Why in news?
The Union Cabinet approved a grant of ₹2,000 crore over four years to the National Cooperative Development Corporation in July 2025. The funding aims to strengthen cooperative societies and enhance rural economic development.
Background
NCDC is a statutory body set up in 1963 under an Act of Parliament. It operates under the Ministry of Cooperation. Headquartered in New Delhi, the corporation has regional and state offices across India. Its mandate is to plan, promote and finance cooperative activities related to agriculture and rural industries.
Objectives and functions
- NCDC helps cooperatives access long‑term credit and working capital for production, processing, marketing and storage of agricultural produce.
- It supports import and export of goods such as fertilisers, agricultural machinery, rubber and textiles.
- The corporation funds income‑generating activities like dairy, poultry, fisheries, handloom and sericulture.
- It provides grants and loans to state governments and cooperatives for rural infrastructure projects such as irrigation, sanitation, cold storage and animal health services.
- Through its regional offices, NCDC offers technical guidance and helps cooperatives prepare viable project reports.
Importance
- NCDC serves over 13,000 cooperative societies, with nearly 29 million members. It plays a central role in building self‑reliant and sustainable rural communities.
- The corporation’s support fosters job creation, particularly in women‑led and labour cooperatives, thereby contributing to inclusive growth.
- By financing modern storage, processing and marketing infrastructure, NCDC helps reduce post‑harvest losses and improves farmers’ bargaining power.
Conclusion
Cooperatives are a key pillar of India’s rural economy. Adequate funding and technical support from NCDC can help them adopt modern practices, access markets and improve members’ livelihoods.