Daily Current Affairs : 28-December-2024

Recently, the Ministry of Cooperation in India has undertaken various initiatives to boost the development of cooperative societies, particularly in the agricultural sector. These efforts focus on enhancing the role of Multipurpose Primary Agricultural Credit Societies (MPACS), which play a key part in supporting rural communities.

What is MPACS?

Primary Agricultural Credit Societies (PACS) are village-level cooperative societies aimed at providing financial support to rural farmers. These societies offer loans and collect repayments from agricultural borrowers, making them crucial for rural development. They are registered under the respective State Cooperative Societies Act and are managed by the State Registrar of Cooperative Societies.

Constitutional Backing:
The establishment and promotion of cooperatives in India received constitutional support through the 97th Amendment Act, 2011. This added the word “cooperatives” in Article 19(1)(c) of the Constitution, ensuring their recognition. Additionally, a new article, 43B, was introduced to the Directive Principles of State Policy, emphasizing the importance of cooperative societies.

Multipurpose PACS (MPACS) go beyond providing agricultural credit. These societies serve a wide range of rural needs, including dairy, fisheries, and other agricultural services. MPACS engage in 32 different activities, such as storing and distributing manure, fertilizers, water, and even gas. This versatility makes MPACS more effective in addressing the diverse challenges faced by rural communities.

Recent Initiatives for Development of Cooperative Societies

The government has launched several initiatives to strengthen these cooperative societies, especially in agriculture:

  • Multipurpose PACS:
    The government has inaugurated 10,000 new MPACS along with dairy and fisheries cooperative societies. The target is to create 2 lakh PACS over the next five years, ensuring the presence of cooperatives in every panchayat across India.
  • National Organic Cooperative Limited (NOCL):
    Farmers are encouraged to join NOCL to boost their income through organic farming. NOCL serves as a central organization for organic product aggregation, procurement, certification, and marketing.
  • Mobile Rural Marts Initiative:
    In collaboration with NABARD, this initiative aims to provide essential items like pulses, rice, and wheat flour at affordable prices under the Bharat brand. This initiative ensures that middle-class families have access to subsidized products.
  • Micro-ATMs and Financial Inclusion:
    To promote financial inclusion, cooperative societies are now equipped with RuPay Kisan Credit Cards and Micro-ATMs. These tools allow farmers to access low-cost loans and other financial services, supporting their economic needs.
Important Points:
  • PACS (Primary Agricultural Credit Societies):
    • Village-level cooperative societies offering loans and collecting repayments from rural agricultural borrowers.
    • Registered under the State Cooperative Societies Act and managed by the State Registrar of Cooperative Societies.
  • Constitutional Support:
    • The 97th Amendment Act, 2011 added the word “cooperatives” to Article 19(1)(c) of the Constitution.
    • A new Article 43B in the Directive Principles of State Policy emphasizes the promotion of cooperative societies.
  • MPACS (Multipurpose PACS):
    • Provide a wider range of services beyond agricultural credit, including dairy, fisheries, and 32 other activities (e.g., storage and distribution of manure, fertilizers, water, etc.).
    • Aimed at addressing multiple needs of rural communities, making them more versatile and effective.
  • Recent Government Initiatives:
    • 10,000 New MPACS: Establishment of new MPACS, along with dairy and fisheries cooperatives, with a target to create 2 lakh PACS in the next 5 years.
    • National Organic Cooperative Limited (NOCL): Encourages farmers to engage in organic farming for better income; responsible for aggregation, procurement, certification, and marketing of organic products.
    • Mobile Rural Marts Initiative: Launched in collaboration with NABARD to provide essential goods like pulses, rice, and wheat flour at affordable prices under the Bharat brand.
    • Micro-ATMs and Financial Inclusion: Cooperative societies are being equipped with RuPay Kisan Credit Cards and Micro-ATMs to offer low-cost loans and financial services to farmers.
  • Goal: These initiatives aim to ensure the presence of cooperatives in every panchayat across the country, thereby fostering rural development and economic growth.
Why In News

Recently, the Ministry of Cooperation has launched a series of strategic initiatives aimed at enhancing the development of cooperative societies in agriculture, with a particular focus on strengthening Multipurpose Primary Agricultural Credit Societies (MPACS), which are vital for supporting rural communities and boosting agricultural growth. These efforts are part of a broader vision to empower farmers and promote sustainable practices in rural India.

MCQs about Development of Cooperative Societies in Agriculture
  1. What is the primary function of **Primary Agricultural Credit Societies (PACS)**?
    A. To provide loans and collect repayments from rural agricultural borrowers
    B. To sell agricultural products in urban markets
    C. To manage government schemes for rural development
    D. To offer medical services in rural areas
    Correct Answer: A. To provide loans and collect repayments from rural agricultural borrowers
    Explanation: PACS are village-level cooperative societies that focus on offering financial support, mainly in the form of loans, to rural farmers. They also collect repayments from these borrowers, making them crucial for rural agricultural development.
  2. Which amendment in the Indian Constitution gave constitutional backing to cooperative societies?
    A. 42nd Amendment Act, 1976
    B. 44th Amendment Act, 1978
    C. 97th Amendment Act, 2011
    D. 100th Amendment Act, 2015
    Correct Answer: C. 97th Amendment Act, 2011
    Explanation: The 97th Amendment Act of 2011 added the word “cooperatives” to Article 19(1)(c) and introduced Article 43B in the Directive Principles of State Policy, supporting the promotion of cooperative societies in India.
  3. What are the key services offered by **Multipurpose Primary Agricultural Credit Societies (MPACS)**?
    A. Only agricultural credit
    B. Dairy, fisheries, and other rural services
    C. Urban housing loans
    D. Medical and educational loans
    Correct Answer: B. Dairy, fisheries, and other rural services
    Explanation: MPACS are versatile cooperatives that go beyond providing agricultural credit. They engage in various activities such as dairy farming, fisheries, and services related to storage, distribution of manure, fertilizers, and even water, making them highly beneficial for rural communities.
  4. Which of the following initiatives is aimed at promoting **organic farming** in India?
    A. National Organic Cooperative Limited (NOCL)
    B. Mobile Rural Marts Initiative
    C. Micro-ATM Initiative
    D. Dairy and Fisheries Cooperative Societies
    Correct Answer: A. National Organic Cooperative Limited (NOCL)
    Explanation: NOCL is an umbrella organization designed to support organic farming in India. It helps farmers by assisting with the aggregation, procurement, certification, testing, branding, and marketing of organic products, thereby promoting higher incomes through organic farming.

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