What Happened
- Union Home and Cooperation Minister Amit Shah chaired the 'Manthan' meeting of Cooperation Ministers from all States and Union Territories on February 17, 2026, at Mahatma Mandir, Gandhinagar, Gujarat.
- The meeting — the second such national cooperative conclave since the Ministry of Cooperation was established in 2021 — focused on transforming cooperative societies into member-centric, income-enhancing, and self-reliant economic units.
- Key discussion areas included: progress in establishing 2 lakh new multipurpose Primary Agricultural Credit Societies (PACS), digitisation of cooperative records, strengthening dairy and fisheries cooperative societies, aligning state cooperative laws with the 97th Constitutional Amendment, and improving cooperative sugar mills' viability.
- The meeting also emphasised active state participation in three new national cooperative institutions: National Cooperative Exports Limited (NCEL), National Cooperative Organics Limited (NCOL), and Bharatiya Beej Sahkari Samiti Limited (BBSSL) — for exports, organic farming, and quality seeds through cooperatives.
- Digital integration, transparency, and improved value addition in agriculture and dairy were highlighted as the pillars for boosting rural incomes through the cooperative model.
Static Topic Bridges
Ministry of Cooperation and the 97th Constitutional Amendment
The Ministry of Cooperation was established in July 2021 as a separate ministry (carved from Agriculture and Cooperation Ministry) to provide focused policy attention and a dedicated administrative framework for the cooperative sector. It is headed by the Union Home and Cooperation Minister and is guided by the principle of "Sahkar se Samridhi" (Prosperity through Cooperation). The 97th Constitutional Amendment (2011) was a landmark reform that: (1) added "cooperative societies" to the Fundamental Right to form associations (Article 19(1)(c)); (2) included the promotion of cooperative societies as a Directive Principle (Article 43B); (3) inserted Part IX-B (Articles 243ZH to 243ZT) establishing democratic governance norms for cooperative societies — including elections, term limits for elected bodies, and annual audits. However, the Supreme Court partially struck down Part IX-B in 2021 (Rajendra N. Shah case) as it applied to state cooperatives (states have legislative competence over cooperatives under Entry 32, State List), but upheld its application to multi-state cooperatives.
- Ministry of Cooperation: Established July 2021; separate from Agriculture Ministry
- 97th Constitutional Amendment: Inserted Article 19(1)(c) upgrade, Article 43B, Part IX-B
- Article 43B (DPSP): Promotion of voluntary formation, autonomous functioning, democratic control of cooperatives
- Supreme Court 2021 (Rajendra N. Shah): Part IX-B applies to multi-state cooperatives; unconstitutional for state cooperatives (state subject — Entry 32, State List)
- Multi-State Cooperative Societies Act, 2002: Amended 2023 to strengthen governance, introduce dispute resolution, concurrent audit
Connection to this news: The Manthan meeting's call for states to align their cooperative laws with the 97th Amendment reflects the Ministry of Cooperation's effort to drive constitutional governance norms into state-level cooperatives — even though the Supreme Court ruling limits central compulsion, making persuasion (via Manthan-type dialogues) the primary tool.
Primary Agricultural Credit Societies (PACS) Modernisation
PACS are the grassroots-level institutions in India's three-tier short-term cooperative credit structure: State Cooperative Banks (StCBs) at apex level → District Central Cooperative Banks (DCCBs) at district level → PACS at village level. India has approximately 1 lakh PACS serving ~13 crore farmer members. However, many PACS are dormant, financially weak, or limited to credit functions. The government's 2022-23 initiative targets establishing 2 lakh new PACS and computerising existing ones (under a Rs 2,516 crore centrally sponsored scheme). New-model PACS are envisaged as multipurpose: credit, agriculture input supply, warehousing, procurement at MSP, retail of fertilisers and seeds, common service centre (CSC) functions, and insurance. The PACS computerisation project links them to the National Cooperative Database (NCD) under MeitY/MoC.
- PACS: Grassroots cooperative credit; ~1 lakh existing; ~13 crore farmer members
- Three-tier structure: StCB → DCCB → PACS
- Computerisation scheme: Rs 2,516 crore (centrally sponsored); 63,000+ PACS targeted
- 2 lakh new PACS: Target for expansion into unserved areas by 2027
- Multipurpose PACS functions: Credit + MSP procurement + input supply + CSC + warehousing
- National Cooperative Database: Ministry of Cooperation + MeitY; centralised digital registry
Connection to this news: The Manthan meeting's discussion on PACS progress reflects the centre's most ambitious structural intervention in rural credit and agriculture services since bank nationalisation — using cooperatives as the delivery mechanism for a wide bundle of services that previously required multiple government agencies.
National Cooperative Institutions: NCEL, NCOL, BBSSL
Three new national-level cooperative institutions were established in 2023-24 under the Ministry of Cooperation: (1) National Cooperative Exports Limited (NCEL) — for aggregating and exporting agricultural commodities through cooperative supply chains, starting with wheat, rice, and sugar; (2) National Cooperative Organics Limited (NCOL) — to promote, certify, and market organic produce from farmer cooperatives; (3) Bharatiya Beej Sahkari Samiti Limited (BBSSL) — to produce and supply quality seeds to farmers through the cooperative network, reducing dependence on private seed companies. These institutions work alongside the National Cooperative Development Corporation (NCDC), a statutory body under the Ministry of Cooperation that provides financial assistance to cooperative enterprises. The Manthan meeting specifically urged state ministers to get their cooperatives to join and use these national institutions.
- NCEL: National Cooperative Exports Limited; targets agricultural commodity exports via cooperative channels
- NCOL: National Cooperative Organics Limited; organic certification and marketing
- BBSSL: Bharatiya Beej Sahkari Samiti Limited; quality seed supply through cooperatives
- NCDC: National Cooperative Development Corporation; statutory body; provides loans + grants to cooperatives
- Amul/NDDB partnership: New dairy cooperative societies to be formed in non-dairy states in partnership with Amul (GCMMF) and NDDB
- Cooperative sugar mills: Ministry targeting improved viability through technology upgrades and ethanol blending integration
Connection to this news: The Manthan meeting's emphasis on these three new institutions signals the Ministry of Cooperation's strategy to move beyond credit (PACS/NABARD) into the high-value areas of exports, organic certification, and seeds — sectors where cooperative aggregation can unlock price premiums that individual farmers cannot access.
Key Facts & Data
- Manthan meeting: February 17, 2026, Gandhinagar, Gujarat
- Chaired by: Amit Shah (Union Home and Cooperation Minister)
- Participants: Cooperation Ministers of all States and UTs
- Ministry of Cooperation: Established July 2021
- 97th Constitutional Amendment (2011): Cooperative governance norms; DPSP Article 43B; Part IX-B
- PACS: ~1 lakh existing; 2 lakh new targeted; computerisation scheme: Rs 2,516 crore
- New cooperative institutions: NCEL (exports), NCOL (organics), BBSSL (seeds)
- NCDC: Statutory financing body for cooperatives under Ministry of Cooperation
- "Sahkar se Samridhi": Guiding principle of cooperative expansion programme
- Supreme Court 2021: Part IX-B (97th Amendment) applies only to multi-state cooperatives