The Centre is pushing for an urgent expansion of loan facilities to Primary Agricultural Credit Societies (PACS) under the Agriculture Infrastructure Fund (AIF), with the aim of strengthening their financial base and integrating them into the country’s large-scale cooperative food grain storage network.
In a high-level review meeting, officials discussed strategies to involve PACS more extensively in the ongoing food storage initiative. The move is expected to enhance both the economic viability and social relevance of PACS across rural India.
To ensure smooth implementation of the scheme based on regional needs, the Food Corporation of India (FCI) and the Ministry of Food and Public Distribution have been instructed to carry out a national mapping of warehouses. Other major cooperative and warehousing bodies – including the National Agricultural Cooperative Marketing Federation (NAFED), National Cooperative Consumers’ Federation (NCCF), and State Warehousing Corporations – have been asked to connect PACS with as many existing warehouse facilities as possible.
States are also being encouraged to bring more PACS into the fold and involve State-Level Marketing Federations to build a comprehensive cooperative supply chain.
The initiative is seen as a significant step towards improving rural employment and boosting the income of PACS, thereby supporting the broader economic goals of GDP growth and job creation.
The meeting was attended by Ministers of State for Cooperation, senior officials from the Ministry of Cooperation, FCI, NABARD, NCDC, and other key institutions.
Launched in 2020, the Agriculture Infrastructure Fund provides medium- to long-term debt financing for agriculture-related infrastructure. Initially set to run until 2030, the scheme has now been extended to 2032-33. Over 1 lakh PACS are currently active in India, as per the National Cooperative Database Portal.
