Discuss the role of Primary Agricultural Credit Societies (PACS) in the socio-economic transformation of India’s rural areas.
- 11 Jul 2024
Recently, Union Minister of Cooperation urged stakeholders in cooperative societies to support the establishment of primary agricultural credit societies (PACS) in all villages and blocks of the country.
- PACS are the grass root level arms of the short-term co-operative credit structure.
- They deal directly with the rural (agricultural) borrowers, give those loans and collect repayments of loans given and also undertake distribution and marketing functions.
Role of PACs in Socio-economic Development
Agricultural Credit
- PACS provide agricultural credit to the farmers at subsidized rate to purchase agricultural equipment.
Agricultural Inputs Supply
- It supplies agricultural inputs like fertilizers, seeds, insecticides, and implements to farmers.
Improving Farmers’ Income
- PACS assist farmers in the marketing of their agricultural produce and provides support in finding better markets, thereby improving farmers’ income and reducing dependency on middlemen.
Enhancing Financial Literacy
- PACS conduct various training programs and workshops to enhance the financial literacy and awareness of farmers, empowering them to make informed financial decisions.
Promoting Financial Inclusion
- PACS encourage agriculturists to save, accept deposit from them, offer loans to deserving borrowers, and collect repayments, thus promoting financial inclusion.
