PACS Digitisation to Conclude by 2025, Aiding Farmers and Ethanol Programme

Cooperation Secretary Ashish Kumar Bhutani announced on Tuesday that the digitisation of all Primary Agricultural Credit Societies (PACS) will be finalised by the end of this year or January 2025. He urged maize farmers to register on the farmers' portal for procurement by the National Cooperative Consumer Federation (NCCF) and National Agricultural Cooperative Marketing Federation of India (NAFED) under the Ethanol Blending Programme.

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The ministry is prepared to procure maize at the Minimum Support Price (MSP). This initiative aims to benefit both farmers and the Ethanol Blending Programme, according to an official statement. Addressing a stakeholder consultation meeting with top officials of national federations, Bhutani reiterated that the digitisation process of all PACS in the country will be completed by the end of this year or January 2025.

Focus on ERP-Based Software

The consultation on PACS digitisation emphasised integrating all functional PACS onto an Enterprise Resource Planning (ERP)-based common national software. This system will link them with Nabard through state cooperative banks and district central cooperative banks. So far, proposals to computerise 67,930 PACS from 30 states and Union territories have been approved under this project.

As of August 30, a total of 31,301 PACS across 29 States/UTs have been onboarded on the ERP software, and 21,477 PACS have gone live. Additionally, 54,654 PACS have received hardware for digitisation. A central share of Rs 654.23 crore has been released to states/UTs for hardware procurement, legacy data digitisation, and support system establishment. Furthermore, Rs 141 crore has been allocated to Nabard under this project.

Strengthening PACS and Farmer Incentives

The government has framed model bylaws to transform cooperatives into multipurpose entities capable of undertaking economic activities in various fields. These fields range from agriculture and allied activities to the distribution of petroleum products, fertilisers, and seeds. The aim is to make PACS viable business entities.

To further strengthen PACS, the government has incentivised farmers to produce maize and pulses. It has been decided to procure the full produce of pre-registered farmers producing maize and pulses at minimum support prices. This move is expected to enhance the viability of these cooperatives.

The government also plans to establish viable cooperatives in every Panchayat with a focus on developing 2 lakh new PACS as dairy and fishery cooperatives within five years. This initiative aims to bolster rural economies by diversifying cooperative activities.

The digitisation project aims to bring all functional PACS onto a unified platform, enhancing efficiency and transparency. The integration with Nabard through state and district cooperative banks is a significant step towards achieving this goal.

This comprehensive approach ensures that PACS can operate effectively across various sectors, benefiting both farmers and consumers. The government's commitment to completing this digitisation process by early next year underscores its dedication to modernising agricultural credit societies.

By incentivising maize and pulse production, the government aims to ensure that farmers receive fair prices for their produce while supporting the Ethanol Blending Programme. This dual benefit highlights the strategic importance of these initiatives for India's agricultural sector.