Published on: March 29, 2025
By: [Dr. Udai Shanker Awasthi
Managing Director, IFFCO]
Revolutionizing the Cooperative Sector:
India’s cooperative movement, deeply rooted in its cultural and socio-economic landscape, has evolved into a powerful vehicle for inclusive growth, community empowerment, and rural development. Through the establishment of the Ministry of Cooperation and its recent initiatives, the government has reaffirmed its commitment to fostering a cooperative-driven model that reaches every corner of the country, facilitating sustainable livelihoods and financial inclusion for marginalized communities.
The establishment of the Ministry of Cooperation (MOC) on July 6, 2021, marked a transformative moment in India’s cooperative movement. With a strong commitment to revitalizing cooperatives, the Ministry has introduced a comprehensive policy framework, legal reforms, and strategic initiatives aimed at strengthening and modernizing the sector. Through its various programs, the Ministry has significantly enhanced the “Ease of Doing Business” for cooperatives, ensured transparency through digitalization, and fostered inclusivity for underserved rural communities.
Visionary Leadership in the Cooperative Movement
The cooperative movement in India has witnessed revolutionary change under the dynamic and inspiring Minister of Home and Cooperation, Shri Amit Shah ji, who introduced a new thought process in cooperatives. Under his leadership, MOC has introduced remarkable changes to the Indian cooperative movement.
• Model byelaws for making PACS Multipurpose and strengthening PACS through Computerization as Common Service Centers (CSCs) for better access to e-services.
• Establish Multipurpose PACS/Dairy/Fisheries Cooperative Societies in every Panchayat/Village.
• ThreenewMulti-StateCooperativeSocietiesattheNationalLevel
NationalCooperativeExportsLimited(NCEL)forpromotingexportsfrom the cooperative sector.
Bhartiya Beej Sahakari Samiti Limited (BBSSL) for cultivating, producing,anddistributingimprovedseedsunderaSingleBrandName.
National Cooperative Organics Limited (NCOL) for producing, distributing, and marketing certified and authentic organic products.
• The world’s most extensive Decentralised Grain Storage Program in the Cooperative sector to ensure food security at the grassroots level.
• The Multi-State Cooperative Societies (Amendment) Act 2023 to amend the Multi-StateCooperativeSocietiesAct,2002toincorporatetheprovisionsofthe 97th Constitutional Amendment and to strengthen governance, increase transparency, increase accountability, improve the election process, etc. in Multi-State Cooperative Societies.
• Rs 10,000 crore loan scheme through NCDC for strengthening of cooperative sugar mills & preference in the purchase of ethanol to cooperative sugar mills and establishment of Cogen Power Plants.
As the cooperative movement continues to evolve, it remains a vital component of India’ssocio-economicframework,addressingcontemporarychallengesandfostering communityresilience.Thecooperativemovementalsodevelopsentrepreneurialskills thataremuchrequiredinacountrylikeIndia.Itnotonlyaddstoeconomicwelfarebut also enables the Society to take a lead in contributing to the nation.
Major Milestones in Cooperative Development
A major initiative of the MOC has been the promotion of Multi-State Cooperative Societies and the expansion of Primary Agricultural Credit Societies (PACS). The introductionofModelBye-LawsforPACShasempoweredthemtoundertakeover25 diverseactivities,ensuring improvedgovernanceandbroader inclusivity. A landmark
₹2,516 crore project to computerize 63,000 PACS is already underway, with 62,318 PACSfrom28States/UTsincludedand15,783 alreadyonboarded.Thesemeasures have significantly enhanced operational efficiency, linking PACS with NABARD and ensuring seamless financial transactions.
To further expand cooperative reach, over 9,000 new PACS, dairy, and fishery cooperativesarebeingestablishedacrossuncoveredPanchayats.TheDecentralized Grain Storage Plan is anotherambitious initiative aimed at creating storage and agri- infrastructureatPACSlevels,therebyreducingfoodgrainwastageandtransportation
costs.Aspartofthis,2,000PACShavebeenidentifiedforthepilotproject.Moreover, 30,647PACShavebeen designated as CommonService Centers (CSCs), providing over 300 essential e-services to rural citizens.
