Centre Pushes Cooperative Reforms: 2 Lakh New Multi-Purpose Societies Planned by 2029; Rs 4.21 Lakh Crore Support Extended in 11 Years
New Delhi, 11th December 2025: The Union Government has set an ambitious target of establishing two lakh new Multi-Purpose Primary Agricultural Credit Societies (MPAXs) across India by 2029, marking one of the largest cooperative expansion drives in the country’s history. Minister of State for Cooperation Murlidhar Mohol informed the Rajya Sabha on Monday that 32,000 MPAXs have already been set up, paving the way for at least one fully functional cooperative service institution in every panchayat.
Speaking in the Rajya Sabha, Mohol said that while Congress governments “only indulged in politics over cooperatives” during their decades of rule, the Narendra Modi government has taken decisive steps to strengthen the sector. He highlighted that Prime Minister Narendra Modi and Union Cooperation Minister Amit Shah have revitalised the cooperative ecosystem in just three years of the ministry’s creation.
Mohol revealed that from 1963 to 2014 — nearly 50 years, mostly under Congress rule — the National Cooperative Development Corporation (NCDC) provided only Rs 45,000 crore in financial assistance to cooperative institutions.
“Under Prime Minister Modi, the figure has increased tenfold in just 11 years, reaching Rs 4.21 lakh crore. This clearly shows the priority our government places on cooperatives,” Mohol said.
The Centre is implementing a Rs 2,900-crore national project to computerise 79,000 PACS, improving transparency, service efficiency and rural credit delivery. Mohol criticised past governments for failing to modernise PACS operations despite championing computerisation nationally.
The Ministry has also introduced Model By-Laws, enabling PACS to diversify into 25 different business activities, transforming them into multi-purpose cooperative service centres. 32 states, except Kerala have adopted these by-laws.
India’s Agri-Storage Gap and the World’s Largest Grain Storage Plan
India, now the world’s third-largest agricultural producer, faces a deficit of 166 million metric tonnes in grain storage capacity. Mohol noted that this shortfall causes crop losses and higher transportation costs.
To address this, the Ministry of Cooperation has initiated work on the world’s largest decentralised grain storage programme. The goal: ensure grain storage facilities are available near farmland, minimising losses and ensuring farmers get timely access.
Pilot Success: 11 Warehouses Completed; 704 PACS Selected for Expansion
Under the scheme, 11 warehouses across 11 states have already been completed. Moving forward, 704 PACS have been selected for the next phase, expected to create 60,000 MT of new storage capacity.
To guarantee assured storage income for PACS, the government has finalised agreements with NAFED, FCI and NCCF to utilise these facilities on a rental basis.
Mohol criticised the regional imbalance in cooperative development under previous regimes. Western states progressed, while eastern states lagged behind.
“Today, with planned expansion of MPAXs, digitalisation, diversified operations, and robust financing, cooperatives are being empowered uniformly across the nation,” he said.
