Cooperative Societies in India
Agriculture
- PYQs16
- Articles3
Background
Cooperatives are crucial for inclusive growth, rural development, poverty alleviation, and empowering marginalized sections. The recent establishment of the Ministry of Cooperation and constitutional provisions (97th Amendment) highlight their contemporary relevance in governance and economic policy.
Cooperative societies are autonomous associations of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. In India, they play a crucial role in rural development, agriculture, credit, and various other sectors, operating on principles of self-help and mutual aid, contributing significantly to inclusive growth.
Facts & tables
- Vision
- "Sahakar-se-Samriddhi" (Prosperity through Cooperation) guides the government's approach to cooperative development.
- Ministry of Cooperation
- Established on July 6, 2021, to provide a dedicated administrative, legal, and policy framework for cooperative growth.
- PACS Computerization Project
- A Central Sector project launched in 2022 to bring all functional Primary Agricultural Credit Societies (PACS) onto a common ERP-based national software.
- NCDC's Role
- National Cooperative Development Corporation provides financial assistance and promotes cooperative programs across various sectors.
- Constitutional Status
- 97th Amendment Act, 2011, gave constitutional status and protection.
- Fundamental Right
- Article 19(1)(c) includes the right to form cooperative societies.
- Directive Principle
- Article 43B promotes voluntary formation, autonomous functioning, democratic control, and professional management of cooperative societies.
- Legal Framework
- Registered under Multi-State Cooperative Societies Act, 2002 (for multi-state bodies) or respective State Cooperative Societies Acts.
| Type | Reference |
|---|---|
| Conceptual area | Indian Economy |
| Conceptual area | Agricultural Policies & Supply Chains |
| Conceptual area | Welfare Schemes & Social Policies |
| Conceptual area | Constitutional Amendments & Structure |
| Conceptual area | Directive Principles of State Policy |
| Conceptual area | Fundamental Rights |
| Conceptual area | Indian Polity & Governance |
| Body | Role |
|---|---|
| Sahakar Taxi Cooperative Limited (STCL) | Implements cooperative-based mobility ecosystem |
| Ministry of Cooperation | Formulates policy |
| National Cooperative Development Corporation (NCDC) | Finances |
| Primary Agricultural Credit Societies (PACS) | Provides credit |
Prelims angle
Prelims angle: Multi-statement analysis
Prelims angle: Factual recall
- "Sahakar-se-Samriddhi" vision for cooperative growth.
- Ministry of Cooperation (2021) as nodal body.
- PACS computerization project for digital integration.
- NCDC's financial support for cooperative development.
- MSCS (Amendment) Act, 2023 for rehabilitation and diversification.
| Year | Framing tags |
|---|---|
| 2026 | Multi-statement analysis, Factual recall |
| 2026 | Policy measures, Multi-statement analysis |
| 2023 | Multi-statement analysis, Factual recall |
| 2022 | Multi-statement analysis, Institutional roles and functions |
| 2020 | Conceptual understanding, Multi-statement analysis |
| 2020 | Multi-statement analysis, Factual recall |
| 2020 | Multi-statement analysis, Conceptual understanding |
| 2020 | Multi-statement analysis, Factual recall |
| 2020 | Statement-based questions, Institutional roles and functions |
| 2018 | Factual recall, Policy measures |
| 2018 | Multi-statement analysis, Factual recall |
| 2018 | Multi-statement analysis, Conceptual understanding |
| 2018 | Multi-statement analysis, Factual recall |
| 2016 | Multi-statement analysis, Purpose or function of a policy tool |
| 2014 | Factual recall, Multi-statement analysis |
| 2013 | Factual recall, Institutional roles and functions |
Timeline
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Indian Economy
Conceptual area
-
Agricultural Policies & Supply Chains
Conceptual area
-
Welfare Schemes & Social Policies
Conceptual area
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Constitutional Amendments & Structure
Conceptual area
-
Prelims 2013
Factual recall, Institutional roles and functions
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Prelims 2014
Factual recall, Multi-statement analysis
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Prelims 2016
Multi-statement analysis, Purpose or function of a policy tool
-
Prelims 2018
Factual recall, Policy measures
-
Prelims 2018
Multi-statement analysis, Factual recall
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Prelims 2018
Multi-statement analysis, Conceptual understanding
-
Prelims 2018
Multi-statement analysis, Factual recall
-
Prelims 2020
Conceptual understanding, Multi-statement analysis
-
Prelims 2020
Multi-statement analysis, Factual recall
-
Prelims 2020
Multi-statement analysis, Conceptual understanding
-
Prelims 2020
Multi-statement analysis, Factual recall
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Prelims 2020
Statement-based questions, Institutional roles and functions
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Prelims 2022
Multi-statement analysis, Institutional roles and functions
-
Prelims 2023
Multi-statement analysis, Factual recall
-
Prelims 2026
Multi-statement analysis, Factual recall
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Prelims 2026
Policy measures, Multi-statement analysis
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‘Heritage Artisan Cooperatives’
Cooperatives are voluntary associations with constitutional backing (97th Amendment, Art 19(1)(c), Art 43B) crucial for inclusive growth across sectors, now supported by a dedicated Ministry.
