The Ministry of Cooperation on Sunday marked its fifth Foundation Day, with Union Home and Cooperation Minister Amit Shah outlining the Centre’s efforts to modernise and expand the cooperative sector through institutional reforms, digitalisation, professionalisation and the creation of new national-level cooperative institutions.
Addressing representatives of cooperative federations, banks, dairy unions, PACS and other stakeholders in New Delhi, Shah said the Ministry has spent the past five years identifying structural challenges in the sector and building a roadmap to make cooperatives more transparent, technology-driven and competitive.
A key focus of the Ministry’s efforts has been strengthening grassroots institutions. According to the Minister, more than 50,000 Primary Agricultural Credit Societies (PACS) have been digitised as e-PACS, while 55,000 PACS are now delivering over 300 citizen services through Common Service Centres. Several PACS have also diversified into activities such as Jan Aushadhi Kendras, fuel retailing, water supply management and agricultural input services.
The Ministry has also built an integrated database covering more than 8.5 lakh cooperative societies and 32 crore members across sectors. The database is expected to support better planning, governance and gap identification by state cooperative departments.
Shah highlighted reforms in the cooperative banking sector, stating that district and urban cooperative banks have adopted digital services, e-KYC and cybersecurity measures. He said the business volume of District Cooperative Banks has increased significantly over the past five years, while non-performing assets have declined, helping improve financial stability and public confidence. The Ministry of Cooperation has taken these initiatives during the last five years.
Another major development has been the creation of new national cooperative institutions in sectors such as exports, organic products, seeds, logistics and mobility. The government believes these institutions can help integrate farmers and cooperatives into larger value chains and improve access to domestic and international markets.
The Minister also emphasised the role of Bharat Beej Sahakari Samiti Limited (BBSSL), which aims to strengthen seed production and distribution through new facilities across states. An MoU between BBSSL and ICAR was signed during the event to support seed system development. Professionalisation emerged as another priority. Shah said Tribhuvan Cooperative University is expected to create a pipeline of trained professionals for cooperative banking, dairy, agriculture, marketing and other sectors, addressing long-standing concerns around management capacity and governance.
Several new initiatives were launched during the programme, including cooperative dairy and cattle-waste management projects, foodgrain storage infrastructure, digital banking platforms for urban cooperative banks and a conversational AI-based support platform.
The announcements reflect the Ministry’s broader strategy of positioning cooperatives as key institutions for rural development, agricultural value addition, financial inclusion and local economic growth as India works toward its 2047 development goals.
