Lok Sabha Question No. 377 (UNSTARRED), answered on 2025-12-02
Subject: Financial Health of Cooperative Societies
Ministry: COOPERATION
Asked by: Shri  Chhotelal

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION No. 377 TO BE ANSWERED ON 02 nd  DECEMBER 2025

## Financial Health of Cooperative Societies

## †377. Shri Chhotelal:

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

- (a) whether the Government has taken cognizance of the need to improve the financial condition and enhance the efficiency of cooperative societies in the country; and
- (b) if so, the details thereof along with the efforts being made by the Government to strengthen cooperative societies and ensure transparency in their operations?

## ANSWER

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

(a) and (b): Around one lakh Primary Agricultural Credit Societies (PACS) in the country have traditionally  been  engaged  in  providing  short-term  and  medium-term  credit  along  with  basic agricultural  inputs/  services  to  farmers,  including  seeds,  pesticides,  etc.  The  Ministry  of Cooperation, since its inception on 6th July, 2021, has undertaken several important initiatives to improve  the  financial  condition  of  cooperative  societies,  enhance  their  efficiency,  and  ensure transparency in their functioning, with the vision of 'Sahakar se Samriddhi'. These initiatives aim to strengthen and deepen the cooperative movement from primary to apex level across the country. Further, under the 'w hole of Government' approach, various Government of India schemes are also  converged  at  the  PACS  level.  These  reforms,  supported  by  digital  transformation,  policy convergence  and  structured  monitoring  frameworks,  aim  to  strengthen  cooperatives,  enhance governance,  and  ensure  transparency  across  the  cooperative  sector.  The  details  of  all  such initiatives are enclosed at Annexure .

Further, National Cooperative Development Corporation (NCDC), a statutory corporation under the Ministry of Cooperation, having mandate to promote economic development through cooperative  institutions  plays  a  pivotal  role  in  improving  the  financial  strength  of  cooperative societies by providing timely, affordable and sector-focused credit support for strengthening their capacity in production, processing, storage and marketing activities. NCDC extends short-term and long-term financial assistance -both directly and through State Governments -for agriculture and allied sectors, inputs, post-harvest infrastructure and other notified activities. NCDC since its inception  has  been  providing  financial  assistance  under  its  own  schemes  and  Central  sector Schemes of various Ministries. NCDC has consistently expanded its support through dedicated schemes,  innovative  financial  products  and  targeted  initiatives,  including  those  for  women cooperatives,  youth-led  cooperatives  and  rural  healthcare,  thereby  significantly  enhancing  the financial viability and growth prospects of cooperative institutions nationwide.

As on 25.11.2025, NCDC has made cumulative disbursements of ₹4.67 lakh crore for the development of cooperative institutions across the country of which ₹ 3.15 lakh crore were made in the last five years.

*****

## A. Making Primary Cooperatives economically vibrant and transparent

1. Model  Bye-Laws  for  Primary  Agriculture  Credit  Societies  (PACS),  making  them multipurpose, multidimensional and transparent entities :

Government, in consultation with all the stakeholders, including States/ UTs, National Level Federations, State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), etc., has prepared and circulated Model Bye-laws for PACS to all the States/ UTs, which enable PACS to undertake more than 25 business activities, improve governance, transparency and accountability in their operations. Provisions have also been made to make the membership of PACS  more  inclusive  and  broad-based,  giving  adequate  representation  to  women  and Scheduled Castes/Scheduled Tribes. So far, 32 States/ UTs have adopted Model Bye-laws or their existing bye-laws are in line with Model Bye-laws.

2. Strengthening of PACS through Computerization :

To  strengthen  PACS,  a  project  for  the  Computerization  of  functional  PACS  with  a  total financial  outlay  of  ₹2925.39  Crore  has  been  approved  by  the  Government  of  India,  which entails  bringing  all  functional  PACS  in  the  Country  onto  a  common  ERP-based  national software, linking them  with National Bank  for  Agriculture  and  Rural  Development (NABARD) through StCBs and DCCBs. A total of 79,630 PACS from 31 States/ UTs have been sanctioned under the project. A total of 60,424 PACS have been onboarded on Enterprise Resource Planning (ERP) Software, and hardware has been procured by 30 States/UTs.

3. Establishing  New  Multipurpose  PACS/  Dairy/  Fishery  Cooperatives  to  cover  all  the Panchayats :

The Government of India has approved the plan to establish new multipurpose PACS/dairy/fisheries cooperatives, aiming to cover all panchayats and villages in the country over  the  next  five  years.  This  initiative  is  supported  by  NABARD,  National  Dairy Development Board (NDDB), National Fisheries Development Board (NFDB), and State/UT Governments. As per the National Cooperative Database, a total of 30,083 new PACS, Dairy and  Fishery  Cooperative  Societies  have  been  registered;  and  15,793  Dairy  and  Fisheries Cooperative Societies have been strengthened as on 15.11.2025 across the country since the approval of the plan on 15.2.2023.

4. Launch of Margdarshika/ SOP for Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives in covering all the Panchayats:

To ensure  effective  and  timely  implementation  of  the  plan,  the  Ministry  of  Cooperation  in coordination with NABARD, NDDB and NFDB, has launched a Standard Operating Procedure (Margdarshika) on 19.9.2024, indicating the targets and timelines for all stakeholders concerned

5. World's Largest Decentralized Grain Storage Plan in the Cooperative Sector : Government  has  approved  a  plan  to  create  warehouses,  custom  hiring  centers,  primary

processing  units  and  other  agri-infrastructure  for  grain  storage  at  PACS  level,  through convergence of various  Government  of India (GOI) schemes, including Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Sub Mission on  Agricultural  Mechanization  (SMAM),  Pradhan  Mantri  Formalization  of  Micro  Food Processing Enterprises Scheme (PMFME), etc. This will reduce wastage of food grains and transportation costs, enable farmers to realize better prices for their produce and meet various agricultural needs at the PACS level itself. Under the pilot project, construction of godowns in 11 PACS of 11 States has been completed. Further, under the Extended Pilot, more than 500 PACS across  the  country  have  been  identified  for  the  construction  of  godowns  under  the World's Largest Grain Storage Plan in the Cooperative Sector.

Currently, the State Department of Food and Civil Supplies, National Agricultural Cooperative Marketing  Federation  of  India  Ltd.  (NAFED),  and  National  Cooperative  Consumers Federation  of  India  Limited  (NCCF)  have  given  hiring  assurance  for  godowns  to  be constructed in 220 PACS, and construction work has commenced in 134 PACS, out of which construction completed in 85 PACS (Rajasthan. -70, Maharashtra- 15)

6. Launch of Margdarshika/ SOP for World's Largest Grain Storage Plan in Cooperative Sector :  A  comprehensive Standard Operating Procedure (SOP) 'Margdarshika' has been developed and shared with the States/ UTs for the smooth and uniform implementation of the Plan.  The  Margdarshika  includes:  formation  of  various  committees  under  the  scheme, decisions taken in the Inter-Ministerial Committee (IMC), introduction and benefits of various converged  schemes  under  the  plan,  application  procedure,  phase-wise  implementation flowchart of the grain storage project, expected  outcomes and defined timelines, roles and responsibilities of the Ministry of Cooperation  and  other stakeholders,  Warehousing Development and Regulatory Authority (WDRA) guidelines for the construction of godowns, criteria for the selection of PACS under the scheme.
7. Amendments made under AMI Scheme with regard to World's Largest Grain Storage Plan: Based on the decisions taken in the 2nd IMC meeting of World's Largest Grain Storage Plan in the Cooperative Sector, held on 23.10.2024, the Department of Agriculture and Farmers Welfare has made the following amendments under the AMI scheme:
- To enhance the financial viability of the scheme, the margin money requirement has been reduced from 20% to 10%.
- The construction cost has been revised from ₹3000-3500/MT to ₹7000/MT for plain areas and from ₹4000/MT to ₹8000/MT for northeastern states.
- The subsidy has been increased from 25% to 33.33% (from ₹875/MT to ₹2333/MT for plain areas and from ₹1333.33/MT to ₹2666/MT for northeastern states).
- For PACS, a provision has been made to provide an additional subsidy of 1/3 (one third) of the total admissible subsidy for ancillary infrastructure such as internal roads, weighbridges, boundary walls, etc..
8. Developments  pertaining  to  FCI  regarding  identification  and  issuance  of  Hiring Assurance to Godowns under the World's Largest Grain Storage Plan in the Cooperative Sector:

