India’s cooperative renaissance just got turbo‑charged. On July 31, 2025, the Union Cabinet approved a ₹2,000 crore central sector grant-in-aid to the National Cooperative Development Corporation (NCDC) - a decision primed to unlock ₹20,000 crore in market borrowings for rural cooperatives. At the same table, the government also pledged ₹1,000 crore toward setting up 50 multi-product food irradiation units under PMKSY. This blog drills down into how these twin initiatives mark a pivotal moment in cooperative financing and food preservation in India.

2. Who Is NCDC - and Why Should You Care?

Established in 1963 as a statutory body under Parliament, the National Cooperative Development Corporation is India’s apex financing arm for cooperative development across sectors like agriculture, dairy, fisheries, sugar, textiles, food processing, cold chains, and more. With a staggering 99.8% loan recovery rate and zero NPAs, it has financed hundreds of thousands of projects to empower rural members.

Today, the National Cooperative Development Corporation supports over 8.25 lakh cooperatives, covering nearly 29 crore members-94% of whom are farmers. It functions not just as a lender, but also as a strategic partner, helping cooperatives design and implement projects with its in‑house domain expertise.

The ₹2,000 Crore Scheme: A Financing Juggernaut

What’s the deal?

• ₹2,000 crore disbursed over four years
• Enables raising ₹20,000 crore from open markets

Who benefits?

Approximately 13,288 cooperative societies across industries such as dairy, livestock, fisheries, sugar, textiles, food processing, cold storage, women‑led and labour cooperatives. Up to 2.9 crore rural members will benefit directly.

How it works:
Loans will be executed, monitored, and recovered by NCDC, either directly or via state governments. The goal: modernize cooperatives, boost capacity, and empower rural economies.

NCDC as implementing agency:

• All loans will be executed, monitored, and recovered by NCDC.
• Eligible cooperatives can get loans either directly or via state‑level intermediaries, depending on whether they satisfy NCDC’s direct funding guidelines or require state guarantees

Feeding the Future: 50 Food Irradiation Units Under PMKSY

As part of Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Cabinet approved a ₹6,520 crore outlay, including ₹1,000 crore earmarked for establishing 50 multi-product food irradiation units and 100 NABL‑accredited food testing labs

Why food irradiation matters:

• A high-tech process using controlled ionising radiation to kill pathogens, reduce microbial load, extend shelf life, and preserve perishables like spices, grains, fruits, and dairy.
• Intended to tackle post-harvest losses, provide cold chain integration, and boost farmers’ incomes via value-added exports.

Scale & impact:

• Estimated annual preservation capacity: 20–30 lakh metric tonnes per annum (LMT), depending on product mix handled by these units
• 100 new food testing labs will ensure quicker sample turnaround and compliance with domestic and global safety norms.

Who drives this project:

• Managed through PMKSY’s ICCVAI (Integrated Cold Chain & Value‑Addition Infrastructure) component and FSQAI for food quality labs.
• EOIs will be floated for eligible entities (including cooperative societies) to participate in building and operating these facilities.

Strategic Vision: Laying the Foundations for “Sahkar Se Samriddhi”

Together, the National Cooperative Development Corporation financing scheme and PMKSY’s irradiation units reflect the government’s “Sahkar Se Samriddhi” philosophy-driving rural growth through cooperatives, inclusivity, and tech adoption

Policy architecture synergy:

The move aligns seamlessly with the recently unveiled National Cooperative Policy (July 2025), which encourages diversification of cooperatives into tourism, real estate, insurance, and digital enterprises, along with enhanced participation from women and youth

Capacity building meets innovation:

Academic affiliates such as VAMNICOM (Pune) under Tribhuvan Sahkari University are equipping cooperative leaders with management and operational skills - a critical foundation for implementing such ambitious infrastructure projects.

What It Means for Businesses, Cooperatives & Investors

This is a call to action for all stakeholders:

For cooperative leaders:

• Time to engage in Expression of Interest (EOI) processes for loan or project support.
• Prepare proposals aligned with National Cooperative Development Corporation’s direct funding criteria.

For agritech entrepreneurs and food process investors:

Opportunity to collaborate on irradiation units or testing labs.

Potential for revenue-sharing models and long-term PPA (production and processing agreements).

For financial institutions and bond investors:

• ₹20,000 crore market leverage offers corporate bond or debt fund placement opportunities with minimal risk (~99.8% recovery track record).

For policymakers and state agencies:

Ensure efficient pipeline delivery at grassroots.

Prioritize equitable outreach to women‑led cooperatives and regions historically underserved.

Risks & What Needs Watching

Of course, no transformation is without hurdles. Distributing funds equitably across 13,288 societies is a logistical challenge. Scaling up irradiation units to meet rural demand requires robust infrastructure, and integrating digital initiatives like Sahkar Taxi needs seamless execution. But with the NCDC’s track record - zero NPAs and a near-perfect loan recovery rate-these challenges are surmountable.

Conclusion: Cooperative Capital for a Cooperative Century

This ₹2,000 crore grant and the associated infrastructure push under PMKSY mark a dramatic chapter in India’s cooperative journey. For the first time, cooperative financing is meshed with high-impact food-tech infrastructure - with ripple effects across rural livelihoods, food exports, and agro-processing ecosystems.

If you represent a cooperative, agri‑startup, financial institution, or policymaker - now is the moment to align with the vision. At TheUnitedIndian, we’ll continue tracking implementation milestones, key state rollouts, and emerging opportunities.

Ready to apply or partner? Drop us a line - or look out for the next post covering state‑wise rollouts, eligibility thresholds, and best practices from early adopters.

Frequently Asked Questions (FAQs)

1. What is the National Cooperative Development Corporation (NCDC)?
   The NCDC is a statutory body under the Ministry of Cooperation, responsible for financing and promoting cooperative development across India.

2. What is the ₹2,000 crore grant recently approved for NCDC?
   The Central Government has approved ₹2,000 crore as a grant-in-aid to help NCDC raise ₹20,000 crore in market borrowings to support cooperatives.

3. What are food irradiation units and why are they important?
   Food irradiation units preserve perishable food items, extend shelf life, reduce wastage, and improve safety - critical for rural agri-based economies.

4. How will this funding impact rural India?
   Over 2.9 crore individuals and 13,000+ cooperative societies are expected to benefit through better infrastructure, funding, and modernization.

5. Can private players or entrepreneurs benefit from these initiatives?
   Yes, agri-entrepreneurs, startups, and cooperative partners can collaborate with NCDC for funding, partnerships, and infrastructure projects.