Agri-credit societies to be set up in all Panchayats
Polity & Governance
14th Oct, 2022
- 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.
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.