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Status of Bharat Taxi
Cooperative societies are member-owned, democratically controlled enterprises promoting self-help and mutual aid, governed by specific acts and overseen by the Ministry of Cooperation, playing a vital role in inclusive socio-economic development.
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Strengthening of cooperative societies in Odisha
Cooperative societies in India are vital for rural development and agriculture, guided by the 'Sahakar-se-Samriddhi' vision. The Ministry of Cooperation, established in 2021, spearheads initiatives like the PACS computerization project and diversification into multipurpose societies, supported by institutions like NCDC, to enhance their financial sustainability and outreach.
See also
Past papers
2013–2026 · 16 questions
In the news
Status of Bharat Taxi
Cooperative societies are member-owned, democratically controlled enterprises promoting self-help and mutual aid, governed by specific acts and overseen by the Ministry of Cooperation, playing a vital role in inclusive socio-economic development.
Strengthening of cooperative societies in Odisha
Cooperative societies in India are vital for rural development and agriculture, guided by the 'Sahakar-se-Samriddhi' vision. The Ministry of Cooperation, established in 2021, spearheads initiatives like the PACS computerization project and diversification into multipurpose societies, supported by institutions like NCDC, to enhance their financial sustainability and outreach.
‘Heritage Artisan Cooperatives’
Cooperatives are voluntary associations with constitutional backing (97th Amendment, Art 19(1)(c), Art 43B) crucial for inclusive growth across sectors, now supported by a dedicated Ministry.
Try these PYQs
With reference to the provisions made under the National Food Security Act, 2013 consider the following statements:
1. The families coming under the category of 'below poverty line (BPL)' only are eligible to receive subsidised grains.
2. The eldest woman in a household, of age 18 years or above, shall be the head of the household for the purpose of issuance of a ration card.
3. Pregnant women and lactating mothers are entitled to a take-home ration' of 1600 calories per day during pregnancy and for six months thereafter.
Which of the statements given above is/are correct?
Statement 1 is incorrect: In 2013, NFSA was enacted to provide food security to 67% of the population in the form of highly subsidized food grains at Rs. 2 and 3 per Kg for wheat and rice respectively. Beneficiaries are identified using Socio-economic Caste Census (SECC) methodology so even non-BPL will also benefit. Statement 2 is correct: Under the NFSA, to issue ration cards the eldest woman of a household aged 18 years or above would be considered as head. Hence, this statement is correct. Statement 3 is incorrect: Pregnant women and lactating mothers are entitled to a nutritious take home ration of 600 Calories and a maternity benefit of at least Rs 6,000 for six months, says the official act.
Consider the following statements:
1. The India Sanitation Coalition is a platform to promote sustainable sanitation and is funded by the Government of India and the World Health Organization.
2. The National Institute of Urban Affairs is an apex body of the Minister of Housing and Urban Affairs in Government
of India and provides innovative solutions to address the challenges of Urban India.
