The Government’s Budget Framework for 2026–27 outlines several allocations and physical targets involving cooperative institutions across agriculture, dairy, fisheries, procurement, infrastructure, and digital platforms.
Under the Price Support Scheme (PSS), the Government has provided a Government Guarantee of Rs 50,000 crore for extending cash credit facilities to Central Nodal Agencies, the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF).
The guarantee is for procurement of pulses, oilseeds, and copra at Minimum Support Price (MSP). As per the document, the agencies are permitted to withdraw funds against the guarantee for making MSP payments to farmers and for meeting incidental operational costs related to procurement activities.
The framework also provides for a financial outlay of Rs 500 crore under the Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs) scheme for 2026–27. It sets a target of mobilising 10 lakh additional farmers through existing FPOs and includes an Equity Grant Fund of Rs 150 crore and a Credit Guarantee Fund of Rs 60 crore, along with provisions for licensing, capacity building, and online trading through platforms such as e-NAM and ONDC.
In the dairy sector, an allocation of Rs 1,055 crore has been made for Dairy Development during 2026–27. The framework proposes the operationalisation of 7,600 Dairy Cooperative Societies/Milk Pooling Points. It also provides for installation of 3,800 electronic milk testing equipment, modernisation or strengthening of 12 state- and district-level laboratories, and inclusion of 200,000 additional women farmers under cooperatives. Provisions further include creation of additional milk chilling capacity and expansion of organised milk procurement through cooperative institutions.
