--- title: "Farmers’ body calls NCDC Act anti-federal" url: https://projectchintan.com/article/farmers-body-oppose-ncdc-act-anti-federal-sspyk publisher: Project Chintan author: Project Chintan Newsroom section: Politics published: 2026-08-30T11:42:23.931Z modified: 2026-08-30T14:00:02.956Z language: en-IN --- # Farmers’ body calls NCDC Act anti-federal The Samyukt Kisan Morcha criticised Parliament's approval of the National Cooperative Development Corporation Act 2026, accusing it of eroding state powers over cooperatives and redirecting rural resources to an urban-centric, corporate model. The group warned the act would centralise control and ex ## Key takeaways - Parliament passed the National Cooperative Development Corporation Act 2026, prompting a strong response from SKM. - SKM claims the act undermines federal rights by allowing direct central intervention in cooperatives and expanding NCDC reach beyond agriculture. - The group asserts the act shifts resources toward urban-centric development and corporate interests, potentially reducing state oversight. ## What Happened The National Cooperative Development Corporation (NCDC) Act 2026 has been passed by Parliament, according to a statement from the Samyukt Kisan Morcha (SKM). The SKM, an umbrella body for farmer groups, argued that the act undermines the federal structure by enabling direct Union government intervention in cooperative societies and permitting financial support from the central government to these cooperatives. It contends the measure diverges from the Seventh Schedule’s allocation of cooperation to the states and effectively centralises power in New Delhi. The coalition criticised the act for extending the scope of NCDC’s operations to non-agricultural sectors and removing stipulations that tie rural development to agriculture and rural industry. It framed the legislation as being aligned with a corporate development model that prioritises urban-centric projects over rural needs. SKM claimed the move would weaken state oversight of cooperatives, enabling central control for political purposes, and described the act as an intrusion into state powers. The group also cited a 2021 Supreme Court order that, in its view, limited central powers to intervene in cooperatives governed by the states. The SKM asserted the amendment seeks to nullify that order. The statement highlighted rural cooperatives as vital to rural India’s development and warned of resources being diverted from agriculture and rural infrastructure to urban-oriented developments tied to corporate interests. The report was published with reference to the date August 24, 2026. ## Why It Matters Packing more central oversight into cooperative bodies could recalibrate who sets priorities for rural credit, development and infrastructure. If the central government can directly finance and intervene in cooperatives, states may lose leverage over local development agendas that have historically been aligned with agricultural policy and rural industries. The SKM’s framing of the act as constituting an intrusion into states’ constitutional autonomy underlines ongoing debates about federal balance in resource allocation and governance structures for rural enterprises. ## Background The SKM frames cooperatives as a cornerstone of rural India and argues state governments traditionally supervise cooperative societies. The group refers to a 2021 Supreme Court order, which, in its view, limited central intervention in these bodies. The current act is described as broadening the NCDC’s remit and extending financial support beyond agriculture and rural infrastructure to non-agricultural sectors, according to the SKM statement. ## Key Facts - The National Cooperative Development Corporation Act 2026 was passed by Parliament. - The Samyukt Kisan Morcha published a statement describing the act as an intrusion into state powers and an anti-federal move. - The act purportedly enables direct intervention by the Union government in cooperative societies and allows financial participation by the NCDC. - The act expands the scope of NCDC operations to non-agricultural sectors and removes certain rural-development constraints tied to agriculture and rural industry. - The SKM links the act to a centralisation of power and to a corporate urban-centric development model. - The SKM cites a 2021 Supreme Court order regarding limits on central intervention in cooperatives as a point of reference. - The report notes the August 24, 2026 publication date of the SKM statement. ## What Happens Next The provided material does not specify any scheduled follow-up steps. The SKM’s public stance calls for scrutiny of the act’s federal implications, but no explicit future actions or timelines are documented in the source. --- Canonical: https://projectchintan.com/article/farmers-body-oppose-ncdc-act-anti-federal-sspyk Reported from: Multiple Sources