Which of the statements given above is/are correct?
Statement 1 is incorrect. The India Sanitation Coalition was launched on June 25, 2015, at FICCI, New Delhi. ISC is a multi-stakeholder platform that brings together the private sector, government, financial institutions, civil society groups, media, donors/bilateral/multilateral, experts, etc., to work in the sanitation space to drive sustainable sanitation through a partnership model. It is not funded by WHO. Statement 2 is incorrect. The National Institute of Urban Affairs (NIUA) is India’s premier urban think tank, shaping the urban narrative since its establishment in 1976, it not an apex body. It is an autonomous body under the Societies Registration Act.
In India, which of the following can be considered as public investment in agriculture?
1. Fixing Minimum Support Price for agricultural produce of all crops
2. Computerization of Primary Agricultural Credit Societies
3. Social Capital development
4. Free electricity supply to farmers
5. Waiver of agricultural loans by the banking system
6. Setting up of cold storage facilities by the governments
Select the correct answer using the code given below:
Public investment in agriculture refers to government expenditures aimed at improving the agricultural sector, including infrastructure development, technological improvements, and providing institutional support. Statement 1 is incorrect: Fixing the Minimum Support Price (MSP) is a policy decision, not an investment. While it affects the agricultural sector, it is not a direct public investment in terms of capital expenditure. Statement 2 is correct: The computerization of Primary Agricultural Credit Societies (PACS) is a public investment because it involves government funds directed towards modernizing agricultural credit systems, enhancing efficiency, and accessibility for farmers. Statement 3 is correct: Social Capital development is a public investment in agriculture, as it involves building networks and community-based resources that help farmers improve productivity and access to resources. Statement 4 is incorrect: Free electricity supply is more of a subsidy, not a direct public investment in the form of capital expenditure. Statement 5 is incorrect: Waiver of agricultural loans is a policy measure aimed at alleviating farmer debt but does not qualify as an investment in infrastructure or capital. Statement 6 is correct: The setting up of cold storage facilities by the government is a direct public investment aimed at improving agricultural infrastructure and reducing post-harvest losses. Hence, option C is the correct answer.
Programme/ Project Ministry
1. Drought-Prone Area Programme: Ministry of Agriculture
2. Desert Development Programme: Ministry of Environment and Forests
3. National Watershed Development Project for Rainfed Areas: Ministry of Rural Development
Which of the above pairs are correctly matched?
Pair 1 is not correct: The drought prone area programme comes under Ministry of Rural Development. This programme aims to mitigate the impacts of droughts on crop production, livestock, land and water resources. Pair 2 is not correct: The Desert Development Programme comes under Ministry of Rural Development. The basic objective of the Desert Development Programme is to minimise negative effect of drought and control desertification. Pair 3 is not correct: The national watershed project for rainfed areas implemented by Ministry of Agriculture is an umbrella scheme under Pradhan Mantri Krishi Sinchayi Yojana.
Consider the following statements:
1. 36% of India’s districts are classified as “overexploited” or critical” by the Central Ground Water Authority (CGWA).
2. CGWA was formed under the Environment (Protection) Act.
3. India has the largest area under groundwater irrigation in the world.
Which of the statements given above is/are correct?
Statement 1 is incorrect: As per the report National Compilation on Dynamic Groundwater Resources of India, 2017 of CGWA, out of the total 6881 assessment units (Blocks/Mandals/ Talukas) in the country, 1186 units in various States (17%) have been categorized as Over-Exploited, 313 units (5%) as Critical, and 972 units (14%) as Semi-Critical. Statement 2 is correct: The CGWA was established in 1997 under Section 3(3) of the Environment (Protection) Act, 1986 to regulate and manage groundwater resources. Statement 3 is correct: India has the largest area under groundwater irrigation in the world. This is due to the country's heavy reliance on agriculture, which is predominantly rain-fed. Therefore, the correct answer is B. 2 and 3 only.
Show 11 more PYQs
With reference to organic farming in India, consider the following statements:
1. The National Programme for Organic Production' (NPOP) is operated under the guidelines and directions of the Union Ministry of Rural Development.
