About Primary Agricultural Credit Societies (PACS)

About Primary Agricultural Credit Societies (PACS):

• These are village-level cooperative credit societies that serve as the last link in a three-tier cooperative credit structure.
• These are headed by the State Cooperative Banks (SCB) at the state level.
• Credit from the SCBs is transferred to the district central cooperative banks, or DCCBs, that operate at the district level.
• These DCCBs work with PACS, which deals directly with farmers.
• Individual farmers are members of the PACS, and office-bearers are elected from within them. A village can have multiple PACS.
• The main function of the PACS is to provide short and medium-term purpose loans to its members.
• Other functions include:
  • Supplying of agricultural inputs including seeds, fertilizers, insecticides, etc.
  • Maintaining the supply of the light machinery for the agricultural purpose.
  • Providing marketing facilities that could enhance the sale of their agricultural products.
  • Promote savings habits among its members.

Q1) What are cooperative societies?

Co-operative societies are profit-oriented entities which aim to obtain marketability for the products produced by agricultural and other labour-intensive businesses. These societies work on the principle of self-help as well as mutual help. The primary goal is to provide support to the members.

Source: Govt to utilise PACS as ‘drone entrepreneurs’ for spraying fertilizers

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