The Government has recently allowed Primary Agricultural Credit Societies (PACS) to operate Retail Petrol/ Diesel outlets and LPG Distributorships.
Primary Agricultural Credit Societies are the grass root level arms of the short-term co-operative credit structure.
Rural (agricultural) borrowers – PACS deals directly with the rural (agricultural) borrowers, give those loans and collect repayments of loans given and also undertake distribution and marketing functions.
Final link – It serves as the final link between the ultimate borrowers on the one hand and the higher financing agencies, namely the Scheduled Commercial Banks, and the RBI/NABARD on the other hand.
Organisational Structure of PACS
General Body of PACS – Exercise the control over board as well as management.
Management Committee – Elected by the general body to perform the work as prescribed by the society’s rules, acts, and by-laws.
Chairman, Vice-Chairman, and Secretary – Work for the benefit of the members by performing their roles and duties as assigned to them.
Office Staff – Responsible for performing day to day work.
Significance of Primary Agriculture Credit Society – For the uninitiated, a PACS is the first building block of the century-old cooperative banking system of India.
PACS can play a colossal role, in bringing farmer communities closer to credit, inputs, market and value addition.
No commercial bank branch can ever come close to providing the kind of services a Primary Agriculture Credit Society (PACS) can.
PACS can also play a major role by integrating its warehouse with the physical and financial supply chain of agro-commodities in the upcoming Garmin Agriculture Markets (GrAMs) or large warehouses in the private sector.
Combined Category 2 (CC-2) – PACS have been included under Combined Category 2 (CC-2) for retail Petrol/ Diesel dealership and Combined Category (CC) for LPG Distributorship.
They can apply online as per the advertisements issued by Oil Marketing Companies (OMCs).
Strengthening of Primary Agriculture Cooperative Credit Societies (PACS) – Refers to the process of enhancing the capacity, efficiency, and effectiveness of these cooperative institutions.
It will be providing multiple services to the farmers and rural agricultural communities, apart from credit and financial services.
By strengthening PACS, governments and stakeholders aim to improve the overall state of agriculture, uplift rural communities, and promote inclusive economic growth.
These efforts can contribute to poverty reduction, food security, and sustainable development in agrarian economies.
