Redefining the Northeast through Cooperatives

India’s cooperative sector is undergoing a profound transformation, one that is as strategic as it is structural. Since the creation of the Ministry of Cooperation in July 2021 under Union Home Minister Amit Shah, cooperatives are no longer treated as vestiges of an older economic order; they are being recast as futuristic institutions rooted in participation, equity, and local entrepreneurship. The Ministry has swept aside the fragmented, paper‑bound rules of the past and replaced them with a unified, digital ecosystem that empowers citizens from the panchayat outward. India celebrates International Cooperative Day on July 6, guided by the motto “Sahkar se Samriddhi” (Prosperity through Cooperation).

The Union Ministry of Cooperatives has computerised 67,000 Primary Agricultural Credit Societies (PACS), 43,000 of which now function as Common Service Centres delivering Aadhaar services, crop insurance verifications, and more. A real-time database tracks over 8 lakh cooperatives and 30 crore members, while cooperative-sector loan disbursals have risen fivefold, reaching INR 1.28 lakh crore. The government is also preparing to launch a cooperative taxi service and India’s largest cooperative insurance company to strengthen the sector from within.

Cooperatives have moved beyond ‘financial entities’ to ‘community-centric institutions. This paradigm shift also has a profound human impact. Across India, more than 1.15 crore “Lakhpati Didis”—women earning over INR 1 lakh a year- testify to the cooperative movement’s potential to lift households beyond subsistence. For the women-led farming and artisanal economies of the Northeast, a formal cooperative architecture could unlock similar gains in income and autonomy. Already, cooperatives account for one-fifth of agricultural credit, over a third of fertiliser distribution, and 4.5% of GDP through dairy. By 2030, the sector is expected to generate more than 11 crore jobs. With IFFCO and Amul ranked first and second globally in 2024 and the UN declaring 2025 the International Year of Cooperatives, India’s cooperative resurgence is gaining international momentum. For the Northeast, this global spotlight offers a timely opportunity to lead with indigenous models, from bamboo collectives to dairy cooperatives.

As Prime Minister Modi has said, “Cooperatives are not just any system, but a belief, a spirit … the changing face of the rural and agricultural economy.” This spirit, scaled through digital infrastructure and grounded in local realities, now stands poised to redefine development in the Northeast.

These national reforms are more than statistics; they are levers of change for regions long left on the margins, nowhere more so than the Northeast, where cooperative presence has historically been sparse, credit access limited, and market linkages weak. The ministry’s plan to establish two lakh new PACS, one in every panchayat, promises to reverse this. Back when Shah inaugurated the Gangtok conclave, he captured a broader shift, stating, “Fifteen years ago, no one would have imagined cooperative dairy conclaves being held in a Himalayan state.” His observation reflects how far the cooperative ecosystem has travelled, and how central it is becoming to regional transformation. He emphasised that multipurpose PACS in the region are envisioned not just as credit institutions but as full-fledged rural enterprise hubs, integrating dairy, LPG, farmer-producer organisations, retail, and digital access in a single village unit. This convergence of finance, infrastructure, and service delivery marks a shift from cooperatives as transactional units to institutions of participatory governance. Despite being rich in resources and talent, the Northeast had long remained at the periphery of India’s cooperative vision and efforts had been put to change this scenario.

The impact is already visible on the ground. In Sikkim, smallholder dairy farmers now produce over two lakh litres of milk daily, a feat unimaginable a decade ago. At the heart of this change are women’s cooperatives, which empower women as stakeholders, not just workers. Shah rightly noted, “There can be no greater means for women's empowerment than dairy.”

Assam offers another example, with a cooperative legacy dating back to the Shillong Cooperative Town Bank in 1904. The state now has a presence of 9,000 cooperatives. Another popular cooperative model in Assam is Purabi Dairy, which supports rural livelihoods through fodder, healthcare, and training. It localises the Amul model while creating income-generating opportunities for farmers.

Moreover, urban cooperative success is exemplified by the Guwahati Refinery Employees’ Cooperative Society (GRECS). Founded in 1961, GRECS now runs a petroleum outlet, clothing store, steel counter, and LPG distribution for over 5,000 customers, demonstrating how cooperatives can thrive in industrial settings and contribute to community welfare.

In Nagaland, MARCOFED reflects a growing commitment to cooperative governance. With focused support, the region’s bamboo sector, already central to daily life, could evolve into formal bamboo cooperatives. This would not only generate jobs but also build global value chains rooted in sustainable practices.

However, challenges persist with the perception of cooperatives as mere government loan agencies remaining widespread, especially in remote areas. There is limited understanding that the essence of cooperation lies in contribution, not just consumption. Yet, the Northeast stands on the cusp of a cooperative resurgence. Its diverse agro-climatic zones, indigenous knowledge systems, and connectivity to cross-border economies position it to lead a model of cooperative-led, sustainable development. By scaling models like GRECS and Purabi, integrating bamboo and horticulture value chains, and ensuring PACS function as multi-service rural engines, the region can convert cooperation into capital, economic, social, and political benefits.

This vision aligns with India’s Act East policy and the government recognising the Northeast as Ashtalakshmi, the eight forms of prosperity. As India eyes a $5 trillion economy, the cooperative movement in the Northeast is more than a developmental strategy; it is a geopolitical opportunity.

In a region often viewed through the lens of deficit, cooperatives offer a vocabulary of dignity, participation, and potential. With the right policy push, cultural shift, and community ownership, the Northeast can move from being supported by the Centre to actively supporting it, powered by the strength of its cooperatives.

Bagmita Borthakur (PhD Research Scholar, BITS Pilani)

Bishaldeep Kakati (Advocate, Gauhati High Court)