Executive Summary:
The Ministry of Cooperation has undertaken several initiatives since July 2021 to strengthen Primary Agricultural Credit Societies (PACS). These steps include model byelaws, computerization, establishing new cooperatives, and a decentralized grain storage plan. As of the present date, 47,918 PACS have started providing Common Service Center (CSC) services and construction of godowns in 11 PACS of 11 States has been completed under a pilot project.
Key Points / Main Content:
Financial and Operational Strengthening of PACS:
* Model Byelaws: PACS can undertake over 25 business activities, including dairy, fishery, godown setup, foodgrain procurement, and CSC operations.
* Computerization: A project to computerize PACS with a financial outlay of ₹2,925.39 crores aims to bring all functional PACS onto a common ERP-based national software, linked with NABARD.
* New Cooperatives: Establishment of 2 lakh new multipurpose PACS, Dairy, and Fishery Cooperative Societies across the country over five years through convergence of existing GOI schemes.
PACS as Service Centers:
* Common Service Centers (CSCs): 47,918 PACS have started providing over 300 e-services to rural citizens, with total transactions worth ₹96.61 crores.
* Pradhan Mantri Kisan Samriddhi Kendras (PMKSK): PACS to provide fertilizers, pesticides, and other agri-inputs/services.
* Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJK): PACS to ensure the availability of quality generic medicines at affordable prices.
* Retail Petrol/Diesel Outlets: PACS are eligible for allotment of retail petrol/diesel outlets and can convert bulk consumer petrol pumps into retail outlets.
* LPG Distributorship: PACS are eligible for LPG distributorship.
* Operations & Maintenance: PACS are eligible to carry out Operations & Maintenance (OM) under rural piped water supply schemes.
Decentralized Grain Storage Plan:
* Approval: Government approved the Worlds largest Grain Storage Plan in Cooperative Sector on 31.05.2023.
* Objective: Creation of warehouses, custom hiring centers, primary processing units, and other agri-infrastructure at PACS level.
* Pilot Project: Construction of godowns has been completed in 11 PACS of 11 States.
* Current Status: More than 500 PACS have been identified for godown construction, with 24 godowns completed and inaugurated in Rajasthan on 17.07.2025.
Impact Analysis:
PACS:
* Impact: Enhanced economic viability through diversified business activities, improved operational efficiency via computerization, access to new revenue streams (CSC, petrol/diesel outlets, LPG distributorship), and infrastructure development for grain storage.
* Action Required: Implement model byelaws, adopt the common ERP software, participate in establishing new cooperatives, provide CSC services, and engage in grain storage plan activities.
Farmers:
* Impact: Improved access to credit, agri-inputs/services, e-services, and affordable medicines through PACS.
* Action Required: Utilize the services offered by PACS, including credit facilities, agri-inputs, and e-services.
Government of India:
* Impact: Strengthening of the cooperative movement, deepening its reach to the grassroots level, and promoting rural development.
* Action Required: Continue to support PACS through financial outlays, convergence of existing schemes, and collaboration with NABARD, NDDB, and NFDB.
NABARD, NDDB, NFDB, State Governments:
* Impact: Collaboration with the Government of India to support the strengthening of PACS and the cooperative movement.
* Action Required: Provide support for establishing new cooperatives and implementing the decentralized grain storage plan.
Key Entities Referenced
Primary Agricultural Credit Societies PACS: A type of cooperative society that provides agricultural credit and other services to farmers. The policy focuses on strengthening PACS financially and operationally.
Ministry of Cooperation: The Government of India ministry responsible for cooperative societies. It plays a central role in the initiatives described in the policy.
National Bank for Agricultural and Rural Development NABARD: An apex development finance institution in India that supports agricultural and rural development. It is involved in strengthening PACS.
Common Service Centres CSCs: Access points for delivery of essential public utility services, social welfare schemes, healthcare, financial, education and agricultural services, apart from a host of other B2C services to citizens in rural and remote areas of the country.
Agricultural Infrastructure Fund AIF: A medium-long term debt financing facility for investment in projects for post-harvest management infrastructure and community farming assets.
Rajasthan: A state in India where 24 godowns have been completed and inaugurated under the Grain Storage Plan.
Decentralized Grain Storage Programme: A government initiative to create decentralized storage capacity at PACS level through construction of warehouses, custom hiring centers and other agri-infrastructure.
Model Byelaws for PACS: Standard rules and regulations for PACS, enabling them to undertake a wider range of business activities.
GOVERNMENT OF INDIA
MINISTRY OF COOPERATION
LOK SABHA
UNSTARRED QUESTION NO. 1542
TO BE ANSWERED ON 29th JULY 2025
Strengthening of PACS
†1542. Shri Nalin Soren:
Will the Minister of Cooperation (सहकारिता मंत्री) be pleased to state:
(a) the steps taken by the Government to strengthen the Primary Agricultural Credit
Societies (PACS) financially;
(b) the current status of incorporating PACS as Common Service Centres (CSCs); and
(c) whether the Government has approved the Decentralized Grain Storage Programme
involving PACS, if so, the details thereof?
