Why in news?
The government recently highlighted the achievements of the National Cooperative Development Corporation (NCDC) during parliamentary discussions and public outreach. Established in 1963, the NCDC plays a key role in financing India’s cooperative sector. It has increased its lending substantially in recent years to support farmers, dairy cooperatives, fisheries and rural enterprises.
Background
The NCDC was created by an Act of Parliament and operates under the Ministry of Cooperation. Its mandate is to plan, promote and finance cooperative organisations in agriculture and allied sectors. Through loans, grants and technical assistance, it helps cooperatives undertake activities such as procurement of agricultural inputs, processing and marketing of produce, storage, cold chain infrastructure and exports.
Functions and initiatives
- Financing value chains: The NCDC lends to primary and secondary cooperatives for projects in agriculture, dairy, poultry, fisheries, sericulture, handloom, rural sanitation and more. It supports construction of godowns, cold storages, marketing yards and agro‑processing units.
- Targeted credit: Special lines of credit are extended to farmers’ cooperatives, scheduled caste/scheduled tribe cooperatives and women’s cooperatives to promote inclusive growth and economic empowerment.
- Yuva Sahakar scheme: This programme encourages young entrepreneurs to start new cooperative ventures by providing concessional loans and capacity building.
- Ayushman Sahakar: A health‑sector initiative under which NCDC finances cooperative hospitals and health facilities, improving access to affordable healthcare.
Recent achievements
The NCDC has scaled up its funding dramatically. In the financial year 2024‑25 it disbursed about ₹95,183 crore. In the first half of FY 2025‑26 (up to October 2025) it had already disbursed ₹49,799 crore. This growth illustrates the expanding role of cooperatives in economic development and the corporation’s capacity to mobilise resources.
Significance
By channeling credit and expertise to cooperatives, the NCDC helps farmers and rural entrepreneurs access markets, add value to their products and improve incomes. Its schemes empower marginalised groups and support the government’s vision of “Sahakar se Samriddhi” (prosperity through cooperation). Strengthening cooperatives also complements initiatives such as the creation of Farmer Producer Organisations and digital agriculture platforms.
