Dr. Navin Anand
National Independent Expert-Cooperatives
First Five Years of Ministry- Fast Track Mode Applied
The Ministry of Cooperation, established on 6 July 2021, completes five years of its functioning this month. During this period, the Ministry has undertaken more than 114 major initiatives aimed at strengthening and revitalizing the cooperative sector in India. These initiatives have significantly expanded the scope, outreach, and institutional capacity of cooperatives across the country.
Strengthening of PACS and Fisheries FPOs
One of the Ministry’s most significant areas of intervention has been the strengthening of Primary Agricultural Credit Societies (PACS) and Fish Farmer Producer Organizations (FFPOs). The Ministry has worked extensively to strengthen primary cooperative societies by introducing Model Bye-laws for PACS, undertaking the computerization of PACS, establishing Multipurpose PACS, Dairy Cooperative Societies, and Fisheries Cooperative Societies in every Panchayat and village, and implementing the world’s largest decentralized Grain Storage Programme.
The Ministry has also promoted Farmer Producer Organizations (FPOs) and expanded e-services through PACS. In addition, PACS have been provided with several new business opportunities, including LPG distributorships, petrol and diesel pump dealerships, retail petrol outlets, Jan Aushadhi Kendras, Pradhan Mantri Kisan Samriddhi Kendras (PMKSKs), RuPay Kisan Credit Cards, Micro-ATMs through Bank Mitra Cooperative Societies, Paani Samitis, convergence with the PM-KUSUM Scheme, and opportunities to function as drone entrepreneurs for spraying fertilizers and pesticides. The promotion of Fish Farmer Producer Organizations (FFPOs) in the cooperative mode is also being undertaken with the support of the National Cooperative Development Corporation (NCDC) and its capacity-building institution, LINAC, Gurugram.
Creation of Three National Cooperatives
Another landmark achievement has been the creation of three new national-level multi-state cooperative societies. In addition to strengthening PACS, the Ministry facilitated the establishment of National Cooperative Export Limited (NCEL), Bharatiya Beej Sahakari Samiti Limited (BBSSL), and National Cooperative Organics Limited (NCOL). These institutions have strengthened primary cooperatives by enabling them to expand their business operations not only within India but also in international markets.
Policy, University and National Data Base
At the national level, the Ministry has also initiated several long-term institutional reforms. These include the formulation of the New National Cooperation Policy, the creation of the National Cooperative Database (NCD), and the establishment of Tribhuvan Sahkari University. These initiatives are expected to strengthen the cooperative movement in the long run by improving policy support, data-driven planning, education, and research. The Ministry has also continued to promote cooperative education, training, and awareness through the National Council for Cooperative Training (NCCT) while providing greater support to VAMNICOM and regional cooperative training institutions such as the Regional Institutes of Cooperative Management (RICMs) and the Institutes of Cooperative Management (ICMs).
Relief in Income Tax and Central Act
The Ministry has also taken several important initiatives to provide tax relief to cooperative societies and strengthen the legal and institutional framework governing the sector. It has facilitated various income tax relief measures for cooperative societies, supported the computerization of the Office of the Central Registrar of Cooperative Societies, enacted the Multi-State Cooperative Societies (Amendment) Act, 2023, and enabled cooperative societies to be registered as buyers on the Government e-Marketplace (GeM) Portal.
Revival of Cooperative Sugar Mills
The revival of cooperative sugar mills has been another major priority of the Ministry. Several longstanding issues relating to income tax have been addressed. The Ministry has also facilitated an NCDC loan scheme under which ₹10,000 crore has been made available for lending to cooperative sugar mills. Additional support has been extended through preferential procurement of ethanol from cooperative sugar mills, the promotion of cogeneration power plants, and the reduction of GST on molasses. Collectively, these initiatives have substantially improved the prospects of the cooperative sugar sector.
Support for NCDC Through Dairy, Fisheries and Women Cooperatives
The Ministry has also strengthened the cooperative sector through enhanced financial support to the National Cooperative Development Corporation (NCDC), particularly for dairy, fisheries, and women’s cooperatives. To expand NCDC’s operations, the Ministry has provided a grant-in-aid of ₹2,000 crore, to be released at the rate of ₹500 crore annually from FY 2025–26 to FY 2028–29. NCDC has simultaneously launched several new schemes across different sectors, including ‘Swayamshakti Sahakar’ for Self-Help Groups (SHGs), ‘Dirghavadhi Krishak Sahakar’ for long-term agricultural credit, ‘Dairy Sahakar’ for dairy cooperatives, and ‘Nandini Sahakar’ for women’s cooperative institutions. In addition, NCDC has undertaken the financing of deep-sea trawlers, while the Ministry has extended support to White Revolution 2.0, thereby reinforcing India’s dairy and fisheries sectors through the cooperative model.
