STATUS OF COOPERATIVE SOCIETIES IN INDIA

Why in news

The article provides an update on the status of cooperative societies across India, including their functional and financial health, based on the National Cooperative Database (NCD).

Exam relevance

GS2, GS3 · Governance, Economy, Society · Prelims · Mains

Key facts

1. As on 15.07.2026, there are 8,53,430 Cooperative Societies across the country, as per the National Cooperative Database (NCD).
2. Out of the total, 6.63 lakh cooperative societies are functional, 1.41 lakh are non-functional, and 49,177 are under liquidation.
3. Among the 6.63 lakh functional cooperative societies, 3.56 lakh are profit-making and 2.50 lakh are loss-making.
4. Financial information is not available for 56,689 functional societies.
5. The Ministry of Cooperation is taking measures to convert Primary Agricultural Credit Societies (PACS), Dairy, and Fisheries Cooperatives into Multipurpose cooperative societies.
6. This initiative aims to enhance business diversification, strengthen financial sustainability, and prevent closures of cooperatives.
7. The National Cooperative Database (NCD) is used for identification of cooperative societies.

Prelims pointers

• Total number of cooperative societies in India as per NCD.
• Proportion of functional, non-functional, and under-liquidation cooperative societies.
• Profit-making versus loss-making status of functional cooperative societies.
• The Ministry responsible for the initiative to convert PACS, Dairy, and Fisheries Cooperatives into Multipurpose cooperative societies.
• Objectives of converting cooperatives into multipurpose societies (business diversification, financial sustainability, preventing closures).
• Role of the National Cooperative Database (NCD).

Mains practice question

Analyze the current status and challenges faced by cooperative societies in India, as highlighted by the National Cooperative Database. Discuss the significance of initiatives like converting Primary Agricultural Credit Societies (PACS) into multipurpose cooperatives for their revitalization.

Static linkage

The cooperative movement in India plays a crucial role in rural development, agricultural credit, and economic empowerment. The establishment of the Ministry of Cooperation underscores the government's focus on strengthening this sector. Understanding the status of cooperatives is essential for policy formulation and addressing challenges faced by these grassroots organizations.

Significance

The data from the National Cooperative Database provides a comprehensive overview of the health and challenges within India's cooperative sector, highlighting the significant number of non-functional and loss-making societies. The Ministry of Cooperation's initiative to convert specialized cooperatives into multipurpose entities is a strategic step towards enhancing their economic viability, promoting diversification, and ensuring their long-term sustainability. This move is crucial for strengthening the cooperative movement's contribution to the economy and rural livelihoods.

Way forward

The Ministry of Cooperation's proactive measures to convert Primary Agricultural Credit Societies (PACS), Dairy, and Fisheries Cooperatives into Multipurpose cooperative societies represent a key way forward. This initiative, by enhancing business diversification and strengthening financial sustainability, aims to prevent closures and ensure the long-term viability of cooperatives, thereby contributing to their overall revitalization.