Primary Agricultural Cooperative Credit Societies and Rural Credit Delivery in India: A Performance Analysis

Janaki T.K

doi:10.36948/ijfmr.2025.v07i06.65161

Primary Agricultural Cooperative Credit Societies and Rural Credit Delivery in India: A Performance Analysis

Author(s)	Dr. Janaki T.K
Country	India
Abstract	Primary Agricultural Cooperative Credit Societies (PACCS) form the backbone of the cooperative credit structure in India and play a crucial role in delivering institutional finance to farmers, particularly small and marginal cultivators. This study examines the growth and performance of PACCS in India with a focus on key financial indicators such as number of societies, working capital, loan issuance, loan recovery, overdues, profitability, and accumulated losses. The study is based on secondary data collected from official publications of cooperative departments, NABARD, RBI, and government reports for a period of ten years from 2013–14 to 2022–23. The analysis employs statistical tools such as averages, Compound Annual Growth Rate (CAGR), Average Annual Growth Rate (AAGR), and Coefficient of Variation (CV) to assess trends and stability in performance. The findings reveal that while the number of PACCS has shown a marginal decline due to consolidation, there has been a significant increase in working capital and loan disbursement, indicating enhanced credit outreach and resource mobilization. Loan collections have improved over time, and overdue percentages have declined in recent years, reflecting better recovery performance. However, profitability remains inconsistent, and accumulated losses continue to pose a serious challenge to the financial sustainability of PACCS.The study concludes that PACCS have made notable progress in expanding agricultural credit, but structural weaknesses such as high overdues, weak governance, and limited diversification of income sources need urgent policy attention. Strengthening institutional capacity, improving credit discipline, and promoting modernization are essential for ensuring the long-term viability of PACCS in India.
Keywords	Primary Agricultural Cooperative Credit Societies (PACCS), Cooperative Credit, Agricultural Finance, Rural Credit System, Loan Recovery, Financial
Field	Mathematics > Economy / Commerce
Published In	Volume 7, Issue 6, November-December 2025
Published On	2025-12-31
DOI	https://doi.org/10.36948/ijfmr.2025.v07i06.65161

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Primary Agricultural Cooperative Credit Societies and Rural Credit Delivery in India: A Performance Analysis

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