National Cooperative Development Corporation (NCDC)

The government has approved ₹2,000 crore for NCDC to boost cooperative-led rural development, focusing on agriculture, allied sectors, and job creation.

Empowering Rural India: ₹2,000 Cr Grant to NCDC

Syllabus: Government Policies & Interventions, Agriculture & Economy (UPSC GS II & III)
Source: TOI

Why in News?

The Union Cabinet has approved a ₹2,000 crore grant to the National Cooperative Development Corporation (NCDC) for the next four years to boost cooperative-based development in rural India.

What is the NCDC?

Statutory Body: Established in 1963 under an Act of Parliament.
Nodal Ministry: Ministry of Cooperation.
Headquarters: New Delhi, with 18 regional and state offices.
Main Goal: Promote self-reliant and sustainable cooperatives in agriculture and allied rural sectors.

Key Roles and Functions

Financial Support: Provides long-term credit, working capital, and grants to cooperatives.
Sector Coverage:
- Agriculture: Production, processing, marketing, and storage.
- Allied Sectors: Dairy, poultry, fisheries, handloom, sericulture, etc.
- Infrastructure: Cold storage, irrigation, animal health, sanitation, and rural logistics.
Trade Support: Assists cooperatives in the import/export of fertilizers, farm equipment, and agri-commodities.
Advisory Role: Offers technical guidance and helps prepare project proposals via its regional offices.

Significance of NCDC

Wide Reach: Supports over 13,000 cooperative societies with 2.9 crore members.
Inclusive Growth:
- Focuses on women-led, tribal, and labour cooperatives.
- Generates local employment and boosts rural entrepreneurship.
Value Chain Development: Plays a key role in food processing, dairy, fisheries, and textiles, enhancing income and reducing wastage.

Way Forward

The ₹2,000 crore grant is expected to strengthen the cooperative ecosystem, deepen financial inclusion, and support India’s vision of “Sahakar se Samriddhi” (Prosperity through Cooperation).