When the Ministry of Cooperation was created in July 2021, it marked more than just administrative restructuring. It was a clear signal that India’s vast cooperative sector, with over 8 lakh societies spanning agriculture, dairy, fisheries, housing, and credit, would finally have a national-level representation and platform for growth and reform. Four years later, it is evident that the Ministry has functioned as both a set of signposts, offering long-term direction, and a collection of weathervanes, responsive to immediate needs and evolving realities. The cooperative sector has long been a key yet silent backbone of the country’s rural economy.
From dairy collectives to credit societies enabling small-scale entrepreneurship, cooperatives have expanded livelihoods, enhanced market access, and supported economic inclusion across the country. Yet, for decades, policy approaches to the sector remained fragmented, often confined to state boundaries and disconnected from national priorities. The creation of the Ministry changed that dynamic, bringing with it both structural intent and operational agility. In its first four years, the Ministry has moved beyond intent to delivery. A series of 60 major initiatives has defined this period, reinforcing its role as both a guiding force and an adaptive institution.
One of the most significant signposts is the `2,516 crore programme to computerise over 63,000 Primary Agricultural Credit Societies (PACS). These grassroots credit institutions are vital to rural livelihoods, and their digital transformation is enhancing transparency, operational efficiency, and service delivery. With implementation progressing steadily across states, it is a clear marker of systemic reform, backed by on-ground responsiveness. Another milestone is the rollout of model bylaws for PACS in 2023, enabling these institutions to diversify beyond credit operations.
Under the new framework, PACS can operate petrol pumps, manage grain storage, distribute affordable medicines through Jan Aushadhi outlets, and provide a range of essential rural services. Trials in Gujarat’s Panchmahal and Banaskantha districts have already demonstrated how policy intent can quickly evolve into practical, community-level solutions, an ideal interplay of signposts and weathervanes.
Legal reform has been another area of focused action. The Multi-State Cooperative Societies (Amendment) Act, 2023, introduced transparent election processes, independent governance mechanisms, the Cooperative Ombudsman system, and structured pathways for rehabilitating sick cooperatives. These measures addressed long-standing governance concerns, ensuring that cooperatives function with both autonomy and accountability.
The Ministry has also taken steps to strengthen scale, market access, and sectoral competitiveness. The creation of national umbrella cooperatives such as Bhartiya Beej Sahakari Samiti Ltd. for the distribution of quality seeds, National Cooperative Organics Ltd. for organic produce, and National Cooperative Exports Ltd. reflects efforts to consolidate producer groups, enhance market linkages, and boost India’s rural export potential. Tax incentives, including reduced surcharges of 7 per cent from the earlier 12 per cent on cooperative incomes in the `1 to `10 crore bracket, further demonstrate the Ministry’s responsiveness to the sector’s financial needs.
Equally significant is the investment in human capital and institutional capacity. The establishment of “Tribhuvan” Sahkari University (TSU), India’s first university dedicated exclusively to cooperative education, training, and research, marks a structural signpost for the sector’s future. Declared an Institution of National Importance, TSU is designed to nurture professional leadership, embed modern governance practices, and promote cooperative research and development to attain standards of global excellence.
These initiatives demonstrate that the Ministry has not been a static entity. It has provided durable signposts in the form of structural reforms, legal clarity, technology integration, and institution — building, while retaining the flexibility of a weathervane, adjusting course in response to grassroots realities and emerging challenges.
Looking ahead, the role of cooperatives in value addition, agri-marketing, rural enterprise, and inclusive economic growth is only set to expand along with initiatives like White Revolution 2.0. The coming years will demand not only strong institutions but also empowered leadership, modernised systems, and continued responsiveness to the needs of millions of cooperative members.
As the Ministry of Cooperation enters its fifth year, it carries the promise of consolidating these early gains and translating them into widespread impact. The foundation is visible, the computerisation of PACS, legal reforms, umbrella cooperative formations, tax incentives, and the establishment of Tribhuvan Sahkari University stand as clear signposts of structural direction. Simultaneously, the Ministry’s ability to function as a weathervane attuned to shifting rural dynamics, economic demands, and member aspirations has been its defining strength.
The fifth year is not just another milestone for the ministry; it is an opportunity to deepen cooperative-led development as a cornerstone of rural prosperity, grassroots participation, and inclusive growth. If the Ministry sustains this balance of direction and adaptability, India’s cooperative movement is poised to play an even greater role in the nation’s economic and social progress.
(Rakesh Arrawatia is a Professor of Finance at the Institute of Rural Management Anand (IRMA). Satyendra Pandey is Associate Professor of OB-HR at the Institute of Rural Management Anand (IRMA). Views are personal)
