Union Cooperation Minister Amit Shah is advocating for an expanded role for Primary Agricultural Credit Societies (PACS) in India's agricultural infrastructure and economy. On Monday, June 2, 2025, Shah called for immediate measures to broaden the loan facilities available to PACS under the Agriculture Infrastructure Fund (AIF), with the goal of improving their financial standing and boosting rural employment.
Shah reviewed the scheme aimed at constructing the world's largest cooperative food grain storage network and underscored the critical role of PACS in this initiative. He emphasized that integrating PACS into this scheme is essential to ensure their financial viability and social effectiveness. According to the National Cooperative Database Portal, there are over 1 lakh PACS currently operating in India.
The AIF, launched in 2020, is designed to provide medium- to long-term debt financing for agricultural infrastructure development across the nation. Initially planned for a ten-year period (2020-2030), the scheme has been extended to 2032-33, demonstrating a continued commitment to strengthening the agricultural sector.
During a recent meeting, it was decided that states should increase the involvement of PACS at their level within the scheme. Furthermore, State-Level Marketing Federations should be integrated to foster a comprehensive cooperative supply chain. Shah urged all relevant organizations to coordinate and implement the scheme efficiently and promptly, to achieve the goals of "Atmanirbhar Bharat" (self-reliant India) and "Sahkar Se Samriddhi" (prosperity through cooperatives).
Shah also directed the Ministry of Food and Public Distribution and the Food Corporation of India (FCI) to conduct a national-level mapping of warehouses across the country. This mapping exercise aims to ensure the smooth implementation of the scheme, tailored to regional requirements. Additionally, Shah instructed FCI, the National Cooperative Consumers' Federation (NCCF), the National Agricultural Cooperative Marketing Federation (NAFED), and State Warehousing Corporations to connect PACS with as many warehouses as possible.
The minister highlighted two key metrics for measuring India's economic progress: Gross Domestic Product (GDP) and employment generation. The food storage scheme is expected to contribute to both by enhancing the income of PACS and generating employment opportunities in rural areas.
In December 2024, Shah inaugurated 10,000 newly established multipurpose primary agricultural and dairy cooperative societies, aiming to improve farmers' access to markets. This initiative is part of a broader government plan to create 200,000 such rural enterprises. At the event in New Delhi, Shah stated that these PACS would actively market organic products, dairy products, and seeds, including exports.
Shah emphasized that Prime Minister Narendra Modi's vision of "Sahkar Se Samriddhi" requires cooperatives to be present and active in every panchayat. He also mentioned that the government would provide micro ATMs and RuPay Kisan Credit Cards to primary dairy farmers, enabling them to access bridge finance at low costs. According to Shah, computerization has increased transparency in PACS, leading to the expansion of farm cooperatives and employment opportunities for women and youth. He added that modernization has enabled PACS to integrate with 32 diverse activities, including storage, manure, gas, fertilizer, and water distribution, making them more versatile and effective. He also noted that the establishment of three new national-level cooperatives would unlock new opportunities for farmers by promoting organic products, quality seeds, and exports.
