COOPERATIVES : REALIZING DREAM OF VIKSIT BHARAT@2047

● To realize PM Modi’s vision of “Prosperity through Cooperation,” India created its first-ever Ministry of
Cooperation on July 6, 2021.
● Amit Shah became the first Cooperation Minister, taking over from the previous setup under the Agriculture
Ministry. This new ministry provides the legal, policy, and administrative support needed to strengthen India’s
cooperative sector and drive socio-economic growth.
● The Ministry of Cooperation, led by Amit Shah, promotes an inclusive cooperative economic model to boost
socio-economic growth. It has quickly revitalized the sector, reaching over 29 crore members through about
8.4 lakh cooperatives. By backing farmer-focused cooperatives in areas like agriculture, dairy, and self-help
groups, the ministry is bringing greater transparency, efficiency, and empowerment to rural India.
● One of the key achievements of the ministry has been the launch and implementation of several high-impact
schemes aimed at modernizing and strengthening the cooperative sector.
● The ministry has taken more than 60 major initiatives to change the rural economy. It is mixing old ways with
new ideas. This change is not only improving the institutions that already exist but also creating new jobs and
opportunities in villages through modern cooperatives that use technology and involve local people.
● The main part of this big change is the Primary Agricultural Credit Societies (PACS). These are the base of
India's cooperative system and help people in villages. PACS mainly provide financial help to farmers and small
borrowers.
● They have been around since 1904, when the Cooperative Credit Societies Act was passed. Since then, PACS
have been important in giving short and medium-term loans, providing farming materials, and offering other
services in rural areas.
● Cooperatives have a decades-old history and in this era of information and technology, many PACS have been
weakened by limited functionality, lack of digital infrastructure and outdated working systems. Hence, there
was a dire need to reform them to suit the needs of current rural development.
● The Ministry introduced Model Bye‑Laws for PACS, transforming them from single‑purpose credit institutions
into multifunctional rural service hubs. These by‑laws let PACS diversify into over 25 commercial and service
activities (like dairy, fishery, custom hiring, godowns, credit, fair price shops, etc.), aligning with local
community needs. With widespread adoption across states and Union Territories, PACS are evolving into
dynamic institutions.
● They are generating employment, delivering crucial public services, and enhancing rural economic resilience.
● The Ministry launched a Centrally Sponsored Project for PACS computerization with NABARD support. Over
five years, around 63,000 PACS will receive IT hardware, cloud-based ERP software (in regional languages),
legacy data digitization, and staff training. This digital upgrade ensures PACS are transparent, accountable,
and linked in real time with District Central Cooperative Banks (DCCBs) and State Cooperative Banks (StCBs),
enabling seamless accounting and better service delivery.
● Alongside digitization, the Ministry is expanding PACS with support from NABARD, National Dairy
Development Board and National Fisheries Development Board. New multipurpose PACS in sectors like dairy,
fisheries, healthcare, and retail are being set up across India. The goal is to have one functional cooperative
in every panchayat. These PACS will be digitally enabled, multi-sector hubs that boost rural economy, financial
inclusion, service access, transparency, and self-reliance.
● Their evolution reflects the broader ambition of the Ministry to foster rural prosperity through robust and
inclusive cooperative frameworks.
● PACS are now empowered to run Common Service Centers, Jan Aushadhi Kendras, Kisan Samriddhi Kendras,
LPG stations, petrol pumps, FPOs, Pani Samitis, and more. They offer essential services like medicines,

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 cooking gas, digital banking, and government schemes locally. This boosts rural jobs, brings vital services closer
to underserved areas, bridges the rural‑urban divide, and supports initiatives like Digital India and
Atmanirbhar Bharat.
● The Ministry created a National Cooperative Database (NCD)—a real-time digital dashboard with data on
around 8 lakh cooperatives and more than 29 crore members. It enables data-driven policy, tracks
active/dormant societies, improves transparency in fund flow, simplifies PACS registration and compliance,
and aligns them with modern governance.
● Three new national-level multi-state cooperative societies have been launched:
1. BBSSL (Bharatiya Beej Sahkari Samiti Ltd.): Produces and distributes quality seeds through cooperatives,
reducing seed imports.
2. NCOL (National Cooperative Organics Ltd.): Promotes organic farming, aggregates certified produce
from 7,000+ co-ops, brands it under “Bharat Organics,” and connects farmers to national and export
markets.
3. NCEL (National Cooperative Exports Ltd.): Helps grassroots cooperatives export agricultural products.
These bodies link local co-operatives to bigger markets, helping farmers diversify income and integrate into value
chains—furthering rural self-reliance and cooperative-driven growth.
● The legal framework for cooperative societies has also been strengthened through the enactment of the
Multi-State Cooperative Societies (Amendment) (MSCS) Act, 2023. This Act provides a robust legal and
administrative structure for cooperatives operating across state boundaries.
● It aims to promote transparency, democratic management, and professional governance. Key benefits include
mandatory audits and elections, enhanced member participation and reduced political interference.
● The Act fosters a conducive environment for large-scale, well-managed cooperative enterprises that can
operate efficiently across India's diverse landscape.
● White Revolution 2.0, launched by the Ministry of Cooperation, boosts the dairy sector through cooperatives,
focusing on empowering rural women. It modernizes infrastructure, increases milk production, ensures fair
payments, veterinary help, and feed. Women are promoted as leaders and key changemakers.
● The White Revolution 2.0 also introduces training in clean milk production, artificial insemination services,
and value-added dairy product support. Farmers are linked to digital platforms and organized markets to
reduce spoilage and increase profitability. The initiative aligns with the broader goals of food security, rural
employment and gender empowerment under the 'Sahkar Se Samriddhi and 'Viksit Bharat 2047 visions,
further solidifying cooperatives as pillars of India's rural economy.
● The Ministry launched the 'World's Largest Grain Storage Scheme' to build modern storage at the PACS level.
It reduces crop loss, improves farmer income, boosts food security, and creates rural jobs. Warehouses have
started in 11 states, with 500 more planned.
● The UN declared 2025 as the 'International Year of Cooperatives' with the theme 'Cooperatives Build a Better
World'. India, through 'Sahkar Se Samriddhi', celebrates cooperatives' role in development, aiming to
showcase success, modernize practices, involve youth and strengthen global partnerships.
● As the country undertakes major reforms, such as digitalization, policy modernization and the creation of
national cooperative societies. International Year of Cooperatives 2025 reinforces India's vision of 'Sahkar Se
Samriddhi and supports the long-term goal of building a cooperative-driven Viksit Bharat by 2047.
● Viksit Bharat 2047 aims to make India a developed, self-reliant, and inclusive nation by its 100th independence
year. It focuses on modernizing all sectors and uplifting rural areas. Cooperatives play a key role by driving
inclusive and sustainable development at the grassroots.

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● Cooperatives have long supported rural India in farming, dairy, and credit. Now, a new ministry is modernizing
them with transparency, digital tools, & reforms. Goal is to empower people & drive grassroot development.
● 'Sahkar Se Samriddhi' is key to Viksit Bharat 2047, promoting growth through cooperatives. By involving
people in sectors like farming, dairy, and housing, cooperatives boost rural development. The Ministry is
strengthening them with better laws, policies, and support.
● The 10-year plan for cooperatives focuses on ease of business, affordable finance, skill training, women's
inclusion, youth entrepreneurship, and tech adoption. It aims to make cooperatives competitive, job-creating,
and community-driven while staying true to their core values.
● India's 2047 vision aims for a $30 trillion economy, top global rank, zero poverty, full literacy, quality
education, healthcare, and smart cities. Key drivers include tech, clean energy and inclusion. Cooperatives will
help bridge rural-urban gaps and ensure shared growth.
● Cooperatives are key to Viksit Bharat 2047, linking government schemes to rural areas. They support farmers,
dairy, credit, and housing needs, ensuring last-mile delivery. Modernizing them boosts growth, cuts poverty
and promotes equity.
● Technology is modernizing cooperatives through PACS digitization, national databases and portals like Central
Registrar of Cooperative Societies and e-Samridhi. These steps boost transparency, attract youth, and connect
cooperatives to India’s digital economy, supporting Viksit Bharat 2047.
● Inclusivity is key to the vision, with cooperatives empowering women, youth, and marginalized groups. Policies
promote leadership, youth entrepreneurship and skill training. Education initiatives aim to make cooperatives
a modern career choice.
● Cooperatives are set to grow in areas like organic farming, renewable energy, agri-tech, tourism, and
healthcare. These sectors offer income, sustainability and resilience, supporting Viksit Bharat 2047 goals.
● Viksit Bharat 2047 is a national movement needing everyone's participation. Cooperatives, rooted in collective
effort and democracy, are vital for inclusive growth and will play a central role in India’s development journey.
● Viksit Bharat 2047 is a bold vision for inclusive, people-led growth. With support from the ministry,
cooperatives will drive this change, empowering citizens and building a self-reliant, prosperous India.