Based  on  the  decisions  taken  in  the  meeting  held  on  2.6.2025  under  the  chairmanship  of Hon'ble Home and Cooperation Minister, Food Corporation of India (FCI) has been entrusted to identify PACS, provide hiring assurance, and ensure the annual hiring of these warehouses. The following progress has been made:

- In Phase I, FCI has identified 216 potential locations for hiring of godowns of 2500 MT and above (1671 MT and above for North Eastern and Hilly areas)
- About 26.03 LMT Storage requirement has been mapped by FCI in these potential 216 locations in 18 States /UTs

## 9. PACS as Common Service Centers (CSCs) for better access to e-services :

An MoU has been signed between the Ministry of Cooperation, Ministry of Electronics and Information Technology (MeitY), NABARD, and CSC e-Governance Services India Limited for  providing  more  than  300  e-services  such  as  banking,  insurance,  Aadhar  enrolment/ updation, health services, PAN card, and IRCTC/ Bus/ Air ticket, etc., through PACS. So far, 51,183 PACS have started providing CSC services to rural citizens.

10. 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. The target for the formation and promotion of 746  FPOs  was  assigned  by  DA&FW  to  NCDC,  and  NCDC  registered  746  FPOs  in  the cooperative sector.

Thereafter, with the initiative of Ministry of Cooperation, Government of India, additional target  of  Farmer  Producer  Organizations  (FPOs)  was  allocated  to  NCDC  by  Ministry  of Agriculture and Farmers Welfare, GoI, for formation and promotion of FPOs in cooperative sector through strengthening of PACS under the scheme and NCDC got target of 1117 FPOs and registered/onboarded 1117 FPOs through the members of PACS. This will help provide farmers  with  necessary  market  linkages  and  get  fair  and  remunerative  process  for  their produce.

NCDC  has  disbursed  ₹190  crore  to  FPOs/ Cluster-Based Business  Organizations  (CBBOs) under the scheme.

11. PACS given priority for Retail Petrol/ Diesel outlets : The Government has allowed PACS to be included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets. As per information received from Oil Marketing Companies (OMCs), 394 PACS from 28 States/UTs have applied online for retail petrol/ diesel outlets.
12. PACS permitted to convert bulk consumer petrol pumps into retail outlets : The existing bulk consumer licensee PACS have been given a one-time option by Oil Marketing Companies to convert into retail outlets. As per information shared by OMCs, 117 wholesale consumer pump licensee PACS from 5 States have given consent for conversion into Retail Outlets, out of which 59 PACS have been commissioned by the OMCs.
13. PACS eligible for LPG Distributorship for diversifying its activities : The Government has now allowed PACS to apply for LPG Distributorships. This will give PACS an option to increase their economic activities and diversify their income stream.
14. PACS as PM Bharatiya Jan Aushadhi Kendra for improving access to generic medicines at the rural level : PACS have been allowed to operate Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs), which will provide an additional income source to them and ease the access to quality generic medicines for rural citizens. So far, 4,183 PACS/ cooperative societies have applied online for PMBJKs, out of which 4,169 PACS have been given initial approval by  the  Pharmaceutical  &  Medical  Devices  Bureau  of  India  (PMBI),  and  799  PACS  have received store codes from PMBI, which are ready to function as PM Bhartiya Jan Aushadhi Kendras.
15. PACS as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK): PACS have been enabled to operate PMKSK for ensuring easy accessibility of fertilizer & related services to farmers in the country. As per the information shared by the Department of Fertilizers (GOI) and States/ UTs, a total of 38,330 PACS are functioning as PMKSK.
16. PACS to carry out O&M of rural piped water supply schemes (PWS) : PACS have been made eligible to carry out the Operations & Maintenance (O&M) of PWS in rural areas. As per information received from States/ UTs, 763 PACS have been identified/ selected by 11 States/ UTs to provide O&M services at the Panchayat/ Village level.
17. Convergence of PM-KUSUM at PACS level : Farmers associated with PACS can adopt solar agricultural water pumps and install photovoltaic modules in their farms.
18. Convergence of PM Surya Ghar - Muft Bijli Yojana (PMSG-MBY) at the Cooperative Societies level: The initiative seeks to accelerate the adoption of clean and low-cost rooftop solar energy while leveraging the extensive grassroots presence of cooperative societies. 100 towns have been shortlisted for focused implementation of this initiative.
19. Micro-ATMs  to  Bank  Mitra  Cooperative  Societies  for  providing  doorstep  financial services : Dairy and Fisheries cooperative societies can be made Bank Mitras of DCCBs and StCBs. To ensure their ease of doing business, transparency and financial inclusion, MicroATMs are also being given to these Bank Mitra Co-operative Societies with support from NABARD to provide 'Door-step Financial Services'. To facilitate effective implementation of the initiative, an SOP has been launched on 19 th  September 2024. So far, 12,580 Micro-ATMs have been distributed to Bank Mitra cooperative societies in Gujarat.
20. Rupay Kisan Credit Card to Members of Milk Cooperatives :  To  expand  the  reach  of DCCBs/  StCBs  and  to  provide  necessary  liquidity  to  the  members  of  Dairy  Cooperative societies,  Rupay  Kisan  Credit  Cards  (KCCs)  are  being  distributed  to  the  members  of cooperatives for providing credit at comparatively lower interest rates and to enable them to carry out other financial transactions. To facilitate effective implementation of the initiative, an SOP has been launched on 19 th  September 2024. So far, 16,44,624 Rupay KCC have been distributed in the State of Gujarat.
21. Formation of Fish Farmer Producer Organization (FFPO): To provide market linkage and processing facilities to fishermen, NCDC registered 70 FFPOs in the initial phase. In addition, the  Department  of  Fisheries,  Government  of  India,  allocated  the  work  of  converting  1000 existing fisheries cooperative societies into FFPOs to the National Cooperative Development Corporation.  National  Cooperative  Development  Corporation  has  identified  1000  Primary Fisheries Cooperatives Societies to strengthen as FFPOs, with an approved outlay of Rs 280.65 crore. A business plan for the selected societies is being prepared by the CBBOs. NCDC has disbursed ₹98 crore to FPOs/CBBOs under the scheme.
22. White  Revolution  2.0 :  The  Ministry  of  Cooperation  has  launched  an  initiative  to  usher Cooperativeled "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."  The  SOP  for  White  Revolution  2.0  was  launched  on 19.09.2024 by Hon'ble Home & Cooperation Minister in the presence of Hon'ble Minister of Fisheries, Animal Husbandry and Dairying. On 25.12.2024, the Hon'ble Home & Cooperation Minister,  in  the  presence  of  the  Hon'ble  Minister  of  Fisheries,  Animal  Husbandry  and Dairying, inaugurated 6,600 newly set up Dairy Cooperative Societies. So far, 20,070 DCSs have been registered in 31 states/UTs.
23. Atmanirbharta Abhiyan : Ministry of Cooperation has launched the initiative to incentivize production of pulses (tur, masur and urad) to reduce dependency on imports, and production of  maize  to  be  used  for  production  of  ethanol  for  meeting  the  goal  of  Ethanol  Blending Programme (EBP) through National Cooperative Consumer Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED). Both have developed their own  web  portal,  i.e.  e-samyukti  and  e-samridhi,  respectively,  for  registration  of  farmers through cooperatives. Both have assured pre-registered farmers of tur, urad, masur and maize to procure 100% of their produce at Minimum Support Price (MSP). However, if market prices exceed the MSP, farmers are free to sell their produce in the open market. A total of 42,03,230 farmers  have  already  registered  on  the  e-samyukti  portal  of  NCCF.  Similarly,  12,24,149 farmers have registered themselves on the e-samridhi portal of NAFED.

