Parliament Question: Uneven access to cooperative credit for small and marginal farmers

GOVERNMENT OF INDIA MINISTRY OF COOPERATION RAJYA SABHA UNSTARRED QUESTION NO. 483 ANSWERED ON 04.02.2025 Uneven access to cooperative credit for small and marginal farmers 483 Shri Raghav Chadha: Will the Minister of COOPERATION be pleased to state: (a) whether Government has undertaken any assessment of the coverage of cooperative credit institutions among small and marginal farmers and if so, the details thereof; (b) details on the number of farmers receiving short-term and long-term agricultural credit through cooperative banks and Primary Agricultural Credit Societies (PACS), category wise, State-wise and year-wise; (c) steps that are being taken by Government to expand the outreach of cooperative credit institutions in underserved regions and among small and marginal farmers; and (d) quantum of funds allocated and utilised for strengthening cooperative credit structures including PACS and cooperative banks in the last five years, State-wise and year-wise? ANSWER THE MINISTER OF COOPERATION (SHRI AMIT SHAH) (a) A comprehensive National Cooperative Database (NCD) has been developed by Ministry of Cooperation, Government of India, with the support of State/UT Governments. The data of all the Cooperative Societies from various sectors has been entered in the database by the States/ UTs for this purpose. The Government undertakes State-wise and regional assessment using the National Cooperative Database (NCD) to identify gaps in cooperative coverage. As on 20.01.2026, a total of 1,11,503 Primary Agricultural Credit Societies (PACS) in present the country; 1,06,197 are functional; 3,851 are non-functional/dormant; 1,455 are under liquidation and 13,383 Gram Panchayats are yet to be covered by Primary Agricultural Credit Societies. The details are at Annexure-I. Primary Agricultural Credit Societies (PACS) constitute the lowest tier of the three- tier short term cooperative credit (STCC) structure in the country and hence play a significant rolein transforming the agricultural and rural landscape of Indian economy. PACS provide credit facility by linkage with District Central Cooperative Bank, State Cooperative Bank and NABARD, distribute agricultural inputs like seeds, fertilizers, crop purchase, storage facilities, etc to the member farmers. In this regard, the Government of India has approved the plan to establish new multipurpose PACS/dairy/fisheries cooperatives, aiming to cover all panchayats and villages in the country over the next five years. As per the National Cooperative Database, a total of 32,802 new PACS, Dairy and Fishery Cooperative Societies have been registered; and 15,793 Dairy and Fisheries Cooperative Societies have been strengthened as on 20.01.2026 across the country. (b) The detailed information on short-term and long-term agricultural credit through Cooperative Banks and Primary Agricultural Credit Societies (PACS) placed at Annexure-II (c) The Government has adopted a multi-pronged strategy to expand the outreach of cooperative credit institutions, particularly in underserved, tribal, hilly and aspirational regions, and among small and marginal farmers. Key steps include: • Formation of new cooperatives: A plan approved in February 2023 envisages the formation of 2 lakh new multipurpose PACS, dairy and fishery cooperative societies over five years to ensure cooperative coverage in all uncovered Panchayats and villages. • Diversification through Model Bye-laws: The Model Bye-laws for PACS enable societies to undertake over 25 business activities, including operation of Common Service Centres (CSCs), storage godowns and retail services, thereby improving financial viability and providing farmers with single-point access to credit and allied services. • Project for the Computerization of functional PACS with a total financial outlay of ₹2925.39 Crore has been approved by the Government of India, which entails bringing all functional PACS in the Country onto a common ERP-based national software, linking them with