrains by cooperative societies and provides information on the centrally sponsored scheme for rice fortification with Iron, Folic acid and Vitamin B12. The scheme aims to address micronutrient deficiency. 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. The document also details recent GST reforms impacting the cooperative sector, implemented in response to requests from the Government of Tamil Nadu concerning primary cooperative societies, cooperative banks, and PACS. **Key Points / Main Content** * **Procurement of Foodgrains:** * Fortified foodgrains (rice, pulses, lentils, peas) are not procured through NAFED and NCCF, but paddy and raw pulses are. * **Rice Fortification Scheme:** * Government of India launched a centrally sponsored scheme for rice fortification with Iron, Folic acid, and Vitamin B12. * Objective: To address micronutrient deficiency by distributing fortified rice through welfare schemes. * 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. * **GST Reforms (in response to a memorandum from Government of Tamil Nadu):** * GST on milk and paneer reduced to nil. * GST on butter, ghee, cheese, milk cans reduced from 12% to 5%. * GST on food items (jams, jellies, fruit pulp, beverages, chocolates, cornflakes, ice creams, pastries, cakes, biscuits) reduced from 12%/18% to 5%. * GST on key fertilizer inputs, bio-pesticides and micronutrients reduced to 5%. * GST on tractors (below 1800 cc) and essential tractor components reduced to 5%. * **Expected Outcome:** * Reduced GST rates are expected to increase the competitiveness and revenue of cooperatives. **Impact Analysis** **Farmers and Cooperatives** * **Impact:** Lower input costs due to reduced GST on fertilizers and tractor components. Increased competitiveness and potential revenue growth due to reduced GST on products. * **Action Required:** Understand and leverage the benefits of reduced GST rates in their operations and pricing strategies. **Consumers** * **Impact:** Potentially lower prices for essential food items due to reduced GST. Access to fortified rice through welfare schemes to combat micronutrient deficiencies. * **Action Required:** Be aware of the availability of fortified rice through welfare programs. **Government** * **Impact:** Continuation of the Rice Fortification Scheme under various welfare programs until December 2028. The scheme addresses micronutrient deficiency and improved nutritional outcomes. * **Action Required:** Monitor and evaluate the impact of the scheme and ensure effective implementation.

Key Entities Referenced

Goods and Services Tax (GST): The policy discusses the reduction of GST rates on various food items and agricultural inputs. Ministry of Cooperation: The ministry under which the information regarding procurement of fortified foodgrains by cooperative societies was provided. Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY): A welfare scheme under which the universal supply of fortified rice is continued. Tamil Nadu: The state government that requested GST exemption for cooperative products and services.
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Ministry of Cooperation Procurement of fortified foodgrains by Cooperative Societies प्रव तथ: 16 DEC 2025 5:05PM by PIB Delhi 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. 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. This information was given by Union Minister for Home and Cooperation Shri Amit Shah in a written reply in Lok Sabha. *** AK(रलीज़ आईडी: 2204710) आगंतुक पटल : 353 इस वज्ञ को इन भाषाओ ंम पढ़: Urdu , ही , Tamil

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