ANSWER
THE MINISTER OF COOPERATION
सहकारिता मंत्री (SHRI AMIT SHAH)
(a) & (b) Since the establishment of the Ministry of Cooperation in July 2021, the
Government of India has taken several transformative steps to strengthen Primary
Agricultural Credit Societies (PACS), aiming to enhance their economic viability,
transparency and financial sustainability. The major initiatives taken by the
Government to strengthen PACS includes the following-
• Model Byelaws for PACS have been prepared, enabling PACS to undertake more
than 25 business activities, including dairy, fishery, setting up godowns,
procurement of foodgrains, fertilizers, seeds, LPG/CNG/Petrol/Diesel
distributorship, short-term & long-term credit, custom hiring centers, Fair Price
Shops (FPS), community irrigation, Common Service Centre, etc.
• Strengthening of PACS through Computerization: In order to strengthen
PACS, project for Computerization of functional PACS was approved with a total
financial outlay of ₹2,516 Crore which has been increased to ₹2,925.39 crores by
the Government of India, which entails bringing all functional PACS in the
Country onto a common ERP based national software, linking them withNABARD through StCBs and DCCBs. This initiative helps in improving the
operational efficiency of PACS, ensuring speedy disbursal of loans, lowering of
transaction costs, increasing transparency and increasing farmers' trustworthiness
in PACS operations.
• Establishing New Multipurpose PACS/ Dairy/ Fishery Cooperatives: The
Government on 15.2.2023, approved the Plan for strengthening cooperative
movement in the country and deepening its reach up to the grassroots. The Plan
entails establishment of 2 lakh new multipurpose PACS (M-PACS), Dairy, Fishery
Cooperative Societies covering all the Panchayats/ villages in the country over a
period of five years, through convergence of various existing GOI schemes,
including Dairy Infrastructure Development Fund (DIDF), National Programme
for Dairy Development (NPDD), PM Matsya Sampada Yojana (PMMSY), etc,
with the support of National Bank for Agricultural and Rural Development
(NABARD), National Dairy Development Board (NDDB), National Fisheries
Development Board (NFDB) and State Governments.
• World’s Largest Decentralized Grain Storage Plan in Cooperative sector:
Government has approved the plan to create godowns for food grain storage,
custom hiring centers, primary processing units and other agri-infrastructure at
PACS level, through convergence of various existing schemes of Government of
India (GOI), including Agricultural Infrastructure Fund (AIF), Agricultural
Marketing Infrastructure (AMI), Sub-Mission on Agricultural Mechanization
(SMAM), Pradhan Mantri Formalisation of Micro Food Processing Enterprises
(PMFME), etc. Under the pilot project of the plan, construction of godowns in 11
PACS of 11 States has been completed.
• PACS as Common Service Centers (CSCs) to deliver more than 300 e-services
such as banking, insurance, electricity bill payments, health services, legal
services, etc. to rural citizens; etc. So far, 47,918 PACS have started providing
CSC services to rural citizens with total transactions worth Rs. 96.61 crores
carried out by these PACS-CSCs.
• PACS as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK) providing
fertilizers, pesticides and various other agri inputs/services to farmers under one
roof.
• PACS as Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJK) to ensure
availability of quality generic medicines to rural citizens at affordable prices.
• PACS made eligible for Retail Petrol/ Diesel outlets: Government has allowed
PACS to be included in the Combined Category 2 (CC2) for allotment of retail
petrol/ diesel outlets.• PACS given permission to convert bulk consumer petrol pumps into retail
outlets: The existing bulk consumer licensee PACS have been given a one-time
option by Oil Marketing Companies to convert into retail outlets.
• PACS made eligible for LPG Distributorship for diversifying its activities:
This will give PACS an option to increase their economic activities and diversify
their source of revenue.
• PACS have been made eligible to carry out Operations & Maintenance (O&M)
under rural piped water supply schemes.
(c) In order to create decentralized storage capacity at PACS level, the Government has
approved the World’s largest Grain Storage Plan in Cooperative Sector on 31.05.2023. It
entails creation of warehouses, custom hiring centers, primary processing units and other
agri-infrastructure for grain storage at PACS level, through convergence of various existing
Government of India schemes, including Agricultural Infrastructure Fund (AIF),
Agricultural Marketing Infrastructure (AMI), Sub-Mission on Agricultural Mechanization
(SMAM), Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME),
etc. Under the pilot project of the Plan, construction of godowns has been completed in 11
PACS of 11 States. Further, more than 500 PACS have been identified for construction of
godowns under the Project out of which 24 godowns in the State of Rajasthan have been
completed and inaugurated on 17.07.2025.
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