Strengthening Farmer Producer Organisations Through PACS
As part of the Ministry of Cooperation's cooperative-strengthening drive, an additional target of Farmer Producer Organisations (FPOs) was allocated to the National Cooperative Development Corporation (NCDC) by the Ministry of Agriculture and Farmers Welfare, aimed at forming and promoting FPOs through the membership base of existing PACS. NCDC was allotted a target of 1,117 FPOs, and has since registered and onboarded all 1,117 through PACS members — a target achieved in full.
This route to FPO formation is designed to give farmers, particularly smallholders, better market linkages and access to fair, remunerative pricing for their produce by pooling resources and bargaining power through a formal cooperative structure rather than relying on fragmented, individual market access.
Disbursement Progress and Wider Benefits
As of January 15, 2026, NCDC had disbursed ₹245 crore to these FPOs and associated Cluster-Based Business Organisations (CBBOs) under the scheme, providing working capital and infrastructure support for activities such as input procurement, storage, and produce aggregation.
In a related move to widen the economic role of cooperatives, PACS have also been given priority for setting up retail petrol and diesel outlets, allowing these grassroots institutions to diversify their income streams beyond traditional agricultural credit and input supply.
Collectively, these measures reflect a broader policy direction of transforming PACS from single-purpose credit societies into multi-service rural institutions capable of supporting farmers across credit, marketing, dairy, fisheries, and even retail fuel distribution — a structural shift with implications for rural employment and financial inclusion.
Key exam facts: the 1,117 FPO target achieved in full, the ₹245 crore disbursement figure, and the extension of PACS into retail fuel outlet operations.
Source: pib.gov.in
