Agri-credit societies to be set up in all panchayats

Context

Union Home and Cooperation Minister said that primary agricultural credit societies (PACS) will be set up in all panchayats of the country.

What are Primary Agricultural Credit Societies?

PACS are ground-level cooperative credit institutions that provide short-term, and medium-term agricultural loans to the farmers for the various agricultural and farming activities.
It works at the grassroots gram Panchayat and village level.
The first Primary Agricultural Credit Society (PACS) was formed in the year 1904.
The PACS functioning at the base of the cooperative banking system constitutes the major retail outlets of short-term and medium-term credit to the rural sector.

There are about 95,000 PACS in the country of which only 65,000 are active at present.
According to the union home minister, all panchayats must have one such body by 2027.
This will be helpful in promoting farming and dairy activities at the grassroots level.
The cooperation ministry is working on a plan to set up multi-purpose PACS in panchayats over the next five years.

Functions of PACS

Maintaining the supply of the hired light machinery for agricultural purposes.
To arrange for supplying of agricultural inputs. Examples -are seeds, fertilizers, insecticides, kerosene, etc.
It will carry out activities like the sale of gas and petrol and the storage and marketing of dairy and farm products to alleviate poverty and empower women.
It helps its members by providing marketing facilities that could enhance the sale of their agricultural products in the market at the proper prices.
Generating optimum financial benefits for people engaged in animal husbandry and allied sectors.