The Union government has established 8,710 new agricultural cooperative societies across the country, achieving 27 per cent of the target of 32,000, Union Cooperation Minister Amit Shah informed the Rajya Sabha on Friday .
In a written response to a question by Bharatiya Janata Party MP Shivayogi Sangappa, Shah detailed the progress of the government’s ambitious plan to strengthen the cooperative sector as the primary vehicle for rural development.
Multi-Purpose PACS Formed
The government is encouraging Primary Agricultural Credit Societies (PACS) to become multi-purpose and undertake more than 25 new activities. These include the operation of LPG distributorships, common facility centres, and Jan Aushadi Kendras (generic medicine stores). PACS are also being developed to deliver various services to villagers.
To facilitate this, the Ministry of Cooperation has decided to set up over 2 lakh new PACS and cooperative societies at the panchayat level. The target is to provide employment opportunities to over 8 lakh youth and skilled people .
Government’s Cooperative Expansion Plan
The government has allocated Rs 2,516 crore to states to establish viable and active PACS in uncovered panchayats and to strengthen all existing PACS . The initiative is part of a broader strategy to create a “cooperative-based economic model” at the grassroots level, fulfilling Prime Minister Narendra Modi’s vision of “Sahakar se Samriddhi” (Prosperity through Cooperation).
Shah emphasized that cooperatives are essential for taking benefits of central schemes to the grassroots level. The government has already completed the computerization of PACS, ensuring transparency and efficiency in their operations .
Computerization and CSC Integration
Under the Central Project for Computerization of PACS, 32 states have set up Common Service Centres (CSC) in their PACS. This digital push is designed to make PACS the single-window delivery point for both banking and government services.
Additionally, a National Cooperative Policy is being drafted in consultation with various stakeholders, which will provide a unified framework for the cooperative movement in the country.
Current Status of PACS
Earlier this year, the Ministry of Cooperation informed the Lok Sabha that there were around 1.12 lakh PACS in the country as of March 2025 . The government aims to increase this number to 3 lakh PACS by 2029.
In a separate written reply in the Lok Sabha, the Ministry confirmed that 8,432 new PACS have been established in the last two years across states including Chhattisgarh, Madhya Pradesh, Uttar Pradesh, Assam, Meghalaya, Himachal Pradesh, Uttarakhand, Jammu and Kashmir, Punjab, and Goa . Most of these newly formed PACS are located in rural areas, with a majority in tribal-dominated regions .
The Road Ahead
The government has formed a seven-member committee of state cooperation ministers to outline a roadmap for establishing new PACS in uncovered villages . The plan to form 2 lakh new cooperatives is currently underway, and the target of 2 lakh new PACS/cooperative societies is expected to be achieved in a time-bound manner .
During a meeting in March 2023, Cooperation Ministers from 22 states had resolved to form viable and active PACS in uncovered panchayats and strengthen existing ones. This resolution laid the groundwork for the ongoing expansion drive .
