Page 20 - NIS English 01-15 December, 2025

COVER STORY International Year of Cooperatives

Today, more than 8.44 lakh
Cooperatives cooperative organizations are active

in the country, directly or indirectly
involving approximately 32 crore
Giving Fillip to Sahkar Se Samriddhi people. Furthermore, approximately 94
The Ministry has launched over 100 initiatives to strengthen percent of farmers are associated with
the cooperative movement. The National Cooperative
Policy 2025 was launched on July 6, 2025. To promote the cooperatives in some form or another.
mantra of Sahkar Se Samriddhi, numerous schemes and
initiatives were launched, and several tax reliefs, including
income tax and GST, were provided.

The tax rate on cooperative societies with income between ₹1 crore and
₹10 crore has been reduced from 12% to 7%. This has reduced the tax
burden on cooperative societies.

n Cash transactions by cooperative societies up to ₹2 n Cooperative sugar mills will not be required to pay any
lakh have been exempted from income tax penalties. additional tax if they pay higher prices for sugarcane to
The limit for cash deposits and payments by PACS farmers or up to the State Advised Price (SAP) starting
and Primary Cooperative Agriculture and Rural April 2016.
Development Banks has been increased from ₹20,000 n GST on molasses was reduced from 28% to 5%, allowing
to ₹2 lakh. cooperative sugar mills to generate higher profits for

n New manufacturing their members by selling molasses at higher rates.
cooperative societies have n Cooperative sugar societies were allowed to claim
been imposed a flat payments made to sugarcane farmers prior to the
lower tax rate of assessment year 2016-17 as expenses. This is expected
15%, compared to provide relief of over ₹46,000 crore. Additionally, a
to the previous ₹10,000 crore loan scheme was launched to empower
rate of 30%. cooperative sugar mills.
n The n Cooperative sugar mills were given priority in ethanol
minimum procurement, and cooperative sugar mills were placed
alternate on par with private companies in ethanol procurement
tax rate for under the Ethanol Blending Programme.
cooperative
societies has n More than 60 policy reforms have been implemented
been reduced in the cooperative sector to increase transparency,
from 18.5% to employment, and sustainability.
12%. n Dairy and fisheries cooperatives are also being

globally connects over 12 percent of humanity “The cooperatives in India have travelled
through 3 million cooperatives, with the 300 largest from idea to movement, from movement
cooperatives generating a turnover of US$2,409.41 to revolution and from revolution to
billion. They also promote sustainable economic empowerment. Cooperatives can give
development by providing quality employment and
work opportunities to 280 million people, represent- new energy to global cooperation.”
ing 10 percent of the world’s employed population. Narendra Modi, Prime Minister
Recognizing the importance of cooperatives, the

18 NEW INDIA SAMACHAR || December 1-15, 2025