Strengthening Cooperative

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Strengthening Cooperative — UPSC Study Note

1. At a Glance

• Strengthening Cooperative refers to the basket of initiatives by the Ministry of Cooperation (created July 2021) to revitalise India's cooperative ecosystem under the slogan "Sahkar se Samriddhi" [S1][S4].
• Flagship pillars: Computerisation of PACS, 2 lakh new multipurpose PACS/Dairy/Fisheries societies, and the World's Largest Grain Storage Plan in Cooperative Sector [S1][S2][S3].
• Examinable for GS-II (Govt schemes) and GS-III (Agriculture, food security, cooperative federalism).

2. Why in the News

• PIB release (24 Mar 2026) reiterated rollout status of the World's Largest Grain Storage Plan as a pilot, with 9,750 MT decentralised storage already created at 11 PACS across 11 States [S3].
• Target to complete godown construction in 500+ identified PACS by December 2026 [S3].

3. Background & Evolution

• 6 July 2021: Ministry of Cooperation carved out of Ministry of Agriculture; Shri Amit Shah became first Cooperation Minister [S1].
• 29 June 2022: Cabinet approved Computerisation of PACS as Centrally Sponsored Scheme [S2].
• 31 May 2023: Cabinet approved World's Largest Grain Storage Plan in Cooperative Sector as a pilot [S3].
• 15 Feb 2023: Cabinet approved Plan for 2 lakh new PACS/Dairy/Fisheries societies over 5 years [S2].

4. Core Static Facts

• Nodal Ministry: Ministry of Cooperation, Government of India [S1][S3].
• Constitutional basis: Cooperatives — 97th Constitutional Amendment Act, 2011; Part IX-B; Article 43-B (DPSP — promotion of cooperative societies).
• Computerisation of PACS: Originally 63,000 PACS / ₹2,516 cr; expanded to 79,630 PACS / ₹2,925.39 cr; deadline 31 March 2027 [S2].
• 2 Lakh PACS Plan split:
• NABARD: 22,750 (Phase-1) + 47,250 (Phase-2) PACS [S2].
• NDDB: 56,500 new + strengthen 46,500 dairy societies [S2].
• NFDB: 6,000 new fisheries cooperative societies [S2].
• States: 25,000 PACS [S2].
• World's Largest Grain Storage Plan:
• Convergence of AIF, AMI, SMAM, PMFME schemes [S3].
• Pilot in 11 States (Maharashtra, UP, TN, Karnataka, Gujarat, MP, Uttarakhand, Assam, Telangana, Tripura, Rajasthan) [S3].
• 9,750 MT decentralised capacity created so far [S3].
• 10,000 M-PACS, Dairy & Fisheries societies inaugurated by HM Amit Shah (PIB release referenced) [S1].

5. Multi-Dimensional Analysis

Economic - Aims to lift India's grain storage capacity closer to annual production (~310 MT) — currently storage gap forces post-harvest losses [S3]. - Convergence with AIF (₹1 lakh cr fund) unlocks subsidised credit for PACS-level godowns/processing [S3].

Administrative - Single common ERP-based national software with CAS & MIS brings PACS onto a uniform digital backbone [S2]. - Centre–State–NABARD–NDDB–NFDB convergence under Inter-Ministerial Committee (IMC) chaired by Cooperation Minister [S3].

Social - PACS as multipurpose entities: godowns, custom hiring, Fair Price Shops, processing — diversifies rural livelihoods [S3]. - Targets coverage of every Panchayat/village lacking a cooperative society [S2].

Federal / Constitutional - Cooperatives are a State subject (Entry 32, List II) — Centre uses convergence/incentives, not direct legislation, post the SC striking down parts of 97th Amendment in Union of India v. Rajendra N. Shah (2021) for state societies.

Food Security - Decentralised storage at PACS reduces transport cost to FCI silos and post-harvest losses; supports PDS through co-located FPS [S3].

