A Primary Agricultural Credit Society (PACS) is a village-level cooperative society in India that provides short-term credit, agricultural inputs, and other services to farmers and rural communities to support farming and allied activities.

Farmers, agricultural laborers, and rural residents within the PACS’s area of operation can join by purchasing shares (typically ₹100-₹1,000) and meeting eligibility criteria set by the society’s bylaws.

• Provide affordable short-term credit for agriculture
• Supply agricultural inputs like seeds and fertilizers
• Facilitate marketing of farm produce
• Promote savings among members
• Support rural development activities
• Link farmers to government schemes
• Enhance financial inclusion in rural areas

• Access to Credit: Low-interest loans for farming
• Input Supply: Affordable seeds, fertilizers, and tools
• Market Support: Assistance in selling produce
• Financial Services: Savings and insurance products
• Government Benefits: Access to subsidies and schemes
• Dividends: Share in profits based on membership

A PACS typically has 50-500 members, depending on the village size:

• Small PACS (50-100) serve smaller villages
• Larger PACS (100-500) cover bigger areas or multiple villages
• Size ensures manageability and effective credit delivery

The formation process includes:

1. Farmers and rural residents form a group (minimum 10 members)
2. Elect a managing committee (President, Secretary, Treasurer)
3. Draft bylaws and objectives
4. Register under the State Cooperative Societies Act
5. Raise share capital from members
6. Open a bank account for operations
7. Link with District Cooperative Banks or NABARD

Yes, registration is mandatory to function legally:

• Registered under State Cooperative Societies Act
• Enables access to government funding and schemes
• Provides legal recognition for financial transactions
• Allows linkage with cooperative banks

PACS are registered through:

The process varies by state but requires basic documentation and approval.

Required documents include:

• List of members with contact details
• Bylaws and objectives of the PACS
• Resolution for managing committee
• Share capital contribution records
• Identity proofs (Aadhaar, Voter ID) of committee members
• Bank account details
• Application form for registration
• Proof of address for PACS office

Roles are elected and often rotated every 1-3 years.

PACS offers:

• Short-term Loans: For crop production (3-12 months)
• Medium-term Loans: For equipment or infrastructure (1-5 years)
• Kisan Credit Card (KCC): Flexible credit for farming needs
• Emergency Loans: For health or personal crises

Interest rates are typically 4-7% per annum, lower than commercial banks.

The loan process involves:

1. Member submits loan application
2. Managing committee reviews purpose and repayment capacity
3. Approval by committee vote
4. Loan disbursed from PACS funds or linked banks
5. Repayment scheduled with harvest cycles
6. Regular monitoring during meetings

Priority is given to agricultural needs and emergencies.

Yes, PACS can borrow from:

Funds are secured based on PACS’s credit history and membership strength.

Financial management includes:

Profits are distributed as:

• Dividends: Based on shareholding (up to 12-15%)
• Reserves: For future loans or infrastructure
• Community Fund: For rural development activities
• Bonuses: For active members (optional)

Decisions are made in general body meetings.

PACS provides:

• Short-term and medium-term loans
• Supply of seeds, fertilizers, and pesticides
• Marketing support for farm produce
• Storage and warehousing facilities
• Savings accounts for members
• Insurance products (crop, life)
• Training on farming practices

PACS facilitates marketing through:

• Aggregation of produce for bulk sales
• Linkages with local mandis and buyers
• Participation in government procurement schemes
• Providing storage to prevent distress sales
• Support for quality grading and packaging

Decision-making follows cooperative principles:

• Managing Committee: Approves loans and major decisions
• General Body Meetings: For policy changes and profit distribution
• Majority Vote: Used for key decisions
• Quorum: Minimum 50% members required
• Transparency: Recorded in minutes book

Records are preserved for at least 5 years.

Repayment is ensured through:

• Flexible schedules aligned with harvest cycles
• Regular monitoring during meetings
• Peer pressure within the cooperative
• Collateral or guarantors (if needed)
• Linking repayments to produce sales
• Support during crop failure (rescheduling)

Access pathways include:

• Through Authorities:
  • District Cooperative Office
  • NABARD Regional Offices
  • State Cooperative Departments
  • District Rural Development Agency
• Direct Applications:
  • To cooperative banks for refinance
  • Online portals (e.g., KCC applications)
  • District Agriculture Offices

NABARD supports PACS through:

• Refinancing loans at low interest rates
• Capacity building and training programs
• Digitalization initiatives (e-PACS)
• Grants for infrastructure development
• Monitoring and audit support

NABARD acts as a key facilitator for credit and development.

Training is provided by NABARD, KVKs, and cooperative departments.

Yes, PACS collaborates with:

• Cooperative Banks: For funding and refinancing
• NABARD: For schemes and training
• FPOs: For marketing and input supply
• NGOs: For capacity building
• Government Agencies: For procurement and subsidies

Collaboration enhances service delivery and reach.

• Training: Regular workshops by NABARD
• Digital Tools: Adopt e-PACS software
• Standardization: Use uniform formats
• Verification: Monthly committee audits
• Transparency: Share records in meetings
• Support: Assistance from cooperative departments

• Incentives: Fair dividends and bonuses
• Engagement: Regular general body meetings
• Training: Workshops on farming and finance
• Outreach: Field visits by committee members
• Transparency: Share financial updates
• Services: Expand input and marketing support

Digitalization improves efficiency and transparency.