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Sahkar Se Samriddhi - Five Years of the Ministry of Cooperation (UPSC-RAS)

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Philosophy -

  • Deeply rooted in the concept of Vasudhaiva Kutumbakam (the world is one family), focusing on shared ownership, mutual support, and democratic grassroots economic participation.
  • India's Cooperative Footprint- Scale at a Glance-India houses one of the largest cooperative networks globally, acting as a crucial element of the rural economy-
  1. Total Registered Cooperatives- 8.5  lakh+
  2. Total Functional Cooperatives- 6.6  lakh+.
  3. Rural Penetration- Over 98% coverage across rural India.
  4. Diversity & Membership- Spans across 30 distinct sectors, serving over 32 crore members.

1.Key Structural & Digital Reforms-

A. Transformation of PACS (Primary Agricultural Credit Societies)

  • PACS represent the grassroots foundation of short-term cooperative credit. They are systematically transitioning from mere lending counters into multi-service Rural Growth Centres-
  1. Model Bye-Laws- Implemented across 32 States/UTs, authorizing PACS to undertake over 25 diverse business lines (including retail, storage, fuel outlets, and healthcare).
  2. On-Ground Diversification Targets (As of June 2026)-
  1. 54,117 PACS operate as Common Service Centres (CSCs).
  2. 39,177 PACS function as PM Kisan Samriddhi Kendras.
  3. 4,248 PACS are approved for Jan Aushadhi Kendras (843 are fully operational).
  4. 394 PACS applied for retail fuel outlets, with 3 commissioned.

2.Digitalization and Computerization of PACS

  1. Financial Outlay- Scaled up to ₹2,925.39 crore in 2025 from the baseline allocation of ₹2,516 crore in 2022.
  2. Timeline- Computerization target for 63,000 PACS is fixed up to March 31, 2027.
  3. Progress- 79,630 PACS have been sanctioned, with 63,428 PACS actively using Enterprise Resource Planning (ERP) software available in 14 regional languages Hardware has been delivered to over 65,000 PACS, and online audits are complete for more than 42,700 entities.
  4. Urban Cooperative Banking Upgrades- The National Urban Cooperative Finance and Development Corporation (NUCFDC) unveiled Sahakar CBS (a centralized Core Banking Solution) and Sahakar Sahyogi (a conversational AI-powered customer service platform).

3. Infrastructure, Agri-Marketing & Financial Relief -

A. Decentralized Storage & FPO Integration -

  1. The Storage Plan- India is implementing the world's largest decentralized grain storage plan via cooperatives. Storage godowns have been completed in 145 PACS, creating over 68,702 MT of local capacity to prevent distress sales.
  2. Farmer Producer Organizations (FPOs)- 1,863 FPOs have been formed directly within the cooperative sector (including 1,117 via PACS). Additionally, 1,070 Fisheries FPOs have been created, with ₹98 crore disbursed for their operations.

B. Fiscal Relief & Ease of Doing Business

  • To restore the financial health of cooperative banks and societies, key tax rationalization measures were introduced-
  1. Surcharge Rationalization- Reduced from 12% to 7% for cooperatives earning an income between ₹1 crore and ₹10 crore.
  2. Minimum Alternative Tax (MAT)- Lowered from 18.5% to 15% to bring parity with corporate sectors.
  3. Liquidity Injections- The TDS cash withdrawal limit was elevated from ₹1 crore to ₹3 crore. Higher cash transaction boundaries were authorized for PACS and Primary Cooperative Agriculture and Rural Development Banks.

5. Sector-Specific Interventions & New National Institutions-

A. White Revolution 2.0-

  1. Objective- Targets a 50% increase in cooperative milk procurement by 2028-29, heavily focusing on women-led dairy cooperatives.
  2. Progress- 25,282 new dairy cooperative societies have been registered. To track supply chain mechanics, a Milk Supply Review Dashboard Portal was launched under the National Dairy Development Board.

B. The Three New Multi-State Cooperative Umbrella Institutions-

  • To tap into global value chains, three specialized apex multi-state cooperative bodies have logged critical baseline milestones-
  1. National Cooperative Exports Limited (NCEL)- Functions as the umbrella channel to export cooperative surpluses. Logged 15.4 LMT of exports worth ₹6,295 crore across 38 nations.
  2. National Cooperative Organics Limited (NCOL)- Manages the aggregation, certification, testing, branding, and marketing of organic products. Houses 14,286 member cooperatives.
  3. Bharatiya Beej Sahakari Samiti Limited (BBSSL)- Organizes the production, procurement, and supply of quality seeds under the institutional brand name "Bharat Beej". Integrates 38,665 member cooperatives.

6. Sectoral Financing & Capacity Building-

  • NCDC Capital Disbursal- The National Cooperative Development Corporation (NCDC) remains the premier financing anchor, sanctioning ₹1.55 lakh crore and disbursing ₹1.27 lakh crore in FY 2025-26. This includes ₹2,320 crore routed directly to FPOs and Cluster-Based Business Organizations (CBBOs).
  • Cooperative Education- Tribhuvan Sahkari University (TSU) has been established as India's premier specialized cooperative university to run skill development and research. Training execution is channeled through the National Council for Cooperative Training (NCCT) and NABARD.

7. Case Study- Bharat Taxi Initiative

  1.  India's first cooperative-based, driver-centric mobility platform operated by Sahakar Taxi Cooperative Limited.
  2. Objective- To leverage the cooperative framework to protect gig-workers/drivers from private platform monopolies while maintaining affordable and safe transport alternatives for commuters.
  3. Current Scale- Spans 6.37 lakh registered drivers and 35.77 lakh registered customers.
  4. Operational Footprint- Natively active across Delhi-NCR, Gujarat, Lucknow, Chandigarh, Mumbai, Jaipur, and Kanpur, with plans to expand to tier-2 capitals (Ranchi, Patna, Guwahati, Bhopal) in the subsequent months.