Key Agencies Promoting the Cooperative Movement in India

India’s cooperative movement is one of the largest in the world, with over 8.54 lakh registered cooperative societies and more than 29 crore members – the majority from rural and marginalized communities. Behind this scale lies a robust network of central and state-level agencies that actively drive the growth, sustainability, and outreach of cooperatives across the country. From manufacturing fertilizers to stabilizing food prices and financing rural development projects, these agencies form the institutional backbone of India’s cooperative ecosystem.

Why India needs dedicated agencies for cooperative promotion 🔗

Cooperatives in India operate across a vast spectrum – agriculture, dairy, fisheries, sugar, handloom, housing, and credit. Managing and promoting such a diverse movement requires specialized institutions with distinct mandates. The Ministry of Cooperation, established in 2021, now serves as the nodal ministry coordinating these efforts at the national level. Underneath it operates a set of powerful organizations, each targeting a specific sector or function within the cooperative landscape. Together, they contribute to what the government calls Sahakar-se-Samriddhi – prosperity through cooperatives.

Cooperatives contribute 28.80% of India’s fertilizer production, 35% of fertilizer distribution, 30.60% of sugar production, and 17.50% of the procurement of marketable milk surplus in the national economy. These numbers underscore the economic significance of maintaining active promotional agencies.

IFFCO: powering farmers through fertilizer cooperatives 🔗

Indian Farmers Fertiliser Cooperative Limited (IFFCO) is arguably the most recognized cooperative institution in India. Registered on 3 November 1967 as a multi-unit cooperative society, IFFCO was created with the primary objective of producing and distributing fertilizers at affordable prices for Indian farmers. What began with 57 member cooperatives has grown into one of the world’s largest fertilizer cooperatives, today serving over 50 million farmers through a network of approximately 35,000 member cooperatives.

IFFCO’s core strength is its farmer-owned governance model. Profits flow back to the farming community rather than external shareholders, keeping fertilizer prices competitive. Its distribution network spreads fertilizers to even the most remote villages through over 39,800 cooperative societies and 158 Farmer Service Centres (FSCs) across the country.

Beyond fertilizers 🔗

IFFCO’s role has expanded far beyond fertilizer production. The cooperative has pioneered innovations like nano urea, which can reduce conventional fertilizer usage significantly while maintaining crop productivity. It has also ventured into rural telecommunications, general insurance through IFFCO-Tokio, renewable energy, and even rural e-commerce through IFFCO BAZAR. IFFCO has promoted several institutions including the Indian Farm Forestry Development Cooperative (IFFDC) and the Cooperative Rural Development Trust (CORDET) to further strengthen the cooperative movement and rural development.

On the international stage, IFFCO holds joint ventures in Oman, Jordan, and Dubai, and has been a consistent advocate for India hosting global cooperative forums. In 2024, IFFCO spearheaded India’s hosting of the ICA Global Conference – a major milestone for the Indian cooperative sector.

KRIBHCO: India’s second fertilizer cooperative giant 🔗

Krishak Bharati Cooperative Limited (KRIBHCO) was incorporated on 17 April 1980 as a national-level Multi-State Cooperative Society to set up India’s first gas-based, high-capacity fertilizer complex at Hazira, Surat (Gujarat). The Hazira complex was commissioned in 1985 and produces urea and ammonia at a large scale. KRIBHCO later added a second fertilizer plant at Shahjahanpur, Uttar Pradesh, strategically positioned in India’s high-consumption urea belt.

While KRIBHCO is smaller in scale compared to IFFCO, it plays a distinct and complementary role. Together, IFFCO and KRIBHCO work closely with farmers’ societies and state governments to ensure that every bag of urea reaches the right hands, preventing hoarding or diversion – a critical function in safeguarding food security.

Diversification and farmer services 🔗

KRIBHCO has diversified into agribusiness, green energy, logistics, and bio-fertilizer manufacturing, with units at Hazira, Varanasi, and Lanjha (Maharashtra). The cooperative actively promotes soil health through balanced fertilization and has established soil testing laboratories to assist farmers in informed nutrient management. It also provides training, technical assistance, and market linkages to farmer members, reinforcing its cooperative ethos beyond commercial fertilizer production.

