SYLLABUS

GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS-3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Context: The Ministry of Cooperation completed five years since its establishment on 6 July 2026, highlighting major reforms undertaken to strengthen India's cooperative sector under the vision of "Sahkar Se Samriddhi."

More on the News

• The 5th Foundation Day of the Ministry of Cooperation was celebrated at Bharat Mandapam, New Delhi, where 50,000 Primary Agricultural Credit Societies (PACS) were transformed into e-PACS to accelerate digital governance.
• Foundation stones were laid for 47 cooperative grain storage godowns, while the Milk Supply Review Dashboard of the National Dairy Development Board (NDDB) and two digital banking platforms—Sahakar CBS and Sahakar Sahyogi—were launched for Urban Cooperative Banks.

Key Reforms & Achievements (2021–2026)

• Digital Transformation of Primary Agricultural Credit Societies (PACS): 50,000 Primary Agricultural Credit Societies have been converted into e-Primary Agricultural Credit Societies.
  • The computerisation scheme was expanded, with the financial outlay increased from ₹2,516 crore (2022) to ₹2,925.39 crore (2025).
  • A total of 79,630 Primary Agricultural Credit Societies were sanctioned for computerisation, and 63,428 are using Enterprise Resource Planning software.
  • Hardware has been supplied to more than 65,000 Primary Agricultural Credit Societies, while online audits have been completed for over 42,700 societies.
  • Enterprise Resource Planning software has also been made available in 14 Indian languages.
• Strengthening Primary Agricultural Credit Societies as Multi-Service Centres: Model Bye-laws have been adopted across 32 States and Union Territories, allowing Primary Agricultural Credit Societies to undertake more than 25 business activities.
  • Their services have expanded beyond rural credit to include PM Kisan Samriddhi Kendras, Common Service Centres, Jan Aushadhi Kendras, retail fuel outlets, storage facilities, healthcare and digital services.
  • At present, 39,177 Primary Agricultural Credit Societies are functioning as PM Kisan Samriddhi Kendras, while 54,117 are operating as Common Service Centres.
  • A total of 4,248 societies have been approved for Jan Aushadhi Kendras, with 843 ready for operations, and 394 societies have applied for retail fuel outlets, of which three outlets have been commissioned.
• Expansion of Cooperative Network: A total of 37,454 new multipurpose Primary Agricultural Credit Societies, dairy and fisheries cooperative societies have been registered.
  • Cooperative institutions have expanded to more than 2.55 lakh Gram Panchayats through Primary Agricultural Credit Societies, 87,159 Gram Panchayats through dairy cooperatives, and 29,964 Gram Panchayats through fisheries cooperatives.
• Rural Infrastructure Development: Foundation stones have been laid for 47 grain storage godowns.
  • Under the world's largest decentralized grain storage initiative, 145 Primary Agricultural Credit Societies have completed cooperative godowns with a storage capacity exceeding 68,702 metric tonnes.
  • The initiative is expected to reduce post-harvest losses and improve farmers' price realization.
• Farmer Producer Organisations (FPOs): A total of 1,863 Farmer Producer Organisations have been established in the cooperative sector, including 1,117 promoted through Primary Agricultural Credit Societies and 1,070 Fisheries Farmer Producer Organisations.
  • Financial assistance of ₹98 crore has been provided.
• Tax and Financial Reforms: The surcharge has been reduced from 12% to 7% for cooperatives earning between ₹1 crore and ₹10 crore, while the Minimum Alternate Tax has been reduced from 18.5% to 15%.
  • The Tax Deducted at Source threshold on cash withdrawals has been increased from ₹1 crore to ₹3 crore.
  • Higher cash transaction limits have also been provided for Primary Agricultural Credit Societies and Primary Cooperative Agriculture and Rural Development Banks.
• White Revolution 2.0: White Revolution 2.0 aims to increase milk procurement by 50% by 2028–29.
  • A total of 25,282 dairy cooperative societies have been registered, with a focus on expanding women-led dairy cooperatives.
• National Multi-State Cooperative Institutions: Three new national cooperative institutions have been established.
  • National Cooperative Exports Limited has exported 15.4 lakh metric tonnes worth ₹6,295 crore to 38 countries.
  • National Cooperative Organics Limited has 14,286 member cooperatives, while Bharatiya Beej Sahakari Samiti Limited has 38,665 member cooperatives.
• Capacity Building: India's first cooperative university, Tribhuvan Sahkari University, is located in Anand, Gujarat, and has been established.
• Cooperative Financing: During FY 2025–26, the National Cooperative Development Corporation sanctioned ₹1.55 lakh crore and disbursed ₹1.27 lakh crore.
  • It also released ₹2,320 crore to Farmer Producer Organisations and Cluster-Based Business Organisations.
• Bharat Taxi: Bharat Taxi is India's first cooperative-based mobility platform.
  • It has 6.37 lakh registered drivers and 35.77 lakh registered customers.

Significance

• Strengthens grassroots institutions and deepens cooperative governance across rural India.
• Improves access to affordable credit, storage, healthcare, digital services and markets through diversified PACS.
• Enhances transparency and efficiency through digitalisation and ERP-based governance.
• Supports farmers' income by improving storage, processing, value addition and market access.
• Expands employment opportunities through cooperative-led enterprises in agriculture, dairy, fisheries and mobility services.
• Promotes women's economic participation through dairy cooperatives and rural entrepreneurship.
• Contributes to inclusive, sustainable and rural-led growth, supporting the vision of Viksit Bharat through "Sahkar Se Samriddhi."