Patna: The Bihar State Cooperative Policy 2026 has received approval from the state Cabinet, paving the way for a major expansion and modernisation of the cooperative sector in Bihar. The policy, framed in line with the National Cooperative Policy, aims to strengthen cooperative institutions, increase participation of disadvantaged sections and promote inclusive economic development.
The new policy seeks to create a self-reliant, inclusive and sustainable cooperative system suited to Bihar’s unique social, economic and geographical conditions. It is also expected to give a fresh push to the state’s cooperative movement and support the broader vision of a ‘Developed Bihar’.
Bihar Cooperative Policy 2026 to Promote Inclusive Participation
The policy focuses on increasing the active participation of various sections of society in the cooperative sector.
Special emphasis will be placed on the participation of:
- Youth
- Women
- Backward and Extremely Backward Classes
- Scheduled Castes and Scheduled Tribes
- Persons with disabilities
- Other disadvantaged sections
The government aims to expand cooperative institutions and make them more accessible and inclusive for communities that have traditionally had limited participation in the sector.
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‘Strong Cooperatives, Prosperous Bihar’ is the Policy Vision
The vision of the Bihar State Cooperative Policy 2026 is ‘Strong Cooperatives – Prosperous Bihar’, with the broader objective of achieving a prosperous and developed state through an inclusive and diversified cooperative system.
The policy’s mission is to strengthen the traditional cooperative structure and transform cooperative societies into:
- Modern economic organisations.
- Accountable institutions.
- Competitive business entities.
- Self-reliant and sustainable organisations.
It also seeks to expand the cooperative movement into new and non-traditional sectors.
Cooperatives to Expand Beyond Agriculture
Under the new policy, cooperative societies will not remain limited to traditional agriculture-related activities.
The government plans to encourage new cooperative societies in sectors such as:
- Dairy
- Fisheries
- Agribusiness
- Warehousing
- Food processing
- Services
- Tourism
- Emerging non-traditional sectors
The expansion is expected to diversify the cooperative economy and create new opportunities for employment, entrepreneurship and local economic development.
Technology and Digital Innovation to Strengthen Cooperatives
The Bihar Cooperative Policy 2026 aims to modernise cooperative institutions through the use of advanced technology and digital innovation.
The policy will focus on strengthening cooperatives through:
- Modern technology.
- Digital innovation.
- Transparent administration.
- Better accountability.
- Improved competitiveness.
The government expects these measures to make cooperative institutions more efficient, transparent and responsive to the needs of their members.
Bihar State Vegetable Processing and Marketing Plan to Be Expanded
The Cabinet has also approved the expansion of the Bihar State Vegetable Processing and Marketing Scheme, which aims to strengthen the state’s vegetable collection, processing and marketing network.
Under the plan, the three-tier cooperative structure of VEGFED will be strengthened and expanded.
The proposed measures include:
- Establishment of collection centres at the panchayat level.
- Development of basic infrastructure at the block level.
- Working capital support for federations and cooperative societies.
- Provision of refrigerated vehicles for transportation.
The initiative is expected to improve the collection, processing and marketing of vegetables across Bihar.
Farmers to Benefit from Better Vegetable Marketing
The expanded vegetable processing and marketing system is expected to help farmers receive better prices for their produce.
By improving infrastructure and strengthening cooperative participation, the scheme aims to:
- Reduce post-harvest challenges.
- Improve vegetable collection and transportation.
- Strengthen processing facilities.
- Expand organised marketing.
- Help farmers get fair value for their produce.
Experts believe the initiative could contribute to the economic empowerment of farmers and improve rural prosperity across the state.
Closed Sugar Mills in Darbhanga and Madhubani to Be Revived
The Cabinet has also cleared a proposal for the revival and redevelopment of closed sugar mills at Raiyam in Darbhanga and Sakri in Madhubani.
Under the proposal, new cooperative sugar mills and other units will be established and operated by Indian Potash Limited (IPL).
The land of both closed sugar mills is proposed to be leased to IPL for 30 years at a token amount of ₹1.
The move is expected to help revive unused industrial assets and create new economic and employment opportunities in the respective regions.
Policy Expected to Boost Farmers’ Income and Rural Employment
The Bihar State Cooperative Policy 2026, along with the expansion of the vegetable processing and marketing scheme and the revival of closed sugar mills, is expected to contribute to the state’s economic development.
The initiatives aim to strengthen cooperative institutions, increase farmers’ income and generate new employment opportunities in rural areas.
By expanding cooperatives into new sectors and improving access to technology, infrastructure and finance, the government seeks to create a stronger and more inclusive cooperative ecosystem across Bihar.
Cooperation Minister Ramkripal Yadav Welcomes Cabinet Approval
Bihar Cooperation Minister Ramkripal Yadav welcomed the Cabinet’s approval of the Bihar State Cooperative Policy 2026.
He said the policy, along with the decisions to revive closed sugar mills and expand the Bihar State Vegetable Processing and Marketing Scheme, would be a significant milestone in the state’s journey towards self-reliance.
According to the minister, the initiatives will not only help increase farmers’ incomes but also create new employment opportunities in rural areas.
The new policy is expected to provide a long-term framework for strengthening Bihar’s cooperative sector and supporting the state’s broader economic and social development goals.
