Establishment of new Multipurpose PACS, dairy and fisheries cooperatives

1. At a Glance

• A Union Cabinet-approved Plan (15 Feb 2023) to set up viable Multipurpose PACS, dairy and fishery cooperatives in every uncovered Panchayat/village within 5 years, anchored by the Ministry of Cooperation [S1][S2].
• Operates by convergence of existing schemes — DIDF, NPDD, PMMSY, FIDF — rather than as a new standalone scheme [S1].
• Tests aspirants on cooperative federalism, rural credit architecture, and Sahkar-se-Samriddhi vision; high-frequency Prelims + GS-III Mains area.

2. Why in the News

• 25 Mar 2026: Ministry of Cooperation reiterated implementation status of the Plan in a PIB release [S1].
• Feb 2025: Union Home & Cooperation Minister Amit Shah inaugurated 10,000 newly established M-PACS, Dairy and Fishery Cooperative Societies in New Delhi [S3].
• As on 27.01.2025, 12,957 new M-PACS / Dairy / Fishery cooperatives registered across States/UTs, covering 17,10,224 farmer-members [S2].

3. Background & Evolution

• 6 July 2021: New Ministry of Cooperation carved out from Ministry of Agriculture; motto "Sahkar se Samriddhi".
• 15 Feb 2023: Cabinet approved the Plan for strengthening cooperative movement at grassroots — establishment of 2 lakh new PACS / dairy / fishery cooperatives in 5 years [S1][S4].
• 2023: Ministry rolled out 48 new initiatives including computerisation of PACS, Model Bye-laws, and the National Cooperative Database [S5].
• 2024-25: Implementation accelerated via convergence with DIDF, NPDD, PMMSY, FIDF [S1].

4. Core Static Facts

• Nodal Ministry: Ministry of Cooperation (created 6 July 2021) [S1].
• Target: 2,00,000 new Multipurpose PACS / dairy / fishery cooperatives in 5 years covering every uncovered Panchayat/village [S2].
• Implementing Agencies: NCDC, NABARD, NDDB, NFDB + State Cooperation Departments [S1][S2].
• Convergence Schemes:
• DIDF – Dairy Infrastructure Development Fund
• NPDD – National Programme for Dairy Development
• PMMSY – Pradhan Mantri Matsya Sampada Yojana
• FIDF – Fisheries & Aquaculture Infrastructure Fund [S1].
• Agency-wise allocation [S2]:
• NABARD: 22,750 PACS (Phase-I) + 47,250 (Phase-II)
• NDDB: 56,500 new + 46,500 strengthened dairy cooperatives
• NFDB: 6,000 new + 5,500 strengthened fishery cooperatives
• States: 25,000 PACS
• Constitutional basis: Cooperative Societies → State subject (Entry 32, List II); 97th Constitutional Amendment Act, 2011 added Part IX-B & Article 43-B (DPSP — promotion of cooperatives).

5. Multi-Dimensional Analysis

Economic - Deepens rural short-term credit: PACS form base tier of 3-tier STCCS (PACS → DCCB → StCB) [S6]. - Multipurpose model lets a single PACS run fair price shops, LPG distribution, CSCs, Jan Aushadhi Kendras, petrol pumps — diversifies revenue beyond crop loans [S5].

Social / Equity - Coverage of every Panchayat extends formal cooperative access to tribal, coastal and inland-fishery-dependent communities currently outside the cooperative net [S2].

Administrative / Federal - Cooperatives are State subject; Centre uses NABARD/NDDB/NFDB as facilitators and persuades States via Model Bye-laws — a case study in cooperative federalism [S1]. - Convergence approach avoids new budget head; reuses DIDF/NPDD/PMMSY/FIDF outlays [S1].

Legal / Constitutional - 97th Amendment, 2011 → Part IX-B; SC in Union of India v. Rajendra N. Shah (2021) struck down Part IX-B as it applies to State cooperatives (Centre cannot legislate); upheld for Multi-State Cooperative Societies. - MSCS (Amendment) Act, 2023 strengthens governance of multi-state cooperatives [S7].

Technological - Linked with Centrally Sponsored Computerisation of 63,000 PACS (₹2,516 cr outlay) onto a common ERP platform integrated with NABARD [S5].