2. The Agricultural and Processed Food Products Export Development Authority' (APEDA) functions as the Secretariat for the implementation of NPOP.
3. Sikkim has become India's first fully organic State.
Which of the statements given above is/are correct?
Statement 1 is Incorrect: The National Programme for Organic Production (NPOP) is operated under the guidelines and directions of the Ministry of Agriculture and Farmers Welfare (MoA&FW), not the Ministry of Rural Development. Statement 2 is Correct: The Agricultural and Processed Food Products Export Development Authority (APEDA) does function as the Secretariat for the implementation of NPOP. APEDA plays a crucial role in promoting and certifying organic products in India. Statement 3 is Correct: Sikkim has indeed become India's first fully organic State. This achievement signifies India's efforts to promote sustainable agricultural practices. Therefore, the correct answer is 2 and 3 only.
With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements
1. It is the flagship scheme of the Ministry of Labour and Employment.
2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
Which of the statements given above is/are correct?
Statement 1 is Incorrect. The Ministry of Skill Development and Entrepreneurship (MSDE) is responsible for PMKVY, not the Ministry of Labour and Employment. Statement 2 is Correct. PMKVY goes beyond technical skills training and incorporates soft skills, entrepreneurship, financial literacy, and digital literacy to make participants more employable. Statement 3 is Correct. A core objective of PMKVY is to bridge the gap between the skills of the unregulated workforce and industry requirements by aligning them with the National Skill Qualification Framework (NSQF). This standardization helps ensure a minimum level of competency and improves employment opportunities.
Which of the following statements with regard to the persons with disabilities in India is/are correct ?
1. The Rights of Persons with Disabilities Act, an Act passed by the Parliament of India in 2018, mandates reservation in education and employment, places a legal duty on Governments to ensure accessibility and non-discrimination.
2. The Sugamya Bharat Abhiyan focuses on achieving universal accessibility for Persons with Disabilities across three key domains — built infrastructure, transport systems and information and communication technology.
3. The National Divyangjan Finance and Development Corporation (NDFDC) is a public sector organisation set up by the Ministry of Corporate Affairs as a not-for-profit company to promote entrepreneurship among Persons with Disabilities (PwDs).
Select the answer using the code given below :
Statement 1 is Incorrect: The Rights of Persons with Disabilities (RPwD) Act was passed by the Parliament of India in 2016, not 2018. It aligns with the UN Convention on the Rights of Persons with Disabilities and places a legal obligation on governments to ensure non-discrimination and accessibility. It also mandates reservations for PwDs, such as increasing the quota to 4% in government employment and 5% in higher education. Statement 2 is Correct: The Sugamya Bharat Abhiyan (Accessible India Campaign) was launched in 2015 by the Department of Empowerment of Persons with Disabilities (DEPwD). It focuses on achieving universal accessibility for Persons with Disabilities across three key domains: built infrastructure (barrier-free public buildings), transport systems (accessible railways, airports, and roads), and information and communication technology (accessible government websites and digital ecosystems). Statement 3 is Incorrect: The National Divyangjan Finance and Development Corporation (NDFDC) is a Central Public Sector Undertaking registered as a not-for-profit company to provide concessional financial assistance to promote entrepreneurship, self-employment, and higher education among PwDs. However, it was set up under the aegis of the Ministry of Social Justice and Empowerment, not the Ministry of Corporate Affairs. Therefore, the correct option is B.
The FAO accords the status of ‘Globally Important Agricultural Heritage Systems (GIAHS)’ to traditional agricultural systems. What is the overall goal of this initiative?
1. To provide modern technology, training in modern farming methods and financial support to local communities of identified GIAHS so as to greatly enhance their agricultural productivity
2. To identify and safeguard eco-friendly traditional farm practices and their associated landscapes, agricultural biodiversity and knowledge systems of the local communities
3. To provide Geographical Indication status to all the varieties of agricultural produce in such identified GIAHS
Select the correct answer using the code given below.
