Why in news?

• In recent years, NCDC has expanded its scope to include financing projects in rural industrial cooperative sectors and notified services such as water conservation, irrigation, micro-irrigation, agri-insurance, rural sanitation, and animal health.
• The corporation has also been instrumental in promoting the circular economy in sectors like sugar mills and dairy, directly benefiting farmers and rural communities.​

About NCDC

• Statutory organization under the Ministry of Cooperation, Government of India.
• Established in 1963 by an Act of Parliament.
• Headquarters in New Delhi with multiple regional and state offices.
• Supports cooperative development in agriculture and rural sectors.

Functions of NCDC

• Provides financial assistance to cooperatives for agriculture, food processing, marketing, storage, and allied activities.
• Finances projects in dairy, poultry, fisheries, handloom, sericulture, and rural industries.
• Extends loans and grants to primary, secondary, and national cooperative societies.
• Promotes and supports farmer producer organizations (FPOs) and PACS.
• Implements schemes for rural infrastructure, animal health, irrigation, and sanitation.

Objectives of NCDC

• Foster self-reliant, sustainable cooperative societies.
• Promote inclusive rural development and livelihood enhancement.
• Support weaker sections including scheduled castes, tribes, and women cooperatives.
• Accelerate cooperative-led economic growth and employment generation in rural areas.

Schemes and Initiatives to strengthen cooperatives

• Yuvika Scheme: Focuses on promoting youth entrepreneurship in the cooperative sector.

• Integrated Cooperative Development Project (ICDP): Aims at holistic development of districts through cooperative activities.
• Relief in Income Tax Law: Provides tax benefits to cooperative societies.
• Strengthening of Rural Cooperative Banks: Enhances financial inclusion and access to credit for rural populations.
• Support for PACS (Primary Agricultural Credit Societies): Facilitates their transformation into Farmer Producer Organizations (FPOs) for better market access and fair prices for farmers.​

Significance and Impact

• Serving over 13,000 cooperative societies with approximately 2.9 crore members.
• Enabling inclusive rural growth through job creation, especially in women-led and labor cooperatives.
• Supporting cooperatives in cold storage, food processing, fisheries, dairy, and textiles, thereby enhancing value chains and rural livelihoods.
• Achieving a compound annual growth rate of over 40%, maintaining zero net non-performing assets (NPA), and registering its highest-ever net profit of ₹807 crore in recent years.

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