India’s cooperative movement, which has long served as the backbone of rural economic activity, has witnessed a remarkable transformation over the past five years. Through a series of policy interventions, technological upgrades, institutional reforms and infrastructure initiatives, the Ministry of Cooperation has sought to revitalise the country’s vast cooperative network and position it as a powerful instrument of inclusive development.
Established on July 6, 2021, the Ministry of Cooperation was created with the objective of strengthening cooperative institutions and promoting the vision of “Sahkar Se Samriddhi” (Prosperity Through Cooperation). Five years later, the ministry’s reform agenda has touched nearly every segment of the cooperative ecosystem, from agriculture and dairy to fisheries, banking, storage infrastructure and digital governance.
The fifth Foundation Day of the Ministry of Cooperation, celebrated on July 6, 2026, at Bharat Mandapam in New Delhi, provided an opportunity to review the progress made and unveil new initiatives aimed at accelerating the next phase of cooperative growth. During the event, several initiatives were launched, including the transformation of 50,000 Primary Agricultural Credit Societies (PACS) into e-PACS, laying the foundation for a digitally connected cooperative ecosystem.
India today hosts one of the world’s largest cooperative networks, comprising hundreds of thousands of institutions that connect farmers, dairy producers, fishermen, artisans, small entrepreneurs and workers with finance, markets, infrastructure and livelihood opportunities. While cooperatives have historically played a crucial role in supporting rural communities, many institutions faced challenges such as limited technology adoption, governance inefficiencies, inadequate infrastructure and restricted business activities. The establishment of the Ministry of Cooperation marked a decisive policy shift aimed at addressing these issues. Since then, more than 152 major initiatives have been introduced to modernise cooperative institutions, improve transparency, strengthen governance and create new avenues of economic growth. The overarching objective has been to transform cooperatives into modern, technology-enabled and financially sustainable institutions capable of meeting the evolving needs of rural India.
Digital revolution through e-PACS
Among the most significant achievements of the reform process has been the transformation of Primary Agricultural Credit Societies, which form the foundation of India’s cooperative structure. Traditionally, PACS primarily functioned as rural credit institutions, providing short-term agricultural loans to farmers. Under the new reform framework, however, these societies are being transformed into multi-purpose service centres capable of delivering a broad range of services beyond credit.
A major milestone was achieved during the fifth Foundation Day celebrations with the launch of the e-PACS initiative covering 50,000 PACS across the country. The programme represents one of the largest digital transformation exercises undertaken in the cooperative sector. To support this initiative, the government substantially increased funding for PACS computerisation, raising the allocation from Rs 2,516 crore in 2022 to Rs 2,925.39 crore in 2025. The programme is scheduled for completion by March 31, 2027.
The scale of implementation has been significant. By June 2026, as many as 79,630 PACS had been sanctioned under the computerisation scheme, while 63,428 societies had already begun using Enterprise Resource Planning (ERP)-based software systems. More than 65,000 PACS had received hardware infrastructure, and online audits had been completed for over 42,700 societies. ERP software has also been made available in 14 Indian languages, ensuring accessibility across diverse regions. The introduction of digital systems has significantly improved record-keeping, accounting standards, operational efficiency and transparency while reducing manual paperwork and administrative delays.
PACS evolve into rural service hubs
The reform strategy has not been limited to digitisation alone. A major focus has been on expanding the scope of PACS beyond agricultural lending. Under revised model bye-laws implemented across 32 states and Union Territories, PACS are now authorised to undertake more than 25 different business activities, enabling them to emerge as comprehensive rural service centres.
This diversification has transformed PACS into institutions that offer agricultural inputs, storage facilities, retail services, healthcare support, fuel distribution, digital citizen services and financial inclusion activities. The results of this transformation are increasingly visible across the country.