## B. Strengthening the Cooperative Banks

24. Urban Cooperative Banks (UCBs) have been allowed to open new branches to expand their business: UCBs can now open new branches up to 10% (maximum 5 branches) of the existing number of branches in the previous financial year without prior approval of the RBI.
25. UCBs  have  been  allowed  by  the  RBI  to  offer  doorstep  services  to  their  customers: Doorstep banking facility can now be provided by UCBs. Account holders of these banks can now avail various banking facilities at home, such as cash  withdrawal,  cash deposit, KYC, demand draft, and life certificate for pensioners, etc.
26. Notification of Scheduling norms for including Urban Cooperative Banks: UCBs  that  meet  the  'Financially  Sound  and  Well  Managed'  (FSWM)  criteria  and  have maintained the minimum deposits required for classification as Tier 3 for the last two years are now eligible to be included in Schedule II of the Reserve Bank of India Act, 1934 and get 'Scheduled' status.
27. A Nodal Officer designated in RBI for regular interaction with UCBs: To meet the longpending demand of the cooperative sector for closer coordination and focused interaction, RBI has notified a nodal officer.
28. Relief  for  Urban  Cooperative  Societies  (UCBs)  by  reducing  PSL  target  from  75%  to 60%: RBI had increased the priority sector lending (PSL) target for UCBs to 75%, due to which UCBs were facing a lot of constraints. Now the target for UCBs has been reduced from 75% to 60%, which gives a lot of relief to these banks.
29. Housing loan limit for Urban Cooperative Banks increased from 10% to 25%: Housing loan limit for members of Urban Cooperative Banks has been increased from 10% of assets to 25% (up to Rs 3 crore) of their total loans & advances.
30. Relief in sub-limit of 12% sublimit (weaker sections) by withdrawing of target of ₹ 2 lakh for women loan repayment: Removal of the target of ₹2 lakh for women borrowers under the 12% sub-limit for weaker sections simplifies PSL compliance and provides UCBs greater operational freedom in meeting PSL obligations.
31. Relief to Urban Cooperative Institutions by increasing 50% loan limit from ₹ 1 crore to ₹ 3 crore: The loan and advances exposure limit for Urban Cooperative Banks (UCBs) at 50% of loans and advances has been increased from ₹1 crore to ₹3 crore, which helps them meet the higher credit demands of individual borrowers, supports business growth and improves their competitiveness in the retail and SME lending segments.
32. Monetary ceiling doubled by RBI for Gold Loan: RBI has doubled the monetary ceiling from Rs. 2 lakhs to Rs.4 lakhs, for those UCBs that meet the PSL targets.
33. Umbrella Organization for Urban Cooperative Banks: RBI has accorded approval to the National Federation of Urban Co-operative Banks and Credit Societies Ltd. (NAFCUB) for

the formation of an Umbrella Organization (UO) for the UCB sector, which aims to provide necessary IT infrastructure and operational support to around 1,500 UCBs.

34. RBI extended the glide path for Security Receipts from FY 2025-26 to FY 2027-28: RBI, vide circular dated 24.02.2025, has provided an additional two years for provisioning of nonperforming assets through Asset Reconstruction Company for better management of capital and  liquidity  in  urban  co-operative  banks  so  that  these  banks  can  minimize  the  losses  on stressed assets.
35. Cooperative banks have been allowed to make one-time settlement of outstanding loans, like  Commercial  Banks: Co-operative  banks,  through  board-approved  policies,  can  now provide the process for settlement with borrowers, along with technical write-off.
36. Higher Housing Loan Limits: Reserve Bank of India has increased the individual housing loan limit for rural co-operative banks by two and a half times to Rs. 75 lakh and enabled them to lend to real estate up to 5% of total exposure.
37. License  fee  reduced  for  Cooperative  Banks  for  AePS: License  fee  for  onboarding Cooperative Banks to 'Aadhaar Enabled Payment System' (AePS) has been reduced by linking it to the number of transactions. Cooperative financial institutions are now to get the facility free of cost for the first three months of the pre-production phase. With this, farmer members of  onboarded  Banks  are  now  able  to  get  the  facility  of  banking  at  their  home  through biometrics.  Also,  the  Unique  Identification  Authority  of  India  (UIDAI)  has  simplified  the framework to onboard STCBs and DCCBs.
38. UIDAI on 01.08.2025 has introduced  a new framework for onboarding of Cooperative Banks on the Aadhaar Enabled Payment System (AePS) . Now, only StCBs are required to onboard as Authentication User Agencies (AUA)/eKYC User Agencies (KUA); DCCBs will be allowed to use it through State Cooperative Bank as sub AUA/KUA.
39. Non-scheduled UCBs, StCBs, and DCCBs notified as Member Lending Institutions (MLIs) in the CGTMSE Scheme to increase the share of cooperatives in lending: Cooperative banks are now  able  to  take  advantage  of  risk  coverage  up  to  85  percent  on  the  loans  given.  Also, cooperative sector enterprises are able to get collateral-free loans from cooperative banks now. CGTMSE rationalized the eligibility criteria from 5% Gross NPA or less to 7% Gross NPA or less for registration of Cooperative Banks as Member Lending Institutions (MLIs) under the Credit Guarantee Scheme (CGS)
40. Banking Regulation Act is amended by the Government to make the term of the Board of Directors of Cooperative Banks as per the constitution (maximum 10 consecutive years).
41. Limit for Agricultural Cooperative Societies (Dairy) under Priority Sector Guidelines increased from ₹5 crore to ₹10 crore: RBI has increased the priority sector lending limit for Agricultural Cooperative Societies (Dairy) from ₹5 crore to ₹10 crore vide Master Direction

dated 24.03.2025. This move enables banks to provide more credit support to Agricultural Cooperative Societies (Dairy), thereby strengthening agricultural infrastructure and boosting rural credit flow.

42. Sahakar  Sarathi  (Shared  Service  Entity): To  provide  technological  services  to  Rural Cooperative Banks (RCBs) and for their strengthening, RBI has given approval to NABARD for setting up of Sahakar Sarathi (Shared Service Entity).
43. The Ministry has constituted a Task Force under NAFCUB on 'Transformation of Urban Cooperative Banks and Cooperative Credit Societies' . The task force has submitted three reports.
44. On the request of the Ministry, NABARD has submitted a report on Reforms, Restructuring and innovation in Agriculture and Rural Development Banks (ARDBs).
45. The  Ministry  has  completed a  detailed  study  through  IRMA  for  National  Cooperative Agriculture & Rural Development Banks' Federation Ltd. (NAFCARD), resulting in an approved Action Plan that guides lending expansion, promotes non-farm sector activities, and strengthens cooperative governance.
46. The Ministry has completed a strategic study to elevate NAFSCOB's role in Amrit Kaal (2022 -2047). It outlines reforms for cooperative credit, digital integration, financial service diversification,  and  institutional  strengthening.  With  emphasis  on  governance,  state-level capacity  building,  and  inclusive  outreach,  the  roadmap  positions  NAFSCOB  to  lead cooperative banking and drive sustainable rural development across India.
47. RBI  vide  its  Notification  dated  07.10.2025,  has  included  rural  cooperative  banks  in  its Integrated Ombudsman Scheme. This will bring more transparency and accountability to the functions of rural cooperative banks.

