Lok Sabha Question No. 657 (UNSTARRED), answered on 2026-02-03
Subject: Strengthening PACS and Multipurpose Cooperatives
Ministry: COOPERATION
Asked by: Shri Sukanta Kumar Panigrahi

## GOVERNMENT OF INDIA MINISTRY OF COOPERATION

## LOK SABHA UNSTARRED QUESTION NO. 657 TO BE ANSWERED ON  03 rd  FEBRUARY, 2025

## Strengthening PACS and Multipurpose Cooperatives

## 657. Shri Sukanta Kumar Panigrahi:

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

- (a) whether the Government's initiative to strengthen PACS and multipurpose cooperatives has significantly benefited farmers, dairy and fisheries sectors across the country;
- (b) if so, the details thereof, State-wise, particularly in Odisha and Aspirational Districts including Kandhamal; and
- (c) whether digital integration and inclusion of women, SHGs and small farmers in Odisha have improved cooperative-based income generation and service delivery, if so, the details thereof?

## ANSWER

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

(a) and (b) The Government's initiative to transform Primary Agricultural Credit Societies (PACS) into  multipurpose  entities  has  significantly  strengthened  rural  economic  activity  across  the agriculture, dairy and fisheries sectors. Through adoption of the Model Bye-laws for PACS, these societies are now enabled to undertake more than 25 business activities, including operation of petrol pumps, LPG distributorships, Jan Aushadhi Kendras and Common Service Centres, thereby diversifying income streams and improving financial sustainability.

In the agriculture sector, the initiative has enhanced infrastructure and post-harvest support through the World's Largest Decentralized Grain Storage Plan, under which godowns and custom hiring centres are being established at the PACS level, reducing post-harvest losses, transportation costs and  distress  sales  while  improving  price  realisation  for  farmers.  Market  access  has  been strengthened under the Atmanirbharta Abhiyan, enabling farmers to register through cooperatives for assured procurement of pulses and maize at Minimum Support Price. Further, over 38,000 PACS have been upgraded as Pradhan Mantri Kisan Samriddhi Kendras (PMKSKs), providing a single-window platform for fertilizers, seeds and soil-testing services. The PACS Computerization

Project, covering 79,630 PACS, has improved transparency and efficiency through ERP-based systems, resulting in faster credit delivery and reduced transaction costs.

In the dairy sector, White Revolution 2.0 aims to enhance milk procurement by 50 per cent over five years through expansion of cooperative coverage in uncovered areas. By early 2026, over 21,000 new Dairy Cooperative Societies had been registered nationwide. Fiscal measures such as GST rationalisation -including nil GST on milk and paneer and reduction of GST on butter, ghee and  cheese -have  improved  competitiveness  of  cooperative  dairy  products,  with  a  substantial share of consumer price benefits accruing to dairy farmers.

In the fisheries sector, the Government is converting 1,000 fisheries cooperative societies into Fish Farmer  Producer  Organisations  (FFPOs)  to  improve  market  linkages  and  value  addition.  The National  Cooperative  Development  Corporation  (NCDC)  has  extended  significant  financial assistance to strengthen FFPO infrastructure and business capacity.

Overall,  the  establishment  of  the  National  Cooperative  Database  (NCD) -covering  8.4  lakh cooperatives and about 32 crore members -has enabled evidence-based planning and identification of coverage gaps. In addition, apex cooperative institutions such as the  National Cooperative Exports Limited (NCEL) and National Cooperative Organics Limited (NCOL) have expanded market access for primary producers, with NCEL exporting commodities worth over ₹5,300 crore to 29 countries.

In order to strengthen Primary Agricultural Credit Societies (PACS)  and  multipurpose cooperatives aim to significantly benefit farmers as well as the dairy and fisheries sectors across the  country  the  Government,  on  15.02.2023,  has  approved  the  Plan  for  establishing  new multipurpose PACS or primary dairy/ fishery cooperative societies covering all the uncovered Panchayats/ village in the country by 2028.

As a result of the initiatives taken by the Government, 32,802 new PACS, dairy, and fishery cooperative societies have been registered nationwide since 15.02.2023 . The State-wise details of PACS, dairy, fishery cooperative societies formed along with members associated with them are placed  as Annexure .  In  Odisha,  there  are  8,361  cooperative  societies,  of  which  7,754  are functional. Under the national plan, 2,281 new cooperative societies have been registered in the State, comprising 1,543 Multipurpose PACS, 679 Dairy Cooperative Societies. Further, 59 Fishery Cooperative Societies, and 209 existing dairy societies have been strengthened. In the Aspirational District of Kandhamal, there are 103 cooperative societies with a total membership of 2,37,288, including 76 PACS and 2 fishery cooperatives.

(c)  Digital  integration  and  targeted  inclusion  of  women,  Self-Help  Groups  (SHGs),  small  and marginal farmers and tribal communities in Odisha have led to improvements in cooperative-based income generation and service delivery. Odisha has registered 2,281 new PACS, Dairy and Fishery Cooperative  Societies  and  strengthened  existing  ones,  while  adoption  of  Model  Bye-laws  has enabled PACS to undertake multiple business activities such as PM Kisan Samriddhi Kendras , Common Service Centres, etc. These Bye-laws provide for broad-based membership and ensure adequate representation of women and Scheduled Castes/Scheduled Tribes (SC/ST) in cooperative governance.  Further,  the  Multi-State  Cooperative  Societies  (Amendment)  Act,  2023  mandates reservation of two seats for women and one seat for SC/ST members on the boards of multi-State cooperative societies. The Model Bye-laws also enables PACS to function as multipurpose service centres,  allowing  small  and  marginal  farmers,  SHGs,  women,  etc.  to  access  affordable  credit, quality  inputs  and  allied  services  at  a  single  point,  and  to  benefit  from  activities  such  as warehousing, custom hiring centres and primary processing, thereby improving  income realization.