RISING IN UNISON : REALIZING SAHKAR SE SAMRIDDHI

● Cooperation means working together, rooted in the words 'Co' (together) and 'Operation' (work). It is deeply
linked to Indian culture and mentioned in ancient texts like the Rigveda. Though formally introduced in 1904
under British rule, the spirit of cooperation existed earlier in joint families and mutual traditions, as seen in
the Vedas, Manusmriti, and Arthashastra.
● Prominently, Arthashastra provides - "Whoever stays away from any kind of cooperative undertaking shall
send his servants and bullocks to carry on the work, shall have a share in expenditure but not in the profits".
Cooperation - India's Lifeline
● A lot of emphasis was laid on the principle of cooperation during India's freedom struggle. To alleviate India's
distress and poverty, collective efforts for performing economic activities were advocated. While the Father
of Nation, Mahatma Gandhiji, noted the significance of every effort at cooperation to improve farmers' socio-
economic conditions, in 1921 he defined the hand spinning [Charkha], "It means the greatest voluntary
cooperation the world has ever seen. It means cooperation among millions of human beings scattered over a
very wide area and working for their daily bread"
● The 1904 Act was amended in 1912 and 2012 to expand cooperatives beyond credit to wider welfare goals.
After 1914–15 Maclagan Committee suggestions, cooperatives aimed at socio-economic development. Post-
independence, they gained importance in India’s planning process.

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● To promote progress and address rising public needs, the Govt of India created the Ministry of Cooperation
on 6th July 2021. Guided by the Prime Minister’s call of “Sahkar Se Samriddhi”, it aims to use cooperation to
achieve economic freedom, self-reliance, and social justice through community-driven enterprises.
Cooperative Values
● Cooperatives are people-focused, democratic economic systems that follow seven key principles. They
promote unity, social bonding, and inclusive growth. A strong example is Amul, started by Sardar Vallabhbhai
Patel and Tribhuvandas Patel, which grew into a global brand by following values like self-reliance, self-
employment, and local production.
Status of Cooperative Movement
● Cooperatives are unique community-based businesses that build social capital. Rooted in the idea of
'Vasudhaiva Kutumbakam', they aim for equal socio-economic welfare. After independence, they gained
importance in India’s planning. Today, India has 8.14 lakh cooperatives with 29 crore members, covering 98%
of villages.
Making PACS Vibrant
● Model bye-laws were created to build strong, multi-purpose PACS and shared with States/UTs. These allow
PACS in 32 States/UTs to do more than 25 activities like dairy, fisheries, storage, banking, and renewable
energy. They aim to improve governance, efficiency, transparency, and community development.
PACS as Service Dispensing Centres
● An agreement was made to digitize PACS/LAMPS and offer more than 300 e-services like banking, insurance,
Aadhaar, legal help, and ticket booking. By March 2025, 42,080 PACS began providing these CSC services to
citizens.
● PACS now run Pradhan Mantri Bhartiya Janaushadhi Kendras to earn income and provide rural people with
affordable medicines. By March 2025, 2,744 PACS got approval, 785 got drug licenses, and 716 got store codes.
Also, 36,193 PACS run Kisan Samriddhi Kendras for fertilizer access, and 934 PACS were chosen for village-
level services in 13 States/UTs.
● Dairy and Fisheries cooperative societies can now work as Bank Mitras of District and State Cooperative banks.
To facilitate effective implementation of the initiative, 8,322 Micro-ATMs have been distributed to Bank Mitra
cooperative societies in Gujarat to begin with. To ensure necessary liquidity at Dairy Cooperative societies,
Rupay Kisan Credit Cards (KCCs) are distributed to the members of cooperatives for providing credit at
comparatively lower interest rates and to enable them to carry out other financial transactions. As in March
2025, 7,43,810 Rupay KCC have been distributed in the State of Gujarat on a pilot basis.
Cooperatives: Agents for Atmanirbhar Bharat
● The government is promoting tur, masur, urad, and maize to reduce imports and boost ethanol production.
National Cooperative Consumers' Federation of India (NCCF) and National Agricultural Cooperative Marketing
Federation of India (NAFED) ensure 100% MSP-based procurement from registered farmers via e-samyukti
and e-samridhi portals. Over 12.6 lakh farmers registered on e-samyukti and 6.7 lakh on e-samridhi.
Promoting Cooperative FPOs
● The government is linking FPOs and FFPOs with cooperatives to boost rural incomes. National Cooperative
Development Cooperation (NCDC) has formed 730 FPOs and 70 FFPOs by March 2025. This helps cooperatives
grow in high-value farming, improves market access, and strengthens rural development.
PACS in Oil & Energy Business
● PACS can now get licenses for petrol, diesel, and LPG outlets, helping them earn and create jobs. 286 PACS
from 25 States/UTs have applied. They can also support renewable energy by using solar pumps and installing
solar panels on farms.

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Consolidating Cooperative Credit
● Around 13 crore farmers are linked to cooperatives through PACS, needing better credit planning. The
government is committed to the three-tier credit system (State Cooperative Banks - District Central
Cooperative Banks - Primary Agricultural Credit Societies) and aims to strengthen District Central Cooperative
Bank. It is also computerizing Agriculture and Rural Development Banks (ARDBs), (Primary Cooperative
Agriculture and Rural Development Banks (PCARDBs), and State Cooperative Agriculture and Rural
Development Banks (SCARDBs) to improve long-term credit services.
Improving Cooperative Education & Training
● Education and skill training are key for strong cooperatives. The new Tribhuvan Sahkari University will provide
structured learning to build a skilled and sustainable cooperative system for the future.
Concluding Remarks
● India aims for a prosperous, deprivation-free future as it moves toward Viksit Bharat@2047. The government
promotes “Sahkar Se Samriddhi” to make cooperatives key to achieving a $5 trillion economy. Strengthening
grassroots cooperatives and uniting efforts can drive inclusive growth, self-reliance and regional equality
through people-led cooperation.

FOSTERING COLLECTIVE PROSPERITY: EMPOWERING PACS THROUGH COMPUTERIZATION

India's cooperative movement drives inclusive rural growth but now needs to adapt for a changing economy. To
achieve Viksit Bharat by 2047, digital innovation is key. Strengthening rural credit institutions, especially by
computerizing Primary Agricultural Credit Societies (PACS) will boost efficiency, service and financial inclusion. On
24th February 2024, PM Modi launched the computerization of all functional PACS to boost their efficiency. The
₹2,516 crore project connects PACS and LAMPS through a unified ERP software by NABARD, linking them with
State and District Cooperative Banks.
Context and Initiative
● Before this project, most PACS used manual records, causing errors, delays and lack of transparency. Poor
digital links and outdated practices led to slow operations, loan delays and mismanagement, reducing farmer
trust and limiting PACS' growth and efficiency.
● The PACS Computerization Project aims to equip PACS with modern IT tools, real-time accounting and
integration with higher credit tiers and national portals. It will boost financial inclusion and rural services. 30
States and UTs are part of the project.
Project Architecture
● The ₹2,516 crore PACS project is funded by the Government of India (₹1,528 crore), state governments (₹736
crore), and NABARD (₹252 crore). Funding shares vary by project part and region. For software and training,
NABARD gives 10%. In hilly/Northeast states, the Centre covers 90%. UTs without legislatures get full central
funding. PMU costs up to ₹50 crore are covered by the Centre and remaining by NABARD.
● The project architecture is designed to cover the key project components, process steps and phasing. The 5
key project components are as depicted below:
a. First phase- (Hardware delivery and FHR & FVR) Onboarding of PACS and stakeholders to the digital
platform Coops India with logins and gathering of preliminary data in two reports, the First hand Report
(FHR) and Field Verification Report (FVR).
b. Second Phase: Legacy data like member, land, loan and deposit details were entered into the Digital
Communication Tool (DCT) and matched with old records. PACS Secretary verified the data. Audited
balance sheets were also matched, with any differences noted in unreconciled accounts and certified
again.