‘Sahkar Taxi’
One of the Ministry’s most recent initiatives is ‘Sahkar Taxi’, envisioned as a cooperative alternative to existing ride-hailing platforms such as Ola, Uber, and Rapido. Since the proposed platform will operate on a membership-based cooperative model, the profits generated will accrue to the member-owners rather than external investors, thereby ensuring equitable distribution of economic benefits.
Strengthening Credit Cooperative Sector
The Ministry has also taken several measures to strengthen the cooperative credit sector by addressing the challenges faced by cooperative banks. It has supported the computerization of Agriculture and Rural Development Banks (ARDBs) as well as the computerization of the offices of the Registrars of Cooperative Societies in States and Union Territories. These initiatives are expected to improve efficiency, transparency, and governance within the cooperative credit system.
Atmanirbharta Abhiyan
Under the Atmanirbharta Abhiyan, the Ministry has launched initiatives to incentivize the production of pulses, particularly tur, masur, and urad, with the objective of reducing India’s dependence on imports. Simultaneously, it has promoted the cultivation of maize for ethanol production to support the Ethanol Blending Programme (EBP) and contribute to the country’s energy security objectives.
Agenda For Future Cooperative Development
While the Ministry has made remarkable progress across multiple dimensions of cooperative development, several important areas still require focused attention. There remains a need to establish a regular national knowledge-sharing system, introduce a CSISAC-type integrated support scheme, give greater emphasis to urban cooperatives, create a national federation of women’s cooperatives, introduce a Share Capital Grant Scheme for weaker cooperative institutions, and actively engage youth in cooperative development. Accordingly, the following initiatives are proposed as part of the future strategic agenda for the Ministry.
Create A National Level Knowledge Sharing Platform like Solutions Exchange of United Nations, India
One of the most important priorities should be the creation of a national-level knowledge-sharing platform on the lines of the United Nations India’s ‘Solution Exchange’. Although knowledge sharing does take place within the cooperative sector, it remains fragmented and largely informal. There is currently no institutional mechanism through which good practices, successful case studies, innovative business models, research findings, policy experiences, training materials, and practical solutions can be systematically exchanged among cooperative practitioners across the country.
The Solution Exchange initiative of the United Nations in India was a unique and highly successful experiment. It created several Communities of Practice (CoPs) comprising practitioners working in diverse sectors such as microfinance, livelihoods, employment, and climate change. The platform served multiple functions, including the creation of a national knowledge repository, facilitating policy improvements, developing training modules, solving field-level problems, identifying appropriate human resources, and promoting collaborative learning. A similar initiative, which may be called the ‘Cooperative Knowledge Exchange’, has immense potential to transform the Indian cooperative sector by creating a vibrant ecosystem of continuous learning, innovation, and problem-solving.
Promote New Age , Need-Based Cooperatives in Urban and Semi-urban Areas
Another important priority for the coming years should be the promotion of new-age, need-based cooperatives in urban and semi-urban areas. As increasing urbanization continues to reshape India’s demographic and economic landscape, there is a growing demand for innovative service-oriented cooperatives that address the needs of urban communities. While India has several successful examples of workers’ cooperatives, such as the coffee workers’ cooperatives and the Dinesh Beedi Workers’ Cooperative, these remain limited in number despite demonstrating the immense potential of the cooperative model.
Similarly, SEWA, Ahmedabad, has successfully promoted workers’ cooperatives engaged in home care, beauty services, cleaning services, and other livelihood activities. These examples illustrate how cooperatives can create sustainable employment while delivering quality services. There is considerable scope for establishing workers’ cooperatives in areas such as elderly care, home healthcare, babysitting, patient care, housekeeping, and other community-based services in every State. Likewise, service cooperatives comprising plumbers, electricians, carpenters, masons, technicians, and other skilled professionals should be promoted throughout the country. A dedicated national-level initiative, supported by an appropriate financial assistance scheme, could significantly accelerate the growth of such need-based cooperatives and generate large-scale employment opportunities.
Bring CSISAC Type Assistance Scheme & Share Capital Grant Scheme for Strengthening Weaker Section Cooperatives
Another important intervention would be the introduction of a CSISAC-type integrated assistance scheme, along with a Share Capital Grant Scheme, for strengthening cooperatives belonging to weaker sections of society. A comprehensive support programme, similar to the erstwhile Central Sector Integrated Scheme on Agricultural Cooperation (CSISAC), is needed to strengthen different sub-sectors of the cooperative movement in an integrated manner.
