NCDC (Amendment) Act 2026: Provisions and States’ Rights Row
Why in the news
Farmer-union platform SKM objected to the amended NCDC law, arguing that cooperation is a State subject and the Centre is intruding.
Cooperative society basics
- A group voluntarily pooling effort to meet a shared economic or social need, through joint ownership and management.
- Cooperation is a State subject: Entry 32, State List.
- Entry 43, Union List covers only multi-state cooperatives, so the Centre cannot ordinarily legislate on single-state ones.
What the amendment changes
- NCDC earlier worked mainly through cooperative societies; its focus now widens to co-operative development, letting it deal with other entities and cutting delays.
- Direct funding: loans and grants to societies and development entities, subject to security.
- Share capital: participation allowed with Central Government approval.
- Wider scope: funds for farm produce, foodstuffs, livestock and poultry feed, industrial goods, notified commodities and services.
- Definitions: food now includes processed and other edible products; crafts are no longer limited to rural areas.
- Credit data: NCDC may collect or share it with the Centre, RBI, banks and notified institutions.
- Incidental powers: any activity needed to perform its functions.
Exam angle
- Constitutional entries: 32 (State List), 43 (Union List).
- Act amended: NCDC Act, 1962.
- Critic: Samyukt Kisan Morcha.