The Ministry of Cooperation has called on all States to prepare detailed, prioritised action plans to translate cooperative sector reforms into measurable results on the ground. The call came at the conclusion of the 9th National Review Workshop held in Bastar, Chhattisgarh on 8–9 October 2026, where senior State officials, cooperative registrars and national institutions reviewed progress across dairy cooperatives, agricultural credit societies, cooperative banking and grain storage infrastructure.
The workshop emphasised that India’s cooperative sector cannot use a single national model. Instead, States must develop locally adapted strategies suited to their own circumstances, institutional capacity and challenges, while learning from successful practices demonstrated by other States during the deliberations.
Key facts
- Workshop held 8–9 October 2026 in Bastar, Chhattisgarh, under the theme ‘Sahkar se Samriddhi — The Road Ahead’
- First phase of Primary Agricultural Credit Societies (PACS) computerisation must be completed by December 2026
- Audits for financial years 2024–25 and 2025–26 must be completed by October 2026
- Approximately 95,000 new Primary Agricultural Credit Societies to be established over the next two to three years
- PACS computerisation scheme scheduled to conclude in March 2027
- Next National Review Workshop proposed for January 2027 in Mahabalipuram, Tamil Nadu
- Workshop attended by representatives from States including Uttar Pradesh, Madhya Pradesh, Andhra Pradesh, Jammu and Kashmir, Gujarat, Bihar and Puducherry
What the Ministry asked States to do
Dr. Ashish Kumar Bhutani, Secretary of the Ministry of Cooperation, urged States to immediately prepare action plans that identify specific officials and institutions responsible for implementation, set realistic timelines and establish regular monitoring mechanisms. This approach aims to convert workshop discussions and recommendations into tangible improvements in how cooperative institutions function and perform.
The Secretary stressed that successful practices presented during the workshop deserved replication and expansion. He noted that innovations had come from smaller States, and larger States could benefit from adopting these proven models. The Ministry indicated that workshop proceedings would identify relevant and adaptable models that States can consider for implementation.
PACS computerisation and expansion
Primary Agricultural Credit Societies form the foundation of rural cooperative credit delivery. The Ministry has set a December 2026 deadline for completing all components of the first phase of PACS computerisation, with financial audits to be finished by October 2026. This centrally funded scheme runs until March 2027, though the Ministry has sought approval to extend it without additional financial cost to enable completion of remaining targets.
States are also being urged to accelerate the formation of new PACS and expand membership. The target is to establish approximately 95,000 such institutions over two to three years. A strong and broad network of PACS and members is essential for the viability of new District Central Cooperative Banks, which provide credit at the district level.
Strengthening cooperative banking
Cooperative banks face challenges from fragmented technology systems and cybersecurity threats. The Ministry has been coordinating with the Ministry of Finance and the Reserve Bank of India to address these issues. A key initiative involves developing a uniform Core Banking Solution platform through the National Bank for Agriculture and Rural Development (NABARD), with the tendering process nearing completion.
The Secretary emphasised that cooperative banks must strengthen cybersecurity, adopt modern core banking platforms and expand internet and mobile banking services to remain competitive, retain customers and attract younger customers, particularly Generation Z.
National cooperative institutions supporting farmers
Three national cooperative bodies are creating opportunities for grassroots cooperatives to aggregate produce, access wider markets and secure better prices for farmers. These are the National Cooperative Exports Limited (NCEL), National Cooperative Organics Limited (NCOL) and Bharatiya Beej Sahakari Samiti Limited (BBSSL). Several States have successfully leveraged these institutions, and the Ministry encouraged others to study and adopt their working models.
The Secretary also appreciated State plans to expand the role of PACS in fertiliser business, recognising the need for cooperatives to diversify activities to strengthen financial sustainability and provide additional services to members.
Dairy cooperatives and informal milk collection systems
The Ministry called for informal village-level milk collection arrangements to be formalised into registered cooperative institutions. This would enable milk producers to access the benefits of cooperative organisation. The Secretary noted that dairy and fisheries cooperatives have made encouraging progress in forming new societies.
Grain storage and new farm financing models
The Ministry is accelerating implementation of decentralised grain storage infrastructure across India. Several States have begun identifying locations for storage facilities, securing loan approvals and starting construction. The Secretary stressed that these efforts need significant expansion to create a comprehensive network.
Beyond storage, the Ministry is exploring alternative agricultural marketing and financing arrangements, including pledge finance, to help farmers secure remunerative prices for their produce. These pilot models, being developed in consultation with the Department of Economic Affairs, are particularly important for cereals other than wheat and paddy, where access to Minimum Support Price procurement can be limited. The Ministry will share such models with States over the next two to three months and test them in selected districts before considering wider rollout. The objective is to supplement, not replace, the existing MSP framework.
What this means for you
If you are a farmer, strengthened PACS and cooperative banks should provide improved access to agricultural credit and better market linkages through national cooperative institutions. New grain storage facilities may enable you to store produce for better prices. If you are engaged in dairy farming, formalisation of milk collection systems could bring you into an organised cooperative, securing better returns. For State governments and cooperative institutions, the framework provides clear targets and timelines for implementation, with emphasis on learning from peer States’ successful practices.
What happens next
States must prepare prioritised action plans immediately. The PACS computerisation first phase must be completed by December 2026, with financial audits by October 2026. The Ministry will share new farm financing and marketing models with States over the next two to three months and explore pilot projects in selected districts. The next National Review Workshop is scheduled for January 2027 in Mahabalipuram, Tamil Nadu.