The structure of competition in farm credit market in Punjab has undergone considerable charge in the last 40 years, since the beginning of green revolution. The volume of farm credit has grown manifold. Now almost every farm is using credit money to finance farm operations and capital investments on the farm. To regain and further expand the share of cooperative institutions in farm credit in Punjab, a thorough examination of their present position, working methods and sources of funds etc needs to be assessed. Only on the basis of a correct diagnosis, an effective strategy for their reorientation and reorganisation can be devised to regain and expand their share and increase their role in the farm credit in the state. The present study is an attempt in that direction.