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Agri-credit societies to be set up in all Panchayats

  • Category
    Polity & Governance
  • Published
    14th Oct, 2022

Context

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

About

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.

PACS in the country:

  • 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.
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