6. Recent Developments (last 12-18 months)

• 24 Mar 2026: PIB statement — pilot godowns operational in 11 PACS/11 States; 9,750 MT created [S3].
• 2025 Year-Ender (Ministry of Cooperation) reaffirmed "Sahkar se Samriddhi" with progress on 2 lakh PACS rollout [S1].
• HM Amit Shah inaugurated 10,000 newly established M-PACS / Dairy / Fisheries societies in New Delhi [S1].
• Computerisation outlay revised upward to ₹2,925.39 cr covering 79,630 PACS [S2].

7. Prelims Hooks

• Ministry of Cooperation created in July 2021 [S1].
• Article 43-B (DPSP) and Part IX-B relate to cooperative societies (97th Amendment, 2011).
• World's Largest Grain Storage Plan approved on 31 May 2023 [S3].
• Pilot states include Tripura and Assam (often-missed NE inclusion) [S3].
• Convergence schemes: AIF, AMI, SMAM, PMFME — NOT PMKSY or PM-KISAN [S3].
• Computerisation of PACS — Centrally Sponsored Scheme approved 29 June 2022, deadline 31 March 2027 [S2].
• NDDB target: 56,500 new dairy societies [S2].
• NFDB target: 6,000 fisheries cooperative societies [S2].
• Total expanded PACS computerisation outlay: ₹2,925.39 crore [S2].
• Decentralised storage created under pilot: 9,750 MT [S3].
• Common ERP software has CAS (Common Accounting System) and MIS modules [S2].
• MoU signatories for PACS computerisation: Ministry of Cooperation, MeitY, NABARD, CSC e-Governance [S1].

8. Mains Relevance

• GS-II: Government policies & interventions; Cooperative federalism.
• GS-III: Agriculture — storage, marketing, food processing; Food security & PDS.
• Probable stems: 1. "Examine how the World's Largest Grain Storage Plan in the Cooperative Sector addresses India's post-harvest losses and PDS bottlenecks." (GS-III) 2. "PACS computerisation is as much an exercise in cooperative federalism as in digital transformation. Discuss." (GS-II) 3. "Critically evaluate the rationale for a separate Ministry of Cooperation in light of cooperatives being a State subject." (GS-II)

9. Related Topics to Study Next

• 97th Constitutional Amendment & SC ruling in Rajendra N. Shah (2021) — constitutional contour of cooperatives.
• NABARD, NDDB, NFDB — institutional architecture.
• Agriculture Infrastructure Fund (AIF) — convergence partner scheme.
• PMFME Scheme — micro food processing linkage.
• FCI & Decentralised Procurement — storage policy linkage.
• Multi-State Cooperative Societies (Amendment) Act, 2023 — governance reform.
• e-NAM — marketing infrastructure parallel.
• Operation Flood / Anand Pattern — historical cooperative precedent.

10. Common Errors / Trap Areas

• Confusing Ministry of Cooperation (2021) with Ministry of Agriculture — they are separate.
• Year of approval of Grain Storage Plan = 2023, not 2022 (when computerisation was approved).
• Cooperatives are a State subject (Entry 32, List II); the Centre runs only convergence schemes — the 97th Amendment's Part IX-B applies only to multi-state cooperatives after the 2021 SC ruling.
• PACS computerisation now covers 79,630 PACS, not the original 63,000 — outlay revised to ₹2,925.39 cr.
• The plan is a convergence scheme — no fresh outlay; uses AIF/AMI/SMAM/PMFME funds.

11. Sources

• [S1] Year Ender 2025 — Ministry of Cooperation: "Sahkar se Samriddhi" — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2211795 — (tier: 1)
• [S2] Computerization and Strengthening of Primary Cooperative Societies / PACS Expansion — https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2080081 ; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146717 — (tier: 1)
• [S3] World's Largest Grain Storage Plan in Cooperative Sector — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2244574 ; https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146718 — (tier: 1)
• [S4] Strategic expansion and functional diversification of PACSs — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2147171 — (tier: 1)