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 c. Third phase: (Migration and ERP Trial Run) The data was migrated to e-PACS software and entries were
made directly into the e-PACS for the current year.
d. Fourth phase: (Daily entry, day end till current date) The Secretarial and Internal Audit (SI) and PACS
then made entries in the e-PACS for each successive day and after tallying daily balances did the day end
to freeze the transactions of the day. This was done till the PACS came to the current date and thus
completed the digitization journey.
e Fifth phase: (Reconciliation, audit and HoC) For position as on 31 March, to close the financial year the
auditors performed the on-system audit using the audit module of the e-PACS enabling a year end Process
to freeze the transactions of the Financial Year (FY). Where needed, reconciliation of unreconciled
amounts that were observed during migration were reconciled and/or authorised.
f. Sixth Phase: The project’s main output is ERP software with 22 modules to digitize PACS transactions
and generate financial reports as per CAS-MIS norms. It supports 11 Indian languages with local login and
reports.
Implementing Mechanism
● NABARD, guided by the Ministry of Cooperation, is implementing the project. A central PMU is set up in
Mumbai, with State PMUs in NABARD’s state offices to manage policy, coordination, and progress tracking.
● The state governments with Registrars of Cooperative Societies (RCSs) in the lead play a pivotal role in guiding
actions of stakeholders in the state and StCBs as the State Nodal Agency implement the initiatives through
DCCBs and PACS.
● The National PACS Software Vendor (NLPSV) rolls out and customizes e-PACS software, resolves issues, and
trains staff. System Integrators (SIs) handle data digitization, migration, and training at the state level, helping
PACS shift from manual to digital systems and supporting audits, closures, and problem-solving in local
languages.
Monitoring Mechanism
● Strong monitoring is in place for timely project execution. National, State and District Committees oversee
progress and gather feedback. A subcommittee and special focus groups help address key issues. Dashboards
provide real-time data to all stakeholders.
● Monthly online reviews are held with all states. Quarterly in-person meetings involve MoC, RCS, NABARD, and
others. Joint Secretaries and Under Secretaries from MoC also review progress. At the state level, RCS meets
weekly with SPMUs, StCB, and DCCB.
Progress So Far
● Digital transformation of PACS is progressing well. Computerization of 67,930 PACS in 30 States/UTs is
approved. The Centre has released ₹758.24 crore to states and ₹165.92 crore to NABARD. Hardware is
delivered to 62,487 PACS, 54,922 are onboarded and 43,658 are fully live. This boosts transparency, efficiency,
and farmer trust in rural credit systems.
New Initiatives
Apart from the core process flows of the project implementation, this project is being implemented with a
difference, to include features like:
● Peer learning that is exchange of experience from one state to the others is being leveraged for improved
functioning of PACS.
● Integration with UIDAI to facilitate verification of the membership and to make available the products and
services of PACS online. This will enable seamless delivery of services such as subsidies and interest subvention
and also will help build a single-verified member database for policy planning.

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● Integration of e-PACS portal with Common Service Centers, National Cooperative Database, Jan Aushadhi
Kendras, Financial Inclusion Gateway, Webland and other government portals is on the anvil for
interoperability.
● A mobile application has been launched to provide farmers with real-time access to their account summaries
● The geo-tagging of over 66,000 PACS has been completed, laying the groundwork for enhanced visibility and
business potential through search engine optimization.
● Document Archival Retrieval System is now live, with over 5,000 documents-amounting to approximately 25
GB of data-digitized and catalogued. This archival system serves as a foundational database, preserving legacy
records for accurate reference and data validation
Vision for the Future
The hallmark of success of the project will be adoption of the software and digitised work processes by PACS which
need to flow from suitable adaptations in the eco-system in which the PACS operates. NITI Aayog has identified
conduct of timely e-audit of PACS as one indicator and at a later stage, enhanced speed of sanction and
disbursement of loans as another.
However, beyond computerization, a broad vision for the future encompasses:
● To support PACS in becoming multipurpose engines powering rural transformation. Expanding non-credit
business like CSC, PMKSK, FPS/PDS.
● Expanding computerization services to non-credit co-operatives like dairy, animal husbandry, fisheries, honey
etc.
● Aspire growth in membership base, revenue & profitability of PACS. Impact positively on PACS business
activities.
● Development of a Co-op Grid, with NABARD & PACS, DCCBS, STCBs; for seamless information flow & anchoring
competitive federalism among them
● Doorstep delivery of services through adoption of farmer centric app, QR scanning features, mobile based soil
testing, E-Commerce powered by PACS, cashless transactions, etc.
● Improving PACS governance, HR management activities and admin processes.
● Implementation of welfare schemes like DBT for rural households/citizens through e-PACS.
● Improving members' education/ awareness and offering personalized products/services through PACS.
● Building an ecosystem by establishing networks amongst PACS/DCCBs/StCBs/ other institutions, highlighting
best practices of PACS, facilitating knowledge sharing between rural & urban co-operatives.
● Evolve this scheme into a pay-per-use model to be self-sustainable activity managed by a shared services
entity.
Transformative Journey of Cooperatives in Different Region
Maharashtra - Digital Turnaround at Kharsai Vividha Karyakari Society
● Kharsai Society in Maharashtra showed how digital tools can transform PACS. Earlier, it faced slow record-
keeping, data errors, limited access and space issues with physical records. Manual work caused delays and
financial mistakes.
● The society quickly adopted digital systems, leading to better efficiency, accurate data, satisfied members,
and improved finances. Less workload and faster processes made it a model for modern, transparent, and
growth-focused PACS.
Tamil Nadu Resilience through Cloud-Based Recovery at Arakandanallur PACS
● During severe floods, Arakandanallur PACS in Tamil Nadu quickly recovered thanks to digital systems and cloud
storage. Despite damage to physical records, staff accessed data remotely, kept services running, and resumed
normal operations soon after. This shows how digital tools boost disaster resilience and long-term stability.

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Conclusion
● PACS computerization is a major reform in rural finance, not just a tech upgrade. It boosts efficiency,
transparency, and service to farmers. The project is progressing well and supports the goal of a strong, digital,
cooperative-led rural India.
● The project supports the vision of 'Sahkar Se Samriddhi' by making PACS more transparent and efficient
through CAS and MIS. Faster loans and real-time links with DCCBs and StCBs will lower costs and improve
governance.
● To sum up, rural cooperative credit institutions are undergoing a policy-driven transformation. This will help
them play a stronger role in boosting rural economic growth. They should continue to focus on inclusion. At
the same time, they must protect their financial health. This is important as competition from other rural
financial players increases.

PACS AS COMMON SERVICES CENTERS

● Primary Agricultural Credit Societies PACS have long supported farmers and form a vast rural network. As rural
needs grow, the government is transforming PACS into Common Service Centers (CSCs), offering various
services to bridge the rural-urban gap and boost inclusive growth.
● With over 13 crore farmer members, PACS have wide reach and can deliver more than 300 e-services from
the CSC Digital Seva Portal to rural citizens.
● On 2nd February 2023, an MoU was signed to allow PACS to offer CSC services like banking, insurance,
Aadhaar, PAN, tickets, health, farming inputs, and more to rural citizens.
New Vision for Rural Development
● By becoming CSCs, PACS now offer many services beyond farm credit—like Aadhaar, PAN, welfare schemes,
online shopping, healthcare, and skill training. This helps rural people access key services locally, improving
their lives.
Empowering Farmers Beyond Credit
● With PACS becoming CSCs, farmers can directly access markets, schemes and information, cutting out
middlemen and boosting earnings. They get updates on farming practices, weather, and subsidies plus training
and tools for modern farming.
Fostering Rural Entrepreneurship
● PACS becoming CSCs boosts rural entrepreneurship. They help small businesses and artisans with money,
training, and markets. Locals can sell online, get loans and learn new skills. This creates jobs, cuts urban
migration, and empowers women and youth.
Strengthening Rural Infrastructure through PACS-CSCS
● Turning PACS into CSCs needs better buildings, internet, and IT systems. This improves service, builds trust
and creates jobs. Staff training ensures smooth operations, and infrastructure work boosts rural employment
and growth.
Financial Inclusion
● Transforming PACS into CSCs boosts financial inclusion in villages. They offer banking services and teach
people about savings, insurance, and pensions. This helps rural families become financially secure and reduces
poverty.
Aligning with National Objectives
● PACS-CSCs support Digital India, Make in India, and Atmanirbhar Bharat. They boost rural digital services, local
businesses, and self-reliance, helping build inclusive and sustainable development.

