New Delhi: India’s cooperative movement continues to be one of the world’s largest but govt’s reply in Parliament on Wednesday indicates reveals promising yet challenging situation in the sector. Nearly 38% of all functional cooperative societies in the country are currently running at a loss, underscoring the urgent need for business diversification, institutional reforms and financial strengthening.
Understanding the Cooperative Data
In a written reply to Rajya Sabha MP Sanjay Singh (AAP), Union Home and Cooperation Minister Amit Shah said that as on 15 July 2026, India has 8,53,430 cooperative societies. Of these, 6.63 lakh are functional, 1.41 lakh are non-functional, while 49,177 societies are under liquidation, indicating that almost one in every five registered cooperatives is either inactive or in the process of winding up.
Among the 6.63 lakh functional cooperatives, 3.56 lakh societies are profit-making, while 2.50 lakh are incurring losses. Financial information was not available for 56,689 societies. Excluding societies with unavailable financial data, approximately 58.8% of reporting cooperatives are profitable, whereas 41.2% are loss-making. When measured against the total number of functional societies, nearly 37.7% are operating at a loss, whereas 53.6% are making profit.
Financial Pressure on Cooperatives
The figures point to the financial pressures faced by a substantial section of India’s cooperative institutions, many of which serve farmers, rural communities and small producers. Experts believe that limited business activities, governance challenges, inadequate professional management and changing market conditions continue to affect the long-term viability of many cooperatives.
Initiatives by the Ministry of Cooperation
Recognising these challenges, the Ministry of Cooperation has been pursuing a strategy to strengthen the sector by transforming Primary Agricultural Credit Societies (PACS), dairy cooperatives and fisheries cooperatives into multipurpose cooperative societies. The objective is to diversify business operations, improve revenue streams and enhance financial sustainability, reducing the likelihood of societies becoming dormant or financially distressed.
National Cooperative Database
The National Cooperative Database is also being used to identify regions with inadequate cooperative coverage, facilitating the establishment of new multipurpose cooperatives where needed. In addition, the database is supporting the development of a Cooperative Ranking Framework, aimed at promoting transparency, benchmarking and healthy competition among cooperative institutions.
Revival of Cooperatives
To support revival efforts, the Ministry has established the Co-operative Rehabilitation, Reconstruction and Development Fund under Section 63A of the Multi-State Cooperative Societies (Amendment) Act, 2023. The fund is intended to revive financially weak multi-State cooperative societies and provide assistance for strengthening infrastructure and institutional capacity.
The data was shared by Union Home Minister and Minister of Cooperation Amit Shah in a written reply in the Rajya Sabha, providing one of the most comprehensive snapshots of the health of India’s cooperative sector. While the figures reaffirm the vast reach of the cooperative movement, they also highlight the importance of sustained reforms to ensure that more societies become financially viable and continue contributing to rural development and inclusive economic growth.
