New Delhi: The Government of India has outlined a series of measures to strengthen Primary Agricultural Credit Societies (PACS) in Tamil Nadu and other southern states, with a focus on digital modernisation, governance reforms and expansion of services, according to a written reply by Union Minister for Home and Cooperation Shri Amit Shah in the Rajya Sabha.
According to the National Cooperative Database (NCD), Tamil Nadu has a total of 4,532 Primary Agricultural Credit Societies, of which 4,529 are functional. These PACS form the backbone of rural credit delivery and are critical to improving farmers’ access to institutional finance and services.
As part of structural reforms, the government has framed and notified Model Bye-laws for PACS, enabling them to undertake more than 25 business activities in addition to traditional credit functions. These expanded roles allow PACS to function as Pradhan Mantri Kisan Samridhi Kendras (PMKSKs), Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJKs) and Common Service Centres (CSCs), strengthening their presence as multi-service rural institutions while enhancing transparency and accountability.
A key pillar of the reform strategy is the Central Sector Project for Computerization of PACS, launched in 2022. Initially covering 63,000 functional PACS with a financial outlay of ₹2,516 crore, the project has been expanded to include 79,630 PACS nationwide, with total funding increased to ₹2,925.39 crore. Under the initiative, PACS are being brought onto a common Enterprise Resource Planning (ERP)-based national software platform, with integration targets that link them to NABARD, State Cooperative Banks (StCBs) and District Central Cooperative Banks (DCCBs).
The computerization project has a completion timeline up to 31 March 2027, with interim milestones being monitored periodically. Financial assistance is being provided under this scheme to strengthen cooperative societies across the country, including in Tamil Nadu and the southern states.
Since the creation of the Ministry of Cooperation in July 2021, several nationwide initiatives have been rolled out to reinforce the cooperative ecosystem. These include large-scale PACS computerisation, diversification of PACS activities under model byelaws, and capacity-building programmes focused on digital operations, financial management and service delivery.
The government has also undertaken efforts to strengthen the three-tier cooperative credit structure by improving coordination between PACS, District Central Cooperative Banks and State Cooperative Banks, with the objective of better liquidity management and enhanced credit flow to rural areas.
Other major initiatives highlighted include the world’s largest decentralised grain storage plan in the cooperative sector and the creation of the National Cooperative Database. The database enables the identification of gaps in cooperative coverage at the gram panchayat level and supports the formation of two lakh new multipurpose PACS, dairy and fishery cooperatives.
The establishment of the Tribhuvan Sahkari University has also been undertaken to support education, training and research in the cooperative sector.
These initiatives are aimed at strengthening the cooperative movement, improving service delivery, and enhancing the socio-economic impact of cooperatives in Tamil Nadu, southern India and across the country.