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Overcoming Challenges
● PACS-CSCs face challenges like low digital literacy, poor infrastructure, and staff resistance. Solving these
needs joint efforts, awareness drives, better training and support for infrastructure to make the initiative
successful.
Key Achievement and Progress
● By 30 April 2025, 45,319 PACS in 33 states/UTs started CSC services, doing ₹85.70 crore in transactions. CSC-
PACS software integration is underway. NCCT is training PACS to offer 300+ services to rural people. This
initiative brings e-services to villages, makes PACS local service hubs, boosts their income & creates rural jobs.

NATIONAL COOPERATIVE DEVELOPMENT CORPORATION (NCDC) : POWERING INDIA’S COOPERATIVE

REVOLUTION
● The NCDC, under the Ministry of Cooperation, was set up in 1963 to support cooperatives. It plans, funds, and
promotes rural development, helping farmers and weaker sections with financial and technical aid.
● In Lok Sabha, Amit Shah said small farmers repay loans well, helping NCDC do ₹90,000 crore in business with
no NPAs. NCDC gave ₹10,000 crore to 56 sugar mills, and formed 1863 FPOs and 1070 FFPOs.
● In 2024–25, NCDC approved ₹1.3 lakh crore and gave ₹95,175 crore, helping 2.76 lakh cooperatives and 1.27
crore members. It had zero NPAs, a 99.76% loan recovery rate, and earned ₹750 crore profit, showing strong
performance.
● By March 31, 2025, NCDC disbursed ₹4.08 lakh crore. Disbursements grew from ₹7,118 crore in 2015–16 to
₹95,175 crore in 2024–25, with a 33% annual growth rate and 57% growth over the previous year.
● Looking ahead, for the financial year 2025-26, NCDC has set an ambitious disbursement target of Rs. 80,000
crore to various cooperatives across India. The cooperative sector's growth inherently demands accessible
credit at competitive rates, and NCDC continues to play a pivotal role in meeting this need.
● NCDC strengthened cooperative sugar mills with a ₹1,000 crore grant, sanctioning ₹10,000 crore to 56 mills
by March 2025. This improved their operations and boosted the rural economy.
● NCDC formed 1,863 FPOs, including 1,100 new ones, under the 10,000 FPOs scheme. By March 2025, it gave
₹165.37 crore to FPOs and CBBOS, boosting PACS and farmer support.
● Under Pradhan Mantri Matasya Sampada Yojna, NCDC formed 70 FFPOs and turned 1,000 fisheries
cooperatives into FFPOs, giving ₹77.07 crore by March 2025. This improved fish farming and incomes. Under
PMKSSY, NCDC will upgrade 2,348 more fisheries cooperatives into FFPOs.
● NCDC supports marine fishing through its Deep-Sea Trawlers Initiative. It funded ₹11.55 crore for 14 trawlers
in Maharashtra and ₹37.39 crore for a seafood unit in Mumbai, boosting fishing operations and processing.
● NCDC gave ₹18 crore in Gujarat for 30 trawlers and ₹32.69 crore in Kerala for a fisheries project. These efforts
boost fish production, quality, and sustainable fishing.
● NCDC supports cooperatives in farming, fishing, and sugar mills, boosting rural growth. Its funding, training,
and guidance help drive sustainable and inclusive development.
● NCDC is a key force in India's cooperative growth. With strong support and clear goals, it helps cooperatives
thrive and stay transparent. As the sector grows, NCDC’s role is vital for national progress.

NATIONAL COOPERATIVE EXPORTS LIMITED (NCEL) : EMPOWERING INDIA’S AGRICULTURE EXPORTS

● India has huge potential in global farm markets but faces export challenges. NCEL works to connect farmers
with global buyers and boost exports.
● NCEL was set up under Ministry of Cooperative’s initiative to boost exports through a national cooperative. It
helps farmers and cooperatives enter global markets and grow India's farm exports.

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● NCEL was set up with the approval of the Cabinet of the Union Government and registered under the Multi-
State Cooperative Societies Act, 2002 on 25 January 2023.
Introduction to NCEL
● NCEL promotes exports from India’s cooperatives, helping farmers reach global markets. It boosts export
quality and profits, supporting the goal of Aatmanirbhar Bharat.
● NCEL allows all cooperatives, FPOs, FPCs, and SHGs to join. By May 2025, 10,346 applied and 9,425 got share
certificates. Members get help with storage, packaging, branding and access to global markets, boosting
inclusive growth.
● NCEL is backed by top cooperatives like Amul (GCMMF), IFFCO, KRIBHCO, NAFED, and NCDC. It works to fix
export issues and raise farmer incomes through better global market access.
Strategic Partnerships and Global Engagement
● NCEL is working with states, national agencies, and global partners to boost cooperative exports. It has signed
MoUs with states and groups like NCOL, MPEDA, Senegal, and Indonesia to grow trade and support the ‘Sahkar
Se Samriddhi’ vision.
● NCEL joined global events like the ICA Conference in 2024 and applied for ICA membership. It aims to
represent Indian cooperatives globally and boost their international presence.
Early Beginnings
● The cooperative movement in India began in the late 19th century to protect farmers and workers from
moneylenders and middlemen. It aimed to empower marginalized groups by pooling resources for economic
and social upliftment.
● India’s first cooperative society was set up in 1904 in Pedanandipadu, Andhra Pradesh, to give farmers
affordable credit. Its success led to the Cooperative Societies Act, 1912.
● National Cooperative Exports Limited promotes exports of farm and allied products, helping Indian farmers
access global markets.
● NCEL can buy farm and related products from across India and export them with support from central and
state government schemes and policies.
● At its launch in October 2023, Minister of Cooperation said that, NCEL aims to take local products global and
help small farmers export. It handles everything from buying to exporting, supporting the PM's vision of
"Sahkar Se Samriddhi”.
Financial & Non-Financial Aims of NCEL as a Dedicated Export Cooperative Society:
● Act as an umbrella organisation to promote and carry out exports from the cooperative sector.
● Year-on-year growth in NCEL's revenue.
● Help unlock the export potential of Indian cooperatives in global markets.
● Improved prices of 'Cooperative' products through exports.
● Improved social security for stakeholders.
● Upliftment of stakeholders belonging to weaker sections.
● Assist cooperatives in accessing benefits from various export-related schemes and policies of different Indian
government ministries.
● Generation of rural employment through export related activities.
● Improved market focused competitiveness of cooperatives.
● Provision of a sense of belongingness to various stakeholders, such as the farmers.
● Provides a platform for cooperative societies from primary to apex levels to become members and participate
in export activities.
● Shares profits with member farmers, NCEL has provisions for distributing profits to its members:

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 ○ Up to 20% of profits can be distributed as dividends (as per Clauses 55 and 58 of NCEL's byelaws).
○ Up to 50% of net surplus can be distributed to members for their products (as per Clause 54 of NCEL
byelaws).
● Work towards realising the Prime Minister's vision of “Sahkar Se Samriddhi” (Prosperity through Cooperation)
through an inclusive growth model.
Vision of NCEL
The core vision of NCEL is to establish India as a global leader in agricultural exports by ensuring the availability of
high-quality and diverse agricultural products in international markets. The organisation aims to enhance the
competitiveness of Indian agricultural products through:
● Quality Assurance: Ensuring that exported products meet international standards and consumer preferences.
● Infrastructure Development: Building state-of-the-art logistics, packaging, and storage facilities to streamline
the export process.
● Farmer Empowerment: Directly linking farmers with global markets to ensure fair compensation for their
produce.
● Brand Development: Promoting Indian agricultural products through branding and marketing, making them
recognised and trusted worldwide.
Mission of NCEL
The mission of NCEL is to overcome the current challenges in the agricultural export supply chain, including
infrastructure deficits, market access, and inadequate coordination between producers and exporters. NCEL aims
to:
1. Facilitate seamless trade and export of Indian agricultural products.
2. Empower farmers through cooperative models that provide access to better income and global markets.
3. Build a competitive edge for Indian products in international markets by ensuring product quality and standards.
4. Strengthen the role of cooperatives in contributing to India's global agricultural export success.
Key Objectives of NCEL
NCEL's approach is focused on improving the efficiency and effectiveness of India's agricultural export operations.
Some of the key objectives of the organisation include:
1. Enhancing Market Access: By connecting Indian farmers and producer cooperatives to international buyers,
NCEL aims to open up new markets for agricultural produce.
2. Strengthening the Export Infrastructure: The development of a robust export infrastructure including
processing units, packaging facilities, cold storage, and warehousing is crucial for maintaining the quality of
produce and ensuring timely delivery.
3. Ensuring Quality Compliance: NCEL focuses on ensuring that the products meet international quality standards,
including certifications such as ISO, HACCP, and Global GAP, which are necessary for accessing global markets.
4. Sustainable and Ethical Practices: NCEL promotes environmentally sustainable agricultural practices,
technology-assisted traceability, and ethical standards which ensure that the export processes facilitate fair wages
and conditions for farmers and workers.
5. Promoting Farmer Cooperatives: NCEL builds strong partnerships with farmer cooperatives, Farmer Producer
Organisations (FPOs), Farmer Producer Companies (FPCs), Self-Help Groups (SHGs) and other relevant
stakeholders to ensure a steady and reliable supply of export-grade produce.
Roles and Responsibilities of NCEL
NCEL helps cooperatives export farm products by linking Indian farmers to global markets and handling sourcing,
processing, branding, and delivery. Below are the key roles and responsibilities of NCEL:

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1. Procurement-NCEL sources farm products from cooperatives and FPOs, helping farmers combine produce,
reach bigger markets, and benefit from efficient exports.
2. Storage and Processing- NCEL stores and processes farm products in modern facilities to keep them fresh and
meet global quality standards, helping boost India’s export image.
3. Branding and Marketing- NCEL promotes Indian farm products globally through branding, quality packaging,
certifications, and marketing. It helps products stand out and builds ties with global buyers.
4. Export Facilitation- NCEL manages export logistics like transport, packaging, and paperwork, helping
cooperatives focus on farming while ensuring smooth delivery to global markets.
5. Farmer Education- NCEL trains farmers in modern farming and meet export standards to boost product quality,
helping them become export-ready and improve their incomes.
6. Policy Advocacy-NCEL works with the government to push for policies and trade deals that support
cooperatives, simplify exports, and help farmers reach global markets.
Key Challenges
Despite its robust infrastructure and cooperative model, NCEL faces several challenges:
1. Infrastructure Deficits: There is still a gap in the availability of modern cold storage, processing and packaging
facilities.
2. Market Access: Entering international markets requires overcoming tariff barriers, non-tariff measures,
international political economy considerations and regulatory hurdles.
3. Farmer Awareness: Information regarding international standards for agricultural and allied produce remains
inaccessible to many farmers, which can negatively affect product quality and hinder exports to desirable
international markets.
4. Supply Chain Management: Coordinating the logistics of sourcing, processing, and delivering products on time
remains a challenge.
5. Global Competition: NCEL competes with agricultural exporters from other countries, making it crucial to
differentiate Indian products in terms of quality and price.
Key Milestones
In just two years since its inception, NCEL has made significant progress:
1. Membership Growth: A total of 10,346 cooperative societies from 30 states and union territories have become
applied for membership to NCEL. 9,425 cooperative societies have been issued share certificates.
2. Financial Success: For the financial year 2024-2025, NCEL achieved a turnover of Rs. 4,283 crores, with
cumulative turnover since its inception surpassing Rs. 5,396 crores.
3. Export Milestones: NCEL has so far exported approximately 13.09 LMT of Agri commodities like rice, wheat,
maize, sugar, onion and cumin seed worth Rs. 5,396 crore.
4. Rice Exports: NCEL has emerged as one of India's largest exporters of rice, particularly non-Basmati white rice
and broken rice.
5. International Partnerships: In December 2024, NCEL signed an MoU with Senegal to build a long-term
partnership and open an office in Dakar. It is also seeking more global partners.
6. Dividend Distribution: NCEL paid a 20% dividend to its members in its first year of operation.
Promoting the Cooperative Spirit in 2025
For the UN’s International Year of Cooperatives 2025, NCEL will hold events like seminars, street plays, stalls,
celebrations, and tree planting to promote cooperation and community awareness.
Conclusion
● India's cooperative movement has empowered communities and boosted development. The creation of NCEL
has strengthened cooperatives in global trade, increasing exports and supporting economic growth.

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● As India continues to navigate the complexities of international trade, NCEL's role in promoting cooperative
exports will remain crucial. By building on its achievements and embracing new opportunities, NCEL has the
potential to further strengthen the cooperative sector and ensure that the benefits of globalisation reach the
grassroots level.

NATIONAL UNIVERSITY FOR COOPERATIVES : A LONG OVERDUE INITIATIVE

The 2025 Budget Session introduced and passed the TSU Bill, making IRMA the new 'Tribhuvan Sahkari University'
(TSU). TSU will offer education, research, and training in the cooperative sector to boost the cooperative
movement in India.
What are Cooperatives?
● Cooperatives are member-owned groups that combine business and social welfare. Unlike profit-driven
companies, they aim for both financial stability and service to members.
● Cooperatives follow the idea of 'Value for money and value for many.' Amul shows this by giving quality
products to consumers and passing 85% of earnings to 36 lakh dairy farmers, supporting both economy and
society.
● Cooperatives unite farmers to reduce risk and increase strength. While individual farmers struggle alone,
together in cooperatives they get better prices, inputs, credit, and market access.
● Cooperatives promote unity, equality, and fairness. They include all members, give equal votes, share
resources, and follow democratic decisions. They help build just and sustainable communities.
Why a University for the Cooperative Sector?
● India long needed a university for the cooperative sector. Cooperatives existed before independence and were
supported by British laws. After 1951, India promoted cooperatives for development, aiming for every village
family to join one.
● India has over 8.5 lakh cooperatives with 30 crore members in many sectors. Over 20% of Indians are part of
cooperatives, above the global average. Cooperatives contribute majorly to sugar, fertilizer, credit, paddy,
fish, and milk production.
● A 2024 report says cooperatives can create 11 crore jobs by 2030. But India lacks enough training and
education in this sector. IRMA, founded in 1979 by Dr. Verghese Kurien, is a key institute training leaders for
rural and cooperative development.
● One IRMA is not enough. Tribhuvan Sahkari University aims to fill the gap by training skilled workers for
cooperatives, building capacity, and researching key issues like why some cooperatives succeed and how they
can compete with corporates.
Renewed Emphasis on Cooperatives by the National Government
● Since 2021, the government set up the Ministry of Cooperation and built a national cooperative database.
Cooperatives grew by 10% nationwide, with major growth in J&K and other states. Maharashtra has the most
cooperatives, and housing, dairy, and PACS are the top sectors.
● The Ministry of Cooperation supports cooperative federalism. A new national policy is being finalized. PACS
are now common service centers linked to 300+ schemes, with most now online. Tax on cooperatives was cut
from 12% to 7%. Over 60 initiatives have been launched, with plans to expand cooperatives in all villages and
new sectors like taxi and insurance.
Agenda of TSU
● Amit Shah, India’s first Cooperation Minister, said that cooperatives reach every family in the country. He
introduced the TSU Bill to set up India’s first cooperative university, named Tribhuvan Sahkari University, after

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 Tribhuvandas Patel. The university aims to boost rural economy, self-employment, and cooperative
leadership. He also highlighted Amul’s growth from 250 litres in 1946 to ₹90,000 crore in 2024–25.
● Amit Shah said cooperatives can drive self-employment (‘Swarojagar’) with three key benefits: dignity and
security, community unity, and mass development that empowers all, not just a few rich. Cooperatives build
both economy and social harmony.
● To boost cooperatives, a national university was needed. Amit Shah noted that existing training centers lack
a common course. Tribhuvan Sahkari University will unify and standardize cooperative education. It will offer
degrees, diplomas, and short-term courses—both offline and online—for students and workers, aligned with
NEP 2020, to expand job opportunities and skill development.
● The university will act as a think tank, researching cooperative issues and guiding policies. Using a hub-and-
spoke model, it will train about 8 lakh people yearly, build skilled talent, and make cooperatives more
professional, transparent, and accountable.
● The university will build a modern cooperative culture, boost India’s leadership in cooperative education, and
support a strong, self-reliant, and sustainable cooperative system that empowers millions.
● In conclusion, the government of the day has envisioned the 'Tribhuvan Sahkari University’ as a first-of-its-
kind institution. This Institute of national importance is mandated to contribute to country's stride towards a
developed economy, riding on the growth of the cooperative sector ('Sahkar Se Samriddhi'). Such a
development will surely be more equitable, inclusive, and less inimical to the environment. In this positive
light, we welcome the establishment of the Tribhuvan Sahkari University. In a collective spirit, we look forward
to collaborating to work for the greater good of our cooperatives and the people of India and beyond.

