SDG 1: No Poverty | SDG 8: Decent Work and Economic Growth | SDG 5: Gender Equality
Ministry of Cooperation | National Cooperative Development Corporation | NABARD
The Union Minister for Home and Cooperation provided structured responses in Lok Sabha outlining recent multifaceted interventions to modernise and expand cooperatives, particularly Primary Agricultural Credit Societies (PACS) and allied dairy and fisheries cooperatives, to bolster rural incomes, financial inclusion and market linkages.
Expansion of Cooperative Network: The national plan to establish multipurpose PACS, dairy, and fishery cooperatives across uncovered panchayats and villages is advancing, with 32,802 new cooperatives registered as of January 2026. Digitisation has brought 61,478 out of 79,630 PACS onto digital platforms (CBS, UPI, AePS), modernising service delivery. Model bye-laws have been issued to ensure inclusive governance, with mandated representation for women and SC/ST members.
Diversification and Strengthening of PACS Services: PACS can now undertake over 25 business activities, including Common Service Centres, LPG and Jan Aushadhi distribution, grain storage, and soil testing, broadening income sources and improving farmers’ access to services. Upgraded PACS functioning as Pradhan Mantri Kisan Samriddhi Kendras (PMKSKs) provide integrated agricultural support. Fiscal measures, such as GST rationalisation on dairy products, have enhanced market competitiveness for cooperative outputs.
State-Level Cooperative Growth in Jharkhand: Jharkhand has established 127 multipurpose PACS, 257 dairy, and 177 fishery cooperatives, with 2,358 PACS onboarded as Common Service Centres. Support measures, including financial subsidies, reduced margin money requirements, and capacity building, strengthen operations in backward, hilly, and tribal areas.
Cooperatives in Himachal Pradesh: Himachal Pradesh reports over 2,300 PACS and 7,800+ strengthened dairy cooperatives, exceeding annual dairy expansion targets. The national PACS Computerisation Project (₹2,925.39 crore) is progressing, with many cooperatives achieving digital “Go‑Live” status, improving transaction efficiency, transparency, and governance.
What is PACS? PACS (Primary Agricultural Credit Societies) are grassroots cooperative institutions providing credit and diversified services to rural households. Multipurpose PACS expand these roles into allied sectors.
What are "Model Bye-laws" in the context of PACS transformation? Model Bye-laws are a standardized regulatory framework adopted by Primary Agricultural Credit Societies (PACS) to expand their legal mandate beyond simple credit disbursement. These bye-laws empower PACS to function as multi-service centres, allowing them to engage in diverse commercial activities such as warehousing, food processing, and retail services. Crucially, they mandate inclusive governance by ensuring reserved seats for women and Scheduled Castes/Scheduled Tribes (SC/ST) on cooperative boards, thereby institutionalizing social equity within rural financial structures.
Policy Relevance
These interventions knit together digital transformation, institutional strengthening and diversification of services within India’s cooperative ecosystem, aligning cooperative reform with rural economic empowerment, formal finance access and local value addition. By turning PACS into all-in-one service hubs, the government is creating a decentralized Digital Public Infrastructure (DPI) that provides small farmers with single-window access to credit, inputs, and market linkages.
Inclusive Rural Growth: Mandatory representation for women and SC/ST members on boards, as per the Multi-State Cooperative Societies (Amendment) Act, 2023, ensures that marginal groups have a decisive voice in local economic planning.
Market Expansion: Apex institutions like National Cooperative Exports Limited (NCEL) have already exported commodities worth over ₹5,300 crore, directly linking primary producers to global markets.
Financial Sustainability: Diversifying income streams into non-agricultural sectors like petrol pumps and LPG de-risks the cooperative model from the seasonal volatility of farming.
Targeted Inclusion in Odisha: The registration of 2,281 new societies in Odisha, specifically focusing on tribal communities and Women SHGs through the Nandini Sahakar scheme, serves as a blueprint for aspirational district development.
Relevant question for policy stakeholders: How can the Ministry of Cooperation leverage the 'National Cooperative Database' (NCD) of 32 crore members to create a targeted 'Cooperative Credit Score' that speeds up collateral-free lending for small-scale dairy and fishery startups?
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