Institutional Transformation of Primary Agricultural Cooperative Societies in Punjab

This study examines the institutional transformation of Primary Agricultural Cooperative Societies (PACS) in Punjab, focusing on their growth, financial performance, and economic impact. Using secondary data from 1980 to 2022, the research highlights significant expansion in cooperative membership, share capital, and credit disbursement. Cooperative membership increased significantly in Punjab with a growth rate of 14.69 per cent per annum along with increase in share capital from Rs. 35.17 crore to Rs. 557.29 crore i.e. 16 times over the last 42 years. The tremendous growth of loans advanced with growth rate of nearly 193 per cent per annum led to a huge spur in loans outstanding from Rs. 146 crore to Rs. 6,649 crore depicting an increase of 45 times due to more credit disbursed by the co-operatives compared to their repayment. While PACS have played a crucial role in agricultural credit delivery, but soaring loan overdues, necessitates targeted policy reforms to restore financial sustainability and enhance effectiveness of cooperatives.