Strengthening of cooperative institutions in Punjab

Why in news

The article details the progress of the Central Sponsored Project for Computerization of Primary Agricultural Credit Societies (PACS) in Punjab, including fund allocation and utilization, and the establishment and strengthening of dairy cooperative societies under White Revolution 2.0.

Exam relevance

GS2, GS3 · Governance, Economy, Society · Prelims · Mains

Key facts

1. 3,482 Primary Agricultural Credit Societies (PACS) in Punjab have been sanctioned under the Computerisation of PACS Project.
2. 3,454 PACS in Punjab have been onboarded on Enterprise Resource Planning (ERP) Software.
3. ₹33.94 crore has been released by the Government of India to Punjab under the PACS Computerisation Project.
4. In FY 2025-26, ₹14.84 crore was allocated and ₹7.42 crore was released to Punjab.
5. In FY 2026-27 (till date), ₹4.00 crore was allocated and ₹1.00 crore was released to Punjab.
6. 1,027 new dairy cooperative societies have been registered in Punjab as of 15.07.2026.
7. 951 existing dairy cooperative societies have been strengthened in Punjab.

Prelims pointers

• The Central Sponsored Project for Computerization of PACS aims to digitize Primary Agricultural Credit Societies.
• Enterprise Resource Planning (ERP) Software is being used for onboarding PACS.
• White Revolution 2.0 focuses on strengthening dairy cooperatives.
• Punjab has seen the registration of over a thousand new dairy cooperative societies.

Mains practice question

Analyze the significance of strengthening cooperative institutions for rural economic development in India, with specific reference to the initiatives undertaken in Punjab for PACS computerization and dairy cooperative development.

Static linkage

The article relates to cooperative federalism and the role of cooperative institutions in rural credit and agricultural development, which are key aspects of India's economic and social structure. The computerization of PACS is part of broader governance reforms aimed at improving efficiency and transparency in financial institutions.

Significance

The computerization of PACS is crucial for modernizing rural credit delivery systems, enhancing transparency, and improving the financial health of these grassroots institutions. The strengthening of dairy cooperatives under White Revolution 2.0 contributes to the rural economy, farmer incomes, and the dairy sector's growth. The effective utilization of funds and adherence to guidelines are important for the successful implementation of such central projects.