Primary Agricultural Cooperative Societies-PACS Organisation, Management and Functions

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Primary Agricultural Cooperative
Societies-PACSOrganisation, Management and
Functions

• Dr Daman Prakash, Director
• RURAL MANAGEMENT AND DEVELOPMENT CENTRE,
• NEW DELHI. INDIA

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PACS are the foundations of Indian Cooperative
Movement and Agriculture
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580,000 cooperatives of all types400 million
individual members375,000 agricultural
cooperatives280 million farmer-membersMajor
businessCredit, input, marketing
Agro-processingand Farm Extension
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MAJOR SECTORSFoodgrain production processing,
Dairying incl livestock development, Chemical
fertiliser production distribution, Sugar
production processing, Oilseeds production
processing,Land Infrastructure development,
Cotton and Value-addition,largest warehousing
system,Cooperative banking system,and others.
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MAJOR PLAYERSa Indian Farmers Fertiliser
Cooperative-IFFCO48,000 Member-Cooperatives50
million individual farmer-members5 plants in
India 5 facilities abroad.Covering 37 of
national fertiliser needs. Extensive farm
extension services.
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b Sugar Cooperatives280 Cooperative sugar
mills out of 390 mills30 million sugarcane
grower-membersProduce 50 of world
sugarExtensive diversification alcohol, paper
manufacture, power-generation, irrigation,large
number of social institutions,strong welfare
schemes.
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c Dairying120,000 primary dairy
cooperatives12 million individual
dairy-farmersStatus Worlds largest milk
productionLarge producers like AMULWide
range of products45 share of coop
Ice-creamAnimal-care servicesCattle-feed
plantsExtensive marketing network80
dairy-farmers are women.
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d Cooperative BankingLT-MT-ST Credit through
PACS32 State Cooperative Banks850
District/Sub-district Banks1860
BranchesWorlds largest agri credit
systemCentral financing through NABARD8
lending rate 2 subsidy by GovtPACS major
users for agri productionInvestments in LT
land improvement.
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PACS Management Structure is simple and
farmer-friendly.FARMER-MEMBERS makeGENERAL
BODY MEETING electsMANAGING COMMITTEE
electsChairman, Secretary, TreasurerMinimum
number required is 11Members buy sharesCoops
observe Principles of Cooperation
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PACS raise money from district banks for lending
to members for purchase of farm inputs
fertiliser, seeds, farm chemicals, farm
implements, land improvement, agro-processing,
warehousing etc.
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District banks raise money from State Cooperative
Banks. State Banks raise money from NABARD a
government bank for agriculture and rural
development
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80-85 PACS loans are used for agricultural
productionPACS are major contributors to
national food stockPACS are major procurement
agents of government for foodgrain stocks
buffer stockPACS are major price-stabilisers.
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Cooperative Member Education is a major
programme to create awareness and strengthen the
system. Member education is done by PACS.The
programme is carried out by National Cooperative
Union of India and State Cooperative Unions.
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PACS audit is done by Cooperative
DepartmentLarge cooperatives make use of
Chartered Accountants.AUDIT REPORT ANNUAL
REPORT MUST BE APPROVED BY ANNUAL GENERAL BODY
MEETING.
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PROBLEMS FACED BY PACSLow level of Member
Participationin business and organisationShor
tage of funds for InputsGovernment
controls/interferenceTraditional methods of
managementSmall in size thus in
operationsPolitical influence.
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However,Enlightened members through member
educationtry to strengthen PACS by generating
positive public opinion and influencing the
decisions of government.CHANGES FOR THE BETTER
ARE COMING IN SLOWLY TO IMPROVE COOPERATIVE
LEGISLATION AND MAKING THEM COOP
MEMBER-FRIENDLY.
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Members, PACS Banks have MCLLoan granted on
simple PACS ResolutionRecovery at the end of
the seasonAll PACS linked with district central
cooperative banksConcessions in the case of
natural disasters or crop failuresGovt also
writes off loans when needed.ALL EFFORTS ARE TO
INCREASE AGRICULTURAL PRODUCTION AND PRODUCTIVITY

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Thank you for your kind attentionPrimary
Agricultural Cooperative SocietiesOrganisation,
Management and Functions