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As per the National Cooperative Union of India’s (NCUI) Statistical Profile, 2018, there are 97,961 Primary Agricultural Credit Societies (PACS); 1,51,956 dairy cooperative societies and 23,670 fishery cooperative societies in the country. The State-wise number of PACS, dairy and fishery cooperative societies is enclosed at Annexure – I.

In order to strengthen the cooperative movement in the country; deepen its reach up to the grassroots; strengthen cooperative societies, including farmers and fishermen based cooperative societies and transform cooperatives into successful and vibrant economic entities; Ministry of Cooperation has taken various initiatives across the country, such as:

1. Model Bye-Laws for PACS making them multipurpose, multidimensional and transparent entities: Prepared and circulated to all the States/ UTs for adoption as per their respective State Cooperatives Act to enable PACS to undertake more than 25 business activities. Model byelaws have been adopted by 30 States/ UTs.

2. Strengthening of PACS through Computerization: Process to onboard 63,000 PACS on an ERP based national software, with an outlay of ₹2,516 crore started.

3. New Multipurpose PACS/ Dairy/ Fishery Cooperatives in uncovered Panchayats: A plan has been approved to set up 2 lakh new multi-purpose PACS or primary dairy/ fisheries cooperatives covering every Panchayat/ village in the country in the next five years, with the support of NABARD, National Dairy Development Board (NDDB) and National Fishery Development Board (NFDB) through convergence of various existing schemes of Government of India, viz. National Programme for Dairy Development (NPDD), Dairy Processing and Infrastructure Development Fund (DIDF), Pradhan Mantri Matsya Sampada Yojana (PMMSY) and Fisheries and Aquaculture Infrastructure Development Fund (FIDF).

4. World’s Largest Decentralized Grain Storage Plan in Cooperative Sector to ensure food security: Pilot Project is under implementation to create godowns and other agri-infrastructure for grain storage at PACS level, including custom hiring centers, processing units, Fair Price Shops, etc. through convergence of various existing schemes of Government of India, viz. Agricultural Infrastructure Fund (AIF), Agricultural Marketing Infrastructure (AMI), Sub-Mission on Agricultural mechanization (SMAM), Mission for Integrated Development of Horticulture (MIDH), PM Formalization of Micro Food Processing Enterprises Scheme (PMFME), Pradhan Mantri Kisan SAMPADA Yojana (PMKSY).

5. PACS as Common Service Centers (CSCs) for better access to e-services: More than 18,000 PACS onboarded as CSC to improve their viability, provide e-services and generate employment in rural areas.

6. Formation of new Farmer Producer Organization (FPOs) by PACS: 1,100 additional FPOs to be formed by PACS in those blocks where FPOs have not yet been formed or the blocks are not covered by any implementing agency.

7. PACS given priority for Retail Petrol/ diesel outlets: PACS have been included in the Combined Category 2 (CC2) for allotment of retail petrol/ diesel outlets. Existing PACS with wholesale petrol pump license permitted to convert into retail outlets.

8. PACS eligible for LPG Distributorship for diversifying its activities: PACS have now been allowed to apply for LPG Distributorships.

9. PACS as Jan Aushadhi Kendra for improving access to generic medicines at rural level: PACS have been allowed to operate Pradhan Mantri Bhartiya Janaushadhi Kendras which will provide additional income source to them.

10. PACS as Pradhan Mantri Kisan Samriddhi Kendras (PMKSK) for fertilizer distribution: PACS have been allowed to operate PMKSK for ensuring easy accessibility of fertilizer & related services to farmers in the country.

11. Convergence of PM-KUSUM at PACS level for energy security: Farmers associated with PACS can adopt solar agricultural water pumps and install photovoltaic modules in their farms.

12. PACS to carry out O&M of rural piped water supply schemes (PWS): PACS have been allowed to carry out the Operations & Maintenance (O&M) of PWS in rural areas.

13. Micro-ATMs to Bank Mitra Cooperative Societies for providing doorstep financial services: Micro-ATMs now being given to cooperative societies like Dairy, Fisheries, by the Cooperative Banks.

14. Rupay Kisan Credit Card to Members of Milk Cooperatives: Rupay Kisan Credit Cards being provided to the members of cooperatives through Cooperative Banks for providing credit at comparatively lower interest rates.

In addition to the above, several other initiatives have also been taken by Ministry of Cooperation to strengthen the cooperative ecosystem in the country, the brief of which is enclosed at Annexure – II.

