As India celebrates Azadi Ka Amrit Mahotsav, commemorating 75 years of independence, the Ministry of Cooperation continues to spearhead transformative reforms that directly empower rural communities and farmers. A key initiative in this regard is the integration of Primary Agricultural Credit Societies (PACS) with PM-KISAN and other flagship central schemes, redefining the role of PACS as the nucleus of rural service delivery.
PACS: From Credit Providers to Service Hubs
Traditionally, PACS have been known for extending short-term agricultural credit. However, under a centrally sponsored computerization project, PACS are now being equipped with a uniform ERP-enabled platform. This integration links them with national portals such as PM-KISAN, PM Kisan Samriddhi Kendra (PMKSK), Fertilizer and Seed Distribution, Public Distribution System (PDS), LPG dealerships, Jan Aushadhi Kendras, and Pradhan Mantri Fasal Bima Yojana (PMFBY), among others.
This convergence not only ensures better access to schemes for farmers but also strengthens transparency, accountability, and financial sustainability of PACS.
Expanding Scope: Multi-Sectoral Integration
The Ministry’s efforts have made PACS crucial delivery points for a variety of services:
Fuel and LPG Distribution: PACS have been permitted to operate retail fuel outlets and apply for LPG distributorships, enhancing their revenue base.
Water Supply and FPO Formation: Over 500 PACS are managing piped water schemes, while 1,117 new Farmer Producer Organizations (FPOs) have been created through PACS.
These reforms empower PACS to diversify into more than 25 economic activities, reducing dependency on short-term credit and enabling holistic rural development.
Technology-Driven Governance
The ERP software brings built-in audit transparency, improved financial management, and MIS dashboards for real-time monitoring. To enhance accountability, a National Cooperative Database (NCD) tracks PACS’ registration, audit status, and financial indicators. The Cooperative Ranking Framework promotes healthy competition and incentivizes performance improvements.
Additionally, Standard Operating Procedures (SOPs) for new multipurpose PACS and cooperatives in dairy and fisheries have been released to ensure structured growth.
Robust Monitoring Framework
To ensure effective grassroots implementation, a multi-tiered monitoring system has been established, including:
- National Level Monitoring and Implementation Committee (NLMIC)
- State and District Level Committees (SLIMC/DLIMC)
- State Cooperative Development Committee (SCDC)
- District Cooperative Development Committee (DCDC)
These bodies work in close coordination with States/UTs, NABARD, and the Ministry of Cooperation to oversee progress, especially on the PACS computerization project.