The Ministry of Cooperation and Recent Reforms

Why India created a Ministry of Cooperation in 2021, the reforms to multi-state cooperatives, and debates about central involvement in a state subject.

In July 2021, India created a separate Ministry of Cooperation, previously part of the agriculture ministry.

Aims

Strengthen the cooperative movement.
Improve ease of doing business for cooperatives.
Expand cooperatives into new sectors.

Key reforms

Multi-State Cooperative Societies (Amendment) Act, 2023: improved governance, elections and transparency for cooperatives operating in multiple states.
PACS computerisation and diversification.
National cooperatives for exports, organic products and seeds, set up in 2023.
A National Cooperative Database.
A national cooperative university and policy.

Tax changes

The government reduced tax rates for cooperatives to bring them closer to companies’ rates.

Debates

Cooperatives are largely a state subject under the Constitution. Some states worried about central overreach.
Critics questioned political motives, as cooperatives have been politically influential in some states.
Supporters argued national coordination could revive weak cooperatives.

The National Cooperation Policy

A National Cooperation Policy was released in 2025, aiming to expand and modernise the cooperative sector.

The export cooperative

A new national cooperative helps small cooperatives export products like spices and handicrafts, which individual cooperatives couldn't manage alone due to certification and marketing costs.

Thinking cooperatives are purely a central matter

Most cooperatives are regulated by states; central reforms mainly cover multi-state cooperatives and schemes.

Key takeaways

India created a Ministry of Cooperation in July 2021.
A 2023 law reformed multi-state cooperatives.
National cooperatives for exports, organic products and seeds were set up in 2023.
Federalism debates surround central involvement.