According to the co-operatives legislation, administratively the main responsibility of the Department is smooth functioning of institutes, formation, inspection, auditing of co-operative societies, and implementation of government policies, under the Madhya Pradesh Co-operative Societies Act - 1960 and Rules – 1962. In the evolutionary role, for development of various sections of the State, implementation of different types of schemes is done by the department, institutional and individual benefit oriented schemes are also included in which.

By regulation, controlling, and guidance of co-operatives movement, and providing financial assistance to cooperative institutes, the department acts to strengthen the co-operative movement. The Department ensures the implementation of public welfare schemes, through the cooperatives. The Department performs the tasks of formation of cooperatives, election, auditing, resolution of disputes and liquidation etc. under the different provisions of the Act.