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The National Cooperative Development Corporation (NCDC) was established by an Act of Parliament in 1963 as a statutory Corporation under the Ministry of Agriculture.



Planning, promoting and financing programmes for production, processing, marketing, storage, export and import of agricultural produce, food stuffs, certain other notified commodities e.g. fertilisers, insecticides, agricultural machinery, lac, soap, kerosene oil, textile, rubber etc., supply of consumer goods and collection, processing, marketing, storage and export of minor forest produce through cooperatives, besides income generating stream of activities such as poultry, dairy, fishery, sericulture, handloom etc.

NCDC Act has been further amended which will broad base the area of operation of the Corporation to assist different types of cooperatives and to expand its financial base. NCDC will now be able to finance projects in the rural industrial cooperative sectors and for certain notified services in rural areas like water conservation, irrigation and micro irrigation, agri-insurance, agro-credit, rural sanitation, animal health, etc.

Loans and grants are advanced to State Governments for financing primary and secondary level cooperative societies and direct to the national level and other societies having objects extending beyond one State. Now, the Corporation can also go in for direct funding of projects under its various schemes of assistance on fulfillment of stipulated conditions.

Organisation & Management


The Management vests in 51 member widely represented General Council to give shape to its policies and programmes and Board of Management with 12 members to cater to day-to-day activities. Besides its Head Office, NCDC functions through 18 Regional/State Directorates. The Managing Director is the Chief Executive. Various functional divisions look after the programmes. The field offices play an important role in project identification/formulation and oversee its implementation. 

NCDC is endowed with in-house technical and managerial capabilities in the areas of Cooperation, Organisation & Methods, Financial Management, Costing, Economic Analysis, Projectation, Management Information Systems/Feasibility Studies, Sugar, Oilseeds, Textiles, Food, Fruits & Vegetables, Dairy, Poultry and Live stock, Fishery, Handlooms technologies besides Civil Engineering, Refrigeration and Preservation to help cooperatives to identify/formulate projects and successfully implement them.

Finance and Financing


Sources of Funds

Internal accruals, market borrowings and allocations from Government of India including International assistance.

Purposes for which assistance is provided

  • Margin money to raise working capital finance (100% loan)
  • Strengthening of share capital base of societies (100% loan)
  • Working capital to regional/state level marketing federations (100% loan).
  • Term loan for creation of infrastructural facilities like godowns, cold storages, equipment financing, purchase of transport vehicles, boats and other tangible assets
  • Loan assistance ranging from 60% to 95%.
  • Term and investment loan for establishment of new, modernisation/ expansion/rehabilitation/diversification of agro-processing industries.
  • 100% Subsidy for preparation of project reports/feasibility studies etc.

Procedure of Sanction / Disbursal of Assistance

NCDC assistance is not individual beneficiary oriented but is meant for institutional development of Cooperatives. NCDC supplements the efforts of State Government. The State Governments recommend the proposal of individual society / project to NCDC in the prescribed schematic format. The Society may also avail direct funding of projects under various schemes of assistance on fulfillment of stipulated conditions. The proposals are examined in the concerned functional division and if need be on the spot field appraisal is undertaken. Thereafter, formal sanction of funds is conveyed to the State Govt. / Society. The release of funds depends on progress of implementation and is on reimbursement basis. The period of repayment of loan ranges from 3 to 8 years. The rate of interest varies from time to time.

Activities Funded by NCDC


a) Marketing

  • Margin Money assistance to Marketing Federations
  • Strengthening share capital base of primary / district marketing societies
  • Marketing (Fruit & Vegetable)
  • Working Capital Finance

b)   Processing

  • Setting up of new Sugar factories (Investment Loan) / Modernisation and Expansion/ Diversification of existing Sugar Factories (Investment loan + term loan)
  • Margin Money assistance to cooperative Spinning Mills / State Cooperative Cotton Federations / Share Capital participation in New Spinning Mills / Modernisation/ Expansion of Spinning Mills / Modernisation of Existing and Establishment of Modern Ginning & Pressing Units / Rehabilitation of Sick Spinning Mills / Cotton Development Programmes
  • Other Processing Units: Food Grains / Oilseeds / Plantation Crops / Cotton Ginning and Pressing / Fruit & Vegetable / Maize Starch / Particle Board, etc.
  • Power Loom Cooperatives covering pre and post loom facilities

