RBI Central Board Director and senior cooperator Satish Marathe has called for the creation of a dedicated Fund at NCDC to support Primary Dairy, Primary Fisheries, and Primary Agricultural Credit Societies (PACS), emphasizing their potential to drive rural economic growth.
Highlighting the financial impact of the cooperative sector, Marathe stated that presently Rs 2.5 lakh crore is currently disbursed annually in rural areas. With the expansion of PACS, Dairy, and Fisheries, he projected that this figure could rise to Rs 5-6 lakh crore in the next three to four years.
Speaking at the Post-Budget Webinar on Agriculture and Rural Prosperity (2025) last Saturday, Marathe advocated for extending the Kisan Credit Card (KCC) to Landless Tillers (farmers ) by organizing them into Joint Liability Groups (JLGs). He also suggested expanding the scope of KCC to meet the requirements of Farmers engaged in the Fisheries Sector and also proposed forming a dedicated Committee to work on this initiative.
On Farmer Producer Organizations (FPOs), Marathe proposed that a Two-tier structure, similar to primary dairy cooperatives, was necessary to facilitate the establishment of Agricultural Processing units at the grassroots level.
He also urged Urban Cooperative Banks (UCBs), Credit CoOp Societies, and rural Cooperative Banks (STCBs and DCCBs) to introduce new financial products tailored to rural needs.
Marathe praised the Central Government for its ongoing efforts to boost economic growth in the rural sector, acknowledging key initiatives that have increased income levels and created new opportunities, leading to higher incomes and higher rural demand.
Discussing the cooperative credit system, he underscored the critical role of PACS in rural financing and highlighted the government’s success in strengthening State and District Cooperative Banks over the past two to three years. He noted that PACS’ income levels are improving, consequent to converting into Multi Purpose Societies thus rendering them more sustainable
Marathe emphasized that delivering credit through cooperatives remains the most cost-effective method for rural financing and stressed the importance of maintaining a three-tier cooperative structure to cater to India’s vast and diverse rural landscape.
On the Dairy sector, Marathe highlighted efforts to transform primary milk cooperatives into multipurpose entities. He pointed out that India has around 1.2 lakh primary milk cooperatives which are profitable and which are mostly in western India, while their presence in central, eastern, northern and north-eastern regions remains limited.
Strengthening the Dairy sector, he noted, would significantly contribute to increasing farmers’ income and enhancing rural prosperity.
