NATIONAL COOPERATIVE DEVELOPMENT CORPORATION (NCDC)

 

Context

Recently, the union home minister said that NCDC should explore avenues for borrowing at lower rates and lend to the cooperative sector at a low-interest rate.

About NCDC

• National Cooperative Development Corporation (NCDC) is a statutory organization established through the NCDC Act of 1962 under the Ministry of Cooperation.
• By creating cooperative societies, it seeks to advance cooperative movement and economic growth.
• Cooperatives are collectives owned by participating members who share profits and losses, such as rural businesses or banks.

Key Functions

• Financing: Provides subsidies and loans to cooperative societies.
• Promotion and development: for the production, processing, marketing, storing, and export of foodstuffs and agricultural produce, etc.
• Implementing agency of Central schemes: For example, Yuva Sahakar, Pradhan Mantri Matsya Sampada Yojana Formation and Promotion of 10,000 Farmers Producer Organizations (FPOs), etc.

Significance

• Improve the Livelihood: The NCDC's schemes/activities are intended to increase revenue and improve the livelihoods of farmers and economically disadvantaged members of society such as artisans, weavers, and poor rural communities including tribals.
• Women Empowerment: Cooperatives organised solely by women are aided by the Scheme established for this reason.
• Integrated Cooperative Development Project: In addition to activity-based support, NCDC promotes district-based programmes such as the Integrated Cooperative Development Project (ICDP) in chosen districts.
• Strong balance sheet: With a loan recovery percentage of above 99%, net NPA is maintained at "Zero."

Limitations of NCDC

• weak borrower credit risk profile, concentration of regional and sectoral clients in advances, limited regulatory monitoring, etc.

Suggestions

• National Cooperative Development Corporation (NCDC) should set a target of achieving Rs 1 lakh crore yearly disbursement in the next 3 years.
• PACS can provide more than 300 services as Common Service Centres and preparation of an updated data repository of cooperatives.

Schemes under NCDC

• SAHAKAR-22:

• The Ministry of Agriculture & Farmers' Welfare launched Sahakar-22, a mission mode activity of NCDC, with the goal of doubling farmers' income through cooperatives and achieving the Mission of New India by 2022.
• By identifying appropriate areas for support, particularly in the non-farm and agricultural sectors, the project aims to enhance the districts' overall growth.

• SAHKAR MITRA Scheme: Under the terms of the "SAHKAR MITRA Scheme on Internship Program" (SIP), NCDC will give young professionals a four-month maximum opportunity to gain experience in an organizational setting by putting their knowledge and skills to use by applying them. This will support their professional development.
• Sahkar se Samriddh: strengthening the cooperative movement in the country, deepening its reach to the grassroots and enhancing the performance, productivity and profitability of cooperative societies.
• Target achieved through NCDC: In FY 2022–2023 alone, Rs. 41,000 crore was disbursed; in FY 2023–2024, it is anticipated to reach the target of Rs. 50,000 crores.

Other Schemes

1. Ayushman Sahakar.
2. Yuba Sahkar.
3. Scheme for extending short-term loan Agricultural Credit Cooperatives towards working capital.
4. Financial assistance to Cooperatives for Hospitals, Healthcare, and Education.
5. Financial assistance to Cooperatives for Tourism, Hospitality, Transport, Electricity, and Rural Housing Programmes.

Conclusion

It was established in 1963 by a parliamentary act as a statutory corporation under the Ministry of Agriculture and Farmers Welfare. Among the objectives of NCDC are the creation and promotion of cooperative-based programs for the production, processing, marketing, storage, export, and import of livestock, agricultural products, and other products.

 

 

 

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