## C. Relief to Cooperative Societies in the Income Tax Act

48. Surcharge reduced from 12% to 7% for co-operative societies having income between Rs. 1 to 10 Cr.: This will reduce the burden of Income Tax on Cooperative Societies and more capital will be available with them to work for the benefit of their members.
49. MAT reduced for cooperatives from 18.5% to 15%: With this provision, now there is parity between Cooperative Societies and Companies in this regard.
50. Relief  in  cash  transactions  under  section  269ST  of  the  Income  Tax  Act: To  remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act, Government has issued a clarification that cash transaction of less than Rs. 2 lakhs done by a cooperative society with its distributor in a day will be considered separately, and will not be charged with income tax penalty.
51. Tax cut for new manufacturing Cooperative societies: The Government has decided that a flat  lower  tax  rate  of  15%  will  be  charged,  compared  to  an  earlier  rate  of  up  to  30%  plus surcharge, for new cooperatives commencing manufacturing activities by March 31, 2024. This will encourage the formation of new cooperative societies in the manufacturing sector.
52. Increase  in  limit  of  Cash  Deposits  and  Payments  by  PACS  and  PCARDBs: The Government has enhanced the limit for Cash Deposits and Payments by PACS and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) from Rs. 20,000 to Rs. 2 lakh  per  member.  This  provision  will  facilitate  their  activities,  increase  their  business  and benefit members of their societies.
53. Increase in limit of Loan and Loan Repayments in Cash by PACS and PCARDBs: The Government has enhanced the limit for Loan and Loan Repayments in Cash by PACS and Primary Cooperative Agriculture and Rural Development Banks (PCARDBs) from Rs. 20,000 to Rs. 2 lakh per member. This provision will facilitate their activities, increase their business and benefit members of their societies.
- D. Revival of Cooperative Sugar Mills
54. Relief from Income Tax to Sugar Cooperative Mills :

The Government has issued a clarification that cooperative sugar mills would not be subjected to  additional  income  tax  for  paying  higher  sugarcane  prices  to  farmers  up  to  Fair  and Remunerative or State Advised Price, from April 2016 onwards.

55. Resolution of decades-old pending issues related to Income Tax of Sugar Cooperative Mills :  The Government has made a provision in its Union Budget 2023-24, wherein Sugar cooperatives have been allowed to claim as expenditure their payments to sugarcane farmers for the period before the assessment year 2016 -17, giving them a relief of more than Rs.46,000 crore.
56. Rs.10,000  crore  loan  scheme  for  strengthening  of  Sugar  Cooperative  Mills :  The Government launched a scheme through NCDC for setting up ethanol plants or cogeneration plants or for working capital or for all three purposes. The Ministry has released Rs.1000 crore to NCDC (Rs.500 crore in FY 2022-23 and Rs.500 crore in FY 2024-25) under the scheme and NCDC has released Rs.10,005 crore to 56 CSMs.
57. Preference to Cooperative Sugar Mills in purchase of ethanol :  Cooperative Sugar Mills have now been put at par with private companies for ethanol procurement by the Government of India under the Ethanol Blending Programme (EBP).
58. Strengthening of Cooperative Sugar Mills by converting their molasses-based ethanol plants into multi-feed ethanol plants:

Ministry of Cooperation has taken the initiative in consultation with the National Federation of Cooperative Sugar Factories Ltd. (NFCSFL) for the conversion of existing molasses-based ethanol plants of CSMs into multi-feed ethanol plants. The Cooperative Sugar Mills (CSMs) also produce ethanol from molasses and sugar syrup by installing ethanol production plants. However, the availability of raw material, i.e., molasses and sugar syrup for production of ethanol, is limited by many factors, viz, Government Policy on diversion of sugarcane syrup, B heavy molasses for production of ethanol, and duration of sugar cane crushing season and availability of sugarcane depending on rainfall, etc. On account of these limiting factors, the CSMs having ethanol plants are not able to operate them at full capacity throughout the year. The Government of India has prioritized maize for the production of ethanol; therefore, it is prudent for CSMs to convert their existing ethanol production units into multi-feed ethanol production units so that they are able to produce ethanol by using maize as raw material. While NCDC has agreed to provide a loan for this purpose, DFPD has launched a scheme exclusively for cooperative sugar mills to provide interest subvention at the rate of 6% per annum or 50% of the actual interest, whichever is lower, for a period of 5 years on their loan. Further, OMCs shall  give  Priority-1  to  CSMs,  who  will  benefit  from  the  Interest  Subvention  Scheme,  for ethanol procurement, enabling transition from single feedstock to multi-feedstock.

59. Reduction in GST on molasses from 28% to 5%: The Government has decided to reduce the GST on molasses from 28% to 5% which will enable cooperative sugar mills to earn more profits for their members by selling molasses to distilleries with higher margins.

## 60. Revival of closed Cooperative Sugar Mills:

Indian  Potash  Limited,  on  the  suggestions  of  the  Ministry  of  Cooperation,  has  taken  an initiative for the revival of closed Cooperative Sugar Mills. On 08.03.2025, Hon'ble Home and Cooperation  Minister performed  the 'Bhoomi  Pujan'  ceremony  for  the  revival and modernization of Shri Bileshwar Khand Udyog Khedut Sahakari Mandali Ltd., Kodinar and Shri Talala Taluka Sahakari Khand Udhyog Mandali Ltd., Talala. In addition to this, IPL is also taking steps for the revival of Shri Valsad Sahakari Khand Udhyog Mandali, Ltd., Valsad. These steps will benefit thousands of farmers of the area where the above cooperative Sugar Mills are located.

## E. Three new National Level Multi-State Societies

## 61. New National Multi-State Cooperative Seed Society for certified seeds:

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 bra nd 'Bharat Beej'.  So far, 31,605 PACS/ Cooperative Societies have become members of BBSSL

## 62. New National Multi-State Cooperative Organic Society for organic farming :

Government  has  established  a  new  apex  multi-state  cooperative  organic  society  under  the MSCS Act, 2002, namely National Cooperative Organics Limited (NCOL) 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. So far, 10,035 PACS/ cooperative societies have become members of NCOL. NCOL has launched its products under the brand name of 'Bharat Organics'. So far  28 organic products (Arhar Dal, Brown Chana, Chana Dal, Kabuli Chana, Masoor Malka, Masoor Split, Masoor Whole, Moong Dhuli, Moong Split, Moong Whole, Rajma Chitra, Urad Dal, Urad Gota, Urad Split, Urad Whole, Wheat Atta, Jaggery Cube, Jaggery Powder, Brown Sugar, Khandsari Sugar, Coriander Powder, Turmeric Powder, Fenugreek, Coriander Whole, Apple Cider  Vinegar,  Organic  Goan  Cashews,  Organic  Kashmiri  Almonds,  Organic  Kashmiri Walnuts) under Bharat Organics brand are available in Delhi-NCR. Bharat Organics products are 100% batch tested for 245+ pesticides in accredited laboratories.

## 63. New National Multi-State Cooperative Export Society for promoting exports :

Government has established a new apex multi-state cooperative export society under the Multi State Cooperative Societies (MSCS) Act, 2002, namely National Cooperative Export Limited (NCEL) as an umbrella organization to focus on exporting the surpluses available in the Indian cooperative  sector  by  accessing  wider  markets  beyond  the  geographical  contours  of  the country, thereby, increasing the demand of Indian Cooperative products/services across the globe and fetch best possible prices for such products/services. It will promote exports through various activities, including procurement, storage, processing, marketing, branding, labelling, packaging, certification, research and development, etc, and trading of all types of goods and services produced by cooperative societies. So far, 13,848 PACS/ cooperative societies have become members of NCEL. NCEL has so far exported approximately 13.09 LMT of Agri commodities like Rice, Wheat, Maize, Sugar, Onion, Cumin seed, etc., worth Rs. 5,397 Crore. During the financial year 2023-24, a dividend of 20% was provided by NCEL to its member cooperatives.

