The National Cooperative Development Corporation (NCDC) has emerged as a central pillar in strengthening India’s cooperative sector, playing a crucial role in enhancing farmer incomes and supporting rural economic growth through targeted financial and institutional interventions.
According to official data released by the Ministry of Cooperation, NCDC has significantly scaled up its financial assistance in recent years, with disbursements rising nearly fourfold from Rs 24,733 crore in 2020–21 to over Rs 95,000 crore in 2024–25. In the current financial year, the Corporation has already sanctioned over Rs 1.4 lakh crore and disbursed around Rs 1 lakh crore, underlining its expanding footprint across cooperative sectors.
A key focus area for NCDC has been the Dairy Sahakar Yojana, under which it has provided financial assistance of Rs 765.98 crore to nearly 20,000 dairy cooperative societies across the country since October 2021. States such as Gujarat and Rajasthan have emerged as major beneficiaries, with funds supporting infrastructure creation, modernization, and expansion of dairy operations. The scheme has contributed to higher productivity, value addition, and improved income for farmers.
NCDC’s role has also expanded in promoting Farmer Producer Organisations (FPOs) within the cooperative framework. The Corporation has facilitated the formation of over 1,800 FPOs, enabling better market linkages, improved price realisation, and enhanced bargaining power for farmers. Additionally, it has extended financial support of over Rs 245 crore to FPOs and cluster-based business organisations.
In the fisheries sector, NCDC is spearheading efforts to convert traditional cooperatives into Fish Farmer Producer Organisations (FFPOs), with 1,000 societies identified for strengthening under an approved outlay of Rs 280.65 crore. This initiative is expected to modernise fisheries value chains and boost incomes of fishing communities.
To improve access to credit, NCDC has introduced reforms such as floating interest rates and differential lending mechanisms, reducing borrowing costs and tailoring financial assistance to the needs of cooperatives. Its registration under credit guarantee schemes has further enabled collateral-free loans, expanding financial inclusion.
The Corporation has also expanded its geographical presence by opening new regional and sub-offices, particularly in the North-East and remote regions, ensuring wider outreach. Additionally, the government’s approval of a Rs 2,000 crore grant to NCDC is expected to help it leverage up to Rs 20,000 crore from the market, further strengthening its lending capacity.
Beyond financing, NCDC has entered into strategic partnerships, including with the National Dairy Development Board, to provide technical support, capacity building, and training to cooperatives, thereby improving efficiency and sustainability.