Finance Minister Nirmala Sitharaman announced several incentives for primary cooperative societies in the Budget proposals for 2026-27 presented in the Parliament on Sunday.

These include allowing a deduction to primary cooperative societies for the supply of cattle feed and cotton seed produced by their members, which will result in reducing the tax burden. Presently, the deduction is allowed to a primary cooperative society engaged in supplying milk, oilseeds, fruits or vegetables raised or grown by its members, and the extension in this deduction will now cover a wider number of cooperative societies.

The Finance Minister also proposed to allow inter-cooperative society dividend income as a deduction under the new tax regime to the extent it is further distributed to its members.

As an additional measure to support National Cooperative Federations, she further proposed to allow tax exemption, for a period of 3 years, to dividend income received by a notified national co-operative federation, on their investments made in companies up to January 31, 2026. This exemption would be allowed only for dividends further distributed to its member co-operatives.

Meanwhile, the National Cooperative Development Corporation (NCDC) has maintained its strong growth trend by disbursing a robust amount of Rs 49,799.06 crore to various co-operatives nationwide from April to October 2025 during the current financial year.

A statutory organisation under the Ministry of Cooperation, it has, over the years, demonstrated a strong and sustained commitment to strengthening India’s cooperative ecosystem through continuous financial support.

The Corporation’s disbursements have grown impressively from Rs.5,735.51 crore in 2014-15 to Rs.95,182.88 crore in 2024–25, reflecting its expanding outreach across sectors.

A total of Rs 4823.68 crore was disbursed to women cooperatives between FY 2021-22 to FY 2024-25, strengthening women’s participation in the cooperative sector.

Cumulatively, as of March 2025, the NCDC extended Rs 33,311.79 crore financial assistance to cooperative sugar mills across India.

The NCDC has played a key role in the success of Gujarat State Cooperative Marketing Federation Limited, the Lahoul Potato Growers Cooperative Society in Himachal Pradesh, the Jharkhand Women’s Self-Supporting Poultry Cooperative Federation, and the Vitthalrao Shinde Sahakari Sakhar Karkhana in Maharashtra - these cooperative models exemplify the strength and reach of India’s cooperative movement.