May 20, 2025

Union home and cooperation minister Amit Shah announced the Centre's plan to introduce a new policy for the fast liquidation of defunct primary agricultural credit societies (PACS) and the registration of new ones. The goal is to establish two lakh new PACS by 2029, with 22 designated business activities to ensure financial stability. The move is part of the efforts to mark the International Year of Cooperatives. The PACS play a crucial role in providing short-term and medium-term loans to farmers for agricultural activities, operating at the village level. They promote financial inclusion, offer affordable credit, and support rural economic development by reducing the reliance on informal moneylenders. Among the encouraged business avenues for PACS are cooperative-owned manufacturing units for products such as ice cream, paneer, and other cheese. Shah also emphasized a plan to promote a circular economy in the dairy sector by forming cooperatives to process skin, bones, and horns of deceased livestock. Amit Shah highlighted the significance of the cooperative movement in India, tracing its roots back to the freedom struggle. While acknowledging the challenges faced by the cooperative movement in various regions, he applauded Gujarat for maintaining a strong cooperative network. He called for cooperative leaders in Gujarat to drive the movement's growth uniformly across the state. Shah also reviewed the progress of the 'cooperation among cooperatives' pilot project, stating that 60% of the project has been completed with deposits in cooperative banks witnessing a significant rise. He urged all members of cooperatives, dairies, agriculture produce marketing committees (APMCs), and PACS to have accounts in cooperative banks.

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Tags: Cooperatives, Amit shah, Policy, Financial stability, Rural economic development, India, Gujarat,