The Secretary of the Ministry of Cooperation, Dr. Ashish Kumar Bhutani, inaugurated a national workshop on “Emerging Technologies in PACS” at PHD House, New Delhi, where he strongly advocated for the transformation of Primary Agricultural Credit Societies (PACS) into vibrant, tech-enabled institutions serving as comprehensive rural service centers.
The event, attended by 122 PACS representatives from 12 states, along with senior officials from various central bodies such as NABARD, NCDC, NFDB, NCCT, NCCF, IFFCO, and KRIBHCO, focused on leveraging technology to redefine the role of PACS in the age of Digital India.
Addressing the participants, Dr. Bhutani recalled the historic formation of the Ministry of Cooperation on July 6, 2021, under the leadership of Prime Minister Narendra Modi and the guidance of Union Home and Cooperation Minister Amit Shah. He emphasized that though cooperative institutions in India have existed for over a century, the creation of the Ministry was a landmark moment that re-energized the sector.
Today, India has over one lakh PACS with more than 13 crore members, and despite a decline in the share of cooperative institutions in total short-term lending to 15%, PACS have managed to increase their outreach, now benefiting 42% of borrowers, a clear indication of their continued relevance to small and marginal farmers.
Highlighting structural challenges, Dr. Bhutani pointed out that out of around 2000 banking licenses in India, 1900 are held by cooperative institutions, yet these rural financial entities have struggled to adopt modern technologies. This technological lag, he noted, has led to limitations in product offerings and overall competitiveness.
However, since the Ministry’s formation, significant efforts have been made to address these issues with institutions like RBI, the Finance Ministry, and the Income Tax Department. Now, the focus is on upgrading these institutions with digital tools, enhancing transparency, improving human resources, and aligning operations with 21st-century standards.
Dr. Bhutani explained that PACS were traditionally focused only on agricultural credit and inputs. Under Minister Amit Shah’s leadership, a vision was charted to expand PACS into multi-functional, self-sustaining entities.
Through new model bye-laws, PACS have now been enabled to diversify into 26 different types of activities beyond credit, ranging from agri-services to rural retail and beyond. In just four years, the Ministry has launched over 60 initiatives to build a stronger cooperative ecosystem.
Among these, the formation of a National Database of Cooperatives stands out as a critical reform. This database provides a real-time resource for identifying institutional gaps and planning interventions at both state and national levels.
A parallel major initiative is the Rs 3000 crore PACS computerisation program aimed at digitising 80,000 societies and transforming them into integrated platforms delivering various government schemes and services.
Drawing an analogy with the benefits brought by the computerisation of railway ticketing, Dr. Bhutani underscored how digitisation will similarly transform PACS by enhancing operational transparency, increasing efficiency, and strengthening their role in rural development. He also stressed that PACS are unique in being backed by state legislation, giving them an institutional strength that must be capitalised upon through technology adoption.
Concluding his address, Dr. Bhutani urged all stakeholders to explore modern tools like AI, IoT, precision farming technologies, and weather advisory systems, which can equip PACS to better serve rural communities.
As part of the PM’s call during the International Year of Cooperatives, he also participated in the “Ek Ped Maa Ke Naam” campaign by planting a sapling and visited cooperative stalls, reinforcing the Ministry’s grassroots engagement and commitment to sustainability.
