Home India Ministry of Cooperation Strengthening PACS and Multipurpose Cooperatives...
Date: 2026-02-03 Category: Press Release State: Union Government Country: India

Strengthening PACS and Multipurpose Cooperatives

Issued by Ministry of Cooperation · Not Applicable

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Executive Summary & Key Takeaways

**Executive Summary** The government initiative to transform Primary Agricultural Credit Societies (PACS) into multipurpose entities has strengthened rural economic activity in agriculture, dairy, and fisheries. A plan to establish new multipurpose PACS or primary dairy/fishery cooperative societies covering all uncovered Panchayats/villages by 2028 was approved on February 15, 2023. Since then, 32,802 new societies have been registered nationwide. **Key Points / Main Content** * **PACS Transformation:** * PACS are enabled to undertake over 25 business activities. * **Agriculture Sector:** * The World's Largest Decentralized Grain Storage Plan establishes godowns and custom hiring centres at the PACS level. * Over 38,000 PACS have been upgraded as Pradhan Mantri Kisan Samriddhi Kendras (PMKSKs). * The PACS Computerization Project, covering 79,630 PACS, improves transparency and efficiency. * **Dairy Sector:** * White Revolution 2.0 aims to enhance milk procurement by 50% over five years. * Over 21,000 new Dairy Cooperative Societies have been registered by early 2026. * GST rationalisation has improved competitiveness. * **Fisheries Sector:** * 1,000 fisheries cooperative societies are being converted into Fish Farmer Producer Organisations (FFPOs). * NCDC extends financial assistance to strengthen FFPO infrastructure. * **National Cooperative Database (NCD):** * The NCD covers 8.4 lakh cooperatives and 32 crore members. * NCEL has exported commodities worth over ₹5,300 crore to 29 countries. * **Inclusion and Governance:** * The Multi-State Cooperative Societies (Amendment) Act, 2023 mandates reservation of seats for women and SC/ST members on boards. * The National Cooperation Policy (NCP) 2025 emphasizes promotion of membership and leadership roles for women and weaker sections. * **Odisha Specifics:** * 2,281 new cooperative societies registered, comprising 1,543 Multipurpose PACS and 679 Dairy Cooperative Societies. * 4,240 PACS sanctioned for onboarding onto a common ERP-based national software. **Impact Analysis** **Farmers and Primary Producers** * **Impact:** Improved income sustainability through diversified income streams, better price realisation, enhanced market access, and access to affordable credit and quality inputs. Benefit from activities such as warehousing and custom hiring centres. * **Action Required:** Register through cooperatives to gain assured procurement at Minimum Support Price and utilise the new PACS as multipurpose service centres. **Dairy Farmers and Dairy Cooperative Societies** * **Impact:** Enhanced milk procurement, improved competitiveness due to GST rationalization, and increased share of consumer price benefits. * **Action Required:** Participate in expansion of cooperative coverage and leverage GST benefits. **Fishermen and Fisheries Cooperative Societies** * **Impact:** Improved market linkages and value addition through conversion into FFPOs and strengthened infrastructure. * **Action Required:** Utilize financial assistance from NCDC to strengthen FFPO infrastructure and business capacity. **Women, Self-Help Groups (SHGs), Small and Marginal Farmers, and Tribal Communities** * **Impact:** Increased participation and leadership roles in cooperatives, improved cooperative-based income generation and service delivery. * **Action Required:** Actively participate in cooperative governance and leverage financial assistance and diversification opportunities. **Scheduled Castes/Scheduled Tribes (SC/ST)** * **Impact:** Guaranteed representation in cooperative governance. * **Action Required:** Participate in cooperative governance.