c)   Cooperative Storage

  • Construction of godowns (Normal)
  • Upgradation/renovation of existing godowns
  • Construction of Cold Storages / Upgradation/ Rehabilitation of Cold storages

d)   Distribution of essential articles through cooperatives

  • Distribution of Consumer articles in rural/ urban/ semi urban areas.

e)   Industrial Cooperatives

  • All types of Industrial Cooperatives, Cottage & Village Industries, Handicrafts/rural crafts etc.

f)    Service Cooperatives

  • Agriculture Credit
  • Agriculture Insurance
  • Labour Cooperatives
  • Water Conservation works/services
  • Irrigation, micro irrigation in rural areas
  • Animal care/health disease prevention
  • Rural sanitation/ Drainage/ Sewage system through Cooperatives

g)   Agricultural Services

  • Cooperative Farmers’ Service Centres
  • Agro Service Centres for Custom hiring
  • Establishment of Agricultural inputs manufacturing and allied units.
  • Irrigation/ Water harvesting programmes.

h)   District Plan Schemes

  • Integrated Cooperative Development Projects in selected districts (ICDP)

i)    Cooperatives for Weaker Sections

  • Fisheries
  • Dairy
  • Poultry
  • Tribal
  • Handloom
  • Coir & Sericulture.

j)    Assistance for Computerisation

k)   Promotional and Developmental Programmes:

  • Technical & Promotional Cells
  • Consultancy for studies/project reports, management studies, market survey & evaluation of programmes, etc.
  • Training and Education

l) Consultancy Services

Other Activities of NCDC

Evaluation & Statistics Division

TOPIC Training Centre

Kisan Call Centre

For further details Click here

Few assisted Successful Cooperatives


Agricultural Inputs

  • The Regional Agro-Industrial Development Cooperative Ltd., Kannur, Kerala.


  • Jawahar Shetkari Sahakari Sakhar Karkhana Ltd., Shri Kallappana Awaede Naga Kolhapur, Maharashtra.
  • Shetkari Sahakari Sangh Ltd., Old Palace, Kolhapur, Maharashtra.


  • Kerala State Coop. Federation for Fisheries Development Ltd., Karuvankonam, Thiruvananthapuram, Kerala.
  • Karanja Machhimar Vividh Karyakari Sahakari Sanstha Ltd., Karanja, Maharashtra
  • Arnala Machhimar Vividh Karyakari Sahakari Sanstha Ltd., Arnala, Thane District, Maharashtra


  • Tamil Nadu Handloom Weavers' Coop. Society Ltd., Egmore, Chennai-8.

Spinning Mills

  • Shetkari Sahakari Soot Girni Ltd., Distt. Sholapur, Maharashtra.
  • Gujarat State Coop. Cotton Fedn. Ltd. Ahmedabad-9.

Sugar Mills

  • The Shahabad Cooperative Sugar Mills Ltd., Kurukshetra, Haryana.

Cold Storage, Fruits & Vegetable

  • HOPCOMS, Lalbagh, Bangalore
  • MAHAGRAPES, Pune, Maharashtra
  • Lahoul Potato Growers Cooperative Marketing Society Ltd., Manali (LPS), Himachal Pradesh
  • The Himachal Pradesh Cooperative Marketing and Consumers’ Federation Ltd., (HIMFED), Shimla
  • Regional Fruits and Vegetables Producers Coop. Society Ltd., (VEGCO), Thaliparamba, Kerala
  • NAFED, New Delhi
  • Rau Cooperative Cold Storage, Distt. Indore, Madhya Pradesh.
  • Uttar 24 Parganas Krishi Samabya Himghar Samity Ltd., Distt. 24 Parganas, West Bengal.
  • Mahua Cooperative Cold Storage Ltd. Distt-Vaishali, Bihar

