India to establish 2 lakh primary agricultural credit societies over 5 years

In her presentation, Union Finance Minister Nirmala Sitharaman announced that the government had initiated computerisation for 63,000 PACS with an investment of Rs 2,516 crore and was going to deploy Rs 20 lakh crore seamlessly.

It had also set Rs 60,000 crore for fisheries, Urmi Shah, Research Analyst, SAMCO Securities had said, adding that these steps would enhance other crops and agriculture.

Initially, India will target to establish 2 lakh multipurpose cooperatives and PACS in the next five years. The plan will be implemented with the convergence of other schemes by leveraging the "whole of government approach," the Cabinet said.

The initiative will be supported by the National Bank for Agriculture and Rural Development (NABARD), National Dairy Development Board (NDDB), and National Fisheries Development Board (NFDB). This move will strengthen India's cooperative moment and deepen its reach up to the grassroots, the Modi government claims.

Under the scheme, cooperative societies will be set up with modernised infrastructure providing farmer members the requisite forward and backward linkages to market their produce, enhance their income and obtain credit facilities. It will also generate employment opportunities in rural areas, the government has claimed.

Additionally, the Union Cabinet also approved seven new ITBP battalions and greenlit the centrally-sponsored "Vibrant Villages Programme" until 2026 with an outlay of Rs 4,800 crore.