Primary Agricultural Credit Societies in India

Agriculture is a backbone of Indian
economy. As per the census, about 68.8 percent of population resides in rural
area and depending directly or indirectly upon agriculture for their
livelihood. The contribution of this sector to the gross domestic product (GDP)
is however declining very rapidly and is presently about 14.5 percent (in
2010-11) and this sector is also showing deceleration in growth rates.
Therefore, it is very important for this sector to achieve higher growth rates
and also be an engine of growth, so that growth in other sectors and overall
growth rate of the economy can be achieved. The primary agricultural credit
co-operative societies are considered to be the pillars of the entire
cooperative edifice. The PACSs continue to be the main source of agricultural
credit to the farmers in rural areas.