NAFED: the apex body for agricultural marketing cooperatives 🔗

National Agricultural Cooperative Marketing Federation of India (NAFED) was founded on 2 October 1958 – Gandhi Jayanti – to promote the trade of agricultural produce and forest resources across the nation. Registered under the Multi-State Cooperative Societies Act, NAFED serves as the apex marketing cooperative body for agricultural produce in India, with its headquarters in New Delhi and regional offices in Mumbai, Chennai, and Kolkata, alongside 28 zonal offices across the country.

NAFED’s primary mandate is to ensure that farmers receive fair prices for their produce, reduce their dependence on middlemen, and gain access to wider markets. NAFED is one of the central nodal agencies for procurement of 16 notified agricultural commodities – including oilseeds, pulses, and cotton – under the Price Support Scheme (PSS). Whenever market prices fall at or below the declared Minimum Support Price (MSP), NAFED steps in to procure directly from farmers through cooperative networks, with payments made through digital modes like RTGS/NEFT.

Market stabilization and government schemes 🔗

NAFED plays a crucial role in price stabilization of essential commodities like onion and pulses by creating national buffer stocks on the direction of the Government of India. It is also the nodal agency implementing price stabilization measures under Operation Greens. NAFED has also been instrumental in establishing the National Spot Exchange and has launched nearly 90 organic products under its “Organic Soul” brand, ranging from flax seeds and chia seeds to tea and pulses.

Beyond procurement, NAFED promotes export of surplus agricultural produce, sets up cold storage and warehousing infrastructure, and offers guidance and financial assistance to cooperative societies to strengthen their operational efficiency.

NCDC: the financial and institutional backbone 🔗

National Cooperative Development Corporation (NCDC) operates differently from IFFCO, KRIBHCO, and NAFED – it is not a commodity-focused cooperative but a statutory corporation set up under an Act of Parliament on 14 March 1963, now functioning under the Ministry of Cooperation. NCDC’s mandate covers planning, promoting, and financing cooperative programmes across production, processing, marketing, storage, export, and import of agricultural produce, foodstuffs, industrial goods, and livestock.

NCDC has disbursed financial assistance of more than Rs 60,000 crore to cooperative societies across India. It advances loans and grants to state governments for financing primary and secondary-level cooperative societies, and directly to national-level societies for programmes spanning more than one state. NCDC operates through 18 regional and state directorates spread across the country, ensuring wide coverage.

Schemes and special initiatives 🔗

NCDC implements several government schemes focused on agriculture, horticulture, fisheries, dairy, livestock, food processing, marketing, and cold chain infrastructure. Its Integrated Cooperative Development Project (ICDP) works at the district level to unleash the cooperative potential of entire regions in a holistic manner.

Notably, NCDC is one of the implementing agencies for the government’s scheme for the formation and promotion of 10,000 Farmer Producer Organisations (FPOs). It also runs exclusive schemes for women cooperatives – the Swayam Shakti Sahakar Yojana and Nandini Sahakar – to empower women self-help groups through credit access. In 2025, the Union Cabinet approved a fresh grant-in-aid of Rs 2,000 crore to NCDC for 2025-26 to 2028-29, enabling it to mobilize nearly Rs 20,000 crore from open markets over four years.

State-level cooperative banks and federations 🔗

Beyond national agencies, a three-tier cooperative credit structure operates at the state level to support the cooperative movement on the ground. State Cooperative Banks (StCBs) sit at the apex, District Central Cooperative Banks (DCCBs) function at the district level, and Primary Agricultural Credit Societies (PACS) reach farmers at the village level. These banks channel institutional credit into rural areas where commercial banks have limited reach.

State cooperative federations – such as state marketing federations, dairy federations, and sugar cooperatives – serve as apex bodies at the state level, linking primary cooperatives with national agencies like NAFED and NCDC. They coordinate procurement, marketing, and policy advocacy on behalf of cooperatives within their states. For example, state marketing federations in states like Punjab (MARKFED) and Maharashtra play a direct role in implementing MSP operations and supplying agricultural inputs.

