Agriculturalcooperatives are vital for empowering smallholder farmers, offering solutions to limited market access, high input costs, and climate vulnerabilities. The National Academy of Agricultural Sciences (NAAS) highlights that these localised institutions are essential for advancing inclusive rural prosperity and sustainable agricultural development in India.

These cooperatives are vital to India's rural economy. With nearly 90% of farmers being smallholders, cooperatives enhance bargaining power, streamline bulk input purchases, and connect farmers to modern markets. They ensure inclusive growth and sustainable development against climate and technological challenges.

They form the backbone of the rural economy, playing a crucial role in empowering farmers, providing access to credit, and ensuring fair market prices for produce. They support grassroots socio-economic development and drive food security across the nation.

Over the past 12 years, India’s agricultural sector has witnessed a comprehensive expansion in farmers’ empowerment. The focus has widened beyond welfare support towards strengthening productivity, income security, market access, infrastructure, and institutional resilience.

Higher agricultural output, expanded irrigation, greater access to credit, stronger insurance coverage, and growth in allied sectors have contributed to this transition. Simultaneously, expanded MSP operations and procurement systems have strengthened market assurance, ensured remunerative pricing, and supported national food security objectives. Furthermore, digital platforms, cooperatives, food processing, and climate-resilient initiatives have created new opportunities across the agricultural value chain. These developments reflect a gradual shift towards a more diversified, technology-driven, and farmer-centric agricultural system.

The agriculture and allied sector accounts for about 18 percent of total Gross Value Added (GVA). During this period, the sector registered a compound annual growth rate (CAGR) of 8.83 percent at current prices. Growth has also been supported by improvements within the crop segment. The GVA of crops rose from Rs. 12,92,874 crore in 2014-15 to Rs. 26,52,891 crore in 2023-24.

Public investment in the agricultural sector has increased substantially over this period. Budgetary allocation for the Department of Agriculture and Farmers Welfare increased from Rs.27,663 crore in 2013-14 to Rs.1,40,528.78 crore for 2026-27. This significant rise reflects the sustained policy support and continued investment in agricultural infrastructure, strengthening overall agricultural expansion.

Total foodgrain production has increased from 265.05 million tonnes in 2013-14 to 357.73 million tonnes in 2024-25. The growth has been driven by higher production of rice, wheat, maize, and coarse cereals. This also included millets, now promoted as Shree Anna. This growth has been supported by the National Food Security and Nutrition Mission (NFSNM). The mission promotes higher production of rice, wheat, pulses, and coarse cereals. It supports improved seeds, better agronomic practices, and technology adoption.

Rice touched a record production of 150.18 Mt in 2024-25, a 42.38 percent increase compared to 2014-15 (105.48 Mt). India became the world’s largest rice producer.

Wheat recorded the highest production of 117.94 Mt in 2024-25, rising over 36 percent since 2014-15.

Maize production also reached 43.40 Mt in 2024-25, an increase of around 79 percent from 2014-15 (24.17 Mt). The horticulture sector has also emerged as a key contributor to agricultural growth. It accounts for nearly 37 percent of the Gross Value Output within the crop sector. Production has increased from 280.70 million tonnes in 2013-14 to 369.05 million tonnes in 2024-25. This expansion indicates diversification towards high-value crops, supported by improved practices and market demand. The Minimum Support Price (MSP) acts as a safeguard by ensuring pre-determined prices for agricultural produce. MSPs are announced annually for 22 mandated crops.