Agriculture is one of the oldest occupation of the country and backbone of our country. Agriculture is the prime and traditional occupation for the people of Tamil Nadu. About 56 percent of the people of Tamil Nadu are farmers. It contributes nearly 50 percent of the national income. Agriculture provides livelihood to about three quarter of the population and also supplies raw materials for a large section of industry. An agricultural cooperative is also called as a farmers co-operative where farmers pool their resources in certain areas of activity. It allows little farms to do what big farms can do, like buy inputs at bulk rates, increase volume to open new markets and lower the per-use cost of equipment. Government of India is giving top priority to the agriculture sector. Governments are expected to provide a supportive policy, legal and institutional framework, provide support measures based on activities, provide oversight on terms equivalent to other forms of enterprise and social organization, adopt measures to improve access to finance for disadvantaged groups, and topically, for the agricultural development. This will ensure that agricultural sector remains viable and caters to the country’s needs.