IFFCO’s Revolutionary Contribution to Agriculture
IFFCO’s ground-breaking introduction of Nano Fertilizers, including Nano Urea Plus (Liquid)andNanoDAP(Liquid),hassetnewstandardsintheagriculturalcooperative sector. With Nano NPK (Granular) soon to receive approval, this innovation is expected to be a game changer in modern farming, offering greater efficiency, cost- effectiveness, and environmental sustainability. These revolutionary products have already gained global recognition, reaching markets in the USA, Brazil, Zambia, Guinea-Conakry, Mauritius, Rwanda, Malaysia, and the Philippines.
Today, IFFCO stands as the world’s Number One Cooperative Society, based on its contribution to India’s GDP in the Food and Agriculture Sector. By integrating advanced technology, fostering innovation, and promoting sustainable agricultural practices, IFFCO and India’s cooperative movement continue to drive economic transformation, ensuring long-term prosperity and global competitiveness.
IFFCO’s leadership in the global cooperative movement continues to grow. As a memberoftheInternationalCooperativeAlliance(ICA),IFFCOactivelycontributesto shapingglobalcooperativepolicies.TheGlobalCooperativeConferenceoftheICA, hosted by IFFCO in India in November 2024, presented an opportunity to showcase India’s innovative cooperative strategies on an international platform. This event reinforced India’s leadership in cooperative advancement and facilitated knowledge exchange with global cooperative leaders.
Tribhuvan Sahkari University :A Catalyst for Cooperative Growth
One of the most remarkable thoughts of development in the cooperative sector has been the establishment of Tribhuvan Sahkari University. This university is envisionedasapremierinstitutiondedicatedtocooperativeeducation,research,and leadershipdevelopment.Itaimstoequipcooperativeleaderswiththenecessaryskills and knowledge to modernize and strengthen cooperative governance. By providing specializedtraining,academicprograms,andresearchopportunities,theuniversityis set to play a pivotal role in shaping the future of India’s cooperative movement. The
university will also serve as a hub for innovation, fostering new cooperative business models and enhancing global competitiveness.
The university will focus on providing technical and managerial educationin key fields such as agriculture, fishery farming, dairy, banking, and marketing, among others. In addition to offering degree and diploma programs, the university will also design specialized curricula to empower students, members of cooperative societies, and entrepreneurs. This initiative is expected to strengthen the cooperative sector by fostering innovation, skill development, andawareness, ultimatelydriving growthand progress in this crucial area of the economy.
The United Nations’ declaration of 2025 as the International Year of Cooperation further highlights the significance of cooperative models in economic development. The Ministry of Cooperation sees this as a momentous opportunity to promote cooperative principles globally, particularly in addressing challenges such as poverty reduction, sustainable development, and inclusive economic growth. Ministry of Cooperation has formed the National Cooperative Committee to spread awareness about the IYC, focusing on enhancing outreach and fostering inclusivity. Various initiatives, programs, and conferences will be organized to engage key stakeholders and highlight India’s progress in cooperative-led prosperity.
Through its strategic initiatives and forward-thinking policies, the Ministry of Cooperation has successfully transformed India’s cooperative sector. The establishment of Tribhuvan Sahkari University, along with ongoing reforms and modernization efforts, ensures that India remains at the forefront of cooperative innovation and rural development. By empowering rural communities, promoting digital integration, and fostering cooperative entrepreneurship, the government is creating a robust and sustainable model for cooperative-led economic growth. The cooperativemovementinIndiahasreachedanunprecedentedhigh,solidifyingitsrole as a key driver of rural prosperity and national progress.
*Dr. Udai Shanker Awasthi *
ManagingDirector,IFFCO
