Over Next Five Years, India Plans To Establish 2 Lakh Primary Agricultural Credit Societies

Over the next five years, India plans to establish approximately 2 lakh multipurpose Primary Agricultural Credit Societies (PACS). The Union Cabinet approved the establishment of viable PACS, dairy, and fishery cooperatives with a Rs 20 lakh crore budget on Wednesday.

Union Minister Anurag Thakur announced today in a Cabinet briefing that the government will establish PACS and viable dairy and fishery cooperatives in every uncovered panchayat and village in coastal areas and those with large bodies of water.

In the Union Budget 2023, the Centre increased its agricultural credit target for the new fiscal year by more than 11% over last year's allocation to Rs 20 lakh crore.

Union Finance Minister Nirmala Sitharaman announced in her presentation that the government had begun computerization for 63,000 PACS with an investment of Rs 2,516 crore and planned to deploy Rs 20 lakh crore seamlessly.

It had also set aside Rs 60,000 crore for fisheries, according to Urmi Shah, Research Analyst at SAMCO Securities, adding that these measures would benefit other crops and agriculture.

In the first five years, India plans to establish 2 lakh multipurpose cooperatives and PACS. The plan will be implemented alongside other schemes by leveraging the "whole of government approach," according to the Cabinet.

The National Bank for Agriculture and Rural Development (NABARD), the National Dairy Development Board (NDDB), and the National Fisheries Development Board (NFDB) will all support the initiative (NFDB). According to the Modi government, this move will strengthen India's cooperative moment and expand its reach to the grassroots.

Cooperative societies will be established with modernised infrastructure to provide farmer members with the necessary forward and backward linkages to market their produce, increase their income, and obtain credit facilities under the scheme. According to the government, it will also create job opportunities in rural areas.

In addition, the Union Cabinet approved seven new ITBP battalions and a Rs 4,800 crore budget for the centrally-sponsored "Vibrant Villages Programme" until 2026.

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