Senate Approves updated law on agricultural cooperatives

The new law outlines the procedures for creating, managing, and auditing cooperatives, as well as their interaction with the state. Agricultural cooperatives are defined as commercial organizations founded on the basis of membership contributions. A minimum of seven individuals or legal entities must unite to establish a cooperative for agricultural purposes.

Under the updated law, cooperatives will not only provide services in the agricultural sector but also engage in activities such as cultivation, storage, processing, and sale of agricultural products. They can also pursue other related activities.

The law further regulates the cooperative’s governance structure, which includes a general meeting, a board of directors, and a supervisory council. It defines the rules for joining and leaving the cooperative, as well as the rights and responsibilities of its members, along with financial reporting and membership contributions.

The state is committed to supporting cooperatives through agricultural policies, support programs, and various benefits.

The draft law was initially passed by the Legislative Chamber in mid-September, with particular emphasis on introducing market mechanisms in the agricultural sector. The law is now awaiting the president’s signature to come into effect.