From Vision to Action : How Ministry of Cooperation Is Transforming the Cooperative Movement
New Delhi, India — Established on 6 July 2021, the Ministry of Cooperation marked a landmark shift in India’s policy architecture by providing a dedicated administrative, legal and policy framework to strengthen the cooperative sector—a foundational pillar of the rural and grassroots economy.
Built on the government’s vision of “Sahakar-se-Samriddhi” (Prosperity through Cooperation), the Ministry has, in a relatively short span, taken a series of strategic initiatives aimed at modernising cooperatives, expanding their reach and enabling them to serve as engines of inclusive economic growth.
Genesis and Mandate
The Ministry was carved out of the then Ministry of Agriculture, Cooperation and Farmers Welfare through a Cabinet decision on 6 July 2021. It was tasked with:
- Creating uniform policy and legal frameworks across states and sectors
- Strengthening primary cooperatives and multi-state cooperative societies
- Enhancing ease of doing business for cooperatives nationwide
- Deepening cooperative outreach to villages and underserved regions
- Promoting transparency, governance and digital integration in cooperative operations.
Under its leadership, the Ministry has embarked on an ambitious journey to revitalise the cooperative movement from the grassroots to the apex institutional level.
Major Initiatives Since Inception
Since 2021, the Ministry of Cooperation has launched dozens of targeted programmes and reforms to reinvigorate the cooperative landscape. Official documents and progress reports list more than 50 major initiatives so far, spanning legal reform, digital transformation, institutional strengthening and expansion of cooperative services.
1. Empowering Primary Cooperatives (PACS and Beyond)
One of the Ministry’s earliest actions has been to make Primary Agricultural Credit Societies (PACS) more economically vibrant and inclusive:
- Model Bye-Laws for PACS: The Ministry prepared and circulated new bye-laws to all states/UTs to transform PACS into multipurpose, multidimensional and transparent entities. These Bye-laws allow PACS to undertake more than 25 business activities, improve governance structures, and expand membership representation—including provisions for women and marginalised groups. A majority of states have adopted or aligned with these model bye-laws.
These byelaws allow PACS to undertake more than 25 types of business activities, including dairy and fisheries, establishment of godowns, procurement of foodgrains, fertilizers and seeds, operation of LPG, CNG, petrol & diesel distributorships, provision of short-term and long-term credit, setting up custom hiring centres, running Fair Price Shops (FPS), community irrigation projects, Common Service Centres (CSC), and other allied services.
- Computerisation of PACS: A flagship project with a ₹2,516 crore outlay was approved to link functional PACS across the country to a common ERP-based national software system, improving service delivery, transparency and financial tracking. More than 67,930 PACS from 30 states/UTs have been sanctioned under this effort, with tens of thousands already onboarded onto the digital platform.
- Formation of new Farmer Producer Organizations (FPOs) by PACS: Under the Central Sector Scheme – Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs), National Cooperative Development Corporation (NCDC) is one of the Implementing Agencies designated by the Department of Agriculture and Farmers Welfare (DA&FW), Ministry of Agriculture and Farmers Welfare, Government of India, towards the formation and promotion of FPOs under the Cooperative Societies Act.
2. National Cooperation Policy 2025
In a landmark effort to transform and modernise the cooperative sector, the Government of India unveiled the National Cooperation Policy (NCP) 2025 on 24 July 2025, outlining a bold framework to reorient cooperatives as engines of inclusive, sustainable development.
The policy aligns with the country’s vision of “Sahkar-se-Samriddhi” (Prosperity Through Cooperation) and supports India’s long-term development goals, including the ambition to become a Viksit Bharat (Developed India) by 2047. Read more here.
3. Expansion of Cooperative Coverage
A cornerstone of the Ministry’s agenda is extending cooperative presence to every panchayat and village:
- Multipurpose PACS and Sectoral Cooperatives: Plans are underway to establish approximately 2 lakh new multipurpose PACS, dairy and fishery cooperatives in previously uncovered rural areas over the next five years. These will act as local hubs for credit, procurement, input distribution and allied services, centralising government schemes and economic opportunities through cooperative platforms.
