To strengthen the cooperative movement in the nation, the Union Cabinet on Wednesday authorized the creation of 2 lakh new primary agriculture credit societies (PACS) and dairy-fishery cooperatives in untapped villages and panchayats during the next five years. Out of roughly 99,000 PACS nationwide, approximately 63,000 are now operational. Nearly 2 lakh panchayats still lack dairy cooperative societies, while there are still 1.6 lakh panchayats without PACS.
The grassroots components of the short-term cooperative lending structure are the Primary Agricultural Credit Societies. Rural (agricultural) debtors are dealt with directly by PACs, who also disburse loans, collect repayments, and perform marketing and distribution tasks as well.
They are the foundation of the co-operative credit framework and have a dominating position. It acts as the last link between the principal creditors and the higher lending institutions, particularly the Scheduled Commercial Banks and the RBI/NABARD, on the one hand and the ultimate borrowers on the other.
According to an official release, the ministry of cooperation has developed a strategy to establish successful PACS in every unorganised panchayat, viable dairy cooperatives in every unorganised village and panchayat along the coast, as well as panchayats and villages with significant bodies of water.
Primary agricultural co-operative credit societies are a type of financial institution that is crucial to the local community's growth. They are multifaceted businesses that offer a variety of services like banking, purchasing supplies, selling crops, and dealing in consumer products.
"In the initial five years, 2 lahks PACS/dairy/fishery cooperatives would be started. The National Dairy Development Board (NDDB), National Fishery Development Board (NFDB), and NABARD shall prepare an action plan for the project's implementation "The declaration said.
The Cabinet's decision would assist in giving farmer members the necessary forward and backward links to market their produce, increase their revenue, and acquire credit facilities and other services right at the village level.
