Govt to bring model by-laws to govern all Primary Agricultural Cooperative Societies

Tags: Economy/Finance National News

Union Home and Cooperation Minister Amit Shah has said that the government will bring a model bye-law to govern all Primary Agriculture Cooperative Societies (PACS) in the country.

Important facts

• He was addressing a national conference on rural cooperative banks organised by the Ministry of Cooperation and the National Federation of State Cooperative Banks (NAFSCOB) at Vignan Bhavan in New Delhi on 12 August.

• He said that sick and discontinued packs should be revived or taken for liquidation.

• PACS will not be viable just by giving agriculture loans, they should diversify their business.

• He stressed the need to set up more than 2 lakh new PACS across the country to achieve the target of providing agri-finance of Rs 10 lakh crore through cooperatives.

• Presently there are more than 95,000 packs, of which only 63,000 packs are operational.

• The implementation of these model bye-laws will depend on the states as cooperatives are a subject in the State List (Schedule VII).

What are 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