MULTI STATE COOPERATIVE SOCIETIES (AMENDMENT) ACT & RULES, 2023 : STRENGTHENING
GOVERNANCE AND TRANSPARENCY
● The Ministry of Cooperation was formed in 2021, to strengthen India's cooperative sector. Guided by the PM’s
vision of ‘Sahkar Se Samriddhi,’ it has launched 60+ initiatives to boost cooperatives’ reach and self-reliance.
● The Ministry found issues in some Multi-State Cooperative Societies, like fraud, election delays, biased audits,
and poor member participation. The 2002 law was outdated and couldn't prevent these problems.
● This led to proactively implement various reforms in cooperatives, e.g., 'Ease of Doing Business' by making
registration process easier, allowing online/digital registration, making membership more vibrant and active,
providing information to increase transparency, appointment of Ombudsman for redressal of member
grievances, etc.
● On August 3–4, 2023, the government amended the 2002 Multi-State Cooperative Societies Act to improve
governance, transparency, accountability, and elections. The changes align with the 97th Constitutional
Amendment for a stronger cooperative system.
● The Multi-State Cooperative Societies (Amendment) Act, 2023 strengthens the autonomous and democratic
character of cooperatives. By resolving several issues, this act provides a conducive atmosphere for multistate
cooperatives to grow and flourish in various areas of socio-economic activities.
Salient features of the MSCS (Amendments) Act, 2023
● A key change in the 2023 amendment is creating the Cooperative Election Authority to ensure fair, timely, and
transparent elections in multi-state cooperatives. The government notified it under Section 45 of the updated
MSCS Act.
● As per provisions in the act, above authority is now functioning with full establishment conducting elections
of the Multi-State Cooperative societies successfully. Within short span, the following milestones are
achieved:

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 ○ Issued 146 election programmes from the date of its constitution.
○ Successfully conducted 113 elections of board of directors & office bearers.
○ 33 elections are under process (as on 04.04.2025).
○ In the month of March 2025, elections of 13 MSCS completed.
○ As proactive measure, emails sent to 315 multi-state cooperative societies, whose elections are due
till 31 March 2025, to conduct the elections within time and inform six months before expiry of the
existing board.
○ The CEA has started meeting with societies listed in Schedule-II to align their Bye-Laws with amended
Multi-State Cooperative Societies Act/Rules.
Initiatives to Add Transparency in Cooperatives
● Sections 85A and 106 of the MSCS Act introduce the Cooperative Ombudsman and Cooperative Information
Officer (CIO). The Ombudsman handles member complaints, while CIOs support them by sharing info,
resolving issues, and ensuring rule compliance.
● National Cooperative Union of India in collaboration with the Ministry of Cooperation is organizing training
programmes for CIOs titled 'Responsible Governance, Compliance and Sustainability' with following
objectives:
○ To provide in-depth knowledge of the recent amendments to the MSCS Act and their implications.
○ To train CIOs on effective information management and compliance with regulatory requirements.
○ To enhance skills in handling member grievances and ensuring timely redressal.
○ To promote best practices in the administration and management of cooperative societies.
These comprehensive training programmes empower CIOs to navigate the complexities of the amended MSCS
Act, ensuring effective compliance, transparent operations, and robust grievance redressal mechanisms. All CIOs
are well-prepared to meet the challenges and responsibilities of their crucial roles in the cooperative sector and
support the Cooperative Ombudsman in maintaining a fair and efficient grievance redressal.
Appointment of Cooperative Ombudsman
● The Central Government will appoint a Cooperative Ombudsman to resolve disputes and ensure fair practices
in cooperative societies.
● New rules ensure quick and fair handling of member complaints. The Cooperative Ombudsman checks issues
like deposits and rights, and hear appeals against CIO decisions using Form VII (MSCS Rules 2002).
● The amendment allows digital submission of forms, fees, and returns, and issues certificates online to make
cooperative work faster and easier.
Registration
● MSCS registration time is reduced from 4 to 3 months. Societies can get up to 2 more months to fix issues,
making the process faster and easier.
Representation of SC/ST & Women
● As per Article 24321, MSCS Act now ensures one SC/ST member and two women on the board, promoting
social justice and inclusivity.
Financial Transparency & Accountability
● To prevent fraud, MSCS with high turnover will now undergo real-time (concurrent) audits. Auditors will be
chosen from a panel set by the Central Registrar.
● Audit reports of Apex MSCS will be placed in Parliament for transparency. The Centre will set common
accounting and audit standards for all MSCS.
● The Centre will set prudential norms for MSCS in thrift and credit, covering liquidity, exposure limits, and
financial rules to ensure stability.

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● New rules disqualify fraud-linked directors and raise expulsion period from 1 to 3 years, improving MSCS
governance and leadership integrity.
● MSCS can now invest in safer, modern options instead of old colonial-era securities, ensuring better
protection of members' funds.
● The amendment requires MSCS boards to form two committees—one for Audit and Ethics to ensure financial
discipline, and another to prevent sexual harassment, promoting safety and accountability.
● The amendment sets qualification rules for MSCS CEOs to ensure capable leaders guide their growth and
success.
● The Central Registrar can now probe MSCS if fraud or illegal activities are suspected, boosting oversight and
curbing misuse.
● The MSCS Amendment Act 2023 improves governance, transparency, and accountability. It promotes digital
processes, better audits, and stronger rules—boosting trust and growth in the cooperative sector.

NATIONAL COOPERATIVE ORGANICS LIMITED (NCOL) : TOWARDS DEVELOPMENT OF ORGANIC

AGRICULTURE
Organic farming in India has grown rapidly, with 4.7 million hectares under cultivation and 2.36 million certified
farmers. The global organic food market rose from ₹1.41 lakh crore in 2005 to ₹12.2 lakh crore in 2022. Major
markets include the US, EU, China, Canada, Japan, and South Korea.
Role of International Organizations
● The global organic sector is well-structured, led by IFOAM since 1974. It works with bodies like the EU, US,
FAO, and UNCTAD to promote acceptance, transparency, and growth in organic farming.
● The global organic farming area expanded by 2.6 percent in 2023, bringing the total to 98.9 million hectares,
managed by 4.3 million organic producers. Retail sales of organic food has also increased, exceeding 12.3 lakh
crore.
Highlights from the World of Organic Agriculture (2023)
Global Organic Farmland Growth
● By the end of 2023, 98.9 million hectares were managed organically, marking a 2.6% increase (+2.5 million
hectares) from 2022.
● Latin America added 1 million hectares (10.8% growth), while Africa recorded a 24% increase, expanding to
3.4 million hectares.
● Oceania leads with 53.2 million hectares, over half of the global organic area, followed by Europe (19.5 million
hectares) and Latin America (10.3 million hectares).
● Australia is the leader in organic farmland with 53 million hectares, followed by Argentina (4 million hectares)
Organic Land Share by Country
● Liechtenstein has the highest share of agricultural land under organic management (44.6%), followed by
Austria (27.3%) and Uruguay (25.4%).
● 22 countries reported that 10% or more of their agricultural land was managed organically.
Global Organic Producers
● In 2023, there were 4.3 million organic producers worldwide.
● India continues to have the largest number of organic producers (2.36 million), with notable increases
observed in Vietnam, Sri Lanka, and Burkina Faso.
Global Market Growth
● The global market for organic products reached 12.28 lakh crore in 2023.
● The European market saw the strongest growth, recovering from a negative trend in 2022.