Special attention should be given to weaker cooperative institutions, including labour cooperatives, fisheries cooperatives, workers’ cooperatives, handloom and handicraft cooperatives, and women-led multipurpose cooperatives, so that they become financially self-reliant and institutionally sustainable. A well-designed Share Capital Grant Scheme can provide the necessary financial foundation for these cooperatives. By strengthening their share capital base, such institutions would be better positioned to obtain working capital from banks and other financial institutions by using their share capital deposits as collateral.
A successful model of share capital assistance already exists in Uttarakhand under the Integrated Livelihood Support Project (ILSP) supported by the International Fund for Agricultural Development (IFAD). Under this initiative, the majority of Self-Help Group (SHG) Federations have been registered under the Self-Reliant Cooperative Act. The project provided a share capital grant of ₹3,600 per member, while each member contributed ₹400 as her own share. As a result, every member held a total share capital of ₹4,000.
Consequently, a cooperative with 500 members accumulated a share capital of nearly ₹20 lakh. These cooperatives invested the share capital in fixed deposits with banks and subsequently obtained business loans by using the fixed deposits as collateral. This innovative approach substantially enhanced their financial credibility and enabled them to expand their business operations at a much faster pace. Several of these cooperatives are now undertaking business activities worth more than ₹1 crore annually. This successful model can be replicated across the country for existing weaker-section cooperatives as well as newly formed cooperatives, provided the Government of India introduces an appropriate Share Capital Grant Scheme to strengthen such institutions.
Creation of a national- level women-based Multi State Cooperative serving as Federation of Cluster Level Federations of Self-Help Groups of various States
Another important initiative that deserves consideration is the creation of a national-level women-based multi-state cooperative serving as a federation of the Cluster Level Federations (CLFs) of Self-Help Groups (SHGs) across different States. According to the latest available data, 9,175,483 Self-Help Groups have been promoted under the Deendayal Antyodaya Yojana–National Rural Livelihoods Mission (DAY-NRLM), covering more than 102.9 million women across India. With approximately 0.65 million villages in the country, as per the 2011 Census, this translates into an average of more than 14 SHGs per village. In addition, more than 19,000 Cluster Level Federations (CLFs) have been established across the country as autonomous, member-managed institutions that provide financial inclusion, market linkages, and capacity-building support to rural women.
A substantial number of these CLFs are registered either under the Cooperative Acts of their respective States or under the Societies Registration Act. Earlier, the Ministry of Rural Development had considered creating a national federation of Cluster, District, and State-level SHG federations. However, with the Ministry of Cooperation now firmly established and playing a central role in strengthening the cooperative movement, the time appears appropriate to establish a national federation of SHG federations in the cooperative framework. Such an institution would strengthen coordination among women’s organizations, facilitate knowledge sharing, improve market access, enhance advocacy, and create a stronger national platform for women’s economic empowerment through cooperatives.
Engage Youth as ‘ Sahkar Mitra’ in Every Cluster of India
Another priority area should be the engagement of young professionals as ‘Sahkar Mitras’ across clusters throughout the country. While the cooperative sector has made considerable progress in training and education, a large number of primary cooperative societies continue to lack timely technical guidance, mentoring, and problem-solving support. The existing cooperative education and training infrastructure, though significant, is still unable to reach many remote and underserved areas. Institutions such as the Regional Institutes of Cooperative Management (RICMs), the Institutes of Cooperative Management (ICMs), and the Junior Cooperative Training Centres (JCTCs) have made valuable contributions; however, large geographical areas remain beyond their effective outreach.
At the same time, many young people across different States who have obtained a Diploma in Cooperative Management continue to seek meaningful employment opportunities. This untapped human resource can be effectively utilized by engaging them as ‘Sahkar Mitras’ (Friends of Cooperatives) to provide grassroots-level support to cooperative societies under the technical guidance of the faculty members of the JCTCs. These young professionals could establish satellite centres equipped with basic infrastructure, including LCD televisions, desktop computers, and internet connectivity, to organize training programmes, facilitate the formation of new cooperatives, provide advisory services, and assist existing cooperatives in resolving operational and managerial challenges. Such an initiative would not only create employment opportunities for trained youth but also significantly strengthen the last-mile delivery of cooperative education, extension services, and institutional support across rural India.
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