Lok Sabha Question No. 4216 (UNSTARRED), answered on 2025-08-19
Subject: National Cooperative Development Corporation
Ministry: COOPERATION
Asked by: Shri Malvinder Singh Kang

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 4216 TO BE ANSWERED ON 19 th  AUGUST, 2025

## NATIONAL COOPERATIVE DEVELOPMENT CORPORATION

## 4216.  Shri Malvinder Singh Kang :

Will the Minister of COOPERATION ( सहकारिता मंत्री ) be pleased to state:

- (a) the salient features of National Cooperative Development Corporation (NCDC);
- (b) the type of schemes that have been launched under the NCDC so far, year wise; and
- (c) the new  measures/initiatives that have been taken by the Government on the computerization  of  Primary  Agricultural  Cooperative  Societies  (PACS)  across  the  country along with the steps taken thereon ?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

(a): National Cooperative Development Corporation (NCDC) was established in March, 1963, under an Act of Parliament (NCDC Act 1962) and amended in 1974 and 2002. The major objective of the Corporation is to promote, strengthen and develop farmer cooperatives for increasing  production  and  productivity  and  instituting  post  harvest  facilities  with  focus  on programmes  of  agricultural  marketing  and  inputs,  processing,  storage  and  marketing  of agriculture produce and supply seeds, fertilizer and other agricultural inputs etc.

- (b): National Cooperative Development Corporation (NCDC) has been providing financial assistance to the cooperative sectors for the following activities and services:
- a) Marketing
- b) Processing:
- c) Storage:
- d) Cold Chain:
- e) Industrial:
- f) Distribution of essential consumer articles through cooperatives:
- g) Credit & Service Cooperatives/ Notified Services:
- h) Cooperative Banking Unit:
- i) Agricultural Services:
- j) District Plan Schemes:
- k) Weaker Section Cooperatives:
- l) Assistance for Computerization of Cooperatives:
- m) Promotional and Developmental programmes.

In recent years, NCDC has introduced sector-specific schemes and focused products to align  with  the  evolving  needs  of  the  cooperative  sector,  with  special  emphasis  on  women empowerment, digitization of cooperatives, and rural healthcare as under:

1. YUVA SAHAKAR - Cooperative Enterprise Support and Innovation Scheme: The scheme  launched  in  the  financial  year  2019-20  aims  at  encouraging  newly  formed cooperative societies with new and/ or innovative ideas.
2. AYUSHMAN SAHAKAR: The  scheme  launched  in  the  financial  year  2020-21  has  a comprehensive  approach  to  cover  hospitals,  healthcare,  medical  education,  nursing education,  paramedical  education,  health  insurance  and  holistic  health  systems  such  as AYUSH.
3. NANDINI SAHAKAR: The scheme is in operation since financial year 2020-21, which aims to improve the socio-economic status of women and supports the entrepreneurial  dynamism  of  women  through  women's  cooperatives.  It  will  converge critical  inputs  of  women's enterprise, business plan formulation,  capacity development, credit and subsidy, and/ or interest subvention of other schemes.
4. DAIRY SAHAKAR: The scheme launched in the financial year 2021-22  is a cooperative dairy business focused framework of financial assistance for encouraging cooperatives to achieve higher outcomes in ESG (environmental, social, governance) linked activities. It includes the creation of infrastructure by cooperatives for new projects and modernization and/or expansion of existing projects.
5. DIGITAL  SAHAKAR: The  scheme  is  in  operation  since  2021-22  aligned  with  the principles of Digital India, NCDC has conceived a focused financial assistance framework for  Digitally  Empowered  Cooperatives  for  handholding  and  credit  linkage  by  NCDC, dovetailed with grant, subsidy, incentives, etc. from the Government of India / State / UT / agencies with the objective of cooperatives actively partaking in Digital India.
6. SWAYAM SHAKTI SAHAKAR YOJNA: The scheme launched in the financial year 2022-23 for providing NCDC's financial assistance to Agricultural Credit Cooperatives for providing loan/advances to Women Self Help Groups (SHGs) .
7. DEERGHAVADHI KRISHAK PUNJI SAHAKAR YOJNA: The scheme launched in the  financial  year  2022-23  for  extending  NCDC's  long-term  financial  assistance  to Agricultural Credit Cooperatives towards their onward lending of long-term loans/advances for activities/commodities/services under the purview of NCDC .
8. Erstwhile Central Sector Scheme  for Grant in aid to National Cooperative Development Corporation : for Strengthening of Cooperative Sugar Mills (CSMs).
9. Erstwhile Central Sector Integrated Scheme on Agricultural Cooperation (CSISAC) -Assistance to NCDC Programme for Development of Cooperatives.

