Primary Agriculture Credit Societies (PACS)
(There is a major focus of Govt. on PACS)
PACS are outside the purview of the Banking Regulation Act, 1949 and hence not regulated by RBI. PACS are regulated by State Government (Registrar of Co-operative Societies appointed by the State). They accept deposits and provide lending facilities at the village level.
Credit from the State Cooperative Banks (StCBs) is transferred to the district central cooperative banks (DCCBs), that operate at the district level. The DCCBs work with PACS, which deal directly with farmers. Since these are cooperative bodies, individual farmers are members of the PACS, and office-bearers are elected from within them.
StCB
DCCB
PACS
Government is computerizing 18000 PACS across the country (ERP based national software) ensuring seamless integration and connectivity. By linking these PACS with NABARD through StCBs and DCCBs, the project aims to enhance the operation efficiency & governance of PACS, thus benefiting crores of small & marginal farmers.
PACS generally provide facilities to their members like:
* Input facilities in form of cash or kind component
* Agriculture implements on hiring basis
* Storage facility
* Help farmers to adopt latest technology
In order to enable PACS to provide more services to their members and generate income for themselves, an initiative has been taken to develop PACS as Multi Service Centers. This will enable PACS to provide ancillary services to their members and diversify their activities. Maharashtra (20,788) has the maximum number of registered PACS.
Present storage capacity
FCI: 36 MT (owned: 14.6 & hired 21.4)
State Govt. agencies: 40 MT
Total : 76 MT
Govt. is planning to set up another 70 MT in the next five years through PACS (world’s largest agriculture storage infrastructure)