Read or download the official PDF of this gazette notification issued by the Ministry of Cooperation on 5th August 2026. Classified under Press Release.
Executive Summary
The document outlines the government's strategy to strengthen forest produce-based cooperative societies, particularly in tribal regions like Jharkhand and Gujarat, under the National Cooperation Policy 2025. It details the provision of 100% financial assistance for tribal collectives through the Van Dhan programme and the disbursement of significant funds via the National Cooperative Development Corporation (NCDC). Key initiatives include the digitization of Primary Agricultural Credit Societies (PACS) and the promotion of market linkages to enhance tribal household incomes.
Key Points / Main Content
Policy and Planning Framework
The National Cooperation Policy 2025 focuses on strengthening cooperatives for marginalized sections and promoting the processing and marketing of minor forest produce (MFP).
The National Cooperative Database is utilized to identify gaps in coverage and facilitate district-wise planning.
States and Union Territories are encouraged to transform existing forest-produce societies into multipurpose cooperative societies.
Financial and Programmatic Support
TRIFED spearheads the Van Dhan programme, providing 100% government assistance to tribal community-owned Van Dhan Vikas Kendra Clusters (VDVKCs) and SHGs.
Eligible cooperatives can avail themselves of financial assistance from the NCDC, Central Ministries, and State Governments.
The NCDC has disbursed ₹44.40 crore in Jharkhand and ₹2,302.22 crore in Gujarat across various cooperative sectors.
Operational and Marketing Initiatives
Cooperatives are diversifying activities under Model Bye-laws to include storage, input supply, and Common Service Centres.
Primary Agricultural Credit Societies (PACS) are undergoing computerization and digitization to improve transparency and efficiency.
National-level cooperatives, such as National Cooperative Organics Limited (NCOL) and National Cooperative Exports Limited (NCEL), provide platforms for organic branding (“Bharat Organics”) and international exports.
Governance and Inclusion
The Multi-State Cooperative Societies Act, 2002 (amended in 2023) now mandates the representation of Scheduled Castes and Scheduled Tribes on the boards of multi-State cooperative societies.
Impact Analysis
Tribal Communities and HouseholdsImpact: These groups benefit from increased income through improved aggregation, value addition, and access to domestic and international markets for forest and organic produce.
Action Required: Form or join SHGs and Van Dhan Vikas Kendra Clusters to access 100% government assistance and training for MFP collection and sale.
Cooperative Societies (including PACS)Impact: Societies gain operational efficiency through digitization and the ability to offer a wider range of services (e.g., storage, rural services) under new Model Bye-laws.
Action Required: Implement computerization initiatives and submit project proposals to NCDC or relevant ministries to secure financial assistance.
Multi-State Cooperative SocietiesImpact: Governance structures must change to be more inclusive of marginalized groups.
Action Required: Amend board compositions to ensure the representation of Scheduled Castes and Scheduled Tribes as per the 2023 legislative amendment.
State and UT GovernmentsImpact: Regional authorities are tasked with the administrative development of the cooperative sector.
Action Required: Strengthen existing forest-produce societies and utilize the National Cooperative Database for effective district-level planning.
Key Entities Referenced
Van Dhan programme: A government initiative for the collection and selling of Minor Forest Produce (MFP) through tribal community-owned clusters.
Tribal Co-Operative Marketing Development Federation of India Limited (TRIFED): The agency responsible for spearheading the implementation of the Van Dhan programme in tribal districts.
National Cooperative Development Corporation (NCDC): A financial body that provides assistance and disburses funds to eligible cooperative societies across various sectors.
National Cooperation Policy, 2025: A policy document focusing on strengthening cooperatives for marginalized sections and promoting the marketing of minor forest produce.
Multi-State Cooperative Societies Act, 2002: The primary legislation governing multi-state cooperatives, including provisions for SC/ST representation on their boards.
Ministry of Cooperation
FOREST PRODUCE-BASED COOPERATIVE
SOCIETIES
प्रव तथ: 05 AUG 2026 4:49PM by PIB Delhi
The Government is promoting cooperative institutions engaged in minor forest produce, handicrafts,
organic products and other livelihood activities in tribal areas, including tribal districts of Jharkhand and
Gujarat. The National Cooperation Policy, 2025 emphasizes strengthening cooperatives of weaker and
marginalized sections, including tribal communities, and promoting value addition, processing and
marketing of minor forest produce.
States/UTs are being encouraged to strengthen existing forest-produce societies and, where appropriate,
develop them as multipurpose cooperative societies in accordance with the applicable State Cooperative
Societies Acts and local economic potential. The National Cooperative Database is also being used to
identify gaps in cooperative coverage and facilitate district-wise planning.
Further, Tribal Co-Operative Marketing Development Federation of India Limited (TRIFED) spearheads
implementation of Van Dhan programme for collection and selling on Minor Forest Produce (MFP) in
Districts which have predominantly forest dwelling tribal population. Under this programme, tribal
community-owned Van Dhan Vikas Kendra Clusters (VDVKCs) are set up in the Tribal Districts. For this
purpose, 100 % assistance is provided by the Government to the collectives in the form of SHGs/ Van
Dhan Kendras.
Financial assistance may be availed by eligible cooperative societies under the schemes of the National
Cooperative Development Corporation, concerned Central Ministries and State Governments, subject to
the applicable scheme guidelines and approval of project proposals.
The National Cooperative Development Corporation (NCDC) provides financial assistance to
cooperatives. Under its overall programmes across various cooperative sectors, NCDC disbursed ₹44.40
crore in Jharkhand and ₹2,302.22 crore in Gujarat during the said period.
Measures being taken to enhance the income of tribal households through cooperative institutions include:
i. promotion of aggregation, processing, value addition, branding and marketing of minor forest
produce and other locally available products;
ii. enabling cooperative societies to undertake diversified activities under the Model Bye-laws,
including Common Service Centres, input supply, storage, processing and other rural
services;
iii. facilitating market linkages through national-level cooperative societies such as the National
Cooperative Organics Limited and the National Cooperative Exports Limited;
iv. computerization and digitization of PACS to improve transparency, operational efficiency and
access to services; and
v. representation of Scheduled Castes and Scheduled Tribes on the Boards of multi-State
cooperative societies in accordance with the provisions of the Multi-State Cooperative
Societies Act, 2002, as amended in 2023vi. Measures being undertaken to enhance the income of tribal households through cooperative
institutions include strengthening market linkages, promoting value addition and facilitating
access to domestic and international markets. The National Cooperative Exports Limited
(NCEL) provides an institutional platform for export of surplus produce of cooperatives,
including those operating in tribal areas. The National Cooperative Organics Limited (NCOL)
supports aggregation, organic certification, branding and marketing of organic products under
the “Bharat Organics” brand.
This information was given by Union Home Minister and Minister of Cooperation, Shri Amit Shah in a
written reply in Rajya Sabha.
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