## 64. Establishment of Beej Anusandhan Kendra (BAK):

Hon'ble Home and Cooperation Minister on 6th April 2025 laid the foundation stone for the Beej  Anusandhan  Kendra,  a  state-of-theart research center in Kalol, Gujarat.  'Beej Anusandhan Kendra' will play a pivotal role in enhancing farmers' economic prosper ity while also actively promoting innovation and inclusive growth in the agriculture sector. International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), the Indian Farmers Fertiliser Cooperative  Limited  (IFFCO),  and  Bhartiya  Beej  Sahkari  Samiti  Limited  (BBSSL)  have formally entered into a Tripartite Service Agreement on 3rd June 2025 to establish the Beej Anusandhan Kendra.

65. Initiative to set up tissue culture facilities for Bananas: Due to the availability of bananas throughout the year, affordability, taste, nutritional value, and medicinal properties, bananas

are in high demand both domestically and internationally, with significant export potential. Bharatiya Beej Sahakari Limited (BBSSL) has decided to set up  a Tissue Culture Facility (TCF) for banana in the States of Andhra Pradesh, Maharashtra and Uttar Pradesh. Through these facilities, BBSSL will maintain 'true to the type' mother plants, produce tissue -cultured banana saplings/plantlets and distribute 100% disease-free saplings/plantlets to farmers. This will ensure high-quality planting materials are available to farmers and that sustainable growth in their income is ensured.

66. Initiative to conserve and preserve traditional natural seeds: Growing interest of farmers towards  chemical-free  Indian  traditional  natural  farming  methods,  in  all  likelihood,  will increase the demand for traditional natural seeds. Therefore, concerted effort is required for the conservation, reproduction, and promotion of these seeds. "Bhartiya Beej Sahakari Samiti Limited (BBSSL)" has taken the initiative to identify natural seeds of indigenous plant variants, including but not restricted to seeds of food grain, vegetables, fruits, etc., and to develop a system for their preservation, conservation, breeding, production, distribution, promotion, and all other activities needed. State Governments and Technical institutions engaged in the area of  promotion  of  natural  indigenous  seeds  have  been  requested  to  provide  every  possible administrative, institutional, and technical support to BBSSL to advance this important work at the national level.

## C. Capacity Building in Cooperatives

## 67. 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.

In this regard, 'Tribhuvan' Sahkari University Bill, 2025 was passed by the Lok Sabha and Rajya Sabha on 26th March,2025 and 1 st April,2025 respectively. Thereafter, assent was also obtained  from  the  Hon'ble  President  on  the  bill  on  3rd  April  2025.  Further,  the  Gazette notification for commencement of the Act and for establishment of the university was issued on 4th April, 2025, establishing the university w.e.f. 6th April 2025.

Since  the  University  was  established  after  converting  an  existing  institute,  it  has  become functional immediately. Further, the appointment of the officiating Vice-Chancellor, Registrar & Finance Officer has been made. The Governing Board of the University and the Executive Council have also been constituted, and Statutes of the University have been notified by the Ministry. Ordinances of the University have also been notified by the TSU.

Moreover, the land for the construction of additional infrastructure has also been allotted by the Government of Gujarat on a lease basis for 50 years, and the foundation stone laying has also been done for the new building of the University on 5 th July 2025.

TSU  has  launched  three  new  MBA  programs  (Agribusiness  Management,  Cooperative Management & Cooperative Banking & Finance) from the current academic year.

Regarding  the  affiliation  with  the  University,  seven  institutes,  including  Vaikunth  Mehta National Institute of Cooperative Management (VAMNICOM) Pune, have been affiliated, and over 22 applications are currently under review by the University.

VAMNICOM has got provisional Institutional Affiliation and Provisional Course Affiliation has been received by ICM, Jaipur, RICM, Chandigarh and ICM Imphal. Further, RICM, Gandhinagar, Patna and Madurai applied for course affiliation and waiting for the approval from TSU. Remaining Institutes also propose to apply for affiliation in next Academic Year.

68. The Ministry has completed a comprehensive national-level study on the National Labour Cooperative Federation (NLCF) through AFC India Ltd., generating strategic recommendations to reposition NLCF as a business-driven entity with improved infrastructure, diversified services, and robust training initiatives.
69. The  Ministry  has  completed  an  Impact  Assessment  Study  to  evaluate  the  effectiveness  of measures  undertaken  by  the  Ministry,  generating  actionable  insights  to  further  enhance cooperative sector resilience and inclusivity through LINAC.
70. The Ministry of Cooperation has commissioned a strategic study to assess NCUI's (National Cooperative Union of India) growth potential during Amrit Kaal (2022 -2047). Conducted by Agricultural Finance Corporation (AFC) India Ltd., the study aims to ensure compliance with Section 24 of the MSCS Act, modernize cooperative education, develop a 25-year growth roadmap, and strengthen NCUI's governance, outreach, training infrastructure,  and  role  in cooperative sector development nationwide.
71. The Ministry of Cooperation has launched a national study through AFC India Ltd. to boost FISHCOPFED's (National Federation of Fishers Coop. Ltd) business growth during Amrit Kaal (2022 -2047). It aims to achieve 25% growth via diversification, governance reforms, digital outreach, and cooperative strengthening. Covering six states and multiple stakeholder levels, the study will generate strategic plans to modernize fisheries cooperatives and enhance their socio-economic impact nationwide.

## 72. Special Module on Cooperatives in India:

Under the guidance of the Ministry of Cooperation, and in consultation  with  the  National Council of Educational Research and Training (NCERT), the National Council for Cooperative Training (NCCT) has designed and prepared a Special Module on Cooperation which aims to bring awareness among school students about the role of cooperatives in nation building so that  they  are  encouraged  to  choose  cooperatives  as  a  career.  The  Special  Module  will  be introduced for the Secondary stage students of NCERT Schools.

## 73. Cooperatives in Schools:

NCERT has included a chapter on cooperatives for Class 6 in its school curriculum, under persuasion by NCCT with the direction of the Ministry of Cooperation, which helps the class students to be aware of the cooperative movement in brief.

On the directions of the MoC, the NCCT has constituted a Committee for development of NEP aligned, age appropriate, grade specific Special Modules on Cooperation for the students of Class VI to X.

74. Strengthening of Finance: A new Object Head 'Grants -inAid General' for NCCT has been opened by the Ministry of Cooperation, which will enable NCCT to continue crucial work in Cooperative  Training  and  Education  to  fulfill  the  mission  of  strengthening  cooperation. Earlier, most of the funds for training purposes were met out of the Training and Development Fund  (TDF),  which  is  meant  for  meeting  the  liabilities  on  repair  and  infrastructure development.  Since this was not feasible in the long run, opening of new head will ease the pressure on the TDF Fund and it will be available for the purposes it is meant.
75. Constitution of Building Sub-Committee for each Institute of NCCT to ensure timely Building infrastructure Development.
76. Utilisation of Training Development Fund/ Building Fund: Sanction accorded to various Institutes  to  utilise  their  Training  Development  Fund/  Building  Fund  for  the  purpose  of renovation / Repair of Building infrastructure and purchase of Fixed Assets (office equipment, etc).
77. A new 3-storied International Hostel has been added to the existing infrastructure at Vaikunth Mehta National Institute of Cooperative Management (VAMNICOM) with a capacity of 50 twin-sharing rooms for participants and 3 no. of VIP suites. The hostel also has a Kitchen, a Dining Hall, a Reading room, a classroom of 50 capacity, a discussion room, a gymnasium and an office space. This building has been constructed out of the Capital Grant of Rs.30 crore received from the Ministry of Cooperation, Govt. of India.

## 78. New Course:

VAMNICOM  has  initiated  to  launch  of  a  new  programme,  PGDM-Cooperation,  for  the Academic year 2025, affiliated to AICTE, New Delhi, with an intake capacity of 30 students. The GD (Group Discussion) and PI (Personal Interview) of the programme are scheduled to be held on 20th July 2025 at VAMNICOM, Pune.

