International Journal of Agriculture Extension and Social Development

author(s)
Saiyadali Nadaf, Sohail Indiakar and Bebijan Nadaf

abstract
Agricultural cooperatives are crucial institutions in shaping the socio-economic structure of rural areas across the world. They organize dispersed producers, reduce transaction costs, increase their bargaining power, and provide access to markets, technology, credit, and inputs. Global studies indicate that cooperative membership enhances smallholder income, supports local employment, improves food security, and fosters social cohesion, especially in marginal and resource-poor regions. In India, Primary Agricultural Credit Societies (PACS), dairy unions, sugar cooperatives, and multipurpose societies form one of the world’s largest cooperative networks, reaching millions of rural households. The Amul dairy cooperative model remains a globally cited example of cooperative-led development through collective ownership and decentralized management. This review synthesizes conceptual foundations, pathways of influence, empirical evidence, and case studies from Africa, Asia, Europe, and Latin America, while drawing detailed insights from the Indian context. It also outlines limitations such as governance failures, elite capture, financial instability, and market competition. The paper concludes that future cooperatives must integrate digitalization, climate-smart strategies, and youth participation to remain effective, sustainable, and inclusive in rural socio-economic transformation.