Lok Sabha Question No. 4294 (UNSTARRED), answered on 2025-08-19
Subject: PACS Integration with PM-KISAN
Ministry: COOPERATION
Asked by: Shri Darshan Singh Choudhary

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 4294 TO BE ANSWERED ON 19 th  AUGUST, 2025

## PACS Integration with PM-KISAN

## †4294. Shri Darshan Singh Choudhary:

Will the Minister of COOPERATION ( सहकारिता मंत्री ) be pleased to state:

- (a) the manner in which Primary Agricultural Credit Society (PACS) has been integrated with Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) or other Central schemes;
- (b)  the  regulatory  frameworks  put  in  place  by  the  Government  to  strengthen  the  financial sustainability of PACS; and
- (c) the mechanisms put in place by the Government to monitor and evaluate the activities of PACS?

## ANSWER

## THE MINISTER OF COOPERATION सहकारिता मंत्री (SHRI AMIT SHAH)

- (a):  Ministry  of  Cooperation  has  taken  multiple  measures  to  integrate  Primary Agricultural Credit Societies (PACS) with PM-KISAN and other Central schemes, with a view to making PACS local-level service delivery hubs for farmers. These includes:-
1. ERP-enabled Convergence with Farmer Databases: The Centrally Sponsored Project on Computerization  of  PACS  provides  a  uniform  ERP-based  platform  by  integrating  national portals  such  as  PM-KISAN,  Pradhan  Mantri  Kisan  Samriddhi  Kendra(PMKSK),  interest subvention, fertiliser and seed distribution, PDS outlets, LPG/Petrol/Diesel dealerships, custom hiring,  PM  Jan Aushadhi  Kendras,  Common  Service  Centres,  Pradhan  Mantri  Fasal  Bima Yojana (PMFBY),  etc.
2. Multi-Sectoral Scheme Linkages: PACS have also been enabled to participate in a range of Central schemes, including:-
- PACS  as  Pradhan  Mantri  Kisan  Samriddhi  Kendras  (PMKSK) providing fertilizers, pesticides and various other agri inputs to farmers under one roof. So far, 36,592 PACS have been upgraded into PMKSKs.
- PACS as Common Service Centers (CSCs) to deliver more than 300 e-services such as banking, insurance, electricity bill payments, health services, legal services, etc. to rural citizens; etc. So far, 47,918 PACS have started functioning as CSC.
- PACS as Pradhan Mantri Bhartiya Janaushadhi Kendras (PMBJK) to ensure availability of quality generic medicines to rural citizens at affordable prices. So far,  762  PACS  have  got  Store  Codes  from  PMBI  and  are  ready  to  function  as PMBJK.
- PACS made eligible for Retail Petrol/ Diesel outlets : Government has allowed PACS to be included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets.
- PACS given permission to convert bulk consumer petrol pumps into retail outlets : The existing bulk consumer licensee PACS have been given a one-time option  by  Oil  Marketing  Companies  to  convert  into  retail  outlets.  As  per information shared by OMCs, 117 wholesale consumer pump licensee PACS from 5 States have given consent for conversion into Retail Outlets, out of which 59 PACS have been commissioned by the OMCs.
- PACS made eligible for LPG Distributorship for diversifying its activities : Government has now allowed PACS to apply for LPG Distributorships. This will give  PACS  an  option  to  increase  their  economic  activities  and  diversify  their income stream.
- PACS have been made eligible to carry out Operations & Maintenance (O&M) of piped water supply schemes in rural areas. As per information received from States/ UTs, 539 PACS have been identified/ selected by 8 States/ UTs to provide O&M services at Panchayat/ Village level.
- Formation of new Farmer Producer Organizations (FPOs) by PACS : Against the  additional  target  of  1,100  FPOs  allocated  to  NCDC  by  Department  of Agriculture & Farmers Welfare, GoI, it has registered 1,117 FPOs in Cooperative Sector through PACS. This enables cooperative sector in general, and PACS in particular,  to  generate  alternative  sources  of  revenues  for  their  members,  thus transforming themselves into viable, dynamic and financially sustainable economic entities.

(b): ERP  enabled  software  brings  audit  transparency  which  leads  to  better  financial management which together with diversified business leads to greater financial sustainability of PACS. Model Bye-laws allow PACS to diversify into more than 25 economic activities such as  dairy,  fishery,  warehousing,  LPG  distribution,  PMBJK,  PMKSK,  Fair  Price  Shops,  etc., thereby  reducing  over-dependence  on  short-term  credit.  The  bye-laws  also  provide  for enhanced governance norms, transparency, and inclusive membership, including representation for women and SC/ST members.

(c):  The  Government  has  instituted  multiple  mechanisms  for  continuous  monitoring  and evaluation of PACS activities, including:

- National Cooperative  Database  (NCD): A comprehensive,  API-enabled repository that captures real-time data on PACS registration, membership, audit compliance,  operational  status,  and  financial  indicators,  allowing  central  and State authorities to monitor sector health.
- ERP/MIS and Standardized Financial Reporting: The ERP platform includes modules for accounting, loan tracking, procurement, and inventory management, with built-in MIS dashboards and audit trails. This facilitates regular oversight by DCCBs/StCBs/NABARD and Registrar of Cooperative Societies (RCS).
- Cooperative  Ranking  Framework: A  national  framework  to  evaluate  PACS performance based on financial health, governance, infrastructure, and service delivery, encouraging peer benchmarking and incentivizing improved performance.
- Standard Operating Procedures (SOPs): Issued  for  establishing  new  multipurpose PACS, dairy/fishery cooperatives, and implementing the grain storage plan, these SOPs define timelines, responsibilities, and monitoring checkpoints.
- Review and monitoring mechanism by Ministry: The Ministry of Cooperation (MoC)  has  adopted  a  multi-layered  approach  to  evaluate  the  impact  of  these initiatives,  ensuring  effective  implementation  at  the  grassroots  level.  Regular monthly  review  meetings  are  conducted  with  States/UTs  to  assess  progress, particularly in the PACS  computerization  Project. Key  stakeholders like States/UTs, including NABARD have been engaged to review the implementation of this project. Additionally, a structured monitoring framework has been established, comprising the National Level Monitoring and Implementation Committee (NLMIC), State and District Level Implementation and Monitoring Committees (SLIMC and DLIMC), State Cooperative Development  Committee  (SCDC)  (under  the  Chief  Secretary),  and  District Cooperative  Development  Committee  (DCDC)  (under  the  District  Collector). These bodies ensure effective implementation, oversight, and coordination of all cooperative sector initiatives, including PACS computerization.

Further,  NITI  Aayog  has  conducted  an  impact  evaluation  of  Centrally  Sponsored Schemes (CSS) in the Agriculture & Allied Sector, which includes "Computerization of  PACS"  and  "Strengthening  of  Cooperatives  through  IT  Interventions"  under  the Ministry of Cooperation.

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