By June 2026, around 39,177 PACS were functioning as PM Kisan Samriddhi Kendras, providing farmers with access to agricultural inputs and advisory services. Another 54,117 PACS had been converted into Common Service Centres, helping rural citizens access a range of government services digitally. In the healthcare sector, 4,248 PACS had received approval to establish Jan Aushadhi Kendras, with 843 centres already operational or ready for launch. Meanwhile, 394 PACS had applied to operate retail fuel outlets, and three such outlets had already commenced operations. Together, these initiatives are helping bring essential services closer to rural communities while simultaneously creating additional revenue streams for cooperative institutions.
Expanding cooperative coverage across rural India
A key objective of the Ministry of Cooperation has been to ensure that cooperative institutions reach every village and every sector of rural economic activity. Significant progress has been achieved through the registration of new cooperative societies across multiple sectors.
According to official figures, 37,454 new multipurpose PACS, dairy cooperatives and fisheries cooperative societies have been established since the launch of the ministry’s reform agenda. Today, PACS operate in more than 2.55 lakh Gram Panchayats across the country, creating one of the largest grassroots institutional networks in India. Dairy cooperatives have expanded their reach to over 87,159 Gram Panchayats, while fisheries cooperatives now cover more than 29,964 Gram Panchayats.
This expansion is particularly significant because many of these institutions have been established in previously underserved and remote regions where access to financial services and organised market networks was limited. By extending cooperative services into these areas, the government aims to enhance economic opportunities and strengthen rural livelihoods.
Strengthening rural infrastructure through grain storage
Infrastructure development has emerged as another major pillar of cooperative reforms. One of the most ambitious projects launched under the Ministry of Cooperation is the decentralised grain storage programme, which has been described as the world’s largest initiative of its kind.
The objective is to create modern storage facilities at the grassroots level, enabling farmers to store produce closer to their farms instead of being forced to sell immediately after harvest. Such infrastructure can help reduce post-harvest losses, improve food security and enable farmers to secure better prices by selling their produce when market conditions are favourable.
Under this initiative, 145 PACS have completed the construction of cooperative godowns with a combined storage capacity exceeding 68,702 metric tonnes. The programme received a further boost during the fifth Foundation Day celebrations, when foundation stones for 47 additional grain storage godowns were laid. These investments are expected to strengthen rural supply chains and create more resilient agricultural markets.
Integrating cooperatives with farmer producer organisations
The government has also focused on linking cooperatives with Farmer Producer Organisations (FPOs) to improve aggregation, processing and market access. FPOs enable small and marginal farmers to collectively market their produce, access technology, undertake value addition and negotiate better prices.
Within the cooperative sector, 1,863 FPOs have been established, including 1,117 promoted through PACS. The fisheries sector has also witnessed notable progress, with 1,070 fisheries FPOs being formed. To support these organisations, financial assistance amounting to Rs 98 crore has been provided. These initiatives are helping farmers and fishers participate more effectively in modern value chains while strengthening their collective bargaining power in competitive markets.
Recognising the need to strengthen the financial health of cooperative institutions, the government has introduced several tax reforms aimed at improving liquidity and reducing compliance burdens.
The surcharge applicable to cooperatives earning between Rs 1 crore and Rs 10 crore was reduced from 12 Percent to 7 Percent, while the Minimum Alternative Tax was lowered from 18.5 Percent to 15 Percent. The threshold for tax deduction on cash withdrawals was raised from Rs 1 crore to Rs 3 crore, and higher cash transaction limits were permitted for PACS and Primary Cooperative Agriculture and Rural Development Banks. These measures have provided greater operational flexibility and enhanced the competitiveness of cooperative institutions across the country.
White revolution 2.0 and the dairy sector
India’s dairy cooperative sector, which was central to the success of the original White Revolution, has once again become a major focus area under the government’s cooperative reforms. White Revolution 2.0 seeks to increase milk procurement by 50 Percent by 2028-29 while strengthening dairy infrastructure and expanding cooperative membership.
