Bihar is quietly undergoing one of the most ambitious cooperative reforms seen in recent years. Backed by a national push to strengthen cooperatives, the state is reshaping Primary Agricultural Credit Societies (PACS) and allied institutions into modern, multi-service hubs that go far beyond credit delivery.
The goal is clear: make cooperatives central to rural growth, farmer incomes, and local entrepreneurship.
A Nationwide Vision, Strongly Reflected in Bihar
The Government of India has approved the creation of two lakh new multi-purpose PACS, dairy, and fisheries cooperatives across the country. These institutions are designed to simplify access to credit, storage, and markets for farmers.
Bihar has emerged as a strong performer. By 15 November 2025, the state had already facilitated the formation of 4,518 new cooperatives, marking steady progress toward this larger national objective.
Digital Backbone: From Paper Societies to Tech-Enabled Institutions
One of the most transformative shifts is digitisation. Under the centrally sponsored PACS computerisation project, 4,460 out of 4,495 PACS in Bihar are now onboarded on a common ERP-based national software platform.
This integration improves:
Transparency in operations
Faster service delivery
Stronger linkage with District Central Cooperative Banks (DCCBs) and the State Cooperative Bank
For rural members, this translates into quicker transactions, clearer records, and reduced dependency on intermediaries.
Expanding the Role of PACS Beyond Credit
Bihar has adopted model bye-laws that allow PACS to operate across 25+ business activities. This has fundamentally altered their role in villages.
Today, PACS function as access points for:
Agricultural inputs and procurement
Warehousing and storage
Dairy and fisheries services
Public Distribution System (PDS) outlets
LPG, petrol, and diesel dealerships
Custom hiring centres for farm machinery
Jan Aushadhi (generic medicine) stores
Common Service Centres (CSCs) for digital services
In effect, PACS are becoming multi-service rural centres, reducing travel, time, and transaction costs for farmers.
Strengthening Physical Infrastructure at the Village Level
Storage has long been a bottleneck for farmers. Bihar has addressed this aggressively.
7,221 warehouses have been constructed at PACS level, adding 17.14 lakh metric tonnes of storage capacity.
During FY 2025–26 alone, 278 new warehouses with 2.49 lakh metric tonnes capacity have been approved.
Under the world’s largest grain storage scheme, 36 PACS in Bihar have been identified for additional capacity creation.
Better storage directly reduces post-harvest losses and distress selling.
Financial Inclusion Moves Closer to the Last Mile
PACS are increasingly acting as local banking touchpoints.
Over 5,256 PACS now function as Common Service Centres, offering DigiPay, bill payments, IRCTC services, and agricultural advisory support.
NABARD and cooperative banks have funded over 1,000 micro-ATMs across two financial years.
Hundreds of financial literacy awareness programmes (FLAPs) are being conducted to improve rural financial understanding.
These steps bring formal finance closer to farmers, women, and rural youth.
