Context: 

This Article is based on the news “Every village to have agricultural credit societies by 2027, says Amit Shah” which was published in the Indian Express. Central government targets every village to have agricultural credit society by 2047.

National Cooperative Database 2023

• The computerization of the Primary Agricultural Credit Societies has opened up many possibilities for their development. The government has launched the “National Cooperative Database” and released its report.
  • Aim of Database: To identify and address the gaps through a comprehensive analysis.

• The National Cooperative Database has been carried out in three phases.
  • 1st Phase: The Mapping of approximately 2.64 lakh societies in three sectors, namely Primary Agricultural Credit Societies, Dairy, and Fisheries, was completed.
  • 2nd Phase: Data from various National Federation, State Federation, State Cooperative Banks, District Central Cooperative Banks, Urban Cooperative Banks etc were collected.
  • 3rd Phase: Data mapping of all remaining 8 lakh primary cooperative societies in other sectors was carried out.

What is Primary Agricultural Credit Society?

• Primary Agricultural Credit Society is a  village-level cooperative credit society.
• They serve as the last link in a three-tier cooperative credit structure headed by the State Cooperative Banks at the state level.
• The Primary Agricultural Credit Societies has around 13 crore farmers who are primarily engaged in short-term credit and distribution of seeds, fertilizers, etc.

Functioning of Primary Agricultural Credit Society:

• Credit from the SCBs is transferred to the District Central Cooperative Banks, or DCCBs, that operate at the district level.
• The DCCBs work with PACS, which deals directly with farmers.
• Since these are cooperative bodies, individual farmers are members of the PACS, and office-bearers are elected from within them.

Significance Primary Agricultural Credit Society:

• Last Mile Connectivity: They offer last-mile connectivity to farmers in disbursing credit.
• Hassle-Free Loans: PACS have the credit to extend credit with minimal paperwork within a short time.

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