(GIST OF KURUKSHETRA) NCDC: Powering India’s Cooperative Revolution

(JULY-2025)

NCDC: Powering India’s Cooperative Revolution

Context:

National Cooperative Development Corporation (NCDC) is a statutory organization operating under the administrative control of the Ministry of Cooperation. Established in March 1963 through an Act of Parliament, the NCDC Act of1962, it succeeded the National Cooperative Development and Warehousing Board formed in 1956.

In May 2003, the Ministry of Finance, Department of Corporate Affairs, declared NCDC as a public financial institution. As non-equity based statutory organization, NCDC plays a vital role in planning, promoting, coordinating, and financing cooperative development programmes at the national level. It offers financial and technical support to cooperative institutions comprising farmers and weaker sections engaged in agriculture and allied rural economic activities.

Key highlights:

In the financial year 2024-25, NCDC sanctioned financial assistance amounting to Rs. 1,30,377.60 crore and disbursed Rs. 95,175.71 crore. This support benefitted 2,76,760 cooperative societies and 1,27,43,054 cooperative members.
NCDC has maintained profitability every year since its inception. During FY 2024-25, its net non-performing assets (NPA) remained at zero, with an impressive loan recovery rate of 99.76%. The organization recorded a net profit of approximately Rs. 750 crore in FY 2024- 25, demonstrating robust financial health and efficient management.
Cumulatively, NCDC disbursed a total of Rs. 4,08,376.68 crore since its inception up to March 31, 2025. This growth reflects the corporation’s consistent efforts in promoting cooperative development. NCDC disbursements have risen steadily from Rs. 7,118 crore in 2015-16 to Rs. 95,175.71in 2024-25.
With this, NCDC has achieved about 33% compounded annual growth rate (CAGR) in disbursement of financial assistance since 2015-16. Further, NCDC has achieved 57% growth in disbursement of financial assistance during FY 2024 -25 from FY 2023-24.

Significance:

Another noteworthy initiative is the formation of Farmer Producer Organizations (FPOs). Under the guidance of the Ministry of Cooperation, NCDC aims to establish 1,100 additional FPOs, thereby strengthening Primary Agricultural Credit Societies (PACS) under the ‘Formation and Promotion of 10,000 FPOs’ scheme.
As of March 31, 2025, NCDC has successfully formed 1,863 FPO cooperatives, including the additional 1,100 FPOs targeted. Furthermore, the organization has disbursed Rs. 165.37 crore to FPOs and Cluster-Based Business Organizations (CBBOs) under this scheme.
In addition to supporting FPOs, NCDC has made significant strides in establishing Fish Farmers Producer Organizations (FFPOs). Under the Pradhan Mantri Matsya Sampada Yojana (PMMSY), NCDC has set up 70 FFPOs and transformed 1,000 existing fisheries cooperatives into FFPOs.
Financial assistance totaling Rs. 77.07 crore has been disbursed to support these organizations up to March 31, 2025. This initiative has not only enhanced fish production but also improved the livelihoods of fish farmers by promoting sustainable practices and enabling better market access.
Allotment of 1000 PFCS have been completed. Furthermore, under the new scheme Pradhan Mantri Matsya KisanSamriddhi Sah-Yojana (PMKSSY) NCDC has been given a target of strengthening of 2348 existing fisheries cooperative societies into cooperative FFPOs.
NCDC’s support for fishing cooperatives is further exemplified by its Deep-Sea Trawlers Initiative. The organization has financed deep-sea trawlers to boost marine fishing operations. Specific projects funded under this initiative include the sanctioning of Rs. 11.55 crore for purchasing 14 deep-sea trawlers in Maharashtra at a block cost of Rs. 20.30 crore, with Rs. 2.89 crore already released. Additionally, NCDC has provided financial assistance of Rs. 37.39 crore and released Rs. 9.35 crore to Rajmata Vikas Macchimar Sahkari Sanstha Limited, Mumbai, for establishing a seafood processing unit at a block cost of Rs. 46.74 crore.
In Gujarat, NCDC has sanctioned Rs. 18.00 crore to Shri Mahavir Macchimar Sahkari Mandali Limited for purchasing 30 deep-sea trawlers with a block cost of Rs. 36.00 crore. The organization has also sanctioned Rs. 32.69 crore and released Rs. 20.83 crore for the Integrated Fisheries Development Project (IFDP) of the Government of Kerala. These initiatives are pivotal in increasing fish yields, enhancing processing and export quality, and promoting sustainable fishing practices.

Conclusion:

The National Cooperative Development Corporation has emerged as a cornerstone institution in India’s cooperative landscape. With a clear vision and consistent performance, it is addressing the evolving needs of cooperatives by offering financial resources, technical expertise, and strategic guidance. As the cooperative sector continues to expand, NCDC’s role becomes increasingly critical in ensuring that cooperatives remain vibrant, transparent, and accountable economic entities contributing to national development. With ambitious goals for the future, NCDC is poised to scale greater heights, reinforcing its position as a key driver of cooperative prosperity in India.