In Tamil Nadu, Cooperatives play a prominent role in the day to day affairs of the common man. They help the farmer to improve agricultural production by providing crop loans and by supplying agricultural inputs such as fertilizers and insecticides. They also enable the farmer to store and market his produce. In most districts, cooperatives run the fair price shops which provide the rural and urban poor essential commodities at highly subsidized prices.
The policy of the State Government is to ensure adequate availability of essential commodities of acceptable quality at an affordable price to the general public particularly the poor. Public Distribution System has been one of the most crucial elements in food policy and food security system in the country.