An Appraisal of Performance of Primary Agricultural Co-operative Societies (PACS) in Nadia District of West Bengal

Abstract

Primary Agricultural Cooperative Societies (PACS) – the age-long rural institutions were set up mainly focussing credit aspects of farming community. However, with the passage of time PACS have undergone many changes in terms of their modus operandi as well as objectives. Of late they have been mobilizing financial resources from rural households in the form of savings etc. Additionally, they are now promoting Self-Help-Groups (SHGs), particularly women-groups who were untouched earlier. In this paper, attempt is being made to examine performance of PACS in terms of its coverage, inclusion, economic efficiency, social responsibility and prudence in financial management. The study is based on secondary data relating to the period 2007-08 to 2016-17 referring to randomly selected seven PACS of Nadia district, West Bengal. Finally the authors point out to the weaknesses and pitfalls of societies and conclude with some suggestions for strengthening PACS. It has been observed that PACS have broadened their base in terms membership growth and quantum of loan-disbursement. However, they have showed poor performance in recovery and decelerating NPA growth. The reasons for growths in Overdue and NPA need critical observations at ground level. An exhaustive evaluation is needed whether overdue or NPA are owing to growth of wilful or non-wilful defaulters.