Source: The Hindu
Context
The Ministry of Cooperation, established on 6 July 2021, celebrated its 5th Foundation Day on 6 July 2026 at Bharat Mandapam, New Delhi, under the theme “Sahakar Se Samriddhi” (“Prosperity through Cooperation”). Union Home & Cooperation Minister Shri Amit Shah was the Chief Guest. The event capped a week-long nationwide campaign (29 June – 6 July 2026) with participation from states, UTs, PACS, UCBs, DCCBs, and cooperative federations. Amit Shah laid the foundation stone for 47 grain storage godowns, inaugurated 85 godowns, transferred 135 godowns, launched Sahakar CBS (centralised core banking platform) + Sahakar Sahyogi (AI-powered platform) for Urban Cooperative Banks, transformed 50,000 PACS into e-PACS, launched NCD 3.0 + geo-tag mobile app, and inaugurated three new multi-state cooperatives — Cooperative Milk Producers Organisation Multi-State Ltd, Gomay Cooperative Society Multi-State Ltd, and Cooperative Inputs and Services Delivery Multi-State Ltd. He also announced the setting up of a new Cooperative Life Insurance Company and the expansion of Bharat Taxi to 500 cities in 2 years. Under White Revolution 2.0, the Ministry aims to increase milk procurement by 50% over the next five years through 25,282 new Dairy Cooperative Societies registered across 31 States/UTs, with the Sardar Patel Cooperative Dairy Federation (SPCDF) linking 20+ lakh dairy farmers.
The event at a glance
- Occasion: 5th Foundation Day of the Ministry of Cooperation.
- Venue: Bharat Mandapam, New Delhi
- Theme: “Sahakar Se Samriddhi” — PM Modi’s vision.
- Nationwide campaign duration: 29 June – 6 July 2026 (week-long).
- Book released: Achievements of the Ministry of Cooperation during last 5 years.
Digital cooperative platforms — new launches
- Sahakar CBS — a centralised core banking platform for Urban Cooperative Banks (UCBs). Developed under NUCFDC. Enables banking-as-a-service model for smaller UCBs without heavy IT investment.
- Sahakar Sahyogi — a conversational AI-powered platform for UCBs. Supports banking operations, customer engagement, member services.
- NCD 3.0 — National Cooperative Database version 3.0 — an integrated data platform for all cooperative societies.
- Geo-tag mobile application — for tracking cooperative infrastructure across India.
- NDDB Milk Supply Review Dashboard Portal — for real-time milk-cooperative supply monitoring.
PACS transformation
- 50,000 PACS converted into e-PACS — enables digital service delivery + transparency.
- Broader plan: Convert all ~1 lakh viable PACS into multi-purpose rural service centres — offering 27+ services including credit, insurance, LPG distribution, common service centres (CSCs), fertiliser + seed sales, veterinary services.
- Primary Agricultural Credit Societies are the smallest, grassroots-level cooperative credit institutions in India, operating directly at the village and Gram Panchayat level to provide farmers with short-term and medium-term loans, agricultural inputs, and marketing services.
Dairy sector — White Revolution 2.0
- Aim: Increase milk procurement by 50% over next 5 years.
- Three new multi-state dairy cooperatives inaugurated:
- Cooperative Milk Producers Organisation Multi-State Ltd — production coordination.
- Gomay Cooperative Society Multi-State Ltd — cow dung/manure economy.
- Cooperative Inputs and Services Delivery Multi-State Ltd — dairy input supply + productivity services.
Sahakar Van (Cooperative Forest)
- Bhoomi Pujan of Sahakar Van — a joint afforestation project by Amul and NCCF (National Cooperative Consumers’ Federation).
- Aligns cooperative sector with India’s climate + green-cover commitments.
Urban Cooperative Bank (UCB) reforms — since 2021
- RBI approval no longer needed for opening additional branches within the approved area.
- Doorstep banking services now permitted.
- Higher-value housing loans allowed.
- Cooperative banks brought under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) framework.
Major announcements by Amit Shah in his speech
- New Cooperative Life Insurance Company to be set up.
- Bharat Taxi (a cooperative-model ride-hailing platform, alternative to Ola/Uber) to be expanded to 500 cities in the next 2 years.
What is the Ministry of Cooperation?
- Established: 6 July 2021 by the Modi Government.
- Rationale: To provide a separate administrative, legal, and policy framework for strengthening India’s cooperative movement.
- Before 2021: Cooperation was housed under the Ministry of Agriculture.
- Minister: Shri Amit Shah (concurrent Home Minister).
- Vision: “Sahakar Se Samriddhi” (Prosperity through Cooperation).
- Secretary: Shri Ashish Kumar Bhutani (2026).
Which laws govern cooperatives in India?
- Cooperation is a State subject: Entry 32 of List II (State List) of the Seventh Schedule of the Constitution.
- 97th Constitutional Amendment Act, 2011: Added Part IX-B (Articles 243-ZH to 243-ZT) on “The Co-operative Societies” — made forming cooperatives a Fundamental Right (Article 19(1)(c)).
- Multi-State Cooperative Societies (MSCS) Act, 2002: Governs cooperatives operating in more than one state; amended in 2023 to strengthen governance, transparency, and elections.
- State Cooperative Societies Acts: Govern intra-state cooperatives.
What are the different types of cooperative societies in India?
