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The government is set to introduce the NCDC Amendment Bill 2026 in the Lok Sabha. Find out how cooperative societies and associated institutions will benefit from this new legislation.

The Central Government is scheduled to introduce the National Cooperative Development Corporation (NCDC) Amendment Bill, 2026, in the Lok Sabha on Monday, August 10. The objective of this bill is to provide the NCDC with greater flexibility in funding the cooperative sector. Under the proposed changes, the NCDC will be able to extend loans and grants directly to institutions involved in the development of the cooperative sector, rather than being limited to routing them solely through cooperative societies.

This clearly implies that the scope for channeling funds toward cooperative-related activities could become much broader than it currently is.

What is the NCDC, and what does it currently do?

The National Cooperative Development Corporation (NCDC) is a statutory body operating under the Ministry of Cooperation. It was established in 1963 under the National Cooperative Development Corporation Act, 1962. Currently, the NCDC primarily plans, promotes, and finances programs related to the production, processing, marketing, storage, and import-export of agricultural produce, foodstuffs, and other notified commodities. Cooperative societies play a pivotal role in these activities. The government is now preparing to expand this scope.

How will the NCDC's operations change if the bill is passed?

The proposed amendment seeks to expand the NCDC's role beyond programs run solely through cooperative societies to encompass a wider range of cooperative development initiatives. Under this provision, the NCDC will be able to directly provide loans and grants to entities that are not registered cooperative societies themselves but are engaged in the development of the cooperative sector. A key condition is that the funds received must be utilized for cooperative-related activities. According to the government, various entities—such as state government agencies, statutory bodies, and specialized institutions—are currently involved in cooperative sector activities spanning infrastructure, technology, processing, marketing, and financial services. If such entities are not registered cooperative societies under existing rules, they may face difficulties in obtaining direct financial assistance from the NCDC.

Will the NCDC also be able to invest in cooperative institutions?

Yes. The Bill proposes allowing the NCDC to participate in the share capital of cooperatives and other institutions linked to cooperative development. However, this will require the Central Government's approval. The government maintains that cooperative societies will continue to be the primary beneficiaries of the NCDC. The aim of the changes is simply to expand the institutional channels through which financial assistance can reach the cooperative sector.

What other changes are proposed?

The Bill includes several other changes as well:

There is a proposal to expand the definition of "foodstuffs" to include other food items notified by the Central Government.
It is proposed to remove existing geographical restrictions related to industrial goods, meaning NCDC assistance for such activities would no longer be bound by location constraints.
There is also a proposal to grant the NCDC additional powers necessary for its operations.

Why does the government want these changes now?

The government has linked these changes to the ever-expanding scope of the cooperative sector. Participation by various types of entities in the cooperative sector has increased, particularly following the creation of the Ministry of Cooperation in June 2021. According to the Bill's 'Statement of Objects and Reasons,' the cooperative sector has become more diverse than before. Therefore, there is a need to provide the NCDC with a legal framework that enables it to deliver timely and direct financial assistance in line with evolving needs.

The NCDC Act has previously been amended in 1973, 1974, and 2002. Those amendments were aimed at measures such as expanding the NCDC's funding sources and broadening the scope of its activities.