Cabinet approves establishment of Agricultural Credit Societies

Tags: Economy/Finance National News

In order to strengthen the cooperative sector, the Union Cabinet on 15 February approved the setting up of a new Primary Agricultural Credit Society (PACS) in two lakh panchayats in the next five years.

An overview of the news

• According to the government, 25 different facilities will be made available through the Primary Agricultural Credit Society.

• Dairy and fisheries will also be linked to agricultural cooperatives.

• In the next 5 years, a target has been set to establish 2 lakh multipurpose packs, dairy, fisheries cooperatives.

• The scheme will be implemented with convergence of various schemes.

• The scheme will be implemented with convergence of various schemes by leveraging the 'Whole of Government' approach.

Primary Agricultural Cooperative Societies (PACS) 

• These are grassroots level cooperative credit institutions that provide short-term and medium-term agricultural loans to farmers for various agricultural and agricultural activities.

• It works at the gram Panchayat and village level.

• The first Primary Agricultural Credit Society (PACS) was set up in 1904.

• PACS are registered under the Co-operative Societies Act and regulated by RBI.

Objectives of PACS

• Raise capital for the purpose of making loans

• Supporting members' essential activities

• Collect deposits from members with the goal of improving their savings habit

• Arrange for the supply and development of improved breeds of livestock to the members

• Supply agricultural inputs and services to members at reasonable prices