Annexure – I

State-wise number of PACS, Dairy and Fishery Cooperative Societies

 

S.No.		Name of States/ UTs	Total No. of PACS	Total No. of Dairy Cooperative Societies	Total No. of Fishery Cooperative Societies
1	ANDAMAN AND NICOBAR ISLANDS		51	0	112
2	ANDHRA PRADESH		2051	3538	2361
3	ARUNACHAL PRADESH		34	7	11
4	ASSAM		766	440	456
5	BIHAR		8463	4280	387
6	CHANDIGARH		17	0	0
7	CHHATTISGARH		1333	768	766
8	DELHI		0	0	0
9	GOA		81	183	18
10	GUJARAT		8484	18614	640
11	HARYANA		711	7325	1
12	HIMACHAL PRADESH		2127	563	65
13	JAMMU AND KASHMIR		643	158	1
14	JHARKHAND		2345	540	386
15	KARNATAKA		5679	15275	636
16	KERALA		1647	3271	655
17	LADAKH		-	-	-
18	LAKSHADWEEP		19	0	6
19	MADHYA PRADESH		4457	9554	2460
20	MAHARASHTRA		21217	13948	3300
21	MANIPUR		223	562	416
22	MEGHALAYA		179	87	72
23	MIZORAM		159	115	58
24	NAGALAND		1719	181	398
25	ODISHA		2701	5588	1086
26	PUDUCHERRY		53	125	68
27	PUNJAB		3543	6317	3
28	RAJASTHAN		6411	12897	35
29	SIKKIM		176	345	8
30	TAMIL NADU		4511	11302	1364
31	TELANGANA		798	1850	4016
32	DADRA &NAGAR HAVELIAND DAMAN &DIU		2	15	8
33	TRIPURA		268	119	155
34	UTTAR PRADESH		8929	26150	1034
35	UTTARAKHAND		759	4008	19
36	WEST BENGAL		7405	3831	2669
	Total		97,961	1,51,956	23,670

Note: As per the Statistical Profile, National Cooperative Union of India (NCUI), 2018

Annexure – II

Other Initiatives taken by Ministry of Cooperation to Strengthen the Cooperative Ecosystem in the Country

1. Strengthening the Urban and Rural Cooperative Banks (9 initiatives)

1. UCBs have now been allowed to open new branches to expand their business.

2. UCBs have been allowed by RBI to offer doorstep services to their customers.

3. Cooperative banks have been allowed to make one-time settlement of outstanding loans, like Commercial Banks.

4. Time limit increased to achieve Priority Sector Lending (PSL) targets given to UCBs.

5. A Nodal Officer designated in RBI for regular interaction with UCBs.

6. Individual housing loan limit more than doubled by RBI for Rural and Urban Co-operative Banks.

7. Rural Co-operative Banks will now be able to lend to commercial real estate/ residential housing sector, thereby diversifying their business.

8. License fee for onboarding Cooperative Banks to ‘Aadhaar Enabled Payment System’ (AePS) has been reduced by linking it to the number of transactions.

9. Non-scheduled UCBs, StCBs and DCCBs notified as Member Lending Institutions (MLIs) in CGTMSE Scheme to increase share of cooperatives in lending.

 

2. Relief to Cooperative Societies in Income Tax Act (6 initiatives)

10. Surcharge reduced from 12 % to 7% for co-operative societies having income between Rs. 1 to 10 Cr.

11. MAT reduced for cooperatives from 18.5% to 15%.

12. A clarification has been issued to remove difficulties in cash transactions by cooperatives under Section 269ST of IT Act.

13. A flat lower tax rate of 15% will be charged, compared with current rate of upto 30% plus surcharge, for new cooperatives commencing manufacturing activities till March 31, 2024.

14. Limit increased from Rs. 20,000 to Rs. 2 lakh per member for deposits and loans in cash by PACS and PCARDBs.

15. Increase in cash withdrawal limit for cooperatives from Rs. 1 Crore to Rs. 3 Crore, per annum, without being subjected to TDS.

 

3. Revival of Cooperative Sugar Mills (4 initiatives)

16. Relief from Income Tax to Sugar Cooperative Mills: Sugar cooperative mills not to be subjected to additional income tax for paying higher sugarcane prices to farmers up to Fair and Remunerative or State Advised Price.

