Farmers missed opportunity

December 26, 2025

A fresh nationwide report reveals a significant gap in the participation of marginal farmers in cooperative systems, showing that only one in four small‑scale agricultural producers in the country are formally linked to cooperatives. While cooperatives have long been touted as a powerful instrument for improving rural incomes, strengthening market access and securing better input prices, the limited penetration among marginal farmers highlights structural and policy challenges that are holding back inclusive rural development.

Marginal farmers, defined as those cultivating less than a hectare of land, make up a large majority of the country’s farming population. Yet their representation within cooperatives remains disproportionately low. The patterns emerging from the data suggest that many smallholders face barriers that prevent effective membership, including lack of awareness, limited access to credit, and the dominance of larger players within cooperative governance structures. In communities where cooperatives are active, larger farmers are more likely to enjoy the benefits of collective action, while those with smaller landholdings struggle to gain a foothold.

Cooperatives were initially envisaged as a vehicle to democratise access to agricultural inputs, credit and markets. By pooling resources, small producers can theoretically reduce costs, negotiate better terms with buyers and stabilise incomes.