Technology Adoption Necessary for PACS to Maintain Relevance, Suggests Cooperation Secretary at National Conference
The Ministry of Cooperation recently hosted a national workshop on "Emerging Technologies in PACS" in New Delhi on July 1, 2025, with the aim of outlining key initiatives and strategies to implement technology in Primary Agricultural Credit Societies (PACS). The event, held at the PHD House and attended by 122 PACS members and officials from various cooperative and financial institutions, aimed to modernise PACS and make them more efficient in the modern era.
**Key initiatives and strategies outlined include:**
- **Digitization and Technology Adoption:** The Ministry emphasised the urgent need for PACS to embrace digital tools and emerging technologies to improve their operations, outreach, and service delivery to farmers. This includes implementing IT infrastructure, digital record-keeping, and online financial transactions to enhance transparency and efficiency.
- **Capacity Building and Training:** The workshop highlighted the importance of training PACS staff to efficiently use new technologies. Building technical capacity at the grassroots level ensures smooth adoption and scalability of digital solutions.
- **Integration with Cooperative Ecosystem:** PACS are encouraged to integrate with broader cooperative and financial networks through technology, facilitating better data sharing, credit flow, and resource management.
- **Use of Emerging Technologies:** The workshop explored the potential of technologies such as blockchain for secure transactions, mobile applications for farmer engagement, and AI/ML for credit risk assessment and agricultural advisory services.
- **Policy Support and Collaboration:** The Ministry of Cooperation is working on providing policy frameworks and support mechanisms that encourage innovation in PACS, including partnerships with fintech companies and technology providers to accelerate modernisation.
These initiatives collectively aim to transform PACS into robust, technology-enabled cooperatives capable of delivering comprehensive credit and agricultural services, thereby strengthening rural economies and supporting India’s agricultural sector effectively.
Dr. Bhutani, Secretary of the Ministry of Cooperation, urged PACS to rapidly embrace technology and improve transparency if they want to survive in the modern era. He emphasised the need for integrating services like weather forecasts, pest advisories, and disaster warnings to support rural livelihoods more effectively.
PACS have expanded their reach, now servicing 42% of the beneficiaries, according to Dr. Bhutani. To further modernise PACS, a Rs 3,000 crore PACS computerisation drive has been initiated to turn 80,000 societies into tech-enabled rural service centres. The Ministry of Cooperation has also launched Model Bye-Laws allowing PACS to diversify into 26 different sectors beyond just agriculture credit.
The workshop featured three technical sessions and shared success stories from Tamil Nadu, Jammu & Kashmir, and Mizoram. It concluded with certificate distribution for the participating PACS members. Dr. Bhutani, during the event, planted a sapling as part of the PM's "Ek Ped Maa Ke Naam" campaign.
These transformative steps are expected to position PACS as vital players in India's agricultural sector, providing farmers with the necessary support to thrive in the digital age.
- "To ensure the efficient implementation of the digital transformation in PACS, the Ministry of Cooperation is fostering collaborations with financial institutions and technology providers in the industry."
- "As part of the efforts to modernize PACS, a significant focus is placed on the adoption of emerging technologies, such as blockchain, mobile applications, AI/ML, and fintech solutions, to deliver comprehensive agricultural services and strengthen rural economies."