17. Resolution of decades old pending issues related to Income Tax of Sugar Cooperative Mills: Sugar cooperatives allowed to claim as expenditure their payments to sugarcane farmers for the period prior to assessment year 2016–17, giving a relief of nearly Rs. 10,000 crores.

18. Rs. 10,000 crore loan scheme launched by NCDC for strengthening of Sugar Cooperative Mills: Scheme can be used for setting up ethanol plants or cogeneration plants or for working capital or for all three purposes.

19. Preference to Cooperative Sugar Mills in purchase of ethanol: Cooperative Sugar Mills will be put at par with private companies for ethanol procurement by Government of India under the Ethanol Blending Programme (EBP).

 

4. Three new Multi-State Societies at the National Level (3 initiatives)

20. New National Multi-State Cooperative Seed Society for certified seeds: New apex multi-state cooperative seed society established under the MSCS Act, 2002 as umbrella organization for quality seed cultivation, production and distribution under a single brand.

21. New National Multi-State Cooperative Organic Society for organic farming: New apex multi-state cooperative organic society established under the MSCS Act, 2002 as umbrella organization to produce, distribute and market certified and authentic organic products.

22. New National Multi-State Cooperative Export Society for promoting exports: New apex multi-state cooperative export society established under the MSCS Act, 2002 as umbrella organization to give thrust to exports from cooperative sector.

 

5. Capacity Building in Cooperatives (3 initiatives)

23. Establishment of the World’s Largest Cooperative University: National Cooperative University being established for Cooperative education, training, consultancy, research and development and a sustainable and quality supply of trained manpower.

24. New Scheme of Cooperative Education and Training: To strengthen the cooperative movement, build capacity of faculty of VAMNICOM, NCCT and JCTC, promote quality research and studies on important areas of Cooperative sector, etc.

25. Promotion of training and awareness through National Council for Cooperative Training (NCCT): NCCT conducted 3,287 training programs and provided training to about 2,01,507 participants in FY 2022-23.

 

6. Use of Information Technology for ‘Ease of Doing Business’ (2 initiatives)

26. Computerization to strengthen the Central Registrar’s Office: This will create a digital ecosystem for Multi-State Cooperative Societies, which will assist in processing applications and service requests in a time bound manner.

27. Scheme for computerization of office of RCSs in States and Union Territories: To increase ease of doing business for Cooperative Societies and create a digital ecosystem for transparent paperless regulation in all States/Union Territories.

 

7. Other Initiatives (7 initiatives)

28. New National Cooperative Database for authentic and updated data repository: Preparation of a database of cooperatives in the country started to facilitate stakeholders in policy making and implementation.

29. Formulation of New National Cooperative Policy: A National level committee comprising 49 experts and stakeholders drawn from all over the Country constituted to formulate the New National Cooperative Policy to create an enabling ecosystem to realize the vision of ‘Sahakar-se-Samriddhi’.

30. Multi-State Co-operative Societies (Amendment) Act, 2023: Amendment has been brought in the MSCS Act, 2002 to incorporate provisions of 97^th Constitutional Amendment, strengthen governance, enhance transparency, increase accountability and reform electoral process in the Multi State Cooperative Societies.

31. Inclusion of Cooperatives as ‘buyers’ on GeM portal: Cooperatives permitted to register as ‘buyer’ on GeM, enabling them to procure goods and services from nearly 40 lakh vendors to facilitate economical purchases and greater transparency.

32. Expansion of National Cooperative Development Corporation to increase its range and depth: New schemes for cooperatives launched by NCDC in various sectors such as ‘Swayamshakti Sahkar’ for SHG; ‘Deerghavadhi Krishak Sahkar’ for long term agricultural credit; ‘Dairy Sahkar’ for dairy and ‘Neel Sahkar’ for fisheries. Total financial assistance of Rs. 41,024 Crores disbursed by NCDC in FY 2022-23.

33. Computerization of Agriculture and Rural Development Banks (ARDBs): To strengthen the Long-term Cooperative Credit structure, the project of computerization of Agriculture and Rural Development Banks (ARDBs) is being undertaken.

34. Refund to Investors of Sahara Group of Societies: A portal has been launched for making payments to the bona fide depositors of the cooperative societies of Sahara Group in a transparent manner after proper identification and submission of proof of their deposits and claims.

This was stated by the Minister of Cooperation, Shri Amit Shah in a written reply to a question in the Rajya Sabha.

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