News: The Ministry of Cooperation celebrated its 5th Foundation Day (6 July 2026) under the vision "Sahkar Se Samriddhi" (Prosperity through Cooperation).

State of the Cooperative Sector

• India has 8.58 lakh registered cooperative societies with 32 crore active members, accounting for over one-fourth of the global cooperative network.
• Around 2 lakh credit cooperatives and 6 lakh non-credit cooperatives operate in sectors like dairy, housing, fisheries, and consumer services.
• The movement is concentrated in western and southern India, with Maharashtra having nearly 25% of all societies.
• The sector includes 1,469 Urban Cooperative Banks with assets worth ₹7.38 trillion.
• National Cooperation Policy 2025 aims to triple the sector's GDP contribution and increase membership to 50 crore by 2034.

Significance

• Provides about 9% of institutional agricultural credit through rural cooperative banks.
• Cooperative dairies procure nearly 50% of organised milk and return 70–80% of consumer prices to farmers.
• TRIFED ensures fair prices for tribal communities through the MSP for Minor Forest Produce.
• Cooperatives produce 29% and distribute 35% of India's fertilisers.
• Cooperative housing societies manage around 20% of affordable urban housing.

Challenges

• High NPAs: PACS have NPAs of ₹72,550 crore.
• Declining Credit Share: Cooperative share in agricultural credit has fallen from 64% (1992) to 9%.
• Capital Constraints: Restrictions on share valuation limit investment.
• Non-functional PACS: Over one-third of PACS remain inactive.
• Governance Issues: Political interference affects transparency and loan recovery.

Government Initiatives

• National Cooperative Exports Limited (NCEL): Promotes cooperative exports to global markets.
• PACS Computerisation Project: Digitises around 80,000 PACS.
• Tax Reforms: Minimum Alternate Tax (MAT) reduced to 15% for cooperatives.
• National Cooperative Organics Limited (NCOL): Supports procurement, certification, and branding of organic products.
• Model Bye-laws: Allow PACS to undertake 25+ non-credit activities.
• Tribhuvan Sahkari University: India's first cooperative university for professional training in the cooperative sector.