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● The United States remained the largest market (*5.31 lakh crore), followed by Germany (₹1.45 lakh crore) and
China (1.13 lakh crore).
● Switzerland had the highest per capita spending on organic food (468 euros), while Denmark led in organic
market share (11.8% of its total food market).
● Retail sales saw significant increases in Estonia (+13.0%) and the Netherlands (+12.5%).
● The United States and Germany experienced growth rates of 3.4% and 5.0%, respectively.
● In 2023, organic farming grew steadily in land, markets, and trade. Africa saw major farmland growth, and
some European markets grew fast. The organic sector is steadily gaining importance.
Organic Agriculture in India
● FAO defines organic farming as a holistic system that boosts ecosystem health using natural methods, not
synthetic inputs. India has practiced such farming for centuries.
● India’s modern organic movement grew in the late 1980s–1990s. The 2001 launch of National Programme for
Organic Production (NPOP) gave India its own organic standards, boosting quality and global acceptance.
● India promotes organic farming through programs like National Programme for Organic Production (NPOP),
Paramparagat Krishi Vikas Yojana (PKVY), and Mission Organic Value Chain Development in Assam (MOVCD).
The PGS certification is popular among farmers. To ensure quality inputs, 10,000 BRCs are planned under the
NMNF.
● A new policy offers states incentives to cut chemical fertilizer use. It also plans 500 ‘waste to wealth’ plants to
boost organic fertilizers and support climate-friendly farming.
NCOL: Revolutionizing India's Organic Farming
● India’s organic farming is set for major growth due to rising demand and concerns over conventional farming.
The launch of National Co-operative Organics Limited (NCOL) aims to boost organic practices nationwide.
● NCOL supports all aspects of organic farming—certification, processing, marketing, and more. It also offers
financial help through cooperatives to boost production and sales of certified organic products.
● NCOL is a cooperative initiative helping farmers adopt eco-friendly, chemical-free organic farming. It aims to
grow healthy crops, improve farmer incomes, and strengthen the organic supply chain. NCOL also addresses
key issues like soil damage and chemical overuse, marking India's big step in the global organic movement.
Background
● NCOL, launched with ₹100 crore capital, is backed by major Indian agri-cooperative bodies like NDDB, AMUL,
NAFED, NCCF, and NCDC.
● Set up by the Ministry of Cooperation, NCOL strengthens the organic supply chain. It sells ‘Bharat Organics’ in
Delhi NCR via Safal, stores, and online, using certified farmers under NPOP and PGS standards.
● NCOL ensures quality with 100% batch testing and traceability. It builds a strong supply chain for ‘Bharat
Organics’, supports farmers with training, certification, and fair prices, and gives consumers genuine organic
products.
However, several challenges hinder the widespread adoption of organic farming, including:
● Lack of Awareness: Many farmers are not fully aware of the benefits and techniques of organic farming.
● Certification Challenges: The process of obtaining organic certification can be complex and expensive,
particularly for small farmers.
● Marketing Bottlenecks: Organic farmers often struggle to find reliable markets for their produce, leading to
price fluctuations and reduced profitability.
● Lack of Infrastructure: Adequate infrastructure for processing, storage, and transportation of organic produce
is often lacking.

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 National Cooperative Organics Limited (NCOL) is designed to address these challenges and create a more
conducive environment for organic farming.
Vision and Mission for Strengthening Organic Movement
Vision
● NCOL aims to uplift members socially and economically through self-help, mutual aid, and cooperative
principles, following the vision of 'Sahkar Se Samriddhi'.
● NCOL serves as an umbrella body to support cooperatives in organic farming through aggregation,
certification, branding, marketing, and R&D.
● NCOL supports organic producers with finance, training, technical help, market insights, and government
schemes to boost organic farming.
Mission
To ensure aggregation, certification, production, testing, procurement, storage, processing, testing, branding,
packaging, labelling, marketing of organic products of cooperatives and related entities;
● To make reliable and authentic organic products available in domestic as well as international market.
● To represent the cooperative organic producers at different national/international forums.
● To undertake research and development and such other activities as are incidental and conducive to the
promotion and development of organic products.
● To work for enhancing qualitative production of organic produce of agriculture, horticulture, dairy, forest
produce, processed food products, spices, herbal products and animal feed, etc.
● To provide policy advocacy, advisory functions and services to member cooperatives.
Membership: A Collaborative Ecosystem for Organic Growth
National Cooperative Organics Limited (NCOL) believes in the power of collaboration and welcomes a diverse
community.
● Cooperative Champions: Cooperatives under State or MSCS Acts can join NCOL if committed to organic
farming and its principles. Their unity boosts organic farming's success.
● Farmer Producer Powerhouses: FPOs under any Cooperative Act are key NCOL members, helping empower
farmers and strengthen their collective voice.
● NCOL unites cooperatives and FPOs to support organic farming, building a stronger and sustainable future for
Indian agriculture.
Roles and Responsibilities
National Cooperative Organics Limited (NCOL) is focused on promoting organic farming by creating a robust
support system for farmers. This includes the aggregation, certification, testing, procurement, storage, processing,
branding and marketing of organic products. The key roles and responsibilities of NCOL include:
● Knowledge Repository & Research: Developing resources and providing technical expertise to help farmers
transition to and enhance organic farming practices.
● Certification & Quality Control: Ensuring all organic products meet the highest certification standards through
rigorous testing.
● Market Access: Building market linkages to connect farmers with buyers both domestically and
internationally.
● Farmer Support: Providing financial assistance, training, and knowledge-sharing to encourage the adoption
of organic farming methods.
● Branding & Promotion: Establishing and promoting the 'Bharat Organics' brand as a mark of authenticity,
purity, and quality for Indian organic products

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● Supply Chain Development Enhancing the infrastructure for procurement, storage, and distribution to ensure
organic products reach the market efficiently.
Society's Objectives
● NCOL supports organic farming through services like certification, storage, marketing, and funding, via
cooperatives including PACS and FPO.
● To explore existing untapped organic clusters
● To assess the marketing potential of organic products, increase consumer confidence and deliver genuine
organic products to them at affordable prices.
● To identify potential markets for organic products and to mentor member cooperatives to access wider
markets.
● To take up promotion and development-related activities of organic products with the help of various schemes
and agencies of the Government.
● To disseminate improved organic farm practices and the latest technologies in organic farming management.
Key Challenges
While NCOL has made significant strides in advancing the organic farming sector in India, several challenges
persist:
● Competition from Conventional Farming: The low cost of production in conventional farming, due to the use
of chemicals and fertilizers, makes it difficult for organic products to compete on price.
● Access to Finance: Despite offering financial support, many small-scale organic farmers still struggle with
access to credit, which limits their ability to invest in organic farming practices.
● Logistical and Infrastructure Constraints: The challenges of transporting perishable organic goods from rural
areas and maintaining product integrity remain a major obstacle.
● Certification and Authenticity: Ensuring that organic products meet certification standards and are not mixed
with conventional crops is crucial for maintaining consumer trust.
● Market Penetration: Organic products, though growing in demand, remain a premium offering that struggles
to reach price-sensitive markets.
Key Progress
Despite these challenges, NCOL has made considerable progress in advancing organic agriculture in India:
● A total of 5,184 cooperatives have become members of NCOL.
● NCOL sells organic products under the 'Bharat Organics' brand and has marketed 21 items worth ₹167.1 lakh
so far.
● NCOL has entered into MoU with nodal agencies of eight states i.e., Andhra Pradesh, Uttarakhand, Nagaland,
Assam, Meghalaya, Chhattisgarh, Maharashtra, and Tripura to facilitate organic procurement.
● On 22 October, NCOL signed MoUs with NDDB, MRIDA, and Mother Dairy to promote bio-inputs, model bio-
villages, and expand 'Bharat Organics' distribution. Another MoU with NCEL was signed on 20 December 2024
to boost organic farming efforts.
● The new Moti Bagh Safal outlet has been made a model outlet for organic products.
● 'Bharat Organics' brand introduced in Amul, BigBasket, Flipkart, NCC outlets on metro stations (Rajiv Chowk),
etc.
● Finalized the packaging units for cereals, pulses and sweeteners. The processing unit for sweeteners and
wheat has also been finalized.
● Introducing QR code on new packaging to facilitate the customer to see the test report for each lot.