- PACS (Primary Agricultural Credit Societies): Village-level cooperative societies that provide short-term agricultural loans, farm inputs, and basic banking services to farmers. (~1 lakh operational)
- DCCBs (District Central Cooperative Banks): District-level cooperative banks that finance and supervise PACS while providing banking services within the district. (~350)
- State Cooperative Banks (StCBs): Apex cooperative banks at the state level that channel funds from institutions like NABARD to DCCBs and oversee the state’s cooperative credit system. (~34)
- Urban Cooperative Banks (UCBs): Cooperative banks operating in urban and semi-urban areas that offer banking and credit services to individuals, small businesses, and traders. (~1,500 UCBs)
- Dairy Cooperatives: Farmer-owned cooperatives that collect, process, and market milk, ensuring better prices and stable income for dairy farmers. (~2.30 lakh Dairy Cooperative Societies feeding 230+ district unions and state federations like Amul/GCMMF)
- Housing Cooperatives: Cooperative societies that help members obtain affordable housing by developing or managing residential properties.
- Consumer Cooperatives: Cooperatives that supply quality consumer goods to members at fair prices by eliminating unnecessary middlemen.
- Producer Cooperatives: Cooperatives that help small producers procure inputs, process products, and market their goods collectively.
- Fisheries Cooperatives: Cooperatives that support fishermen through credit, equipment, storage, and marketing of fish and fish products.
- Sugar Cooperatives: Farmer-owned sugar mills that procure sugarcane from members, process it into sugar, and distribute profits among cooperative members.
Practice MCQs
Q1. With reference to the Ministry of Cooperation, consider the following statements:
- The Ministry of Cooperation was established on 6 July 2021 by the Modi government.
- Union Home Minister Amit Shah has been the first-ever Cooperation Minister since its establishment.
- Its 5th Foundation Day was celebrated at Bharat Mandapam, New Delhi on 6 July 2026 under the theme “Sahakar Se Samriddhi”.
- The Ministry was created because cooperation is a Union subject exclusively under the Union List.
How many of the above statements are correct?
(a) Only one (b) Only two (c) Only three (d) All four (e) None
(Statement 4 is wrong; Cooperation is a STATE SUBJECT under Entry 32 of the State List (List II) of the Seventh Schedule. The Ministry of Cooperation coordinates with states while the Union handles multi-state cooperatives.)
Q2. With reference to the initiatives launched at the 5th Foundation Day of the Ministry of Cooperation, consider the following statements:
- Sahakar CBS is a centralised core banking platform for Urban Cooperative Banks.
- Sahakar Sahyogi is a conversational AI-powered platform for Urban Cooperative Banks.
- 50,000 Primary Agricultural Credit Societies (PACS) were transformed into e-PACS.
- Both Sahakar CBS and Sahakar Sahyogi have been developed by the Reserve Bank of India.
How many of the above statements are correct?
(a) Only one (b) Only two (c) Only three (d) All four (e) None
(Statement 4 is wrong; Sahakar CBS and Sahakar Sahyogi were developed under NUCFDC (National Urban Cooperative Finance and Development Corporation) — NOT by the RBI directly. NUCFDC is the umbrella organisation for UCBs.)
Q3. With reference to India’s cooperative sector, consider the following statements:
- India has around 8.5 lakh cooperative societies with about 29 crore members.
- Cooperation is a subject under Entry 32 of the State List (List II) of the Seventh Schedule.
- The 97th Constitutional Amendment Act, 2011 inserted Part IX-B on Cooperative Societies.
- India has the smallest cooperative movement in the world by number of members.
How many of the above statements are correct?
(a) Only one (b) Only two (c) Only three (d) All four (e) None
(Statement 4 is wrong; India has the LARGEST cooperative movement in the world by number of members — NOT the smallest. Roughly 1 in 5 Indians (29 crore out of ~140 crore) are cooperative members.)
Q4. With reference to White Revolution 2.0 launched under the Ministry of Cooperation, consider the following statements:
- It aims to increase milk procurement in India by 50% over the next 5 years.
- Around 25,282 new Dairy Cooperative Societies have been registered across 31 States and UTs.
- The Sardar Patel Cooperative Dairy Federation Limited (SPCDF) aims to connect over 20 lakh dairy farmers.
- India is the second-largest milk producer in the world after the United States.
How many of the above statements are correct?
(a) Only one (b) Only two (c) Only three (d) All four (e) None
(Statement 4 is wrong; India is the LARGEST milk producer in the world — NOT second-largest. India accounts for ~22-23% of global milk output (~230 million tonnes in 2023-24). The USA is second.)
Answer Key
- (c) — Statement 4 wrong: Cooperation is a State subject, not Union.
- (c) — Statement 4 wrong: Developed under NUCFDC, not RBI directly.
- (c) — Statement 4 wrong: India has the largest cooperative movement, not smallest.
- (c) — Statement 4 wrong: India is largest milk producer, not second.
Exam Relevance
- UPSC Prelims & Mains: CRITICAL — GS-II (Governance, Government Policies, Cooperative Sector); GS-III (Indian Economy, Agriculture, Dairy Cooperatives); Prelims (institutions, Ministry, schemes); Mains (rural cooperatives, PACS, dairy).
- NABARD Grade A: CRITICAL — Direct subject: PACS, cooperatives, dairy sector, NCDC, NABARD; ARD paper + Phase II descriptive.
- State PCS: Very High — State-level cooperative laws + implementation; especially relevant for Gujarat, Maharashtra, Karnataka, UP.
- RBI Grade B (Phase I + II): CRITICAL — ESI on UCBs, RBI supervision of cooperative banks, PACS reforms, financial inclusion.
