The Union Home Minister and Minister of Cooperation will inaugurate the “Strengthening PACS through FPOs” mega conclave in New Delhi on July 14th. The primary focus of this conclave is to address the topic of strengthening Primary Agricultural Credit Societies (PACS) through Farmer Producer Organizations (FPOs).
Aligning with the Vision of “Sahkar se Samriddhi”
The mega conclave is in line with the vision of the Prime Minister of India, who emphasizes the importance of cooperative societies in achieving prosperity and development. The event aims to discuss strategies and measures to enhance the role and effectiveness of PACS through the integration of FPOs. By strengthening the cooperative sector and promoting collaboration between PACS and FPOs, the conclave seeks to drive agricultural growth and empower farmers.
Expanding FPOs in the Cooperative Sector
Recently, a decision was made to establish 1100 new Farmer Producer Organizations (FPOs) in the cooperative sector. FPOs are voluntary organizations controlled by their farmer-members, who actively participate in decision-making processes. These organizations can be registered either through the Companies Act of 2013 or through the State Cooperative Societies Act. FPOs welcome all individuals willing to use their services and accept the responsibilities of membership, promoting inclusivity and eliminating discrimination.
Benefits and Success Stories of FPOs
FPOs play a crucial role in empowering farmers and promoting agricultural development. They provide education and training to their members, enabling them to actively contribute to the growth of their respective organizations. FPOs in states like Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, and others have shown encouraging results, facilitating higher returns for the produce of their farmer-members. For example, tribal women in the Pali district of Rajasthan formed a producer company, and they have been able to fetch higher prices for their custard apples, leading to improved livelihoods.
Financial Assistance for FPOs
Under the FPO Scheme, each Farmer Producer Organization receives financial assistance of Rs. 33 lakh. This financial support aims to bolster the operations and activities of FPOs, enabling them to serve their members better and contribute to the agricultural sector’s growth. Additionally, Cluster Based Business Organizations (CBBOs) that support FPOs receive financial assistance of Rs. 25 lakh per FPO. These funds help in strengthening the ecosystem and infrastructure supporting FPOs, facilitating their efficient functioning.
Role and Significance of Primary Agriculture Cooperative Societies (PACS)
- Primary Agriculture Cooperative Societies (PACS) serve as village-level institutions that work directly with rural residents, particularly farmers. PACS encourage agriculturists to save, accept deposits, provide loans, and collect repayments. They form the foundational unit of a three-tier cooperative credit system, with the other two tiers being State Cooperative Banks (StCB) and District Central Cooperative Banks (DCCB).
- PACS play a vital role in providing short-term and medium-term agricultural loans to farmers for various farming activities. The first PACS was established in 1904, marking the beginning of this cooperative credit system. Automating the StCB and DCCB through the Common Banking Software (CBS) has already been accomplished by the National Bank for Agriculture and Rural Development (NABARD). Strengthening PACS through the integration with FPOs will further enhance the reach and impact of these cooperative institutions.