As part of this effort, 25,282 dairy cooperative societies have been registered. Special emphasis is being placed on promoting women-led dairy cooperatives and expanding cooperative coverage into new regions. These efforts are expected to improve rural incomes, strengthen women’s participation in economic activities and further consolidate India’s position as the world’s largest milk producer.
National cooperative institutions drive sectoral growth
A major institutional reform has been the creation of three national multi-state cooperative organisations aimed at strengthening exports, organic farming and seed production.
National Cooperative Exports Limited (NCEL) was established to promote cooperative exports and integrate producers into global markets. By June 2026, NCEL had exported 15.4 lakh metric tonnes of goods worth Rs 6,295 crore to 38 countries. This has helped create new export opportunities for agricultural producers and cooperative enterprises.
National Cooperative Organics Limited (NCOL), which focuses on procurement, certification, branding and marketing of organic products, has enrolled 14,286 member cooperatives. The organisation aims to create a nationwide ecosystem for organic agriculture while strengthening consumer confidence in certified products.
Similarly, Bharatiya Beej Sahakari Samiti Limited (BBSSL) has been established to ensure the availability of quality seeds under the Bharat Beej brand. The organisation has already built a network of 38,665 member cooperatives and is playing a crucial role in improving agricultural productivity through better seed availability.
Building human capital through cooperative education
Recognising that long-term success depends on capable leadership and professional management, the government has prioritised capacity building across the cooperative sector. One of the most significant initiatives in this direction has been the establishment of Tribhuvan Sahkari University, India’s first university dedicated exclusively to cooperative education, research, innovation and skill development.
The university is expected to emerge as a national centre of excellence for cooperative studies and leadership development. At the same time, training programmes conducted through the National Council for Cooperative Training (NCCT) and NABARD are helping strengthen governance standards, managerial capabilities and operational efficiency across cooperative institutions.
NCDC financing expansion across sectors
The National Cooperative Development Corporation (NCDC) has continued to play a critical role in financing cooperative growth. During the financial year 2025-26, NCDC sanctioned projects worth Rs 1.55 lakh crore and disbursed Rs 1.27 lakh crore across various sectors.
The corporation also disbursed Rs 2,320 crore to Farmer Producer Organisations and Cluster-Based Business Organisations under the programme for promoting 10,000 FPOs. These investments are supporting expansion in agriculture, dairy, fisheries, processing, marketing and rural enterprises, thereby strengthening the broader cooperative ecosystem.
The cooperative movement is also expanding into new and emerging sectors. One of the most notable examples is Bharat Taxi, a driver-owned mobility platform operated by Sahakar Taxi Cooperative Limited. The initiative seeks to provide a cooperative alternative to conventional ride-hailing platforms while ensuring greater ownership and income opportunities for drivers.
By June 2026, the platform had registered 6.37 lakh drivers and 35.77 lakh customers. Operations currently span Delhi-NCR, Gujarat, Lucknow, Chandigarh, Mumbai, Jaipur and Kanpur, with plans to expand to Ranchi, Patna, Guwahati, Bhopal, Kolkata, Indore and Nagpur in the coming months.
Five years after the establishment of the Ministry of Cooperation, India’s cooperative sector stands at a significantly different stage of development. Digital transformation, institutional reforms, infrastructure creation, tax incentives and expanded service delivery have collectively strengthened the cooperative ecosystem and broadened its role in the national economy.
The transformation of PACS into multi-service centres, the rapid rollout of e-PACS, the expansion of dairy and fisheries cooperatives, the creation of specialised national cooperative institutions and investments in storage and market infrastructure demonstrate the scale of change underway. As India moves towards its vision of becoming a developed nation, cooperatives are increasingly emerging as important instruments for empowering farmers, strengthening rural livelihoods, expanding market access and ensuring inclusive economic participation. Under the vision of “Sahkar Se Samriddhi,” the cooperative movement is not merely expanding its reach but redefining its role as a key driver of grassroots prosperity and national development.
