National Cooperative Development Corporation (NCDC) is a statutory body created by National Cooperative Development Corporation Act, 1962. NCDC's goals are to design and promote cooperative production, processing, marketing, storage, export, and import programs for agricultural produce, foodstuffs, industrial items, animals, and other recognised commodities and services. 

This article explains the National Cooperative Development Corporation is useful for Prelims 2023 preparation and UPSC Mains 2023 as well.

National Cooperative Development Corporation

• The National Cooperative Development Corporation (NCDC) was founded as a statutory Corporation under the Ministry of Cooperation by an Act of Parliament in 1963.
• Its main goals are to design and promote cooperatively based production, processing, marketing, storage, export, and import programs for agricultural goods, livestock, and other products.
• The NCDC has 18 state/regional directorates and is headquartered in New Delhi.
• Members of the Corporation: The Management is vested in a 51-member widely represented General Council to design its policies and programmes, and a 12-member Board of Management to handle day-to-day operations.

National Cooperative Development Corporation - Objectives

• The main objective of National Cooperative Development Corporation is to help improve, and grow farmer cooperatives in order to increase output and productivity while also establishing post-harvest facilities.
• The Corporation's primary focus is on agricultural marketing and inputs programmes, such as processing, storage, cold chain, and marketing of agricultural goods, as well as the delivery of seeds, fertiliser, and other agricultural inputs.
• The Corporation's effort in the non-farm sector is to provide cooperatives with facilities to promote income-generating activities, with a special emphasis on weaker sections such as dairy, livestock, handlooms, sericulture, poultry, fishery, scheduled castes and scheduled tribes, women cooperatives, and so on.

National Cooperative Development Corporation – Functions

• National Cooperative Development Corporation runs programs for agricultural products as well as specifically designated commodities like insecticides, fertilisers, agricultural machinery, soap, textiles, rubber, and kerosene oil, among others.
• Through cooperatives, it also collects, processes, stores, trades, and exports minor forest produce.
• In addition to dairy, poultry, sericulture, fisheries, and handloom, NCDC engages in income-generating enterprises.
• Following an amendment to the NCDC Act, the organisation can now fund rural industrial cooperative projects as well as other rural services such as water conservation, agricultural insurance, irrigation and micro-irrigation, animal health, rural sanitation, and so on.
• It sponsors projects directly through its various assistance initiatives.
• It also provides loans and grants to state governments for the financing of primary and secondary cooperative societies, as well as to the national level and other societies for multi-state programs.

National Cooperative Development Corporation - 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.
• 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.
  • ICDP is a project that works for the general development of a district's inhabitants by releasing the district's potential via the growth of diverse cooperative activities.
• National Co-operative Development Fund: The Fund will be managed by the Corporation. The money in the Fund shall be used for the following purposes: 
  • Advancing loans and granting subsidies to State Governments on such terms and conditions as the Corporation may deem fit in order to enable State Governments to subscribe to the share capital of co-operative societies or otherwise finance co-operative societies;
  • Meeting the salary and allowances of the managing director, officers, and other Corporation employees, as well as other Corporation administrative expenditures

Schemes under NCDC

• SAHAKAR-22 - Sahakar-22 is a mission mode activity of NCDC that was introduced by the Ministry of Agriculture & Farmers' Welfare in order to realise the Mission of New India by 2022 through cooperatives, doubling farmers' income. 
  • The initiative attempts to improve the overall development of the districts by identifying suitable areas for funding, including in the agricultural and non-farm sectors.
• SAHKAR MITRA Scheme - The "SAHKAR MITRA Scheme on Internship Program" (SIP) is an arrangement under which NCDC will provide young professionals with a short-term (no more than four months) opportunity to gain learning experience by applying skills and knowledge in an organisational context to facilitate professional development.

Other Schemes

• Ayushman Sahakar 
• Yuba Sahkar 
• Scheme for extending short term loan Agricultural Credit Cooperatives towards working capital 
• Financial assistance to Cooperatives for Hospital, Healthcare, and Education 
• Financial assistance to Cooperatives for Tourism, Hospitality, Transport, Electricity, and Rural Housing Programmes

Conclusion

It was founded as a statutory Corporation under the Ministry of Agriculture and Farmers Welfare in 1963 by an Act of Parliament. NCDC's goals include developing and supporting cooperative-based production, processing, marketing, storage, export, and import programs for agricultural products, livestock, and other products.

