India’s 2026/27 draws wider support from cooperative leaders

NEW DELHI, February 7, 2026 — The Union Budget 2026/27 has evoked largely positive reactions from leaders of cooperative institutions, who said the proposals signal continuity in support for agriculture, rural finance and cooperatives, even as some noted that the impact would depend on implementation and institutional reforms.

The Indian Cooperative quotes Dileep Sanghani, the Chairman of Indian Farmers Fertiliser Cooperative Limited [IFFCO], as saying the Budget reflects the Indian government’s long-term vision for strengthening agriculture and the cooperative movement.

He highlighted initiatives such as AI-based soil testing, expansion of agricultural credit, digital markets and livestock sector modernisation, stating that these measures could support farmers’ incomes and rural livelihoods.

He also welcomed tax relief on inter-cooperative dividends and for notified national cooperative federations, calling them important for improving the financial capacity of cooperatives.

Ashok Chaudhary, the Chairman of Gujarat Cooperative Milk Marketing Federation Ltd. [GCMMF] said the continued emphasis on agriculture, digital enablement and cooperatives would benefit farmer-owned institutions and improve value realisation for producers.

He described the Budget as forward-looking, while noting that sustained policy support would be required to translate proposals into tangible gains for cooperatives.

ICA–AP President and Senior Cooperator Dr. Chandra Pal Singh Yadav also reacted to the Budget presentation, conceding that the present government is working earnestly to strengthen the cooperative sector. Tasked with cooperative development in the Asia-Pacific region, Yadav observed that the emerging template of cooperative growth is encouraging and offers positive signals for neighbouring states.

Reacting to the Budget, Jyotindra Mehta, the President of National Urban Cooperative Finance & Development Corporation [NCUFDC] said that in a challenging global environment marked by geopolitical tensions and financial uncertainty, the Budget focuses on India’s growth and self-reliance.

He welcomed the increased allocation for the Ministry of Cooperation and the Rs 450 crore [approximately US$ 50 million] support for the National Cooperative Exports Limited [NCEL], saying these measures could strengthen cooperative exports and market access.

Mehta also highlighted tax relief on inter-cooperative dividends, extension of deductions on cattle feed and cotton seed, relief for Self-Help Groups, and the proposal for a High-Level Committee on Banking, but emphasised that outcomes would depend on effective execution.

Jethabai Bharwad, the Chairman of the National Agricultural Cooperative Marketing Federation of India Ltd [NAFED] said the Budget strengthens agriculture and the cooperative framework, but added that sustained policy clarity would be essential to ensure long-term benefits for farmers and cooperative institutions.

Dolar Kotecha, the Chairman of National Agriculture & Rural Development Banks Federation Limited [NAFCARD] said the Budget reinforces agriculture and cooperative finance as drivers of inclusive growth, particularly through technology-led initiatives and support for rural and urban cooperative banks.

He noted that expanding credit outreach and financial inclusion would require timely rollout and coordination at the grassroots level.

Offering a more cautious assessment, Vidyadhar Anaskar, the Chairman of the Administrative Board of MSC Bank, said the Budget focuses more on structural and institutional reforms than on direct fiscal incentives.

He pointed to proposals such as the high-level committee on banking and digital cooperative service centres as potentially improving governance and efficiency, while underlining the need to safeguard cooperative principles and state autonomy during implementation.

Ravinder Singh, the Managing Director of SVC Cooperative Bank, said the Budget reinforces the government’s focus on MSMEs, particularly through measures to strengthen receivable-based financing and platforms such as Trade Receivable Discounting System [TReDS].

He noted that these initiatives create new opportunities for cooperative banks to expand working capital solutions within prudent risk frameworks, especially for women-led and small enterprises.

Overall, the cooperative sector views the Union Budget 2026/27 as a supportive policy framework that reinforces the role of cooperatives in agriculture, rural finance and India’s digital transition.

However, sector leaders broadly agree that the success of the proposals will ultimately rest on execution, regulatory clarity and coordination between the Centre, states and cooperative institutions.

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