Major Activities funded in the Tamil Nadu State


The NCDC has provided financial assistance for the development of cooperatives encompassing all schemes/sectors in Tamil Nadu.  The following are the major activities funded in the State
ICDP: Out of the 31 districts in the State, so far 11 ICD Projects have been completed in 14 Districts viz. Virudhunagar, Villupuram, Cuddalore, Dharmapuri, Krishnagiri, Coimbatore, Tiruvannamalai, Ramanathapuram, Kancheepuram, Perambalur, Ariyalur, Tiruchirappalli, Thiruvarur and Thanjavur; ICD Projects are under implementation in 6 districts   they are Theni and Thoothukudi (both in 4thyear of implementation) and Salem, Erode, Madurai and Pudukkottai (where projects have just commenced). Out of the remaining 11 Districts,  7 Districts viz. Tirunelveli, Sivagangai, Dindigul,  Karur, Nagapattinam, Vellore and Nilgiris have been selected for implementation of ICDP in the districts and the Consultants are preparing DPRs for implementation of ICDP in these districts. In all so far 27 districts have been brought under the umbrella of ICDP. NCDC has so far assisted Rs.117.483 crore towards implementing ICD Projects in Tamil Nadu.
STORAGE: NCDC has so far assisted Rs.27.25 crore for creation of 4757 rural godowns and 411 marketing godowns with a capacity of 9.74 lakh M.T. in Tamil Nadu. 

MARKETING & INPUTS:NCDC has so far assisted Rs.36.297 crore to Govt. of Tamil Nadu towards margin money for marketing societies and Federation and towards Agro Custom Hiring Centres/Seed multiplication/fertilizer granulation project.

CONSUMER: NCDC has assisted Rs.17.993 crore towards implementing 199 rural consumer projects covering 4497 village societies
SUGAR: For modernisation cum Expansion of 5 Cooperative Sugar Mills –Kallakurichi-I, Madurantakam, NPKRR, Tiruttani and Salem were assisted Rs.63.49 crore by NCDC and Rs.30.78 crore under SDF assistance.  For 2 distilleries Salem and Amaravathi  NCDC  assistance was  Rs.8.82 crore.  NCDC has also assisted towards share capital requirement/ rehabilitation/working capital requirements.  Total assistance given under Sugar Sector is Rs.484.564 crore.
SPINNING MILLS:  14 units of cooperative spinning mills were assisted by NCDC towards establishment (3) and modernisation/expansion (11) an amount of Rs.8.22 crore.  Besides this, NCDC has provided assistance towards margin money requirement to spinning mills and Wind Energy Unit.  Total assistance given in this sector is Rs.13.134 crore.

HANDLOOMS: 427 units have been assisted for purposes like processing (8 units), modernisation/showroom (315) and share capital (104) an amount of Rs.17.547 crore.


DAIRY:Tirunelveli District Cooperative Milk Union and Virudhunagar District Cooperative Milk Union were assisted Rs.493.50 lakh and Rs.325.85 lakh respectively towards establishment of Integrated Dairy Project of milk processing capacity of Rs.1.00 lakh LPD and 0.5 lakh LPD respectively.     In addition (Aavin) Tamil Nadu Coop. Milk Producers Federation Ltd. has been assisted Rs.74.90 lakh towards conversion of Refrigeration Systems into Ammonia Systems. In all total assistance so far cumulatively released for Dairy & Livestock Sector is Rs.8.943 crore.

TEA  COOPERATIVES: NCDC has provided an assistance of Rs.147.130 lakh to INCOSERVE for the purposes of margin money, warehouse cum tea testing unit, tea blending cum warehouse at Cochin, workshop, godown and Coonoor Warehouse.  NCDC has assisted Rs.6.44 crore towards establishment of 6 tea factories; Rs.3.74 crore towards modernisation/expansion of 13 coop. tea factories; Rs.17.655 lakh towards godown for 11 cooperative tea factories.  Total assistance provided for this sector is Rs.11.218 crore.


