New Delhi, Feb 1 (NationPress) - During the presentation of the Budget proposals for 2026-27 in Parliament on Sunday, Finance Minister Nirmala Sitharaman revealed a range of incentives aimed at primary cooperative societies.

Among these initiatives is the provision that allows primary cooperative societies to claim deductions for the supply of cattle feed and cotton seed produced by their members, thereby easing their tax liabilities. Previously, such deductions were only available to cooperative societies involved in supplying milk, oilseeds, fruits, or vegetables grown by their members, but this extension will now encompass a broader spectrum of cooperative entities.

The Finance Minister also suggested permitting inter-cooperative society dividend income as a deductible expense under the new tax framework, provided this income is subsequently distributed to their members.

In a further effort to bolster National Cooperative Federations, she proposed a tax exemption for a period of three years on dividend income received by a designated national cooperative federation from investments made in companies up to January 31, 2026. This exemption applies solely to dividends that are subsequently distributed to member cooperatives.

Additionally, the National Cooperative Development Corporation (NCDC) has exhibited a robust growth pattern, disbursing an impressive Rs 49,799.06 crore to various cooperatives across the nation from April to October 2025 within the current financial year.

As a statutory organization under the Ministry of Cooperation, the NCDC has consistently shown a strong commitment to enhancing India’s cooperative ecosystem through continuous financial backing.

Its disbursements have seen significant growth, increasing from Rs 5,735.51 crore in 2014-15 to Rs 95,182.88 crore in 2024-25, illustrating its expanding influence across various sectors.

Between FY 2021-22 and FY 2024-25, Rs 4,823.68 crore was allocated to women cooperatives, promoting women’s involvement in the cooperative sector.

As of March 2025, the NCDC has provided Rs 33,311.79 crore in financial assistance to cooperative sugar mills across India.

The NCDC has played a pivotal role in supporting successful cooperative models, such as the 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 cooperatives exemplify the strength and reach of India’s cooperative movement.