National Cooperative Policy 2025: Objectives, History and Pillars

Context: Union Home Minister Amit Shah has announced a new National Cooperative Policy, replacing the 23-year-old existing framework to strengthen and modernise India’s Cooperative Sector.

About National Cooperative Policy 2025

• Launched by Union Home and Cooperation Minister Amit Shah in New Delhi.
• Replaces the previous 2002 cooperative policy, after 23 years.
• Aligned with the vision of “Sahkar se Samriddhi” (Prosperity through Cooperation).
• Designed to guide the sector’s growth over the next 20 years.

Objectives

• Strengthen the institutional capacity of cooperatives.
• Expand cooperatives into new and emerging sectors.
• Promote inclusivity, transparency, and village-level economic empowerment.
• Align cooperatives with national development goals.

Political and Historical Context

• Follows the creation of a dedicated Ministry of Cooperation in 2021.
• India has over 4 lakh cooperative societies, reaching 31 crore people.
• Aims to expand presence in states like Uttar Pradesh and Bihar.
• Target: 30% increase in cooperative societies nationwide.

Six Core Pillars of the Policy

1. Strengthening foundational systems
2. Revitalising existing cooperatives
3. Digitalisation and future readiness
4. Inclusive outreach and participation
5. Expanding into new sectors
6. Youth engagement and capacity building

Key Goals by 2034

• Triple the sector’s contribution to GDP.
• One cooperative society in every village.
• Engage 50 crore citizens in cooperative activities.

Expansion into New Sectors

• Support for cooperatives in:
  • Green energy
  • Tourism
  • Insurance
  • Taxi services (Sahkar Taxi)
• Primary Agricultural Credit Societies (PACS) to take up:
  • Fuel & LPG distribution
  • Jan Aushadhi Kendras
  • Common Service Centres (CSCs)
  • Rural schemes like Har Ghar Jal and PM Surya Ghar Yojana

Model Cooperative Villages

• Each tehsil will develop 5 model villages in collaboration with:
  • State cooperative banks
  • NABARD
• Focus on:
  • Dairy, Fishery, Floriculture, Agri-services
  • Women and tribal empowerment (White Revolution 2.0)

Institutional Reforms and Modernisation

• Full computerisation of PACS
• Tech-driven governance and monitoring
• Cluster tracking systems for performance evaluation
• Legal review every 10 years
• Over 83 reform points identified:
  • 58 under implementation, 3 completed

Education and Training

• Establishment of Tribhuvan Sahakari University
• Aimed at professional education and cooperative leadership training

Economic Impact (Current Role of Cooperatives)

• 20% of India’s agricultural credit
• 35% of fertiliser distribution
• 30%+ of sugar production
• 10% of milk production
• 21% of the fishing sector
• 13% of wheat and 20% of paddy procurement

History of Cooperatives in India

Early Phase

• 1904: The Cooperative Credit Societies Act was enacted by the British.
• 1912: Broader Cooperative Societies Act introduced, expanding scope.

Post-Independence

• Cooperatives are included in the Directive Principles of State Policy (Article 43B).
• Rapid expansion in agriculture, credit, dairy, sugar, housing, and fisheries.
• Landmark movements like Amul (White Revolution) were built on cooperative models.

Challenges Over Time

• Political interference
• Lack of autonomy
• Weak governance and transparency
• Ineffective representation of women, youth, and marginalised communities

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