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Future Directions and Vision of NCOL
Looking ahead, NCOL is focused on several strategic initiatives aimed at expanding its reach, supporting farmers,
and promoting sustainability:
1. Expansion of Product Range: The organization plans to diversify its product offerings under the 'Bharat
Organics' brand, catering to various consumer preferences and needs, both domestically and globally.
2. Global Market Access: NCOL aims to penetrate international markets by participating in global trade fairs and
establishing export channels for Indian organic products, thereby increasing its global presence.
3. Enhanced Farmer Support: NCOL supports farmers with financial aid and technical help through PACS, offering
training, incentives, and resources to grow organic farming.
4. Sustainability Initiatives: A core focus will remain on promoting environmental friendly farming techniques and
sustainable practices, ensuring that the organization's operations align with long-term environmental goals.
5. Market and Brand Expansion: NCOL aims to grow retail and online sales of 'Bharat Organics', making products
widely available and boosting its presence in India and abroad.
6. Infrastructure Development: NCOL intends to continue investing in cold storage, transportation, and logistics,
ensuring the integrity and quality of organic products during distribution.
7. NCOL envisages to become the largest organic food player in the country by 2035 having a direct sourcing base
from its members.
8. It also envisages to achieve a cumulative turnover of Rs. 1,00,000 crores (including exports of organic products
through NCEL) by the year 2035.
By focusing on these key areas, NCOL envisions further growth, a stronger market presence, and an increased
impact on the organic farming landscape in India and beyond.
Relevant Insights
● NCOL supports India’s cooperative push by promoting organic farming, helping farmers, and aligning with
global sustainability goals.
● Rising demand for healthy food boosts organic growth, giving NCOL a chance to improve farmer incomes,
public health and sustainability.
Conclusion
● In conclusion, NCOL leads India’s organic farming drive, empowering farmers and promoting sustainability. It
aims to shape the future of Indian agriculture.
● NCOL is transforming Indian agriculture by promoting organic farming and creating market opportunities. It
supports farmers through research, certification, and 'Bharat Organics' branding.
● NCOL is key to India’s organic farming growth, improving farmer livelihoods, product quality, and
sustainability. Its strong partnerships and expanding network ensure continued progress.
● NCOL aims to expand markets, involve more farmers, and build strong supply chains, positioning India as a
global organic leader. Its mission supports a healthier, sustainable future for all.

WHITE REVOLUTION 2.0 : TRANSFORMING DAIRY SECTOR

The Ministry of Cooperation launched White Revolution 2.0 by giving ₹40,000 each to 1,000 Multipurpose Primary
Agricultural Credit Societies (MPACS) and Multipurpose Dairy Cooperative Societies (MDCS) for dairy activities.
This will be supported by the upcoming National Programme for Dairy Development (NPDD) 2.0 and will boost the
cooperative movement. India’s dairy sector is vital to its agriculture, contributing 5.5% to GDP and employing 8
crore farmers. India leads in both milk production (25% of global output) and consumption. Milk output grew from
146.3 MMT in 2014–15 to 239.3 MMT in 2023–24, growing at 6% annually. Per capita milk availability is 471g/day,
higher than the global average. Dairy supports rural jobs, nutrition, and food security.

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White Revolution 1.0: Operation Flood
● India transformed from a milk-deficient country to the world’s top milk producer due to the 1970s White
Revolution led by Dr. Verghese Kurien and National Dairy Development Board. Operation Flood boosted milk
output, cut out middlemen, and built dairy cooperatives, improving farmer income and nutrition.
The Dairy Cooperative Network
● Dairy cooperatives, run by farmers, remove middlemen and give small farmers better market access and fair
prices. Farmers get 75–85% of the consumer price—the highest globally. These cooperatives also empower
women through income, skills, and leadership roles.
Need for White Revolution 2.0
● White Revolution 2.0 is needed to address challenges like low animal productivity, limited cooperative
coverage, low value-added products, weak global trade share and climate concerns in India's dairy sector.
● A major issue is low milk yield—Indian cattle average 4 kg/day, while in the US and Europe it's 18–20 kg. This
limits growth, profits, and meeting rising demand.
● Dairy farming affects the environment through greenhouse gases and high water use. Climate change is
reducing crop and pasture quality, so the industry must adopt eco-friendly, sustainable practices.
● Supply chain issues and an unorganized market (68% share) hurt the dairy sector. Problems include poor
quality control, weak logistics, low farmer profits, and milk adulteration, raising food safety concerns.
● The unorganized sector lacks quality, hygiene, and traceability, limiting growth. Though India is the top milk
producer, it holds under 1% of global dairy trade, needing better quality, processing, and global
competitiveness.
● Women do 60–80% of dairy work in rural India, yet their efforts often go unrecognized. They form 70% of the
dairy workforce. Women-led cooperatives, supported by Amul and NDDB, empower them with income, skills,
and leadership roles.
● White Revolution 2.0 aims to boost milk quality, sustainability, women’s empowerment, and global presence.
Led by the Ministry of Cooperation, it promotes a cooperative-based, strong and fair dairy future.
● White Revolution 2.0 aims to fix issues in the unorganized dairy sector by strengthening cooperatives, raising
productivity, ensuring fair prices, using sustainable methods, and adopting technology for a stronger and
inclusive dairy industry.
● India’s organized dairy sector has huge potential to grow in efficiency, output, and exports. White Revolution
2.0 is the roadmap to unlock this while ensuring sustainability and global growth.
● White Revolution 2.0 empowers women through better access to technology, credit, training, and leadership,
promoting gender equality and a more inclusive dairy sector.
Precursor to White Revolution 2.0
● National Dairy Development Board will give ₹40,000 each to 1,000 MPACS/MDCS to start dairy work. Later,
White Revolution 2.0 will be funded under the planned NPDD 2.0, as per government guidelines.
Objectives of White Revolution 2.0
White Revolution 2.0 is designed with the goal of ensuring that India's dairy sector remains competitive,
sustainable, and inclusive. The main objectives of the initiative include:
● Increasing Milk Procurement: Aiming for a 50% increase in milk procurement by dairy cooperatives by 2028-
29, which will bring more milk into the organized sector and improve the efficiency of milk collection and
distribution networks.
● Strengthening Dairy Cooperatives: Building and strengthening existing dairy cooperatives, creating new ones,
and ensuring that they are equipped with the necessary infrastructure and resources to operate efficiently.

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● Empowering Women: Encouraging greater female participation in dairy cooperatives and leadership roles,
thereby fostering gender equality and empowering rural women.
● Ensuring Fair Prices: Guaranteeing fair prices for farmers by eliminating intermediaries and improving market
access through cooperatives.
Project Strategy and Implementation
To achieve the objectives of White Revolution 2.0, dairy cooperatives need to increase milk procurement by
approximately 9% annually, compared to the current 6% growth rate. The strategy includes
● Establishing New Dairy Cooperatives: The initiative will establish about 75,000 new Dairy Cooperative
Societies (DCS), Multipurpose Dairy Cooperative Societies (M-DCS), and Multipurpose PACS (M-PACS) in rural
areas, connecting them to existing or new milk routes.
● Strengthening Existing Cooperatives: About 46,000 existing cooperatives will be strengthened by providing
infrastructure such as automatic milk collection units, data processing equipment, testing equipment, and
bulk milk coolers.
● Leveraging Government Schemes: NDDB will arrange financial assistance to support these efforts through
the convergence of various schemes of the Department of Animal Husbandry & Dairying.
● In absolute terms, by the end of fifth year, the milk procurement by dairy cooperatives is expected to reach
1000 lakh kg per day. This will be achieved through two pronged strategies viz. (i) expanding the coverage of
dairy cooperatives (ii) deepening the reach of dairy cooperatives.
Outcomes of White Revolution 2.0
White Revolution 2.0 will have far-reaching outcomes:
● Market Access for Farmers: Smallholder dairy farmers will gain access to organized markets, ensuring they
receive fair and remunerative prices for their milk.
● Enhanced Dairy Cooperatives: The primary dairy cooperative network will be expanded and strengthened,
improving the entire milk value chain, from procurement to processing.
● Women Empowerment: Women's participation will be prioritized, furthering gender equality and promoting
women as leaders in the sector.
● Increased Share of the Organized Sector: The shift from the unorganized to the organized sector will enhance
food safety, hygiene, and quality control, making India's dairy sector more efficient and competitive.
● Increased Milk Production: With better practices, infrastructure, and technology, milk production will
increase to meet domestic demand and export potential.
Progress
● The government has taken significant steps to support White Revolution 2.0, including the launch of SoP for
White Revolution 2.0 on 19 September 2024 by the Ministry of Cooperation.
● On 25 December 2024, ministry of cooperation inaugurated the White Revolution 2.0 with about 6,600 newly
set up Dairy Cooperative Societies. So far, 9,568 Multipurpose Dairy Cooperative Societies have been
registered in 28 States/UTs.
Conclusion
● White Revolution 2.0 is key for India’s dairy future. It tackles low productivity, sustainability, and global
competitiveness through strong cooperatives, women’s empowerment, better quality and eco-friendly
practices—ensuring rural growth and trade success.
● With a concerted effort from farmers, cooperatives, government agencies, and industry stakeholders, India's
dairy sector can reach new heights. White Revolution 2.0 holds the key to unlocking the full potential of India's
dairy industry, securing its position as a global dairy powerhouse in the years to come.

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