## 79. Pilot Project -comprehensive training for PACS :

Pilot Project was undertaken for the training of Members, Board of Directors, Chief Executive Officers/ Secretaries of PACS in four districts of four states, namely: Una (Himachal Pradesh), Jodhpur  (Rajasthan),  Sambalpur  (Odisha),  and  Theni  (Tamil  Nadu).    The  contents  of  the training included topics like concept and benefits of cooperatives, roles and responsibilities of the above-mentioned categories of cooperative personnel, Model Bye-Laws with opportunities for business diversification, etc. Under the project, a total of 85,219 participants belonging to 284 PACS were trained in 4 States. Wide publicity was given by posting the photographs and content on all social media platforms.

## 80. Training Programme for PACS for CSC Portal:

NCCT, in collaboration with CSC e-Governance Services India Limited, conducted Training Programmes  for  PACS  on-boarded  into  the  CSC  Portal.  The  objective  of  the  Training programmes was to train the Secretaries/ Computer operators of 30,000 PACS for diversifying the business activities of Primary Agricultural Cooperative Societies through 300 Services of the  CSC  portal.  A  total  of  648  programmes  were  conducted  and  trained  30210  PACS participants from 564 districts spread across 25 states.

Recently, a meeting was taken by Secretary, MoC, in which it was decided that the CSC in collaboration with the NCCT may undertake another training project for activation of 9007 PACS already  on-boarded  on  CSC  Portal  and  also  training  of  15548  PACS  for  their  onboarding on the CSC Portal.

The initiative is at discussion stage with CSC, identification of PACS is under way and other modalities of training programmes are being worked out in consultation with CSC.

## 81. Training Programme for Newly Established Multi-Purpose Cooperative Societies:

During July 2025, the NCCT started conducting the training programmes for newly established M-PACS at the direction of the Ministry. As of 20.06.2025, a total of 22283 MPCS have been established in the country (As per the NCD Portal), all of which may be covered for training purposes.

As on 31.10.2025, a total of 153 training programmes have been conducted in which 6817 participants have been trained.

## 82. Capacity Building and Training Programmes under PMFBY/ RWBCIS:

A  Memorandum  of  Understanding  (MoU)  was  signed  between  the  National  Council  for Cooperative  Training  (NCCT)  and  the  Crop  Insurance  Division  of  the  Department  of Agriculture and Farmers Welfare, Ministry of Agriculture and Farmers Welfare (MoA&FW), GoI, New Delhi, on 20.01.2025.  The objective of the MoU is to enable a larger ecosystem for creating a capacity-building and knowledge management framework under Pradhan Mantri Fasal  Bima  Yojana (PMFBY)/  Restructured Weather-Based Crop Insurance  Scheme (RWBCIS)  Schemes.    Accordingly,  NCCT  has  submitted  a  proposal  to  MoA&FW  for conducting 200 training programmes and to train 10,000 participants of PACS, which is under their consideration at present.

The MoA&FW has approved the proposal of NCCT to be implemented in phases.

## 83. Launch of Academic Journal -

RICM,  Chandigarh,  has  launched  a  biannual  peerreviewed  journal titled 'Sahkarita Anusandhan -A Multidisciplinary Journal of Social Science' has been launched to promote research and knowledge dissemination in the field of cooperatives and social sciences.

The 1 st issue of the Journal has been released on April, 2025. 2 nd issue of the journal will be released on December, 2025.

## 84. Revival of PGDM-ABM Programme:

RICM,  Chandigarh,  has  taken  the  initiative  to  revive  the  Post  Graduate  Diploma  in Management -Agri-Business Management (PGDM-ABM), duly approved by AICTE.

Process for starting 1 st  Batch of the PGDM-ABM programme, like advertisement, admission etc. will start in December, 2025.

## NEW INTITATIVES:

Recently, a meeting was taken by Secretary, MoC, in which it was decided that the PMBI in collaboration with the NCCT may undertake a training project to operationalise 300 new PMBJKs through PACS with Store codes. Further action in the matter has been initiated at the NCCT level.

## F. Use of Information Technology for 'Ease of Doing Business'

## 85. Computerization of the Central Registrar's Office :

The Central Registrar's office has been computerized to create a digital ecosystem for Multi -State Cooperative Societies, which is assisting in processing applications and service requests in a time-bound manner.

## 86. Scheme for computerization of the office of Registrar of Cooperative Societies (RCSs) in States/ Union Territories:

Centrally sponsored project for computerization of RCS offices in States/Union Territories has been approved by the Central Government on 06.10.2023 with a budgetary outlay of Rs.94.59 crore for three years w.e.f. 2023-24. This is a part of the umbrella pr oject of 'Strengthening Cooperatives Through IT Interventions' of the Ministry. The project aims to enhance the ease of doing business for Cooperative Societies and create a digital ecosystem for transparent, paperless  interaction  of  cooperative  societies  with  the  RCS  offices  in  all  States/Union Territories. Under the project, grants are being provided to the States/ UTs for procurement of hardware, development of software, maintenance & upgradation of software, etc. The software developed under this scheme will be as per the Cooperative Acts of the respective States/UTs. During the financial years 2023-24, 2024-25 and 2025-26 (up to 15 th November, 2025), 35 States/UTs  have  submitted  their  proposals,  and  Rs  24.543  crore  has  been  released  as  the Government of India's share to States/UTs.

87. Computerization of Agriculture and Rural Development Banks (ARDBs): To strengthen the long-term cooperative credit structure, the project of computerization of 1,867 units of Agriculture  and  Rural  Development  Banks  (ARDBs)  spread  across  13  States/  Union Territories has been approved by the Government. NABARD is the implementing agency for the project. So far, proposals from 10 States/UTs have been received and sanctioned. Further, GOI share amounting to Rs 7.18 crore has been released to 10 States/UTs in FY 2023-24 and FY 2024-25 for procurement of hardware, digitization and setting up of support system.

## H. Steps taken by National Cooperative Development Corporation (NCDC)

88. Increase in loan disbursement: Disbursement of financial assistance by NCDC has increased almost 4 times from ₹24,733.20 crore in FY 2020 -21 to ₹95,182.84 crore in FY 2024 -25. NCDC has achieved more than 40% CAGR in disbursement during these four years.
89. Introduction  of  Floating  Interest  Rate: NCDC  took  a  significant  step  in  reforming  its financial system by introducing a floating interest rate. This step resulted in a reduction of the term loan interest rate by about 2%. A floating interest rate means that the interest rate changes depending on the market conditions and other financial factors, thereby providing the benefit of a lower interest rate to the end borrowers.
90. Adoption of Differential Rate: NCDC adopted the differential rate mechanism, under which different interest rates are provided to different loan borrowers. This mechanism customizes the loan rate, keeping in view the financial status of the borrowers and their capacity, so that the borrowers get financial assistance at better rates according to their situation.
91. Registration  under  Credit  Guarantee  Fund  Trust  for  Micro  and  Small  Enterprises (CGTMSE), Credit Guarantee Scheme for FPO (CGSFPO) & Credit Guarantee Fund Trust for Animal Husbandry and Dairying (CGFT-AHD): This step enables cooperatives to get collateral-free loans from NCDC.

## 92. MoU between NDDB and NCDC:

NCDC  and  National  Dairy  Development  Board  (NDDB)  signed  a  Memorandum  of Understanding  (MoU)  on  financing,  training  and  capacity  building  of  dairy  cooperatives. Under this agreement, both institutions will together provide financial and technical assistance to empower small producers in the dairy sector, thereby increasing the income of farmers and strengthening dairy societies.

