The Rajya Sabha has officially passed the National Cooperative Development Corporation (Amendment) Bill, 2026, empowering the NCDC to provide direct loans and grants to cooperative societies. This move aims to modernize and expand the scope of India's massive cooperative network.

Key Takeaways

  • NCDC will now have the authority to provide direct loans and grants to cooperative societies.
  • The definition of 'foodstuffs' is expanded to include processed foods.
  • The Bill covers a network of over 8 lakh societies and 30 crore members.
  • The amendment seeks to modernize the NCDC Act of 1962.

New Delhi: In a significant legislative development during the ongoing Monsoon Session, the Rajya Sabha on Wednesday passed the National Cooperative Development Corporation (Amendment) Bill, 2026. The Bill, which was previously cleared by the Lok Sabha, marks a pivotal shift in how cooperative societies in India access financial resources.

Minister of State for Cooperation, Murlidhar Mohol, introduced the Bill in the Upper House on behalf of Union Minister Amit Shah. The amendment seeks to broaden the functional ambit of the NCDC by allowing it to extend direct financial assistance, including loans and grants, to cooperative societies, thereby streamlining the credit flow to the grassroots level.

Why This Matters

BozokMedia analysis shows that this amendment is a strategic attempt to integrate processed food industries into the cooperative framework. By amending the definition of 'foodstuffs' to include processed items, the government is enabling cooperatives to move up the value chain—from mere production to sophisticated processing and marketing. This is crucial for increasing the income of the 30 crore members associated with these societies.

This legislative shift aims to transform cooperatives from traditional farming groups into modern, commercially viable entities.

The debate in the House saw sharp divisions. While YSR Congress MP Golla Babu Rao supported the move, urging the government to ensure benefits reach actual farmers, other members raised concerns about federalism. BJD MP Sulata Deo questioned the centralization of power, arguing that the soul of India lies in its villages and states, not in centralized control.

Historical Background

The original National Cooperative Development Corporation Act, 1962 was established to facilitate programs related to the production, processing, marketing, and storage of agricultural produce and industrial goods through cooperatives. The 2026 amendment updates this decades-old framework to meet the complexities of a modern, globalized food economy.

Did You Know?: There are currently over 800,000 cooperative societies operating across India, serving a massive membership base.

Frequently Asked Questions (FAQs)

1. How does the new Bill benefit cooperative societies?
It allows them to receive direct financial support (loans and grants) from the NCDC, reducing dependency on multiple intermediaries.

2. What was the main criticism of the Bill in Parliament?
Critics argued that the Bill increases the Central Government's control over cooperative sectors, potentially bypassing state authorities.