Key Entities Referenced

Primary Agricultural Credit Societies (PACS): Central entities being transformed into multipurpose societies to strengthen rural economic activity. National Cooperative Development Corporation (NCDC): The organization extending financial assistance to strengthen FFPO infrastructure and business capacity. Ministry of Cooperation: The ministry under which the initiative is being undertaken. Model Bye-laws for PACS: A document that allows PACS to undertake more than 25 business activities. National Cooperation Policy (NCP) 2025: The policy that emphasizes promotion of membership and leadership roles for women and weaker sections.
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Ministry of Cooperation Strengthening PACS and Multipurpose Cooperatives Posted On: 03 FEB 2026 6:47PM by PIB Delhi The Government’s initiative to transform Primary Agricultural Credit Societies (PACS) into multipurpose entities has significantly strengthened rural economic activity across the agriculture, dairy and fisheries sectors. Through adoption of the Model Bye-laws for PACS, these societies are now enabled to undertake more than 25 business activities, including operation of petrol pumps, LPG distributorships, Jan Aushadhi Kendras and Common Service Centres, thereby diversifying income streams and improving financial sustainability. In the agriculture sector, the initiative has enhanced infrastructure and post-harvest support through the World’s Largest Decentralized Grain Storage Plan, under which godowns and custom hiring centres are being established at the PACS level, reducing post-harvest losses, transportation costs and distress sales while improving price realisation for farmers. Market access has been strengthened under the Atmanirbharta Abhiyan, enabling farmers to register through cooperatives for assured procurement of pulses and maize at Minimum Support Price. Further, over 38,000 PACS have been upgraded as Pradhan Mantri Kisan Samriddhi Kendras (PMKSKs), providing a single-window platform for fertilizers, seeds and soil-testing services. The PACS Computerization Project, covering 79,630 PACS, has improved transparency and efficiency through ERP-based systems, resulting in faster credit delivery and reduced transaction costs. In the dairy sector, White Revolution 2.0 aims to enhance milk procurement by 50 per cent over five years through expansion of cooperative coverage in uncovered areas. By early 2026, over 21,000 new Dairy Cooperative Societies had been registered nationwide. Fiscal measures such as GST rationalisation— including nil GST on milk and paneer and reduction of GST on butter, ghee and cheese—have improved competitiveness of cooperative dairy products, with a substantial share of consumer price benefits accruing to dairy farmers. In the fisheries sector, the Government is converting 1,000 fisheries cooperative societies into Fish Farmer Producer Organisations (FFPOs) to improve market linkages and value addition. The National Cooperative Development Corporation (NCDC) has extended significant financial assistance to strengthen FFPO infrastructure and business capacity. Overall, the establishment of the National Cooperative Database (NCD)—covering 8.4 lakh cooperatives and about 32 crore members—has enabled evidence-based planning and identification of coverage gaps. In addition, apex cooperative institutions such as the National Cooperative Exports Limited (NCEL) and National Cooperative Organics Limited (NCOL) have expanded market access for primary producers, with NCEL exporting commodities worth over ₹5,300 crore to 29 countries. In order to strengthen Primary Agricultural Credit Societies (PACS) and multipurpose cooperatives aim to significantly benefit farmers as well as the dairy and fisheries sectors across the country the Government, on 15.02.2023, has approved the Plan for establishing new multipurpose PACS or primary dairy/ fisherycooperative societies covering all the uncovered Panchayats/ village in the country by 2028. As a result of the initiatives taken by the Government, 32,802 new PACS, dairy, and fishery cooperative societies have been registered nationwide since 15.02.2023. The State-wise details of PACS, dairy, fishery cooperative societies formed along with members associated with them are placed as Annexure. In Odisha, there are 8,361 cooperative societies, of which 7,754 are functional. Under the