The release of the National Cooperation Policy (NCP) 2025 is a watershed in India’s long trajectory of cooperative development. It aims to reposition cooperatives as engines of growth, not merely in agriculture and credit, but across new and emerging sectors of the economy. Its six strategic pillars-strengthening the foundation, promoting vibrancy, making cooperatives future-ready, promoting inclusivity and deepening reach, entering new sectors, and shaping the younger generation-are tightly linked to measurable objectives and strategies. For Manipur and Nagaland, two states where geography, demography, and political history have produced fragile economies and fragmented markets, the policy has the potential to generate structural transformation. Yet, such transformation depends on adapting national prescriptions to local contexts. This article examines, in depth, how the NCP can be operationalised in Manipur and Nagaland and what precise benefits it can bring if implemented with institutional discipline and sensitivity to regional realities.
The first challenge in both states lies in the weakness of legal and institutional frameworks for cooperatives. The cooperative laws are outdated, largely paper-bound, and lack the transparency and accountability envisaged in modern governance. The NCP calls for complete digitisation of registrar offices, free and fair elections, transparent recruitment, and integration of state-level databases with the National Cooperative Database. For Manipur and Nagaland, this shift is essential. In Nagaland, where village councils are the custodians of community resources, cooperatives must be integrated with customary institutions. Registrar digital portals will therefore need to accommodate variations in by-laws that embed village council approvals for land use or resource extraction. In Manipur’s hill districts, where panchayats are absent, PACS will have to be adapted into cooperative structures anchored to village bodies. Without such alignment, digitisation risks alienating the very communities it intends to serve. If executed properly, however, this reform will create a real-time, transparent record of cooperative activity, allowing state governments to monitor performance, identify sick societies, and ensure accountability.
Finance is the lifeblood of cooperatives, and here the NCP’s provisions are critical. It seeks to preserve and strengthen the three-tier structure of PACS, District Central Cooperative Banks (DCCBs), and State Cooperative Banks, while expanding coverage to every district and panchayat. For the North-East, the phrase “subject to viability” must be understood with care. Establishing PACS in every panchayat may be viable in Manipur’s valley, but in the hills, or in Nagaland where population density is low, cooperatives must combine credit with multipurpose functions-warehousing, input supply, marketing, and service delivery. Only then will they remain viable. The NUCFDC umbrella mechanism, envisaged for strengthening urban cooperative banks, provides a lifeline for small cooperative banks in Kohima, Dimapur, and Imphal, enabling them to access liquidity, adopt modern banking software, and expand into government business. In time, this will reduce dependence on commercial banks, widen financial inclusion, and give local communities greater control over credit flows.
Market access is perhaps the most immediate benefit of the NCP for Manipur and Nagaland. The policy pushes for cooperative-led branding, use of Geographical Indications, and integration with ONDC and GeM. The North-East has a wealth of niche products for e.g. Chakhao black rice, pineapples, handloom textiles, Naga chillies, bamboo crafts, which remain under-marketed and poorly branded. Cooperatives can federate producers, secure certification through NCOL, and leverage NCEL to access exports. For example, a cooperative cluster in Tamenglong could market organic pineapples under a common brand, while Nagaland’s chilli cooperatives could access export markets through NCEL contracts. The Bharat brand umbrella, envisaged in the policy, could amplify these efforts by providing national recognition. Such cooperative-led branding is vital to counter the exploitative practices of middlemen and to secure a fairer share of value for producers.
The policy’s technology agenda is equally significant. The Cooperative Stack, integrated with the Agri-Stack and the National Cooperative Database, is designed to digitise member records, improve credit flows, and ensure traceability of products. Yet, in states where electricity is unreliable and broadband patchy, the Stack must be deployed with offline capabilities, vernacular interfaces, and mobile-first design. Solar-powered kiosks, SMS alerts, and secure offline synchronisation are not luxuries but necessities. Cybersecurity safeguards must also be prioritised, as weak institutions are prone to fraud. A phased approach is essential: starting with cooperative banks and large federations in Imphal, Kohima, and Dimapur; expanding to district headquarters; and only then to village-level PACS. Done well, the Stack could create unprecedented transparency, reduce leakages, and give members real-time access to their cooperative’s performance.
