What happened
The Ministry of Cooperation has approved a plan to establish new multipurpose Primary Agricultural Credit Societies (PACS) and new dairy and fisheries cooperative societies so that every panchayat and village in India can be covered over the next five years. The plan is to be supported by the National Bank for Agriculture and Rural Development (NABARD), the National Dairy Development Board (NDDB), the National Fisheries Development Board (NFDB), and State and Union Territory governments.
Background and earlier position
PACS are the village-level cooperative institutions that have long formed the first tier of the short-term rural credit structure in India. In recent years, the Union Government has treated PACS reform and expansion as part of a wider push to strengthen cooperative institutions for agricultural credit, storage, service delivery, and producer linkages.
The Ministry of Cooperation says a Standard Operating Procedure titled Margdarshika was launched on 19 September 2024 for establishing new multipurpose PACS and dairy or fishery cooperatives. The SOP is meant to give stakeholders targets and timelines for implementation.
What changed now
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