national plan, 2,281 new cooperative societies have been registered in the State, comprising 1,543 Multipurpose PACS, 679 Dairy Cooperative Societies. Further, 59 Fishery Cooperative Societies, and 209 existing dairy societies have been strengthened. In the Aspirational District of Kandhamal, there are 103 cooperative societies with a total membership of 2,37,288, including 76 PACS and 2 fishery cooperatives. (c) Digital integration and targeted inclusion of women, Self-Help Groups (SHGs), small and marginal farmers and tribal communities in Odisha have led to improvements in cooperative-based income generation and service delivery. Odisha has registered 2,281 new PACS, Dairy and Fishery Cooperative Societies and strengthened existing ones, while adoption of Model Bye-laws has enabled PACS to undertake multiple business activities such as PM Kisan Samriddhi Kendras , Common Service Centres, etc. These Bye-laws provide for broad-based membership and ensure adequate representation of women and Scheduled Castes/Scheduled Tribes (SC/ST) in cooperative governance. Further, the Multi-State Cooperative Societies (Amendment) Act, 2023 mandates reservation of two seats for women and one seat for SC/ST members on the boards of multi-State cooperative societies. The Model Bye-laws also enables PACS to function as multipurpose service centres, allowing small and marginal farmers, SHGs, women, etc. to access affordable credit, quality inputs and allied services at a single point, and to benefit from activities such as warehousing, custom hiring centres and primary processing, thereby improving income realization. Under the PACS Computerization Project, 4,240 PACS in the State have been sanctioned for onboarding onto a common ERP-based national software, with ₹18.07 crore released during FY 2025–26 for hardware, digitization and support systems. This aims to improve transparency, enable real-time transaction recording and facilitate faster delivery of credit and non-credit services to members. Inclusive governance reforms, including mandatory representation of women and SC/ST members on cooperative boards, have further strengthened participation of marginalized groups. The National Cooperation Policy (NCP) 2025 also emphasizes promotion of membership and leadership roles for women and weaker sections. Support for women and SHGs is further strengthened through schemes such as Swayam Shakti Sahakar Yojana for onward lending to Women SHGs and Nandini Sahakar for promoting women-led cooperatives. Further, targeted financial assistance and diversification of cooperative activities have enhanced income opportunities. Over the last three years, ₹0.20 crore has been disbursed to women- and tribal-led cooperatives, and support to Women SHGs is being extended through the Swayam Shakti Sahakar Yojana. ***** Annexure M-PACS Dairy Cooperative Fisheries Cooperative Societies Societies State Formed Membership Formed Membership Formed Membership Andaman And 1 12 1 10 11 132 Nicobar IslandsAndhra Pradesh 11 110 1034 21946 2 79 Arunachal 121 2584 15 185 20 223 Pradesh Assam 469 11820 591 13921 81 1823 Bihar 57 98369 4589 184538 2 104 Chhattisgarh 469 263645 351 5226 322 5904 Goa 37 1148 5 53 3 32 Gujarat 525 89678 706 41774 23 1371 Haryana 31 22282 161 5150 6 109 Himachal 116 4639 708 9952 6 124 Pradesh Jammu And 216 21728 1313 17636 36 701 Kashmir Jharkhand 127 40925 257 9745 177 6594 Karnataka 243 65808 1097 110057 45 4828 Ladakh 3 333 3 150 1 20 Lakshadweep 0 0 0 0 7 567 Madhya Pradesh 663 401304 874 21596 226 5817 Maharashtra 149 25864 1140 67249 161 9008 Manipur 104 13791 24 502 67 2220 Meghalaya 228 15772 16 274 7 137 Mizoram 97 5444 2 49 2 42 Nagaland 18 972 5 95 18 704 Odisha 1543 706225 679 30766 59 5119Puducherry 4 99 3 127 3 1150 Punjab 1 21 463 9955 43 520 Rajasthan 1387 523638 2174 42213 22 462 Sikkim 24 568 61 1309 3 37 Tamil Nadu 28 12126 794 27976 25 2512 Telangana 0 0 173 3736 102 4244 The DD & DNH 6 399 1 333 2 560 Tripura 288 4287 2 28 19 882 Uttar Pradesh 1099 141166 4340 174235 486 14709 Uttarakhand 621 7602 263 8799 120 1408 West Bengal 24 3673 137 5733 3 175 Grand Total 8,710 24,86,032 21,982 8,15,318 2,110 72,317 This information was given by Union Minister for Home and Cooperation Shri Amit Shah in a written reply in Lok Sabha. *** AK/AP (Release ID: 2222741) Visitor Counter : 128 Read this release in: Urdu , ही

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