The Globally Important Agricultural Heritage Systems (GIAHS) initiative was launched by the Food and Agriculture Organization (FAO) in 2002 to identify, safeguard, and promote traditional agricultural systems that have historical, cultural, environmental, and social significance. These systems demonstrate sustainable agricultural practices, rich biodiversity, and resilient rural livelihoods while maintaining a harmonious relationship with nature. Statement 1 is incorrect: The GIAHS program is not primarily aimed at increasing agricultural productivity through modern methods. Instead, it focuses on preserving traditional farming practices, indigenous knowledge, and sustainable land-use systems that have evolved over centuries. While some modern improvements might be integrated to support local livelihoods, the core emphasis is conservation, not productivity enhancement. Statement 2 is correct: The primary goal of GIAHS is to identify and protect unique agricultural systems that are vital for global biodiversity, cultural heritage, and food security. This includes preserving traditional landscapes, indigenous crops, and local community knowledge, ensuring their sustainability for future generations. Statement 3 is incorrect: While some GIAHS products might qualify for Geographical Indication status, it's not an automatic benefit. GI status is granted based on specific criteria related to a product's origin, traditional production techniques, and unique qualities, which require a separate legal recognition process.
Hence, the correct answer is option B. 2 only.
Which of the following grants/ grant direct credit assistance to rural households?
1. Regional Rural Banks
2. National Bank for Agriculture and Rural Development
3. Land Development Banks
Select the correct answer using the codes given below:
1. Regional Rural Banks (RRBs): RRBs are established to provide credit and banking facilities to rural areas, especially to small and marginal farmers, agricultural laborers, and rural artisans. They grant direct credit assistance to rural households. 2. National Bank for Agriculture and Rural Development (NABARD): NABARD primarily provides refinance facilities to banks and financial institutions for lending to rural sectors. It does not directly lend to rural households, except in very limited cases through pilot schemes. 3. Land Development Banks (LDBs): LDBs provide long-term credit to farmers for land development and agricultural improvements. They grant direct loans to rural households.
Consider the following statements:
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison of Scheduled Commercial Banks are Regional Rural Banks
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is/are correct?
Statement 1 is incorrect. In terms of short-term credit delivery to the agriculture sector, Scheduled Commercial Banks (SCBs) and Regional Rural Banks (RRBs) generally deliver more credit compared to District Central Cooperative Banks (DCCBs). SCBs and RRBs have a larger network and resources to provide credit to the agriculture sector. Statement 2 is correct. One of the primary functions of DCCBs is indeed to provide funds to the Primary Agricultural Credit Societies (PACS). DCCBs act as the intermediary between the Reserve Bank of India (RBI) and PACS, facilitating the flow of credit from the central bank to the grassroots level through cooperative credit institutions. Hence, option B is the correct answer.
Consider the following statements:
1. The Government of India provides Minimum Support Price for niger (Guizotia abyssinicia) seeds.
2. Niger is cultivated as a Kharif crop.
3. Some tribal people in India use niger seed oil for cooking.
How many of the above statements are correct?
* Statement 1 is correct: The Government of India provides Minimum Support Price (MSP) for niger seeds to support farmers and ensure a baseline return on their crops. This is especially important for crops like niger which might have volatile market prices. * Statement 2 is correct: Niger is primarily cultivated as a Kharif crop in India. Kharif refers to the monsoon season in India, typically from June to September. Niger thrives in these rainy conditions. * Statement 3 is correct: Niger seed oil has various uses, and some tribal communities in India traditionally use it for cooking purposes. The oil has a nutty flavour and can be used as a substitute for other cooking oils.
Consider the following:
1. Areca nut
2. Barley
3. Coffee
4. Finger millet
5. Groundnut
6. Sesamum
7. Turmeric
The Cabinet Committee on Economic Affair, has announced the Minimum Support Price for which of the above?
