Over 22,600 new cooperatives set up, ₹2,925 crore earmarked for PACS digital push: Amit Shah

The Ministry of Cooperation has made significant progress in its five-year plan for the strategic expansion and diversification of Primary Agricultural Credit Societies (PACSs), according to Amit Shah, Minister of Cooperation, in a written response to a question in the Rajya Sabha. Shah informed the upper house of Parliament that, as of June 30, more than 22,600 new multi-purpose PACS, dairy, and fishery cooperatives had been established nationwide since the launch of the five-year plan in February 2023.

States that have shown early momentum include Bihar, with 3,746 cooperatives formed to date, Rajasthan—with 2,681 cooperatives formed to date—Uttar Pradesh—with 2,666 cooperatives formed to date—and Jammu and Kashmir, with 1,350 cooperative societies formed to date. On the other hand, Tamil Nadu, which aims to establish 6,241 PACSs in FY26, has formed 604 societies to date.

Concurrently, a tech-focused transformation of PACSs is also underway, with a centrally sponsored computerisation project—with a total outlay of ₹2,925.39 crore—digitising functional PACSs across the country. The project involves onboarding all operational cooperatives onto a standard, ERP-based national software, linked with the National Bank for Agriculture and Rural Development (NABARD) through state and district cooperative banks. States like Maharashtra, Bihar, Gujarat, and Tamil Nadu have seen significant fund releases and expenditure under the digitisation plan. Maharashtra alone has received over ₹120 crore across multiple financial years, with ₹39.38 crore spent in FY24 and ₹5.32 crore already utilised in FY26.

The approved plan envisages deepening the reach of the cooperative movement up to the grassroots level—through the establishment of two lakh multipurpose cooperative societies spanning dairy, fisheries, and agriculture across all panchayats and villages in India—giving a significant fillip to the rural cooperative economy in India, building on scale, inclusivity, and digitisation.

The plan consolidates various central schemes, including the National Programme for Dairy Development (NPDD) and the Pradhan Mantri Matsya Sampada Yojana (PMMSY), with institutional support from NABARD, the National Dairy Development Board (NDDB), and the National Fisheries Development Board (NFDB). It outlines the targets, timelines, and roles and responsibilities of all stakeholders involved. Shah informed that, in addition, joint working committees at the district level were also formed by states and union territories to ensure timely execution at the grassroots level.