Government Approves Major Funding for Cooperative Development

The Union Cabinet has greenlit a significant financial package aimed at revitalizing the cooperative sector across India. A Central Sector Scheme will provide Rs 2,000 crore in grant-in-aid to the National Cooperative Development Corporation (NCDC) over the next four years, starting from FY26.

Empowering Cooperatives with Financial Support

This initiative is designed to enable NCDC to raise an additional Rs 20,000 crore from the open market. These funds will be allocated as loans to cooperatives for various purposes, including the establishment of new projects, expansion of existing facilities, and covering working capital requirements.

Widespread Benefits Across Sectors

Approximately 2.9 crore members of 13,288 cooperative societies stand to benefit from this scheme. The sectors covered include dairy, livestock, fisheries, sugar, textiles, food processing, and more, with a special focus on enhancing the role of women in the cooperative economy.

Strengthening India's Cooperative Ecosystem

With over 8.25 lakh cooperative societies and 29 crore members, this funding is a strategic move to modernize infrastructure, boost productivity, and generate rural employment, thereby bridging socio-economic gaps.