The Gujarat government has allocated Rs 1,830.22 crore to the Co-operation Department in the 2026–27 Budget, giving a strong push to the state’s cooperative sector.
Presenting the Budget in the Gujarat Legislative Assembly, Gujarat Finance Minister Kanubhai Desai highlighted that a major portion of the allocation will go towards credit support, subsidies, and financial assistance for cooperative institutions across the state.
A significant share of the outlay has been directed towards strengthening credit structures and supporting agricultural cooperatives.
The budget continues to prioritise crop credit and interest support mechanisms aimed at encouraging timely loan repayment and improving liquidity in rural areas. The emphasis remains on reinforcing the financial health of cooperative credit institutions that serve farmers at the grassroots level.
To modernise the cooperative ecosystem, the government has earmarked Rs 112 crore to make cooperative societies more multi-functional and efficient. This includes support for foodgrain storage infrastructure and the establishment of Bio-CNG plants in four zones of the state, enabling diversification of activities and improved sustainability.
Infrastructure development has also received attention, with Rs 27 crore provided for interest and capital subsidy for the construction of godowns. Additionally, assistance has been proposed for Primary Agricultural Credit Societies (PACS) to construct their own buildings, strengthening their operational capacity.
Further, under the ‘SAKAR’ scheme, Rs 10 crore has been allocated to provide interest relief on loans to sugar cooperative societies in both general and tribal areas. Overall, the budget reflects Gujarat’s continued commitment to reinforcing its cooperative backbone through financial support, infrastructure expansion, and institutional strengthening.