Only 1 in 4 Marginal Farmers in India linked to Cooperatives

State of Marginal Farmers in India Report 2025, shows that less than 25% of the country’s  marginal farmers are active members of agricultural cooperatives.

About the Report

• The Report was released by the Forum of Enterprises for Equitable Development (FEED) on Kisan Diwas (23rd December)
• Study of six states: Andhra Pradesh, Bihar, Himachal Pradesh, Maharashtra, Tripura, and Uttarakhand was undertaken. 

Key Finding of the Report

• Cooperative linkage: Only 1 in 4 (less than 25%) are active members of agricultural cooperatives.
  • Lowest participation was found in Bihar, Tripura, and Himachal Pradesh.
• The Digital Divide: Digital adoption in cooperatives is uneven and often superficial.
  • Low Usage: In Tripura, 77.8% of cooperatives use no digital tools. In Bihar, the figure is 25%.
• Gender Disparity in Leadership: Cooperatives remain male-dominated spaces, with a huge gap between female membership and leadership.
  • Female Members: 21.25 lakh (2.125 million) women are registered as cooperative members.
  • Female Leaders: Only 3,355 women serve as directors on cooperative boards nationwide.
  • Barriers: Restrictive social norms, limited mobility, and the burden of unpaid care work prevent women from taking leadership roles.
• The Positive Impact of Cooperatives: Where marginal farmers can access cooperatives, outcomes improve significantly.
  • Income Growth: 45% of cooperative-linked farmers reported increased household income.  Only 21% reported a decline or stagnation.
  • Livelihood Security:  49% reported improved security after joining.
  • Access to Credit: 67% (Two-thirds) of members gained access to credit and financial services.
  • Agricultural Yield: 42% reported improvements in crop yields.

Role of Cooperatives (PACS) in Agricultural

• Primary Agricultural Credit Societies (PACS) are the most accessible institutional support system for small farmers.
• Strategic Position: As the lowest tier, PACS shape farmers’ interaction with formal institutions and government schemes.
• Services Provided: Access to credit, farming inputs, procurement channels, and digital/public services.
• Evolving Role: Many PACS are transforming into rural service hubs, also managing PDS distribution and other essential services.
• Consequence of Exclusion: Greater dependence on informal markets, slower income growth, and higher vulnerability to climate and market shocks.

Barriers Keeping Marginal Farmers Out from Cooperatives

The report identifies four key structural barriers:

• Complex Procedures: Difficult membership processes.
• Physical Access: Long distances to the nearest PACS.
• Limited Capital: Scarce availability of financial resources.
• Social Exclusion: Persistent discrimination based on caste, gender, or class.

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Kisan Diwas (National Farmers’ Day)

• Celebrated every year on December 23rd.
• It is the birth anniversary of Chaudhary Charan Singh, the fifth Prime Minister of India and a renowned farmer leader.
• Theme: “Vikasit Bharat 2047 – The Role of FPOs in Globalizing Indian Agriculture”.

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