A carton of Amul cheese sitting on a supermarket shelf in the United States might not seem remarkable, but behind it lies a supply chain powered entirely by millions of small dairy farmers organized into cooperatives. India’s cooperative movement — one of the largest in the world — is increasingly becoming a force in international trade, and the story of how these grassroots institutions reach global markets is both fascinating and instructive.
The Scale of India’s Cooperative Movement and Its Export Potential
India has over 800,000 registered cooperatives with a combined membership exceeding 290 million people, making it the largest cooperative network on the planet. These cooperatives span dairy, sugar, handloom textiles, spices, coffee, tea, fisheries, and horticulture. The National Cooperative Development Corporation (NCDC), established under the Ministry of Cooperation, has been instrumental in financing and developing cooperatives that can meet international quality standards.
The export potential of Indian cooperatives is enormous because they aggregate production from thousands of small and marginal farmers who individually lack the volume or infrastructure to access foreign markets. By pooling resources, cooperatives achieve economies of scale in processing, grading, packaging, and logistics. I find it remarkable that many of these cooperatives now hold ISO, HACCP, and FSSAI certifications that qualify their products for the most demanding markets in Europe, North America, and East Asia.
The Government of India’s Ministry of Cooperation, headed by Union Minister Amit Shah, has prioritized cooperative-led exports as part of its broader strategy to double farmer incomes. In 2026, the ministry’s renewed focus includes establishing dedicated export cells within state-level cooperative federations and connecting them directly with trade promotion councils abroad.
Key Indian Cooperatives Leading Global Exports
The most visible success story is the Gujarat Cooperative Milk Marketing Federation, better known as Amul. With an annual turnover exceeding ₹72,000 crore, Amul exports dairy products to over 50 countries, including the United States, Singapore, Hong Kong, the UAE, and several African nations. Their product range for international markets includes cheese, ghee, UHT milk, paneer, and ice cream. Amul’s village-level collection system, which involves over 3.6 million milk producers, demonstrates how cooperative structures can feed directly into export pipelines.
NAFED (National Agricultural Cooperative Marketing Federation of India) plays a critical role in exporting agricultural commodities such as onions, groundnuts, and pulses. NAFED coordinates with APEDA (Agricultural and Processed Food Products Export Development Authority) to ensure compliance with phytosanitary standards required by importing countries. In recent years, NAFED has also explored exporting organic produce, tapping into the growing global demand for chemical-free food.
IFFCO, the Indian Farmers Fertiliser Cooperative, is another heavyweight. While primarily known for fertilizer production, IFFCO has diversified into food processing and exports organic fertilizers and specialty nutrients to markets in Africa, Southeast Asia, and the Middle East. Their cooperative model ensures that profits flow back to member farmers rather than to private shareholders, creating a virtuous cycle of reinvestment.
| Cooperative | Primary Export Products | Key Export Markets | Annual Export Revenue (Approx.) |
|---|---|---|---|
| Amul (GCMMF) | Dairy products, cheese, ghee | USA, UAE, Singapore, Hong Kong | ₹2,500+ crore |
| NAFED | Groundnuts, onions, pulses | Europe, Southeast Asia, Middle East | ₹1,800+ crore |
| IFFCO | Organic fertilizers, specialty nutrients | Africa, Southeast Asia, Middle East | ₹600+ crore |
| Kerala State Cooperative Rubber Marketing Federation | Natural rubber, rubber sheets | China, Malaysia, Germany | ₹400+ crore |
| Tribal Cooperative Marketing Federation (TRIFED) | Forest produce, handicrafts, honey | Europe, Japan, USA | ₹150+ crore |
Government Policies and Schemes Supporting Cooperative Exports
Several policy frameworks underpin cooperative export growth. The Multi-State Cooperative Societies Act 2002 provides the legal backbone for cooperatives operating across state boundaries, which is essential for aggregating export-quality volumes. The Act was amended in 2023 to improve governance transparency and allow cooperatives greater operational flexibility in international dealings.
APEDA’s financial assistance schemes cover a significant share of export-related infrastructure costs for cooperatives. These include subsidies for setting up pack houses, cold chain facilities, quality testing laboratories, and obtaining international certifications. I have seen cooperatives in Maharashtra and Karnataka successfully use APEDA grants to install fumigation chambers and cold storage units that meet EU import specifications.
The NCDC’s cooperative export promotion scheme provides term loans at concessional interest rates to cooperatives seeking to establish or upgrade export infrastructure. Under this scheme, cooperatives can receive financing for processing plants, warehousing, and even branding and marketing activities in foreign markets. The National Cooperative Policy 2026, currently under finalization, is expected to further streamline export credit access for primary-level cooperatives.
Challenges Facing Indian Cooperative Exports
Despite impressive progress, Indian cooperatives face significant hurdles in international trade. Quality consistency remains the biggest challenge — when a cooperative aggregates produce from thousands of small farmers, ensuring uniform grading, size, and pesticide residue levels across every shipment is extremely difficult. Rejection of consignments at foreign ports due to non-compliance with Maximum Residue Limits (MRLs) has cost Indian cooperatives crores in losses over the past decade.
Logistics and cold chain infrastructure, while improving, still lag behind competitors like New Zealand, the Netherlands, and Thailand. Many cooperative-produced perishable goods lose value during transit because of inadequate refrigerated transport between the farm gate and the port. The International Cooperative Alliance (ICA) has repeatedly highlighted infrastructure gaps as a barrier to cooperative trade in developing nations, and India is no exception.
Bureaucratic complexity also slows cooperative exports. Obtaining export licenses, phytosanitary certificates, and customs clearances involves navigating multiple agencies. Smaller cooperatives often lack dedicated staff trained in export documentation, foreign exchange management, and trade compliance. The result is that many cooperatives rely heavily on private intermediaries who capture a disproportionate share of the export margin, undermining the cooperative advantage.
Emerging Opportunities in 2026 and Beyond
Several trends are opening new doors for Indian cooperative exports. The global organic food market, projected to exceed USD 500 billion by 2028, represents a massive opportunity for cooperatives in Sikkim (India’s first fully organic state), the Northeast, and tribal regions where chemical-free farming is already the norm. TRIFED, the Tribal Cooperative Marketing Federation, has begun exporting organic honey, turmeric, and forest produce with geographic indication tags.
E-commerce platforms are also changing the game for cooperatives. Direct-to-consumer export models via Amazon Global Selling, Alibaba, and government-supported platforms like the Open Network for Digital Commerce (ONDC) allow cooperatives to bypass traditional intermediary chains. I believe this digital shift will be the most significant driver of cooperative export growth over the next five years.
Free trade agreements, particularly the India-UAE Comprehensive Economic Partnership Agreement (CEPA) and ongoing negotiations with the European Union and the United Kingdom, are expected to reduce tariff barriers on key cooperative export categories including dairy, spices, textiles, and processed foods. Cooperatives that invest now in compliance and branding will be best positioned to capture these preferential market access benefits.
If you are part of a cooperative or work with farmer producer organizations, I strongly encourage you to explore the export schemes offered by NCDC and APEDA. Start by getting your cooperative’s products tested and certified, connect with your nearest APEDA regional office, and attend trade fairs organized by the Ministry of Commerce. The infrastructure and policy support exist — what matters now is taking the first step toward getting your cooperative’s products onto the global stage.