Inclusivity is at the heart of the NCP and particularly relevant to Manipur and Nagaland. The policy emphasises women, youth, and weaker sections, not as passive beneficiaries but as active leaders. In Manipur, women already dominate informal markets such as Ima Keithel; formalising their role in dairy, handloom, and fishery cooperatives would provide scale, security, and income stability. In Nagaland, cooperatives must be structured to include youth and women while respecting the authority of tribal councils. Minimum membership thresholds for women, youth quotas in boards, and leadership training are mechanisms that can institutionalise inclusivity. At the same time, the policy must be used to prevent ethnic fragmentation. In Manipur, where inter-community conflict has undermined trust, incentives must be provided for cooperatives that bring together members across ethnic lines. Such measures can transform cooperatives into instruments of reconciliation rather than exclusion.
The call to enter emerging sectors is particularly promising. Renewable energy, water supply, waste management, and transport services are sectors where cooperatives can thrive. In Nagaland, village-level solar microgrids operated by cooperatives could reduce dependence on erratic grid supply. In Manipur’s hill districts, cooperatives could manage community water schemes under the Jal Jeevan Mission. In Dimapur and Imphal, urban cooperatives could handle solid waste collection and recycling, alleviating municipal burdens. Taxi cooperatives, structured on digital platforms, could provide dignified livelihoods while reducing dependence on exploitative private aggregators. These ventures will require viability gap funding, concessional loans, and technical support, but they are critical to diversifying cooperative incomes and ensuring sustainability.
Youth engagement is another decisive element. With high unemployment and histories of insurgency, both states face the challenge of giving young people credible career paths. The NCP envisages cooperative curricula in universities, cooperative-focused skilling, and a digital employment exchange. Manipur University and Nagaland University can partner with the proposed apex education body to offer diplomas in cooperative management, finance, and enterprise. A cooperative employment exchange could directly match trained youth with vacancies in PACS, dairy unions, fishery cooperatives, and cooperative banks. Such measures would recast cooperatives from being seen as fallback options to becoming attractive career pathways, thereby drawing talent and retaining it.
Implementation and monitoring are central to success. The NCP establishes an Implementation Cell, a Project Management Unit, and both a Steering Committee and a Monitoring Committee at the national level. Manipur and Nagaland must mirror these structures at state level. A state cooperative cell should oversee registrar digitisation, sectoral federations, and convergence of schemes. District-level cooperative monitoring cells must track PACS performance, audit compliance, and member inclusion. Quarterly publication of cooperative performance indices, as envisaged in the policy, would promote competition and accountability. Transparent disclosure of accounts and member dividends would further cement trust. Without such mechanisms, the risks of misuse, elite capture, and political patronage remain high.
If the NCP is implemented with seriousness, the benefits for Manipur and Nagaland are substantial. In Manipur, women-led dairy cooperatives could supply urban demand; fishery cooperatives could thrive with cold-chain support; horticulture cooperatives could export Chakhao rice and pineapples; and handloom cooperatives could professionalise production. In Nagaland, organic agriculture cooperatives could dominate premium markets; bamboo cooperatives could build value-added industries; piggery cooperatives could integrate bio-waste into energy solutions; and renewable energy cooperatives could electrify villages sustainably. Cooperative banks, restructured and digitised, could finally deliver affordable credit at scale. Youth could find structured careers in cooperative enterprises. Women could hold leadership positions in formal economic institutions. Markets could be accessed directly, with fairer returns to producers.
The NCP is not merely a sectoral reform but a development strategy. For Manipur and Nagaland, it offers a blueprint for inclusive growth, professionalisation, and long-term sustainability. To succeed, state governments must adopt its provisions with contextual sensitivity, national institutions such as NABARD and NCDC must provide sustained financial and technical assistance, and local cooperatives must embrace professional standards while remaining true to their democratic ethos. The prize is not only higher incomes but also stronger communities, greater social cohesion, and a real sense of empowerment for those who have long remained at the margins of India’s development.
Dr. Aniruddha Babar is a senior academician, policy analyst, writer, and researcher currently serving in the Department of Political Science, St. Joseph College, Ukhrul, Manipur. He is also the Co-Founder and Deputy Director of the Centre for North-East Development and Policy Research (CNEDPR), St. Joseph College, Manipur
