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<p>This study explores the potential of Primary Agricultural Credit Societies (PACS) in improving livelihoods of millions of member farmers by addressing major challenges of the India’s food systems viz. equity, competitiveness and sustainability through the spirit of cooperation and coordination right at the grassroots. Historically credit-centric institutions—PACS are now all set to drive agri-value chain integration by becoming multipurpose and multi-dimensional profitable community-based enterprises. Grounded in the Cooperative Life Cycle Framework, this paper traces the institutional evolution of PACS through phases of justification, design, growth, introspection, and strategic choice using a qualitative methodology encompassing stakeholder consultations across eight states, namely, Chhattisgarh, Jharkhand, Karnataka, Kerala, Maharashtra, Odisha, Punjab, and West Bengal. While identifying key enablers for repositioning PACS as seed producers, organic aggregators, and export facilitators, this paper highlights structural bottlenecks, including fragmented governance, human resource limitations, and role overlap with Farmer Producer Organizations (FPOs) and Self-Help Groups (SHGs). The study proposes six strategic business pathways for PACS transformation, advocating convergence with sectoral cooperatives, district-level federations, and rural credit institutions. Ultimately, the findings reconceptualize PACS as hybrid institutions balancing social purpose with market orientation and offer actionable policy recommendations to enhance rural competitiveness, inclusion, and climate resilience. The study contributes to cooperative development theory and provides a roadmap for utilizing PACS along with FPOs and SHGs in India's broader agricultural transformation with their collective strengths.</p>

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Transforming the Food System Through PACS: A Policy-Driven Path Toward Sustainable and Fair Value Chains

  • 期刊论文

  • 发表日期：

    2025年10月7日

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  • Sagar Wadkar,
  • K. K. Tripathy,
  • Vaishali Goswami,
  • Naveen K. Singh

摘要

This study explores the potential of Primary Agricultural Credit Societies (PACS) in improving livelihoods of millions of member farmers by addressing major challenges of the India’s food systems viz. equity, competitiveness and sustainability through the spirit of cooperation and coordination right at the grassroots. Historically credit-centric institutions—PACS are now all set to drive agri-value chain integration by becoming multipurpose and multi-dimensional profitable community-based enterprises. Grounded in the Cooperative Life Cycle Framework, this paper traces the institutional evolution of PACS through phases of justification, design, growth, introspection, and strategic choice using a qualitative methodology encompassing stakeholder consultations across eight states, namely, Chhattisgarh, Jharkhand, Karnataka, Kerala, Maharashtra, Odisha, Punjab, and West Bengal. While identifying key enablers for repositioning PACS as seed producers, organic aggregators, and export facilitators, this paper highlights structural bottlenecks, including fragmented governance, human resource limitations, and role overlap with Farmer Producer Organizations (FPOs) and Self-Help Groups (SHGs). The study proposes six strategic business pathways for PACS transformation, advocating convergence with sectoral cooperatives, district-level federations, and rural credit institutions. Ultimately, the findings reconceptualize PACS as hybrid institutions balancing social purpose with market orientation and offer actionable policy recommendations to enhance rural competitiveness, inclusion, and climate resilience. The study contributes to cooperative development theory and provides a roadmap for utilizing PACS along with FPOs and SHGs in India's broader agricultural transformation with their collective strengths.