National  Cooperative  Development  Corporation  also  provides  loan  (Long  term  and short term) from its own funds and subsidy after dovetailing other Central Sector Schemes as detailed below:

- I. Agricultural Marketing Infrastructure (AMI) sub-scheme of Central Sector Integrated Scheme  on  Agriculture  Marketing  (CSISAM)for  Storage  and  other  than  Storage Infrastructure Ministry of Agriculture & Farmer's Welfare.
- II. Mission for Integrated Development of Horticulture (MIDH) -Integrated Post Harvest Management Ministry of Agriculture & Farmer's Welfare.
- III. Interest  Subvention  &  Credit  Guarantee  through  Financing  Facility  under  Agriculture Infrastructure Fund scheme Ministry of Agriculture & Farmers' Welfare.
- IV. Assistance for Boosting the Seed Production component under the Sub-Mission for Seed and Planting Material (SMSP) of the National Mission on Agricultural Extension and Technology (NMAET).
- V. PM Matsya Sampada Yojana (PMMSY) -Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying.
- VI. PM Formalisation of Micro Food Processing Enterprises (PMFME) - Ministry of Food Processing Industries.
- VII. Scheme for Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs) -Ministry of Agriculture & Farmer's Welfare.
- VIII. (1) Pradhan Mantri Kisan Sampada Yojna (PMKSY) -Scheme for Food Processing and Value Addition - Ministry of Food Processing Industries.

(2) Pradhan Mantri Kisan Sampada Yojna (PMKSY) - Integrated Cold Chain and Value Addition Infrastructure Scheme - Ministry of Food Processing Industries.

- IX. National Scheduled Tribes Finance and Development Corporation (NSTFDC) - Ministry of Tribal Affairs.
- X. National Livestock Mission (NLM) and Rashtriya Gokul Mission (RGM) - Department of  Animal  Husbandry  and  Dairying,  Ministry  of  Fisheries,  Animal  Husbandry  & Dairying.
- XI. Re-aligned Animal Husbandry Infrastructure Development Fund (AHIDF) , Ministry of Fisheries, Animal Husbandry & Dairying.

(c): Government of India is implementing this Project of Computerization of functional PACS with a total financial outlay of ₹2,516 Crore which has now been increased upto 2925.39 Crore which entails bringing all the functional PACS onto an ERP (Enterprise Resource Planning) based common national software, linking them with NABARD through State Cooperative Banks (StCBs)  and  District  Central  Cooperative  Banks  (DCCBs).  This  common  ERP  software  is provided to all the PACS in the project, across the country, to capture data on all functionalities of PACS, both credit and non-credit. This software is customizable for state-specific needs.

The ERP-based common national software enhances the efficiency of PACS operations through a Common  Accounting  System (CAS) and  Management Information System (MIS). Additionally,  it  strengthens  governance  and  transparency,  resulting  in  faster  loan  disbursal, reduced  transaction  costs,  minimized  payment  imbalances,  and  seamless  accounting  with DCCBs  and  StCBs.  Furthermore,  training  and  necessary  handholding  support  provided  by NABARD ensures that small and marginal farmers, including those who may not be digitally literate, benefit equally from digitalization.

A  comprehensive  ERP  solution  integrates  multiple  functionalities,  including  membership management, financial services such as deposits and lending (short-term, medium-term, and long-term), procurement,  processing  units, Public Distribution  System  (PDS),  business planning,  warehousing,  merchandising,  borrowings,  asset  management,  and  human  resource management. Additionally, it has provision to incorporate RuPay and Kisan Credit Card (KCC)/ database integrations to facilitate seamless financial transactions for PACS members.

Computerization of PACS  aims  to improve operational efficiency, transparency, and accountability. Key benefits include:

- Speedy disbursal of loans.
- Lowering of transaction costs.
- Reduction in imbalances in payments and seamless accounting with DCCBs and St.CBs.
- Enhanced trustworthiness in the working of PACS among farmers.

PACS are also developed as hubs for delivering benefits from schemes such as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK), Common Service Centres (CSCs), Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJK), interest subvention, fertilizer and seed distribution, Public Distribution System (PDS) outlets, LPG/Petrol/Diesel dealerships, Custom Hiring, etc.. The  Government  has  initiated  steps  to  integrate  the  PACS  ERP  system  with  other  national platforms to streamline agricultural credit and service delivery. These include integration with Pradhan  Mantri  Kisan  Samriddhi  Kendras  (PMKSK),  Common  Service  Centres  (CSCs), Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJK), Kisan Rin Portal etc.

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