93. Appraisal of large projects of other lenders by NCDC: NCDC has started the appraisal of large projects of other lenders who do not have the required expertise. For instance, NCDC appraised three dairy projects for Gujarat State Cooperative Bank, wherein a detailed review and evaluation of the projects was done.
94. Expansion of geographical reach: NCDC has expanded its geographical reach by opening a new  Regional  Office  at  Vijayawada  (Andhra  Pradesh)  and  new  Sub-offices  in  Jammu  & Kashmir, Ladakh, Sikkim, Manipur, Mizoram, Tripura, Arunachal Pradesh, Meghalaya and Nagaland.
95. Appointment of Young Professionals: NCDC has  appointed  young  professionals  having expertise  in  various  fields.  This  includes  11  CA/CMA/Inter,  30  MBA  and  other  young professionals. This move is aimed at increasing the efficiency of the Corporation.
96. Sahakar  Taxi  Cooperative  Limited  (India's  first cooperative-led  Mobility  platform): Sahakar  Taxi  Cooperative  Limited  is  an  innovative,  cooperative-based  mobility  solution designed  to  empower  drivers  and  provide  affordable,  reliable  transportation  to  the  public. Rooted in the principles of  cooperation, transparency  and shared ownership, Sahakar Taxi stands  as  a  people-centric  alternative  to  traditional  ride-hailing  platforms.  The  project  is promoted by National Cooperative Development Corporation (NCDC) along with seven other leading  organisations:  Indian  Farmers  Fertiliser  Cooperative  Limited  (IFFCO),  National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), Anand Milk Union Limited  (AMUL),  Krishak  Bharati  Cooperative  Limited  (KRIBHCO),  National  Dairy Development Board (NDDB), National Cooperative Export Limited (NCEL) and National Bank  for  Agriculture  and  Rural  Development  (NABARD).  This  project  has  been  named 'Bharat Taxi'.  After completion of the requisite formalities, 'Bharat Taxi' will be launched in January 2026.
97. Grant-in-aid to NCDC: The Cabinet, in its meeting held on 31.07.2025, has approved a grant of ₹2000 crore to NCDC. Based on receipt of ₹2000 crore from the Government over 4 years, NCDC will be able to raise ₹20,000 crore from the market. These funds will be used by NCDC for providing long-term and working capital loans to cooperative sectors such as dairy, poultry, fisheries, sugar, textiles, food processing, storage and cold chain, labour cooperatives, women cooperatives,  etc.  Under  the  scheme,  NCDC  provides  financial  assistance  at  competitive interest rates.
98. Cooperative  Intern: 385  cooperative  interns  are  being  recruited, covering  all  Rural Cooperative Banks (State Cooperative Banks and District Cooperative Banks). The scheme aims to  develop  the  overall  capacity  of  cooperative  organisations  and  promote  digital  and business skills at the grassroots level. The interns are being given a monthly remuneration of ₹25,000,  which  is  reimbursed  from  the  Cooperative  Education  Fund  (CEF).  NCDC  is monitoring the implementation of the scheme. So far, 238 trainees have been selected.
- I. Creation of National Cooperative Database (NCD)
99. New  National  Cooperative  Database  for  an  authentic  and  updated  data  repository:  A comprehensive database of cooperatives in the country has been developed with the support of State  Governments  to  facilitate  stakeholders  in  policy  making  and  implementation  of programmes/ schemes related to cooperatives across the country. So far, the database includes data on around 8.4 lakh cooperatives from 30 different sectors, involving approximately 32 crore members.
100. Cooperative  Ranking  Framework: The  Government  launched  the  Cooperative  Ranking Framework on 24th January 2025 to assess and rank cooperatives, State-wise and sector-wise. This ranking framework enables State RCS to assess Cooperative Societies' performance based on key parameters, including audit compliance, operational activities, financial performance, infrastructure, and basic identity information. The RCS of the States/ UTs can generate rankings of Cooperative Societies, initially of 7 major sectors, namely PACS, Dairy, Fishery, Urban Cooperative Banks, Housing, Credit and Thrift, and Khadi and Gram Udyog, through the NCD portal.  This  ranking  system  aims  to  enhance  transparency,  reliability  and  competitiveness among cooperative societies, ultimately fostering their growth. Furthermore, top-performing cooperative  societies  in  each  sector  will  be  recognized  and  honoured  by  the  Ministry  of Cooperation and respective State/ UT authorities.
101. Facility for States / UTs to integrate State RCS portal with NCD portal through API: The Ministry of Cooperation (MoC) developed a standard API for States to fetch the entire data of cooperative societies of the State from the NCD portal to their respective RCS portals, and shared  the  Standard  API  Specification  Document  and  database  schema  with  States  on 27.05.2025. Subsequently, the Ministry developed Push APIs (End Point APIs) for live, eventdriven data pushing from RCS applications to the NCD Portal, enabling real-time updates and new registration data. The complete set of API documents and SOP was shared with all RCS offices on 22.09.2025 to facilitate seamless integration of State/UT RCS applications with NCD portal. To further clarify the process, an advisory along with comprehensive check lists, one for completion of RCS computerization and its readiness for API integration with NCD portal and other for completion of API integration, was issued to all States / UTs on 14.11.2025. As per the integration plan, it is essential for States/UTs to ensure development of reverse/pull API at their end and complete RCS computerization in accordance with the checklist for successful integration  with  NCD  portal.  This  two-way  integration  will  ensure  synchronization  of cooperative data across platforms.

## J. Policy and Outreach

102. National  Cooperation Policy  (NCP): The  formulation  of  the  New  National  Cooperation Policy (NCP) has been envisaged to fulfil the mandate of the Ministry of Cooperation - "Sahakar se  Samriddhi."  It  provides  a  roadmap  for  the  systematic  and  holistic  development  of  the cooperative sector. The National Cooperation Policy was unveiled on 24 July 2025 by the Hon'ble Home & Cooperation Minister. It has 6 strategic pillars, 16 objectives, and 83 recommendations.

103. International Year of Cooperatives -2025 in India: The United Nations has declared 2025 as  the  International  Year  of  Cooperatives  (IYC  2025)  to  highlight  the  role  of  cooperatives  in economic growth, social inclusion, and sustainability. The Ministry of Cooperation has developed an action plan in collaboration with all the stakeholders of the cooperative sector, emphasizing transparency, policy reforms, and rural economic transformation through PACS. This Action Plan was launched by the Hon'ble Home and Coo peration Minister on 24.01.2025. For coordinated planning  and  implementation,  the  Ministry  constituted  IYC-National  Cooperative  Committee, IYC-National Execution Committee, and IYC-State Apex Committees. Further, actions for IYC were also included in the Terms of Reference of the State Cooperative Development Committees and District Cooperative Development Committees.

During IYC-2025, extensive awareness and outreach campaigns have been carried out, ensuring nationwide  visibility  of  the  IYC  logo  through  Indian  Railways  E-tickets,  cooperative  product packaging, official websites and official communications. Key national-level initiatives included the successful organization of the National Conference of State Cooperation Ministers on 30th June, 2025 and a national event on 06th July, 2025, on the occasion of the 4th Foundation Day of the Ministry of Cooperation at Anand, Gujarat.  A dedicated plantation drive under the 'Ek Ped Maa Ke Naam' campaign during IYC is being undertaken with active participation of all the stakeholders, along  with  various  capacity-building  activities,  exhibitions,  and  cooperative promotion  drives,  reflecting  its  commitment  to  making  IYC  2025  a  landmark  year  for  the cooperative movement.

## 104. Strengthening Media Outreach of the Ministry:

Over the past four years, the Ministry of Cooperation has significantly strengthened its digital and media outreach to enhance public engagement and awareness about the cooperative sector. Leveraging both traditional and digital platforms, the Ministry, in collaboration with PIB, has consistently  published  Press  Releases,  articles  in  leading  newspapers  while  simultaneously expanding its presence across social media. All nationallevel events chaired by the Hon'ble Prime Minister and the Hon'ble Home and Coo peration  Minister  are  live-streamed  on  the Ministry's YouTube channel. Press releases, news updates, and achievements are regularly shared on the official website, with multilingual access for wider inclusion.

