While addressing a programme on 102nd International Day of Cooperatives, Union Minister of Home Affairs and Cooperation urged stakeholders in cooperative societies to support establishment of Primary Agricultural Credit Societies (PACS) in all villages and blocks of the country.
- International Day of Cooperatives, celebrated annually on first Saturday of July since 1923, by International Cooperative Alliance (ICA).
About PACS
- PACS are grass root level arms of the short-term co-operative credit structure
- It serves as the final link between ultimate borrowers and higher financing agencies, namely Scheduled Commercial Banks, and RBI/NABARD.
- PACS deals directly with the rural (agricultural) borrowers and also undertake distribution and marketing functions.
- Currently, there are ~65,000 functional PACS in the country.
- Government target is that by 2029 all Panchayats of the country will have their own PACS.
Significance of PACS
- First building block of the cooperative banking system of India.
- Brings farmer communities closer to credit, inputs, market, and value addition.
- Can also play a major role by integrating its warehouse with physical and financial supply chain of agro-commodities in the Gramin Agriculture Markets (GrAMs) or large warehouses in private sector.
Initiatives to promote Cooperatives in India
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