The Union Cooperation Minister Amit Shah’s statement in the House, along with the presentation of relevant data in tabular form, indicates that India’s cooperative sector is undergoing one of the largest modernisation drives in its history, with Tamil Nadu and other southern States emerging as key beneficiaries of the Centre’s multipronged strategy to strengthen Primary Agricultural Credit Societies (PACS).
According to the National Cooperative Database (NCD), Tamil Nadu has 4,532 PACS, of which an exceptional 4,529 are functional, placing it among the States with the highest operational efficiency. Nationally, 1,10,850 PACS exist, with 1,06,090 functional.
Southern States collectively account for more than 13,500 PACS, with Karnataka (6,318), Andhra Pradesh (2,058), Tamil Nadu (4,532), Telangana (909) and Kerala (1,709) forming the core of the cooperative credit landscape in the region. Their functionality rates remain impressively high, with most above 95 percent. These numbers underline the strategic importance of southern India in the country’s cooperative ecosystem.
A major reform push came through the Government’s Model Bye-laws for PACS, empowering them to engage in over 25 diversified activities. This includes functioning as PM-Kisan Samridhi Kendras, Janaushadhi Kendras, and Common Service Centres, apart from managing storage units, LPG distribution, processing facilities and other services that generate local employment and enhance rural service delivery.
By realigning PACS with national digital and service-delivery networks, the government expects a transformation in grassroots-level rural finance and retail systems.
The flagship Central Sector Project for Computerization of PACS, launched in 2022, is the backbone of the current reform wave. The project initially covered 63,000 PACS but has now expanded to 79,630 with a total outlay revised upward to Rs 2,925.39 crore.
Its objective is to equip every functional PACS with ERP-based common software, integrating them seamlessly with State Cooperative Banks (StCBs), District Central Cooperative Banks (DCCBs) and NABARD.
For the southern States, the PACS computerization progress shows rapid advancement. Tamil Nadu has onboarded 4,522 PACS on ERP, with 4,524 going live and all 4,524 completing day-end processes, reflecting near-total digital transition. Karnataka has 3,981 PACS onboarded, while Andhra Pradesh has completed ERP onboarding for 2,019 PACS.
Kerala and Telangana also continue to move steadily despite differing scales. These numbers indicate that the southern region is pushing the national average upward, contributing substantially to the 60,424 PACS already onboarded onto ERP nationwide.
The project’s financial support pattern further highlights Tamil Nadu’s position. The State has received Rs 51.73 crore over four years for PACS computerization, placing it in the top ten States receiving funds. Karnataka, Andhra Pradesh and Telangana have collectively received significant allocations as well, strengthening the cooperative financial backbone across the region. Maharashtra, Rajasthan and Gujarat lead nationally in total allocations, reflecting their scale, while smaller States and UTs, too, have received targeted assistance.
These reforms form part of a wider initiative undertaken by the Ministry of Cooperation since its formation on 6 July 2021. Key measures include a nationwide capacity-building drive for PACS officials, strengthening of the three-tier credit structure, development of the National Cooperative Database, creation of new multipurpose cooperatives at scale, the world’s largest decentralized grain storage plan, and establishment of the Tribhuvan Sahkari University aimed at cultivating professional cooperative leadership.
Summarizing state-wise numbers it can be said that Tamil Nadu ranks among India’s most operationally efficient PACS networks, with 99.93% functionality; Karnataka possesses one of the highest totals; Andhra Pradesh maintains robust digital progress; Kerala remains consistent in functionality; Telangana shows near-complete functional utilization. The combination of digital adoption, diversified activities and enhanced financial support positions the southern cooperative sector for sustained growth.
With the timeline for PACS computerization set for completion by 31 March 2027, the Ministry continues to monitor interim targets closely. This coordinated effort across States is expected to dramatically expand rural access to credit, essential services, storage infrastructure and economic opportunities, signifying a structural transformation of the cooperative movement in South India and the country at large.