Under the PACS Computerization Project, 4,240 PACS in the State have been sanctioned for onboarding onto a common ERPbased national software, with ₹18.07 crore released during FY 2025 -26  for  hardware,  digitization  and  support  systems.  This  aims  to  improve  transparency, enable  real-time  transaction  recording  and  facilitate  faster  delivery  of  credit  and  non-credit services to members. Inclusive governance reforms, including mandatory representation of women and SC/ST  members  on  cooperative boards, have further strengthened participation of marginalized groups.

The National Cooperation Policy (NCP) 2025 also emphasizes promotion of membership and leadership  roles  for  women  and  weaker  sections.  Support  for  women  and  SHGs  is  further strengthened  through  schemes  such  as  Swayam  Shakti  Sahakar  Yojana  for  onward  lending  to Women SHGs and Nandini Sahakar for promoting women-led cooperatives.

Further, targeted financial assistance and diversification of cooperative activities have enhanced income opportunities. Over the last three years, ₹0.20 crore has been disbursed to women - and tribal-led  cooperatives,  and  support  to  Women  SHGs  is  being  extended  through  the  Swayam Shakti Sahakar Yojana.

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## Annexure

|                             | M-PACS   | M-PACS     | Dairy Cooperative Societies   | Dairy Cooperative Societies   | Fisheries Cooperative Societies   | Fisheries Cooperative Societies   |
|-----------------------------|----------|------------|-------------------------------|-------------------------------|-----------------------------------|-----------------------------------|
| State                       | Formed   | Membership | Formed                        | Membership                    | Formed                            | Membership                        |
| Andaman And Nicobar Islands | 1        | 12         | 1                             | 10                            | 11                                | 132                               |
| Andhra Pradesh              | 11       | 110        | 1034                          | 21946                         | 2                                 | 79                                |
| Arunachal Pradesh           | 121      | 2584       | 15                            | 185                           | 20                                | 223                               |
| Assam                       | 469      | 11820      | 591                           | 13921                         | 81                                | 1823                              |
| Bihar                       | 57       | 98369      | 4589                          | 184538                        | 2                                 | 104                               |
| Chhattisgarh                | 469      | 263645     | 351                           | 5226                          | 322                               | 5904                              |
| Goa                         | 37       | 1148       | 5                             | 53                            | 3                                 | 32                                |
| Gujarat                     | 525      | 89678      | 706                           | 41774                         | 23                                | 1371                              |
| Haryana                     | 31       | 22282      | 161                           | 5150                          | 6                                 | 109                               |
| Himachal Pradesh            | 116      | 4639       | 708                           | 9952                          | 6                                 | 124                               |
| Jammu And Kashmir           | 216      | 21728      | 1313                          | 17636                         | 36                                | 701                               |
| Jharkhand                   | 127      | 40925      | 257                           | 9745                          | 177                               | 6594                              |
| Karnataka                   | 243      | 65808      | 1097                          | 110057                        | 45                                | 4828                              |
| Ladakh                      | 3        | 333        | 3                             | 150                           | 1                                 | 20                                |
| Lakshadweep                 | 0        | 0          | 0                             | 0                             | 7                                 | 567                               |
| Madhya Pradesh              | 663      | 401304     | 874                           | 21596                         | 226                               | 5817                              |
| Maharashtra                 | 149      | 25864      | 1140                          | 67249                         | 161                               | 9008                              |
| Manipur                     | 104      | 13791      | 24                            | 502                           | 67                                | 2220                              |
| Meghalaya                   | 228      | 15772      | 16                            | 274                           | 7                                 | 137                               |
| Mizoram                     | 97       | 5444       | 2                             | 49                            | 2                                 | 42                                |
| Nagaland                    | 18       | 972        | 5                             | 95                            | 18                                | 704                               |
| Odisha                      | 1543     | 706225     | 679                           | 30766                         | 59                                | 5119                              |
| Puducherry                  | 4        | 99         | 3                             | 127                           | 3                                 | 1150                              |
| Punjab                      | 1        | 21         | 463                           | 9955                          | 43                                | 520                               |
| Rajasthan                   | 1387     | 523638     | 2174                          | 42213                         | 22                                | 462                               |

| Sikkim        | 24    | 568       | 61     | 1309     | 3     | 37     |
|---------------|-------|-----------|--------|----------|-------|--------|
| Tamil Nadu    | 28    | 12126     | 794    | 27976    | 25    | 2512   |
| Telangana     | 0     | 0         | 173    | 3736     | 102   | 4244   |
| The DD & DNH  | 6     | 399       | 1      | 333      | 2     | 560    |
| Tripura       | 288   | 4287      | 2      | 28       | 19    | 882    |
| Uttar Pradesh | 1099  | 141166    | 4340   | 174235   | 486   | 14709  |
| Uttarakhand   | 621   | 7602      | 263    | 8799     | 120   | 1408   |
| West Bengal   | 24    | 3673      | 137    | 5733     | 3     | 175    |
| Grand Total   | 8,710 | 24,86,032 | 21,982 | 8,15,318 | 2,110 | 72,317 |