The National Federation of State Cooperative Banks (NAFSCOB) is the apex body representing rural cooperative banks at the national level, coordinating training, policy advocacy, and capacity building for state and district cooperative banks. In 2026, the Ministry of Cooperation took steps to include cooperative banks as formal participant institutions under various central government schemes – a significant step in mainstreaming cooperative banking.

New multi-state cooperatives: a recent institutional expansion 🔗

Recognizing gaps in cooperative infrastructure, the Government of India in 2023 approved the formation of three new national-level multi-state cooperative societies, promoted by existing agencies like IFFCO, KRIBHCO, NAFED, NDDB, and NCDC working together.

The National Cooperative Exports Limited (NCEL) was set up with an authorized share capital of Rs 2,000 crore to export surplus goods and services produced by Indian cooperatives to global markets. The Bharatiya Beej Sahkari Samiti Limited (BBSSL) was established as an apex organization for quality seed production, procurement, and distribution under a single brand, with an initial paid-up capital of Rs 250 crore. The National Cooperative Organics Limited (NCOL) was formed to manage certified organic product activities, helping farmers access the premium pricing of organic markets both domestically and internationally.

These three new bodies represent a strategic evolution – using the combined strength of established cooperative institutions to enter new markets and sectors that individual cooperatives could not address alone.

How these agencies work together 🔗

What makes India’s cooperative promotion ecosystem effective is that these agencies are not siloed. IFFCO and KRIBHCO supply fertilizers through cooperative distribution networks that NAFED and state cooperatives use for procurement and marketing. NCDC finances cooperatives that NAFED or state federations help organize. As highlighted in 2025, the National Cooperation Policy (NCP) 2025 brings seven major institutions – IFFCO, NAFED, Amul, KRIBHCO, NDDB, NCEL, and NABARD – together to foster cooperation among cooperatives for sustainable development under the Viksit Bharat 2047 vision.

The United Nations designated 2025 as the International Year of Cooperatives under the theme “Cooperatives Build a Better World” – a recognition that aligns closely with what India’s cooperative agencies have been working toward for decades: reducing poverty, increasing farmer incomes, and creating inclusive rural economies.

What do you think? With so many agencies working to promote cooperatives, do you think the coordination between central bodies like NCDC and NAFED and state-level federations is effective enough to reach India’s most marginalized farmers? And given that cooperative exports remain a small fraction of India’s total exports, can new entities like NCEL realistically change that picture in the next decade?

References

1. https://eng.ruralvoice.in/cooperatives/iffco-amul-nafed-kribhco-ncdc-to-promote-national-export-coop-society.html
2. https://www.cooperation.gov.in/en/ncdc-0
3. https://www.kamarajiasacademy.com/current-affairs/iffco-amul-nafed-kribhco-ncdc-to-promote-national-export-coop-society-with-rs-2-000-cr-share-capital
4. https://en.wikipedia.org/wiki/Indian_Farmers_Fertiliser_Cooperative
5. https://www.indiancooperative.com/iffco/iffco%E2%80%94a-success-story/
6. https://en.wikipedia.org/wiki/Krishak_Bharati_Cooperative
7. https://www.indiancooperative.com/from-states/co-ops-anchor-indias-fertilizer-security-in-kharif-25-iffco-kribhco-lead/
8. https://en.wikipedia.org/wiki/National_Agricultural_Cooperative_Marketing_Federation_of_India
9. https://www.nafed-india.com/govt-operations-nafed
10. https://cleartax.in/glossary/nafed-national-agricultural-cooperative-marketing-federation-of-india-ltd
11. https://en.wikipedia.org/wiki/National_Cooperative_Development_Corporation_(India)
12. https://www.manoramayearbook.in/current-affairs/india/2024/11/28/national-cooperative-development-corporation-ncdc.html
13. https://www.shankariasparliament.com/current-affairs/national-cooperative-development-corporation-ncdc
14. https://www.indiancooperative.com/co-op-news-snippets/moc-strengthening-co-op-banks-role-in-govt-schemes/amp/
15. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2085689
16. https://www.devdiscourse.com/article/headlines/3486583-indias-cooperative-movement-steering-global-change-in-2025