* The Cabinet Committee on Economic Affairs (CCEA) announces the Minimum Support Price (MSP) for certain staple crops and some key commercial crops. * Barley, Finger millet, Groundnut, and Sesamum are crops for which MSP is typically announced by the government. These are important food or oilseed crops and support farmer income. * Areca nut and Coffee are considered cash crops and MSP is generally not announced for them. * Turmeric can be classified as a spice crop, and MSP announcements for spices is not very common, Therefore, the most options for which CCEA announces MSP are 2, 4, 5 and 6.
Which among the following is/are the objective(s) of the Rainfed Area Development (RAD) initiative under the National Mission for Sustainable Agriculture (NMSA)?
1. Encouraging monoculture in rainfed areas
2. Increasing rice cultivation in irrigated regions
3. Enhancing productivity and minimising climatic risks through Integrated Farming Systems (IFS)
Select the answer using the code given below:
Statement 1 is Incorrect: The Rainfed Area Development (RAD) scheme explicitly promotes Integrated Farming Systems (IFS) rather than monoculture. It integrates multi-cropping and rotational cropping with allied activities like horticulture, livestock, fishery, and agro-forestry to diversify income and build resilience. Official guidelines actively discourage single-cropping (monoculture) systems. Statement 2 is Incorrect: As the name implies, RAD targets rainfed areas (regions lacking assured irrigation) to build resilience against climate variability. It does not focus on expanding water-intensive crops like rice in already irrigated regions. Statement 3 is Correct: The core objective of RAD is to make rainfed agriculture more productive, sustainable, remunerative, and climate-resilient. By diversifying income sources through Integrated Farming Systems (IFS), RAD aims to minimize the risks associated with climatic variability (such as droughts, heat stress, or floods) and crop failure, ensuring stable livelihoods for farmers. Therefore, option D is the correct answer.
Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks.
3. Consumption requirements of farm households
4. Post-harvest expense
5. Construction of family house and setting up of village cold storage facility.
Select the correct answer
Under the Kisan Credit Card (KCC) scheme, short-term credit support is provided to farmers for purposes that directly support agricultural activities and the farm household. Statement 1 is correct. The KCC scheme provides working capital for the maintenance of farm assets, which includes things like irrigation, fertilizers, and labor costs. Statement 2 is incorrect. The KCC scheme does not cover the purchase of capital-intensive assets such as combine harvesters, tractors, and mini trucks. These are typically financed through long-term loans, not short-term credit. Statement 3 is correct. The KCC scheme provides credit for consumption requirements of the farm household, like daily needs and family expenditures. Statement 4 is correct. The KCC scheme can also be used for post-harvest expenses, including costs for storage, transportation, and marketing of produce. Statement 5 is incorrect. The construction of a family house and setting up of village cold storage facilities are not covered under the KCC scheme, as these are typically considered long-term capital expenditures. The list of eligible activities for KCC are:
- To meet the short-term credit requirements for cultivation of crops
- Post-harvest expenses, - Produce marketing loan - Consumption requirements of farmer household. - Working capital for maintenance of farm assets band activities allied to agriculture like dairy animals, inland fishery etc. - Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals etc. Hence, option B is the correct answer.
Which of the following factors/policies were affecting the price of rice in India in the recent past?
1. Minimum Support Price
2. Government’s trading
3. Government’s stockpiling
4. Consumer subsidies
Select the correct answer using the code given below:
Minimum Support Price (MSP): The government sets an MSP to ensure a minimum income for farmers. If the market price falls below the MSP, the government procures rice from farmers at the MSP. This can lead to higher rice prices for consumers if the government releases these stocks slowly or not at all. Government's trading: Government agencies like the Food Corporation of India (FCI) procure and sell rice in the market. Large-scale procurement by the government can affect market availability and potentially drive up prices. Government's stockpiling: The government maintains buffer stocks of rice for food security purposes. If these stocks are depleted due to various reasons, it can lead to a shortage and price hikes. Consumer subsidies: The government provides subsidized rice to certain sections of the population through schemes like PDS (Public Distribution System). This can influence overall demand and market dynamics. If the subsidies are substantial, it can put upward pressure on prices. Therefore, all these factors can play a role in influencing the price of rice in India.
Hence, option D is the correct answer.