To organize voluntary cooperative institutes based on mutual support as a democratic means, and develop them particularly to prevent the exploitation of weaker section of the society and to ensure their socio-economic development, various types of cooperative entities have been constituted at different levels in the State. Legislation of Cooperatives has been defined with the intention to organize voluntary cooperative institutes based on mutual support as a democratic means, and develop them particularly to prevent the exploitation of weaker section of the society and to ensure their socio-economic development. Consequent to the efforts done with the intention of mutual support an in organized manner, members not only can ensure the fulfillment of their needs, but they also can give active contribution in the progress of each other. For fulfillment of these objectives, continuous efforts have been made for the development and promotion of cooperatives, in the State. The department of Cooperatives provides necessary guidance, protection, and makes available technical and economic support such as share capital, loan, loan guarantee and grants etc. to various cooperative institutions. With this background, the Co-operatives is playing its role in economic and social up gradation, with full competence, in current economy.Resulting Co-operative organizations are being established themselves as an important means to achieve the target of social equality, by discharging their responsibilities towards extremely backward section of the society and women, with keeping them at the focal point. Unlike other departments of the Government, the Department of Cooperation is a development department for regulating and encouraging to cooperative entities working in cooperative movement. Department of Cooperation is not the department which spends funds directly, but it is the department for supervision and regulation of cooperative entities which are related to the development, whose responsibility is to constitute entities and their registration, supervision, audit, inspection, liquidation and reinforcement. In fact, Co-operatives is such a format of democratic instrument, that mobilize the mutual co-operation based banking institutions and autonomous co-operative entities, and do their institutional development, so that they will become an instrument to prevent the exploitation of common people especially of weaker section and to ensure their social and economic development. The Department plays the role of a friend, a philosopher and as a guide for the co-operative institutions of farmers, artisans, weavers, fishermen, scheduled castes, scheduled tribes, other backward classes, women and the people of weaker section, so that their socio-economic progress can be achieved.

On the basis of recommendations of Vaidyanathan committee, a strong commercial platform has been provided to Agricultural Credit co-operative structure by making extensive amendments in Madhya Pradesh Co-operative Act. Co-operative institutes and cooperatives are the mainstay of Department of Co-operation. At present, tasks of public utility are being undertaken, in different fields, by these institutions. Despite of its many shortcomings, Co-operative movement of Cooperatives has given a significant contribution towards the overall development of the society particularly of the social and economically backward, oppressed and exploited weaker sections, and the massive expansion of co-operative credit facilities has been done village to village. Co-operative institutions are determined for agricultural production, delivery of best fertilizers, improved seeds, pesticides, food grain distribution in public delivery system, purchase of agriculture production on supporting prices, consumer, housing, fisheries, dairy, weaver, minerals, forest produce, seed production, education, training and construction and operation of industrial units.

  1. Housing
  2. Short Term Co-operative Credit Structure.
  3. Integrated Co-operative Development Projects.


  1. In the Co-operative sector, Madhya Pradesh Co-operative Housing Federation and around 3000 primary housing co-operative societies are working towards solving the housing problems of the people of middle and lower class, in across the Madhya Pradesh. For the recovery of write off loans, the rebate for complete penal interest with the applied interest payable on the date of settlement is being given to indebted members, by State Co-operative Housing Federation, under the One Time Settlement Scheme (OTS) which is approved by the Government of Madhya Pradesh, Department of Co-operation. The scheme is effective till 31st March 2013, The proposal for the extension of two years (i.e. up to 31st March 2015) in the term of scheme, has been forwarded to Registrar's Office, that is under process.
  2. For better management of the purpose of removal of the difficulties comes in the working of housing societies, a separate chapter has been added in Madhya Pradesh Co-operative Societies Act, which is in effect from the date - 31/04/2004, Special provisions have been made to protect the interests of the members, in it. By keeping in mind the irregularities currently being occurred in housing societies, the punishment for irregularities done by the officials of Co-operative housing societies has been now increased by Rs.5 Lac fine and imprisonment up to 3 years, in section 72 of Madhya Pradesh Co-operative Societies Act., In the same sequence, by making amendments in bye-Laws, the permission for transferring the plot has been given to members of institute after 3 years, and the construction period on the plot of member has been set 08 years in place of 05 years, and this way members have been protected from the unnecessary troubles often created by governing board.
  3. After receiving the complaints of no allotment of plots even after depositing the amount and being in priority, not refunding the deposit amount, not getting the possession even after the registry etc. from the members of Cooperative housing societies, the enquiry has been made by the government, resulting plots have been given to 4400 sufferer members and the amount of Rs. 4.18 Crore with interest has been given back to 100 sufferer members, in last two years.

Short Term Co-operative Credit Structure:

Short Term Credit Structure in Madhya Pradesh:-

Institute Number Branches Tasks being Undertaken
M.P. State Co-operative Bank 1 20 Agricultural credit, agricultural inputs (seed - manure), Public Delivery System (PDS), procurement on support price etc.
District Co-operative Central Bank 38 807
Primary Agricultural Credit societies Primary Agricultural Credit societies ...

Integrated Co-operative Development Projects :

Various schemes are being operated for the development in agriculture, industries, processing, marketing and consumer sectors, by the National Co-operative development Corporation. In which, the most significant scheme is Integrated Co-operative Development Project, which is currently being operated in the following districts of the State. Assistance for following items is being provided under this scheme.

Sr. No. Item Available Aid
01 Primary agriculture Co-operative Institutes Banking counters, ware house repairing,  New ware house construction margin money.
02 Marketing Society New Go down, Market yard, Truck, Tanker margin money, Go down repairing.
03 Horticulture Share capital, Pepper processing.
04 Fisheries Share capital, Net, Boat, seed, Bicycle
05 District Co-operative Central Bank Banking counter, Share capital, Safety Locker
06 Handloom (Weaver) Share capital, Go down construction, Show room, Looms and accessories.
07 Dairy Share capital, Milk cane, Milk Collection center, cattle food, Go down, Mini Tanker, Mobile milk booth.
08 Forest produce, Silk, Lift irrigation project, and women societies. Share capital and other financial assistance.
09 Human Resources Development P.I.T. Cast, Training, Promotion, Project Report, Format of Special Training support.