National Bank for Agriculture and Rural Development (NABARD) through StCBs and DCCBs. A total of 79,630 PACS from 31 States/ UTs have been sanctioned under the project. A total of 61,025 PACS have been onboarded on Enterprise Resource Planning (ERP) Software, and hardware has been procured by 30 States/UTs. • Digital financial inclusion: Distribution of RuPay Kisan Credit Cards (KCCs) and Micro-ATMs is being promoted to facilitate doorstep banking and digital transactions through PACS and cooperative banks. • Strengthening cooperative banks: Sahakar Sarathi has been launched for Rural Cooperative Banks (RCBs), to provide modern Core Banking Solutions (CBS) and digital payment integration. Urban Cooperative Banks (UCBs) have been permitted to open new branches without prior RBI approval up to a specified limit and to provide doorstep banking services. • Inclusive governance measures: The Multi-State Cooperative Societies (Amendment) Act, 2023 mandates reservation of two seats for women and one seat for SC/ST members on boards of multi-State cooperatives. RBI has also removed the sub-limit on lending to women borrowers under Priority Sector norms, enabling greater credit flow.• Evidence-based targeting: The National Cooperative Database (NCD) maps over 8.4 lakh cooperatives, enabling identification of coverage gaps and targeted intervention in underserved Gram Panchayats. (d) Over the last five years, the Government has allocated and provided funds to modernize and strengthen the cooperative credit structure, including computerization of Primary Agricultural Credit Societies (PACS), Agriculture and Rural Development Banks (ARDBs). The State-wise allocation details in both the projects are attached as Annexure III *****Annexure-I PACS Operational Status and Membership as on 20-01-2026 Non- Functio Under Total PACS SC ST Total Functio State nal / Liqui Membershi Membersh Membersh PACS nal Dorma dation p ip ip nt Andaman And Nicobar Islands 47 47 0 0 14930 0 0 Andhra Pradesh 2062 2043 16 3 5369439 550380 177352 Arunachal Pradesh 165 162 3 0 19339 158 15400 Assam 2046 1291 380 375 2323521 258132 365106 Bihar 8500 8500 0 0 13778074 2065942 396571 Chandigarh 17 4 10 3 2742 0 0 Chhattisgarh 2525 2505 20 0 3500250 427798 993538 Goa 161 137 8 16 259654 1185 29349 Gujarat 11027 10472 303 252 3436851 185893 508184 Haryana 815 815 0 0 2907023 443174 4800 Himachal Pradesh 2307 2214 51 42 1376729 318535 65048 Jammu And Kashmir 809 753 55 1 272107 9670 24961 Jharkhand 4459 4458 1 0 1695244 253014 520483 Karnataka 6326 6170 34 122 7956123 1016725 619907 Kerala 1709 1647 29 33 30528321 1840935 128885 Ladakh 163 129 34 0 16831 19 12638 Madhya Pradesh 5207 5184 21 2 5721895 573167 1235115 Maharashtra 21196 21152 2 42 12270322 880689 838402 Manipur 356 329 27 0 73335 2589 37597 Meghalaya 817 746 71 0 162015 3594 131027 Mizoram 163 155 7 1 10096 0 9850 Nagaland 1400 672 728 0 33966 0 15965 Odisha 4260 4145 114 1 8299498 2330161 1284218Puducherry 61 53 8 0 75796 13793 30 Punjab 3951 3511 30 410 2306206 389171 9246 Rajasthan 9022 9007 4 11 7507272 1068843 1164266 Sikkim 201 199 2 0 34147 2295 13091 Tamil Nadu 4533 4530 1 2 10645032 1663640 151493 Telangana 909 908 0 1 2904180 331812 306579 The Dadra & Nagar Haveli and Daman & Diu 20 18 1 1 11264 547 5994 Tripura 559 559 0 0 402338 80610 159844 Uttar Pradesh 8662 7830 797 35 10981984 1613594 117130 Uttarakhand 1294 1004 289 1 1216692 250384 55692 West Bengal 5754 4848 805 101 4793714 710621 629120 Total 1,11,503 1,06,197 3,851 1,455 14,09,06,930 1,72,87,070 1,00,26,881Annexure-II Agricultural credit in India is provided through a multi-tier cooperative structure consisting of State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs), and Primary Agricultural Credit Societies (PACS). The National Federation of State Co-operative Banks Ltd. (NAFSCOB), working in collaboration with Ministry of Cooperation is national-level cooperative organization to facilitate the operations of State and Central Co-operative Banks. As per NAFSCOB’s Annual Report 2024-25, the details of short-term and long- term