The government has plans to establish 2 lakh new multipurpose PACS (primary agricultural credit societies) in the next five years to cover so far unserved or underserved regions of the country. These PACS will be developed as dairy and fisheries cooperatives.
Stakeholders have been strongly committed to the empowerment of PACS, enhancing their capacities, and helping them become self-reliant organizations. There has been a focus on bringing all viable PACS onto Enterprise Resource Planning (ERP) software and connecting them to NABARD through state cooperative banks and district central cooperative banks.
The Ministry of Cooperation has so far approved proposals for the computerization of 67,930 PACS across 30 states and Union Territories. The central government has already disbursed Rs 654.23 crore to states and Union Territories for the purchase of hardware, digitization of legacy data, and the establishment of support systems. NABARD has also been allocated Rs 141 crore under this project. As part of the PACS digitization campaign, 31,301 PACS across 29 states and Union Territories have been connected to ERP software by August 2024, with 21,477 PACS now live.
The Ministry of Cooperation is focusing on making PACS viable business entities. To this end, model bylaws have been created for them to operate as multipurpose entities involved in a range of economic activities—from agriculture and related activities to the distribution of petroleum products, fertilizers, and seeds. Most states have adopted these bylaws, with others in the process of doing so.
Cooperative stakeholders, including the heads and managing directors of various national cooperative federations such as NABARD, participated in virtual consultations organized by the Ministry of Cooperation. Speaking about the development of cooperatives in the country, Dr. Ashish Kumar Bhutani, Secretary of the Ministry of Cooperation, said that under the guidance of Union Home and Cooperation Minister Amit Shah, the Ministry will establish two lakh new PACS as dairy and fisheries cooperatives within five years. This initiative will ensure the establishment of viable cooperatives in every village panchayat across the country.
He also said that in line with promises, the Ministry is ready to procure maize at the Minimum Support Price (MSP). He urged all maize farmers to register on the farmer portal for procurement under the ethanol blending program by the National Cooperative Consumer Federation (NCCF) and the National Agricultural Cooperative Marketing Federation of India (NAFED). This step will benefit both farmers and the ethanol blending mission. A revised target for blending 20% ethanol in petrol and diesel has been announced by Shah, with the deadline extended from 2030 to 2025-26.
Under his leadership, steps have been taken to strengthen PACS by encouraging farmers to produce maize and pulses. It has been decided that all the produce of already registered farmers of maize and pulses will be procured at MSP.