4. Digital Governance and Data Infrastructure
The Ministry has prioritised technology and data-driven governance in cooperatives:
- National Cooperative Database: A unified database of cooperative societies across India is being developed to ensure authentic, real-time data on membership, operations and financials. This resource is designed to improve planning, transparency and accountability across the sector.
- Computerisation Beyond PACS: Registrar offices, cooperative banks and cooperative registries in multiple states are being modernised through digital infrastructure upgrades, reducing paperwork and approval cycle times.
5. Sector-Specific and Institutional Strengthening
The Ministry’s work stretches beyond PACS to multiple sectors and institutional platforms:
- World’s Largest Decentralised Grain Storage Programme: Approved by the Union Cabinet, this initiative leverages cooperative networks to create an expansive, decentralised grain storage infrastructure, enhancing food security and reducing post-harvest losses.
- White Revolution 2.0: The Ministry of Cooperation has launched an initiative to usher Cooperative-led “White Revolution 2.0” aimed at expanding cooperative coverage, employment generation and women’s empowerment with an objective “To increase the milk procurement of dairy cooperatives by 50% from the present level over next five years by providing market access to dairy farmers in uncovered areas and increasing the share of dairy cooperatives in organised sector.”
- National Cooperative Export Limited (NCEL): New national-level cooperative entities have been launched—such as export and organic produce cooperatives—to connect small producers with global markets and unlock new value chains.
- National Cooperative Organics Limited (NCOL: Government has established a new apex multi-state cooperative organic society under the MSCS Act, 2002, namely National Cooperative Organics Limited (NCO) as an umbrella organization to provide institutional support for aggregation, certification, testing, procurement, storage, processing, branding, labelling, packaging, logistic facilities, marketing of organic products and facilitate in arranging financial assistance to the organic farmers through its member Cooperatives including PACS/FPOs along with promotional and developmental activities of organic products with the help of various schemes and agencies of the Government.
- Bharatiya Beej Sahakari Samiti Limited (BBSS): Government has established a new apex multi-state cooperative seed society under the MSCS Act, 2002, namely Bharatiya Beej Sahakari Samiti Limited (BBSSL) as an umbrella organization to focus on production, testing, certification, procurement, processing, storage, branding, labelling and packaging of all two generations of seeds i.e. foundation and certified, through PACS by leveraging various schemes and policies of different ministries of the Government of India. BBSSL has launched its seed under the brand ‘Bharat Beej’.
- Strengthening the Cooperative Banks: Several initiatives have been taken including permission to Urban Cooperative Banks (UCBs) to open new branches to expand their business, reduced priority sector lending (PSL) target, increase housing loan limit etc.
- Income Tax Relief for Cooperatives: Regulatory changes have been introduced to provide fiscal relief to cooperative societies under the Income Tax Act, supporting their financial sustainability.
- Inclusion as Buyers on Government Portals: Cooperatives have been enabled to participate as buyers on platforms like the Government e-Marketplace (GeM), expanding market access and procurement opportunities.
- Establishment of Cooperative University: The Ministry of Cooperation has established a national-level university in the cooperative sector, namely, “Tribhuvan” Sahkari University (TSU), by converting the Institute of Rural Management Anand (IRMA). It has been established and declared as an institution of national importance through an Act of Parliament.
6. Strengthening Financial and Support Mechanisms
The Ministry, in close coordination with institutional partners such as the National Cooperative Development Corporation (NCDC), has expanded access to credit, insurance and technical assistance for cooperative members. Targeted programmes in agricultural credit, dairy support and capacity building have seen increased funding and engagement across states.
Furthermore, national training and outreach programmes for cooperative leaders and practitioners have been launched to enhance governance, auditing, technology use and digital literacy among cooperative functionaries.
According to the Ministry of Cooperation, Government of India, the Ministry has taken 115 initiatives to transform and revolutionize the Indian cooperative sector. You can find out the complete list here.
Also read:
- Cooperative Sector in India
- National Cooperation Policy 2025
- FAQ on National Cooperation Policy 2025
- Top 10 Cooperative Societies in India
- Top 10 Cooperative Banks in India
Sources:
- Ministry of Cooperation, Government of India
- National Cooperative Database
- Press Information Bureau (PIB) releases
- Official policy documents and parliamentary replies