FAQs

MCQs

1. When was the National Cooperative Development Corporation (NCDC) established?

A) 1960
B) 1962
C) 1963
D) 1965

2. What is the primary function of NCDC?

A) Promoting foreign trade
B) Supporting the growth of cooperative societies
C) Regulating the stock market
D) Providing agricultural subsidies

3. Which of the following sectors is NOT funded by NCDC?

A) Dairy development
B) Handicrafts
C) Urban industrial development
D) Agriculture

4. How does NCDC contribute to rural development?

A) By providing loans to large-scale industries
B) By establishing urban infrastructure
C) By supporting cooperatives in agriculture and rural industries
D) By funding only governmental agencies

5. Which of the following is a key feature of NCDC’s role in agriculture?

A) Providing direct subsidies to farmers
B) Modernizing cooperative societies and their operations
C) Increasing crop prices
D) Providing individual loans to farmers

GS Mains Questions and Model Answers

Q1: Discuss the role of the National Cooperative Development Corporation (NCDC) in enhancing agricultural development in India.

Answer: NCDC plays a vital role in enhancing agricultural development in India by providing financial support and technical assistance to cooperative societies involved in agricultural activities. The corporation helps in establishing infrastructure for storage, marketing, and processing, which are essential for improving the efficiency and profitability of farming operations. NCDC also supports the development of agro-based industries, providing farmers with better opportunities to access markets for their produce. Through its loan schemes and grants, NCDC enables farmers to modernize their equipment, adopt advanced technologies, and diversify their agricultural activities. The financial and technical assistance provided by NCDC contributes significantly to improving productivity, food security, and rural livelihoods in India.

Q2: Evaluate the impact of NCDC’s support to rural industries in India.

Answer: NCDC’s support to rural industries has had a positive impact on India’s rural economy by promoting cooperative models that empower local communities. By providing financial assistance to cooperatives involved in rural industries, NCDC helps establish small-scale enterprises that create jobs and improve income levels in rural areas. The development of rural industries also contributes to reducing migration to urban areas and supports the diversification of rural livelihoods. NCDC’s focus on handicrafts, dairy farming, poultry, and other rural industries helps to improve the quality of local products, enhance market access, and promote sustainable economic development. The corporation’s initiatives have contributed to fostering entrepreneurship and innovation in rural communities, leading to enhanced economic resilience and self-sufficiency.

Q3: Examine the challenges faced by NCDC in promoting cooperative models in rural India.

Answer: Despite its significant contributions to rural development, NCDC faces several challenges in promoting cooperative models in rural India. One of the main challenges is the lack of awareness and understanding of cooperative principles in rural communities, which can limit the success of cooperative ventures. Additionally, poor management and governance within cooperatives can lead to inefficiency and corruption, undermining the intended benefits. Financial constraints, especially for smaller cooperatives, can also hinder their ability to access NCDC’s funding. Furthermore, inadequate infrastructure, such as poor transportation and storage facilities, poses a challenge to the smooth operation of rural industries. To overcome these challenges, NCDC needs to focus on improving governance, providing capacity-building programs, and ensuring better access to resources and infrastructure for cooperatives.

Previous Year Questions on NCDC

1. UPSC CSE Prelims 2018:

Question: The National Cooperative Development Corporation (NCDC) primarily works in which sector?

A) Education
B) Agriculture
C) Industrialization
D) Urban Development

Answer: (B)

Explanation: NCDC primarily works in the agricultural sector, providing financial and technical support to cooperatives in agriculture, dairy, and rural industries.

2. UPSC CSE Mains 2017 (GS Paper 2):

Question: "Analyze the role of the National Cooperative Development Corporation (NCDC) in promoting rural cooperative societies in India."

Answer: The National Cooperative Development Corporation (NCDC) plays a critical role in promoting rural cooperative societies by providing financial assistance for the establishment and development of cooperatives in agriculture, dairy, and rural industries. It empowers farmers and rural communities by fostering cooperative models that encourage self-sufficiency and improve economic conditions. Through its schemes, NCDC helps improve the infrastructure, technology, and market linkages for cooperatives, ensuring sustainable livelihoods in rural India. Its initiatives contribute to enhancing agricultural productivity, reducing poverty, and fostering inclusive growth in rural areas.