COIR : NCDC has provided an assistance of Rs. 316.26 lakh to the Govt. of Tamil Nadu for implementation of Phase-I of Integrated Coir Development Project, with an approved project outlay of Rs. 411.34 lakh. Under the project, fire extraction, automatic yarn spinning, semi automatic looms and Geotex units have been installed by 20 Industrial Coir Coop. Societies and Margin Money assistance to Tamil Nadu State Coir  Coop.  Marketing  Federation (TANCOFED) have been provided.  The subsidy assistance of Rs.84.24 lakh has also been provided by the Coir Board for implementation of this Coir Project.

Success stories/achievements:  The list of successful/good working NCDC assisted Cooperative Institutions are given below:

NCDC assistance  Provided/Sanctioned

Name of the Project/Society


Amount (Rs. In lakh)

a.Thiruchirappalli district



b. Thiruvarur district


Assistance provided for creation of infrast-ructure facilities/margin money to PACBs, FSCs, LAMPs, APCMSs, Wholesale stores, Handlooms and DCC Banks.

Assistance provided for creation of infrast-ructure facilities/margin money to PACBs, FSCs, APCMSs, Wholesale stores, Handlooms and DCC Banks.

1109.838 1119.760

a. Cheyyar Coop. Sugar Mills Ltd., Anakkavoor – Thenthandalam, Tiruvannamalai District.

b. Kallakurichi-II Coop. Sugar Mills Ltd., Kachirayapalayam, Villupuram district.


Share capital participation
Co-generation Power Plant
Construction of godown
Working capital

Share capital participation
Construction of godown
Working capital

3189.00 663.00

Tamil Nadu Coop. Textiles Processing Mills Ltd., Erode.


Modernization and Expansion
Construction of godown


Tamil Nadu Cooperative Silk Producers’ Federation Ltd. (TANSILK), Kancheepuram.


Margin Money
T&P Cell


5. Salem Starch and Sago Manufacturers Service Indl. Coop. Society Ltd. (SAGOSERVE), Salem.

Construction of 9 godowns with a capacity of 27000 MTs.


6. Tamil Nadu Coop. Milk Producers’ Federation Ltd. (AAVIN), Chennai.

For expansion and conversion of the existing Freon Refrigeration System into Ammonia Refrigeration System at Ambattur Dairy.


a. Salisbury Indl. Coop. Tea Factory, Nilgiris district.


Establishment and Modernization


Thrust areas:

  • Based on the interactions and Policy issues framed by the State Govt., the following are the ‘Thrust areas/Potential areas for funding by NCDC in Tamil Nadu:
  • ICDP (State Govt. is contemplating to cover all the remaining districts in the state in the next 2 years);
  • Establishment of 2 Ethanol units by Cheyyar and MRK Coop. Sugar Mills and establishment of Co-generation Power Plants by 15 Coop. Sugar Mills;
  • Modernization and Rehabilitation of 5 functional Cooperative Spinning Mills in the State/Working capital assistance to COOPTEX and Primary Handloom Weavers Coop. Societies;
  • Working capital assistance to State Apex Cooperative Bank to meet the requirements of negative net worth coop. Sugar Mills in the State/ Jewel loan operations;
  • Establishment of tea factory/rejuvenation of tea plants for the benefit of members of coop. Tea factories in Nilgiris district. Creation of infrastructure facilities by Apex Dairy Federation (AAVIN)/ District Milk Unions/Primary Milk Producers Coop. Societies.



National Cooperative Development Corporation,
Module No. 34 & 35,
Garment Complex, 2nd Floor, 
Industrial Estate, Guindy,
CHENNAI - 600032
Ph. : 044-22500034, 22500824
Fax: 044-22500034
E-mail: RO.Chennai@ncdc.in

For further details Click here



 Updated on July 3rd 2013


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