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Cooperative Societies in India

Agriculture

  • PYQs16
  • Articles3
I

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.

II

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.
Static syllabus anchors
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
Institutions & roles
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
III

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.
High-confidence PYQ links
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

  1. Indian Economy

    Conceptual area

  2. Agricultural Policies & Supply Chains

    Conceptual area

  3. Welfare Schemes & Social Policies

    Conceptual area

  4. Constitutional Amendments & Structure

    Conceptual area

  5. Prelims 2013

    Factual recall, Institutional roles and functions

  6. Prelims 2014

    Factual recall, Multi-statement analysis

  7. Prelims 2016

    Multi-statement analysis, Purpose or function of a policy tool

  8. Prelims 2018

    Factual recall, Policy measures

  9. Prelims 2018

    Multi-statement analysis, Factual recall

  10. Prelims 2018

    Multi-statement analysis, Conceptual understanding

  11. Prelims 2018

    Multi-statement analysis, Factual recall

  12. Prelims 2020

    Conceptual understanding, Multi-statement analysis

  13. Prelims 2020

    Multi-statement analysis, Factual recall

  14. Prelims 2020

    Multi-statement analysis, Conceptual understanding

  15. Prelims 2020

    Multi-statement analysis, Factual recall

  16. Prelims 2020

    Statement-based questions, Institutional roles and functions

  17. Prelims 2022

    Multi-statement analysis, Institutional roles and functions

  18. Prelims 2023

    Multi-statement analysis, Factual recall

  19. Prelims 2026

    Multi-statement analysis, Factual recall

  20. Prelims 2026

    Policy measures, Multi-statement analysis

  21. ‘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.

  22. 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.

  23. 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

pib.gov.in

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.

pib.gov.in

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.

pib.gov.in

‘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

UPSC Prelims 2018 medium Economy Open full page

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?

UPSC Prelims 2022 hard Social Issues & Schemes Open full page

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?

UPSC Prelims 2020 medium Economy Open full page

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:

UPSC Prelims 2014 medium Economy Open full page

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?

UPSC Prelims 2020 medium Environment & Ecology Open full page

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?

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UPSC Prelims 2018 hard Economy Open full page

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?

UPSC Prelims 2018 medium Social Issues & Schemes Open full page

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?

UPSC Prelims 2026 medium Social Issues & Schemes Open full page

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 :

UPSC Prelims 2016 medium Environment & Ecology Open full page

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.

UPSC Prelims 2013 medium Economy Open full page

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:

UPSC Prelims 2020 medium Economy Open full page

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?

UPSC Prelims 2023 medium Economy Open full page

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?

UPSC Prelims 2018 medium Economy Open full page

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?

UPSC Prelims 2026 easy Social Issues & Schemes Open full page

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:

UPSC Prelims 2020 medium Economy Open full page

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

UPSC Prelims 2020 medium Economy Open full page

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: