---
title: "Karnataka lawmakers push for greater SC/ST inclusion in cooperatives"
url: https://projectchintan.com/article/karnataka-cooperatives-inclusion-scst-9twf1
publisher: Project Chintan
author: Project Chintan Newsroom
section: Politics
published: 2026-08-18T19:32:22.586Z
modified: 2026-08-18T21:30:07.274Z
language: en-IN
---

# Karnataka lawmakers push for greater SC/ST inclusion in cooperatives

In the Karnataka Legislative Council, a member pressed authorities to boost SC/ST participation in cooperative societies and banks, citing underrepresentation despite reservation policies. The Cooperation Minister pledged to take steps within rules, amid drought-linked financial strain and calls for

## Key takeaways

- A member called for increased SC/ST access to membership and loans across primary agricultural cooperatives and District Central Co-operative banks.
- There is a gap between reservation policy intentions and actual disbursement to SC/ST farmers (₹5,980 crore planned vs ₹3,094 crore disbursed across 11,357 societies).
- Cooperation Minister Savadi pledged steps to expand SC/ST participation and loan disbursement, within existing rules.
- Drought-related economic stress prompted a call for loan waivers for cooperative-society borrowers, with a plan to discuss with the Chief Minister.

## What Happened

The Karnataka Legislative Council heard a call to increase the participation of Scheduled Castes and Scheduled Tribes in the cooperative sector. A council member urged the government to expand loans and employment opportunities for SC/ST, backward classes and minority communities in primary agricultural cooperative societies, District Central Co-operative banks, and other cooperative banks. He argued that reservation policies had not translated into proportional membership for SC/ST farmers and that landowners from these communities should see higher membership under SCSP and TSP grants. He noted that, out of 11,357 cooperative societies in the state, ₹5,980 crore was earmarked for SC/ST farmers as per the reservation policy, but only ₹3,094 crore was disbursed. The member called for strict action against rule violators. In response, Cooperation Minister Lakshman Savadi assured that steps would be taken, following established rules, to raise both membership and loan disbursement for SC/ST communities. Another participant highlighted drought-related difficulties and urged loan waivers for cooperative-society borrowers, with Savadi saying he would discuss the issue with the Chief Minister.

## Why It Matters

The discussion centers on the effectiveness of affirmative action within the cooperative sector and the practical distribution of benefits under SCSP and TSP grants. If membership and loan disbursement to SC/ST communities rise, it could alter access to credit and involvement in agriculture-focused financial institutions, particularly during drought conditions that affect loan repayment and farmer welfare.

## Background

The debate references existing reservation policies for SC/ST communities in cooperative structures, the SC Sub Plan and Tribal Sub Plan mechanisms, and drought-related economic pressures on farmers within the state. It signals ongoing scrutiny of how policy translates into on-the-ground inclusion in cooperative banks and dairy or credit networks that serve farmers.

## Key Facts

- Legislative Council member urged greater SC/ST participation and extended loans in primary agricultural cooperatives, District Central Co-operative banks, and related banks.
- Concern raised that participation of SC/ST communities is not proportional to their population or landholdings, despite reservations.
- Out of 11,357 cooperative societies, ₹5,980 crore was intended for SC/ST farmers under reservation policy; ₹3,094 crore was actually disbursed.
- Cooperation Minister Lakshman Savadi pledged to take steps within rules to increase SC/ST membership and loan disbursement.
- Another participant noted drought-induced difficulties and requested loan waivers for cooperative-society borrowers; the minister said he would discuss with the Chief Minister.

## What Happens Next

The minister indicated forthcoming steps to enhance SC/ST membership and loan disbursement in the cooperative sector, in line with existing regulations. A discussion with the Chief Minister was planned to address drought-related loan relief considerations.

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Canonical: https://projectchintan.com/article/karnataka-cooperatives-inclusion-scst-9twf1
Reported from: Multiple Sources