Today, the Ministry's combined following across platforms, including X (Twitter), Facebook, Instagram, YouTube, LinkedIn and WhatsApp, stands at over 6 lakh followers/subscribers, with total video viewership crossing 1.4 crore views on YouTube. Notably, the Ministry of Cooperation ranks 5th among all Ministries on YouTube and 8th in website engagement and traffic,  reflecting  its  growing  digital  impact.  Special  campaigns  and  posts  on  landmark initiatives consistently garner high engagement, especially during major events and national observances.

In addition, the Ministry is actively encouraging State Governments, Registrars of Cooperative Societies (RCSs), and National Cooperative Federations to amplify the Ministry's initiatives by sharing its posts and content through their respective social media handles, thereby ensuring broader and more coordinated communication outreach across the cooperative ecosystem.

## 105. Promotion of Cooperative Awareness through Monthly Publications:

To  enhance  outreach,  awareness,  and  capacity-building  within  the  cooperative  sector,  the Ministry  of  Cooperation  is  publishing  two  monthly  magazines -Sahakar  Uday  (through IFFCO) and Sahakar Jagran (through NCUI) -since April 2023. Published in Hindi, English, and  11  regional  languages,  these  magazines  serve  as  vital  platforms  for  disseminating information about key policies, schemes, initiatives, and success stories of the Ministry and the  wider  cooperative  movement.  Sahakar  Uday  has  been  publishing  nearly  3  lakh  copies monthly, while Sahakar Jagran has a circulation of about 2.75 lakh copies every month. These publications  help  inform  and  empower  cooperative  members  at  the  grassroots  level  by providing timely, relevant, and inspirational content.

## K. Multi-State Cooperative Societies

106. Multi-State  Co-operative  Societies  (Amendment)  Act,  2023: Amendment  has  been brought in the MSCS Act, 2002, to strengthen governance, enhance transparency, increase accountability, reform the electoral process and incorporate provisions of the 97th Constitutional Amendment in the Multi-State Cooperative Societies.

107. Cooperative  Ombudsman: Following  the  amendment  in  the  Multi -State  Cooperative Societies (MSCS) Act, 2002, Cooperative Ombudsman has been appointed under Section 85A of the said Act vide gazette notification dated 05.03.2024. The Ombudsman office is fully functional and  deals  with  complaints  or  appeals  from  members  of  the  MSCS  regarding  their  deposits, equitable  benefits  of  the  Multi -State  Cooperative  Society's  functioning ,  or  any  other  issue affecting the individual rights of the concerned member.

108. Cooperative  Election  Authority  (CEA): Following  the  amendment  in  the  Multi -State Cooperative Societies (MSCS) Act, 2002, the Cooperative Election Authority has been set up to strengthen governance and accountability, with a mandate to conduct free and fair elections in  all  MSCSs.  Elections  in  more  than  197  MSCS  have  been  conducted  successfully  up  to October 2025.
109. Inclusion  of  Cooperatives  as  'buyers'  on  GeM  portal: The  Government  has  permitted cooperatives to register as 'buyer' on GeM, enabling them to procure goods and services from over 67 lakh vendors to facilitate economical purchases and greater transparency. So far, 658 cooperative societies have been onboarded on GeM as buyers.
110. Refund to Investors of Sahara Group of Societies: A portal has been launched for making payments to the genuine depositors of the cooperative societies of Sahara Group transparently. Disbursements have already started after proper identification and submission of proof of their deposits and claims. So far, Rs. 6581.84 crore have been disbursed to 34,17,741 applicants.

## L. Other initiatives

111. Enhancing market access to cooperative products through quick commerce platform of Swiggy  Instamart :  The  Ministry  of  Cooperation  has  entered  into  an  MoU  with  Swiggy Limited  on  25.04.2025  to  collaborate  to  enhance  the  digital  and  market  integration  of cooperative products, facilitate policy discussions, and drive consumer engagement with the cooperative sector, with an aim to promote the Indian cooperative sector and realize the vision of  'Sahkar  se  Samriddhi'.  The  purpose  of  this  MoU  is  to  establish  a  strategic  partnership between MoC and Swiggy to enhance digital integration and market access for cooperative products,  particularly  in  the  dairy  and  organic  sector,  and  facilitate  capacity  building  for cooperatives in areas such as digital marketing, logistics, and consumer technology. The Scope of the MoU includes the following:
- I. Swiggy, in collaboration with the Ministry of Cooperation, would engage in an awareness campaign for cooperative movement/ organisations/ products in India.
- II. Encourage  onboarding  of  cooperative  dairy  products  and  support  for  preferred  access through Swiggy's Instamart platform for cooperatives.
- III. Swiggy, in collaboration with the ministry, will support the cooperative brands in the areas of marketing, promotion, consumer technology and capacity building efforts.
- IV. Swiggy will create a separate cooperative category on its platform, with a focus on brands promoted  by  cooperative  organisations  for  products  such  as  Organics,  Dairy,  Millets, Handicrafts, etc.
- V. The  initiative  will  enhance  digital  access,  create  sustainable  growth  opportunities, maximize  the  impact  of  cooperatives  in  the  digital  economy,  and  build  capacity  for cooperatives through mutually agreed-upon projects.
112. Ministry of Cooperation is committed to the redressal of grievances in an effective and timebound manner. During  2024-2025 Ministry of Cooperation has disposed  of more than 33,821 grievances received through the Centralised Public Grievance Redress and Monitoring System (CPGRAMS) portal, with the lowest average closing time of 2 days.
113. The Ministry has successfully transferred the Cooperative Education Fund (CEF) account from NCUI to the Ministry of Cooperation following the enactment of the Multi-State Cooperative Societies (Amendment) Act, 2023, and instituted a dedicated framework for its management and utilization.

114. Sustainability and Circularity in the Dairy Sector : An important objective added to White Revolution 2.0 is the promotion of sustainability and circularity in the dairy sector. The strategy to achieve the objective would be to embed sustainability and circularity across the dairy value chain by promoting climate-smart practices, efficient resource use, and renewable solutions to build  a  low-emission,  incomegenerating  ecosystem.  Hon'ble  Home  &  Cooperation  Minister inaugurated a workshop on this issue on 03.03.2025. The action for sustainability and circularity in  the  dairy  sector  is  guided  by  the  vision  of  'Gold  out  of  Garbage  ( कचरे से कं चन )'. Under this initiative,  it  is  envisaged  to  set  up  three  multi-state  cooperative  societies  for  the  following activities:

- i. For the production of animal feed, disease control, and artificial insemination.
- ii. For the management of cow and buffalo dung.
- iii. For the management of hides, bones, and horns of dead cattle and buffalo.

115. Establishment of Sardar Patel Cooperative Dairy Federation Limited (SPCDF): A new Multi-state Cooperative Society by the name Sardar Patel Cooperative Dairy Federation Limited (SPCDF) has been launched by the Hon'ble Home & Cooperation Minister on 06.07.2025, with an initial capital of ₹ 200 crore. SPCDF will enable more than 20 lakh dairy farmers from over 20,000 villages in 20 states (Jammu & Kashmir, Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Assam, West Bengal, Jharkhand, Odisha, Chhattisgarh, Madhya Pradesh, Maharashtra, Andhra Pradesh, Karnataka, Goa, Tamil Nadu, Telangana) to become direct members  of  an  organized  cooperative  structure.  Through  SPCDF,  farmers  will  benefit  from assured milk procurement, improved veterinary care, enhanced cattle nutrition, and modern dairy practices. Investments in robust cold chain infrastructure, chilling centers, and efficient processing facilities will further strengthen quality standards and support the rising demand for safe, hygienic dairy products.

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