Gujarat expands PACS to 13,875 gram panchayats; plans to cover all panchayats in next 2 years
September 30, 2025
Gandhinagar: To double the income of the state’s farmers and animal husbandry practitioners, expand services in rural areas, and modernize cooperative institutions, 13,875 panchayats in Gujarat have been covered through 10,957 PACS (Primary Agricultural Credit Societies). In addition, since January 2023, 476 new PACS, 691 milk societies, and 22 fish societies have been established across the state. With this initiative, the state government aims to cover all gram panchayats in Gujarat under PACS services within the next two years, the Gujarat government statement said.
As part of the “International Year of Cooperatives – 2025”, various programs and initiatives are being implemented in Gujarat to strengthen and expand the cooperative sector.
The state government will provide 80% financial assistance or up to ₹10,000 for PACS furniture purchases, and a maximum of ₹50,000 for share capital. Additionally, district-level cooperative banks will receive ₹50,000 assistance over three years. To address the shortage of grain storage capacity in India, 92 PACS in Gujarat have been selected, of which DPRs for 54 PACS have been prepared, and loans for 14 PACS have already been approved. Furthermore, the government provides 50% of project costs or up to ₹50 lakh for warehouses with a capacity of over 500 metric tons. PACS are also allocated 2,500 square meters of land at 10% premium for developing warehouses or other infrastructure facilities.
Under the Prime Minister Kisan Samruddhi Kendra (PMKSK), 3,328 PACS in the state have been upgraded. Additionally, under the Water Committee scheme, 195 PACS have been selected, of which 75 PACS have signed agreements with the panchayats, and operations have started in 57 PACS. Furthermore, 3,709 PACS have been onboarded for Common Service Centers (CSC).
Seven PACS in the state have established public medicine centers, receiving assistance of up to ₹15,000 per month on 20% sales. The government provides PACS with 5% interest relief on cash credit up to ₹25 lakh. For good performance, PACS are awarded at the district level: ₹5 lakh, ₹3 lakh, and ₹1 lakh for first, second, and third ranks, respectively, and at the taluka level, the first-rank PACS receives ₹1 lakh.
The statement further reiterated that the Ministry of Cooperation has established three new national-level cooperative institutions to promote sectoral development. Additionally, to ensure multidimensional growth of service cooperatives, around 45 innovative initiatives have been launched, including:
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Model cooperative bylaws
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PACS computerization
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Creation of two lakh new PACS
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The world’s largest grain storage program
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Converting PACS into Common Service Centers (CSC)
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Formation of 1,100 new FPOs
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Priority access for PACS in petrol pumps and LPG dealerships
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Diversification into fertilizer, public medicine centers, and other businesses
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Implementation of solar energy initiatives
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