Primary Agricultural
Cooperative Societies-PACS
Organisation, Management and Functions
Dr Daman Prakash, Director
RURAL MANAGEMENT AND DEVELOPMENT CENTRE,
NEW DELHI. INDIA
PACS
are the foundations of
Indian Cooperative Movement
and Agriculture
580,000 cooperatives of all types;
400 million individual members;
375,000 agricultural cooperatives;
280 million farmer-members
Major business:
Credit, input, marketing
Agro-processing
and Farm Extension
MAJOR SECTORS
Foodgrain 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.
MAJOR PLAYERS
[a] Indian Farmers Fertiliser
Cooperative-IFFCO
48,000 Member-Cooperatives;
50 million individual farmer-members;
5 plants in India; 5 facilities abroad.
Covering 37% of national fertiliser needs.
Extensive farm extension services.
[b] Sugar Cooperatives
280 Cooperative sugar mills
out of 390 mills;
30 million sugarcane grower-members;
Produce 50% of world sugar;
Extensive diversification – alcohol, paper
manufacture, power-generation, irrigation,
large number of social institutions,
strong welfare schemes.
[c] Dairying
120,000 primary dairy cooperatives;
12 million individual dairy-farmers;
Status: World’s largest milk production;
Large producers like “AMUL”;
Wide range of products;
45% share of coop Ice-cream;
Animal-care services;
Cattle-feed plants;
Extensive marketing network;
80% dairy-farmers are women.
[d] Cooperative Banking
LT-MT-ST Credit through PACS;
32 State Cooperative Banks;
850 District/Sub-district Banks;
1860 Branches;
World’s largest agri credit system;
Central financing through NABARD;
8% lending rate [2% subsidy by Govt];
PACS major users for agri production;
Investments in LT & land improvement.
PACS Management Structure
is simple and farmer-friendly.
FARMER-MEMBERS [make]
GENERAL BODY MEETING [elects]
MANAGING COMMITTEE [elects]
Chairman, Secretary, Treasurer
Minimum number required is 11;
Members buy shares;
Coops observe Principles of Cooperation
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.
District banks raise money from
State Cooperative Banks.
State Banks raise money from
NABARD – a government bank
for agriculture and rural
development
80-85% PACS loans are used for
agricultural production;
PACS are major contributors to
national food stock;
PACS are major procurement
agents of government for foodgrain
stocks [buffer stock];
PACS are major price-stabilisers.
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.
PACS audit is done by
Cooperative Department;
Large cooperatives make use
of Chartered Accountants.
AUDIT REPORT + ANNUAL REPORT
MUST BE APPROVED BY ANNUAL
GENERAL BODY MEETING.
PROBLEMS FACED BY PACS
Low level of Member Participation
[in business and organisation];
Shortage of funds for Inputs;
Government controls/interference;
Traditional methods of management;
Small in size thus in operations;
Political influence.
However,
Enlightened members through
member education
try 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.
Members, PACS & Banks have MCL;
Loan granted on simple PACS Resolution;
Recovery at the end of the season;
All PACS linked with district central
cooperative banks;
Concessions in the case of natural
disasters or crop failures;
Govt also writes off loans when needed.
ALL EFFORTS ARE TO INCREASE
AGRICULTURAL PRODUCTION AND
PRODUCTIVITY
Thank you
for your kind attention
Primary Agricultural
Cooperative Societies
Organisation, Management and Functions