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Amit Shah to Inaugurate Mega Conclave on July 14 to Strengthen Rural Financing through PACS

The mega conclave led by Amit Shah is expected to provide a platform for stakeholders to discuss strategies, share insights, and strengthen the cooperative ecosystem in rural India through PACS.

Shivam Dwivedi
Amit Shah to Inaugurate Mega Conclave on July 14 to Strengthen Rural Financing through PACS (Photo Source: PIB)
Amit Shah to Inaugurate Mega Conclave on July 14 to Strengthen Rural Financing through PACS (Photo Source: PIB)

Primary Agriculture Credit Societies (PACS) are set to receive a significant boost in rural financing as Union Home Minister and Minister of Cooperation, Amit Shah, prepares to inaugurate a day-long mega conclave on July 14. The event, taking place in the national capital, aims to strengthen PACS through Farmer Producer Organisations (FPOs). The Ministry of Cooperation stated that the conclave will bring together experts from the sector as well as FPO members from across the country.

Organized by the National Cooperative Development Corporation (NCDC) in collaboration with the Union Ministry of Cooperation, the conclave will discuss strategies to enhance PACS through FPOs. FPOs, which are collective entities formed by farmers, empower them to consolidate resources and improve their bargaining power. Recognizing their significance in agricultural transformation, the government has recently taken steps to form 1,100 new FPOs in the cooperative sector, aligning with Prime Minister Narendra Modi's vision of "Sahkar se Samriddhi."

Under the cooperative sector scheme, the Ministry of Agriculture and Farmers Welfare has allocated additional blocks to the NCDC to establish and promote 1,100 FPOs through the strengthening of PACS. This initiative aims to bolster the cooperative sector and provide comprehensive support to small and marginal farmers. Each FPO receives financial assistance of Rs 33 lakh, while Cluster-Based Business Organizations (CBBOs) receive Rs 25 lakh per FPO to facilitate promotion and guidance.

FPOs play a pivotal role in ensuring sustainable farming practices, promoting livelihoods, and enhancing the overall quality of life for those dependent on agriculture. They enable small and marginal farmers to access better prices, reduce transportation costs, and improve productivity. Integrating PACS into the FPO scheme allows farmers to diversify their activities, including the supply of production inputs, agricultural equipment, and processing and value addition services.

With a member base of approximately 13 crore farmers primarily engaged in short-term credit and the distribution of seeds and fertilizers, PACS holds significant influence. Currently, over 86 percent of farmers in the country fall into the small and marginal category. To incentivize these farmers to produce better quality commodities, the government aims to facilitate their access to improved technology, credit, and better market opportunities, encouraging them to form FPOs.

To support this endeavor, the Union Ministry of Agriculture and Farmers Welfare launched the "Formation and Promotion of 10,000 Farmer Producer Organisations (FPOs)" under the Central Sector Scheme. As a statutory organization under the Ministry of Cooperation, the NCDC plays a crucial role in planning, promoting, and financing cooperatives to increase production, productivity, and establish post-harvest facilities.

During the Financial Year 2022-23, the NCDC disbursed Rs 41,031.39 crore across various sectors, including agriculture processing, weaker sections, cooperative computerization, service, credit, youth cooperatives, and others.

This highlights the commitment of the government to support and empower the cooperative sector, aiming to uplift farmers and improve their livelihoods through stronger PACS and FPOs.

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