Agricultural Credit are as under: Short-Term Agricultural Credit Short-term credit is primarily facilitated through the Kisan Credit Card (KCC) scheme and the Modified Interest Subvention Scheme (MISS). • Total Reach: KCCs facilitate short-term loans for approximately 7.7 crore farmers, including fishermen and dairy farmers. • Annual Progress (2024-25): During the 2024-25 year, cooperative banks issued 3,34,29,368 KCCs, with a sanctioned amount of ₹2,20,260.24 crore. • Cumulative Progress: So far, cooperative banks have issued a total of 53,63,82,997 cards up to March 2025. • State-wise KCC Progress (2024-25): High-performing states in terms of cards issued include: ◦ Madhya Pradesh: 4,015,609 cards. ◦ Karnataka: 3,601,022 cards. ◦ Maharashtra: 3,591,512 cards. ◦ Odisha: 3,207,239 cards. ◦ Rajasthan: 3,531,033 cards. • PACS Borrowers: As of March 31, 2024, there were 4.95 crore borrowing members in PACS. Long-Term Agricultural Credit Long-term credit is supported through schemes such as the Long Term Rural Credit Fund (LTRCF) and specific government initiatives. • Farmer Reach: The PM-Dhan-Dhaanya Krishi Yojana is expected to facilitate the availability of both long-term and short-term credit to approximately 1.7 crore farmers. • Institutional Refinance: NABARD provides long-term refinance to StCBs for investment credit in agriculture. In 2024-25, the interest rate for this refinance was set at 5.50% p.a., with a mandate that 25% of the fund corpus be utilized in identified districts with low credit flow.Year-wise Details Further, as per NAFSCOB JOURNAL OF RURAL COOPERATIVE CREDIT AND BANKING, Year-wise and category-wise breakdowns for borrowing members within the PACS structure. Year Total Borrowers 2019–20 52,554 2020–21 53,653 2021–22 48,348 2022–23 49,228 2023–24 49,497 State-wise Utilization of Credit Limits (2024-25) The aggregate credit limits utilized for financing Short-Term Seasonal Agricultural Operations (ST-SAO) through StCBs on behalf of DCCBs stood at ₹32,085.60 crore for 2024-25. Top States by ST-SAO Utilization (₹ in crore): • Madhya Pradesh: 4,430.00 • Odisha: 4,110.00 • Karnataka: 3,236.1 • Tamil Nadu: 2,825.26 • Rajasthan: 2,750.00 ***Annexure-III PACS Computerization Total Total ERP amount Sanctioned ERP Go Day End released in S. No State/UTs PACS Onboarded Live Completed Audit Completed Cr. 1 Maharashtra 12178 12028 12011 12000 11949 130.73 2 Bihar 4495 4478 4475 4471 4364 51.76 3 Gujarat 6216 5705 5575 5458 4724 93.97 4 Andhra Pradesh 2037 2021 2021 2017 2016 37.41 5 Chhattisgarh 2028 2028 2028 2028 1975 28.35 6 Rajasthan 8525 6157 6153 5860 3828 84.83 7 Jharkhand 2797 1479 1491 1461 1378 34.30 8 Punjab 3482 3172 2760 2385 786 32.94 9 Madhya Pradesh 5455 4532 4524 4530 4492 66.43 10 J&K 708 537 537 537 537 10.37 11 Himachal Pradesh 1885 1376 1234 1210 608 28.25 12 Haryana 710 624 580 568 454 8.79 13 Uttar Pradesh 6257 3061 3052 2922 2110 67.10 14 Karnataka 5894 4337 3690 3606 3252 67.83 15 Assam 850 577 576 569 566 17.02 16 Tripura 475 267 247 262 197 8.21 17 Sikkim 131 107 107 107 105 3.28 18 Goa 86 51 46 41 37 1.19 19 Puducherry 45 45 45 45 30 0.67 20 ANI 46 46 46 46 46 0.69 21 Mizoram 99 25 25 25 24 1.27 22 Ladakh 10 10 10 10 10 0.1223 Nagaland 231 102 67 53 17 4.43 24 DNH & DD 9 4 4 4 4 0.12 25 Arunachal Pradesh 139 13 13 13 13 1.22 26 Uttarakhand 1216 669 668 589 469 5.69 27 Manipur 308 199 195 196 128 3.14 28 Meghalaya 330 11 9 10 4 2.34 29 Tamil Nadu 4561 4509 4508 4509 529 51.73 30 West Bengal 4187 3308 3145 2874 208 45.79 31 Odisha 4240 0 0 0 0 18.07 Grand Total 79630 61478 59842 58406 44860 908.06ARDB Computerization Total Hardware Total Hardware Total Fund S.No. State Target to ARDBs Delivered released (Cr.) be Delivered 1 Gujarat 195 440 440 0.82 2 Haryana 90 203 0 0.76 Himachal 3 88 202 202 Pradesh 1.04 4 Rajasthan 163 351 351 1.14 5 Punjab 113 272 0 0.94 6 Karnataka 207 467 467 1.28 7 Tamil Nadu 216 477 471 1.96 8 Puducherry 2 17 4 0.11 9 Tripura 6 15 5 0.04 10 Uttar Pradesh 342 740 0 1.75 Jammu & 11 51 115 0 Kashmir 0.3 Total 1473 3299 1940 10.14 J &K has opted out of the Project.