6. Recent Developments (last 12-18 months)

• Feb 2025: 10,000 new M-PACS/Dairy/Fishery societies inaugurated in a single event in Delhi [S3].
• 27 Jan 2025: Cumulative registration crossed 12,957 societies with 17.1 lakh farmer-members [S2].
• 25 Mar 2026: PIB update reaffirms 5-year roll-out via scheme convergence [S1].
• 2024: National Cooperative Database launched as single repository of cooperatives [S5].
• 2023: Model Bye-laws for PACS circulated to all States enabling multipurpose activities [S5].

7. Prelims Hooks

• Plan approved by Union Cabinet on 15 February 2023 [S1].
• Nodal Ministry: Ministry of Cooperation (NOT Ministry of Agriculture & Farmers Welfare) [S1].
• Target: 2 lakh PACS / dairy / fishery cooperatives in 5 years [S2].
• Schemes converged: DIDF, NPDD, PMMSY, FIDF [S1].
• NDDB target: 56,500 new dairy cooperatives [S2].
• NFDB target: 6,000 new fishery cooperatives [S2].
• NABARD target: 70,000 PACS (22,750 + 47,250) [S2].
• States to form: 25,000 PACS [S2].
• Ministry of Cooperation created in July 2021 under Shri Amit Shah.
• Article 43-B (DPSP) — promotion of cooperative societies — inserted by 97th Amendment, 2011.
• Cooperative societies fall under Entry 32, State List.
• PACS sit at the base of the 3-tier Short-Term Cooperative Credit Structure.
• As on 27.01.2025: 12,957 societies, 17,10,224 members [S2].
• PMMSY is the umbrella fisheries scheme (Dept. of Fisheries, MoFAHD), used here for convergence [S1].

8. Mains Relevance

• GS-II: Government policies & interventions; cooperative federalism; statutory bodies (NABARD, NDDB, NFDB).
• GS-III: Agriculture — cooperative marketing & credit; animal husbandry, dairying & fisheries; inclusive growth.
• Possible question stems: 1. "Multipurpose PACS represent a re-imagination of India's rural cooperative architecture." Discuss in light of the 2023 Plan. 2. Examine how convergence of DIDF, NPDD, PMMSY and FIDF with cooperative formation can strengthen rural livelihoods. (15 marks) 3. Critically evaluate the role of the Ministry of Cooperation in deepening cooperative federalism since 2021.

9. Related Topics to Study Next

• Computerisation of 63,000 PACS — direct technological complement.
• MSCS (Amendment) Act, 2023 — legal scaffolding for multi-state cooperatives.
• 97th Constitutional Amendment & Rajendra N. Shah (2021) — constitutional limits on Union legislation on cooperatives.
• NABARD's RIDF & STCCS — credit architecture PACS plug into.
• PMMSY & Blue Revolution — fisheries cooperative linkage.
• Operation Flood / Amul model & NDDB — dairy cooperative precedent.
• National Cooperative Policy 2025 — overarching framework.
• FPOs (10,000 FPO scheme) — parallel collectivisation channel; contrast with PACS.

10. Common Errors / Trap Areas

• Wrong ministry: it is Ministry of Cooperation, not Ministry of Agriculture or MoFAHD, that owns the Plan.
• Cabinet approval date is 15 Feb 2023, not 2021 (which is Ministry creation).
• PMMSY ≠ FIDF: PMMSY is the scheme; FIDF is a NABARD-administered fund — both are being converged.
• NDDB vs NFDB: NDDB → dairy; NFDB → fisheries. Aspirants confuse the two.
• PACS are the primary (village) tier of STCCS, not district-level (which is DCCB).
• Cooperatives are a State subject; the Centre cannot mandate their formation — it acts only via persuasion, NABARD/NDDB/NFDB funding and Model Bye-laws.

11. Sources

• [S1] Establishment of new Multipurpose PACS, dairy and fisheries cooperatives — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2245145 — (tier 1)
• [S2] PACS/Dairy/Fisheries Cooperative Societies in every Panchayat/Village — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2117761 — (tier 1)
• [S3] Amit Shah inaugurates 10,000 newly established M-PACS, Dairy and Fisheries Cooperative Societies — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2087880 — (tier 1)
• [S4] Cabinet approves strengthening cooperative movement (15.02.2023) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1899445 — (tier 1)
• [S5] Ministry of Cooperation – 48 New Initiatives (Annexure-I) — https://static.pib.gov.in/WriteReadData/specificdocs/documents/2023/jul/doc2023726228701.pdf — (tier 1)
• [S6] Primary Agricultural Credit Societies (PACS) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2099568 — (tier 1)
• [S7] Strengthening of MSCS Act — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2223313 — (tier 1)