National Cooperation Policy & Database

Key Highlights:

• The National Cooperation Policy (NCP) 2025 provides a roadmap for the systematic development of the cooperative sector, monitored by two high-level committees.
• A comprehensive National Cooperative Database (NCD) has been developed, containing data on over 8.5 lakh cooperatives and approximately 30 crore members across 30 economic sectors.
• The Central Sector Project for Computerization of PACS has been approved with an outlay of ₹2925.39 crore, covering 79,630 Primary Agricultural Credit Societies (PACS).
• Over 10,225 new multi-purpose PACS, dairy, and fisheries cooperatives have been registered to ensure coverage across all Panchayats and villages.
• Three new national-level multi-state cooperative societies (Bharatiya Beej Sahakari Samiti Limited, National Cooperative Organics Limited, National Cooperative Export Limited) have been established for seeds, organic products, and exports.
• Tribhuvan Sahkari University (TSU), formed by converting IRMA, has been established as an institution of national importance for cooperative education.
• Significant tax reliefs, including reduced surcharge and Minimum Alternative Tax (MAT), and increased cash transaction limits, have been provided to cooperative societies.
• Bharat Taxi, a cooperative-based mobility platform with a "Zero Commission Model," has registered 6.37 lakh drivers and 35.77 lakh customers.

Detailed Insights:

• The NCP 2025 is implemented through a "Whole-of-Government" approach and cooperative federalism, with 152 initiatives taken by the Ministry of Cooperation.
• Monitoring mechanisms include a National Steering Committee on Cooperation Policy (chaired by Union Minister) and a Policy Implementation and Monitoring Committee (chaired by Union Cooperation Secretary).
• The NCD portal 3.0 features include an AI Chatbot, village-level GIS mapping, multilingual support via Bhashini, and API integration for real-time data updates.
• The PACS Computerization Project aims to bring all functional PACS onto an ERP-based common national software, linking them with NABARD through State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs).
• The World’s Largest Decentralized Grain Storage Plan in the cooperative sector converges various GOI schemes like Agriculture Infrastructure Fund (AIF), Agricultural Marketing Infrastructure Scheme (AMI), Sub Mission on Agricultural Mechanization (SMAM), and Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME).
• PACS are now enabled to function as Common Service Centers (CSCs), offering over 300 e-services, and as PM Bharatiya Jan Aushadhi Kendras and Pradhan Mantri Kisan Samriddhi Kendras (PMKSK).
• National Cooperative Development Corporation (NCDC) is an implementing agency for the Formation and Promotion of 10,000 Farmer Producer Organizations (FPOs) scheme, with 1117 FPOs registered through PACS members.
• Cooperative banks have received relief, including Urban Cooperative Banks (UCBs) allowed to open new branches, offer doorstep services, and a reduction in Priority Sector Lending (PSL) target from 75% to 60%.
• National Urban Cooperative Finance and Development Corporation (NUCFDC) has been established as an Umbrella Organization for the UCB sector, providing IT and operational support.
• The Multi-State Cooperative Societies (Amendment) Act, 2023, strengthens governance, transparency, and electoral processes, leading to the appointment of a Cooperative Ombudsman and establishment of a Cooperative Election Authority (CEA).
• Cooperative Sugar Mills have received income tax relief, a ₹10,000 crore loan scheme through NCDC, and preference in ethanol procurement under the Ethanol Blending Programme (EBP).
• Bharatiya Beej Sahakari Samiti Limited (BBSSL) has produced 6.07 lakh quintals of quality seed across 15 crops and launched the "Bharat Beej" brand, with 38,665 member cooperatives.
• National Cooperative Organics Limited (NCOL) has launched 29 organic products under the "Bharat Organics" brand, available through a D2C portal and major e-commerce platforms.
• National Cooperative Export Limited (NCEL) has exported 15.40 LMT of 54 Agri commodities worth ₹6,341 crores to 38 countries, providing a 20% dividend to members.
• Tribhuvan Sahkari University (TSU) offers new MBA programs in Agribusiness, Cooperative Management, and Cooperative Banking & Finance, with three outlying campuses and 16 affiliated institutes.
• NCDC has increased loan disbursements almost fourfold, introduced floating interest rates, and adopted a differential rate mechanism for borrowers.
• The Sahara Group refund portal has disbursed ₹9265.09 crore to 41.55 lakh applicants.
• MoUs with Swiggy Limited aim to enhance digital and market integration of cooperative products, creating a separate cooperative category on its platform.
• White Revolution 2.0 aims to increase milk procurement by dairy cooperatives by 50% over five years, promoting sustainability and circularity.
• Sardar Patel Cooperative Dairy Federation Limited (SPCDF) and Cooperative Milk Producers’ Organization Multi-State Limited are new multi-state societies for dairy farmers.
• Cooperatives are now included in the definition of 'Start-up' to promote innovation-driven growth.

Key Concepts Involved:

• National Cooperation Policy (NCP): A comprehensive policy framework guiding the development and strengthening of the cooperative sector in India.
• Primary Agricultural Credit Societies (PACS): Grassroots-level cooperative credit institutions providing financial services and other support to farmers in rural areas.
• National Cooperative Database (NCD): A centralized digital repository of information on cooperative societies across various economic sectors in India.
• Multi-State Cooperative Societies (MSCS): Cooperative societies operating across more than one state, governed by the Multi-State Cooperative Societies Act, 2002.
• Cooperative Federalism: A principle where central and state governments collaborate in policy-making and implementation, particularly in the cooperative sector.
• Enterprise Resource Planning (ERP): A software system used by organizations to manage and integrate their core business processes, enhancing efficiency.
• Minimum Alternative Tax (MAT): A tax levied on companies that report book profits but pay little or no tax due to various exemptions and deductions.
• Priority Sector Lending (PSL): A mandate by the RBI for banks to allocate a certain percentage of their loans to specific sectors deemed important for national development.
• Aadhaar Enabled Payment System (AePS): A bank-led model enabling online interoperable financial transactions at point-of-sale using Aadhaar authentication.
• Farmer Producer Organizations (FPOs): Legal entities formed by farmers to collectively manage their produce, access markets, and avail benefits.
• Government e-Marketplace (GeM): An online platform for public procurement of goods and services in India, promoting transparency and efficiency.
• Tribhuvan Sahkari University (TSU): A national-level university established to provide specialized education, training, and research in the cooperative sector.
• National Cooperative Development Corporation (NCDC): A statutory corporation promoting cooperative programs for agricultural and allied activities across India.
• National Urban Cooperative Finance and Development Corporation (NUCFDC): An umbrella organization for Urban Cooperative Banks, providing IT infrastructure and operational support.
• Cooperative Ombudsman: An independent authority appointed to address grievances and disputes of members within Multi-State Cooperative Societies.
• Cooperative Election Authority (CEA): An independent body responsible for conducting free and fair elections in Multi-State Cooperative Societies.
• Bharat Taxi: A cooperative-based, "Zero Commission Model" mobility platform aimed at empowering drivers and providing affordable transportation services.
• White Revolution 2.0: An initiative to expand cooperative coverage in the dairy sector, increase milk procurement, and promote sustainability and circularity.
• Sahakar Innovation Scheme: An NCDC scheme providing grant-based financial assistance for innovative and viable business ideas proposed by cooperative societies.
• Sahakar Sarathi: A shared service entity established to provide technological services and strengthen Rural Cooperative Banks.
• Multi-State Cooperative Societies (Amendment) Act, 2023: Legislation amending the 2002 Act to enhance governance, transparency, and electoral reforms in MSCS.