Role of co-operatives in Kerala - potential of primary agricultural credit societies in empowering the rural economy

Abstract

The cooperative system focuses on providing short-term credit to the rural poor. This system aims to achieve widespread social welfare, ensuring a safe and clean environment, minimum health and education standards, economic opportunities, social status, and political representation for future generations. At the grassroots level, Primary Agricultural Cooperative Societies (PACS) satisfy the credit needs of farmers in remote regions. PACS serves as the foundation for the entire cooperative structure. Credit has an important role in agricultural development and the economic transformation of less developed areas. With advances in globalization, the credit requirements of farmers have risen. According to the NAFSCOB-2020 report, India has 95,509 PACS, with only 1,643 in Kerala. These account for 70% of the total deposits in PACS at the national level [www.nafscob.org]. Significant variations exist in the number, volume of deposits, working capital, and proportions among different regions.