Primary agricultural credit societies in India

Agriculture is a backbone of Indian economy. As per the census, about 68.8 percent of the population resides in the rural area and depending directly or indirectly upon agriculture for their livelihood. The contribution of this sector to the gross domestic product (GDP) is, however, declining very rapidly and is presently about 14.5 percent (in 2010-11) and this sector is also showing a deceleration in growth rates. Therefore, it is very important for this sector to achieve higher growth rates and also be an engine of growth so that growth in other sectors and the overall growth rate of the economy can be achieved. The primary agricultural credit co-operative societies are considered to be the pillars of the entire cooperative edifice. The PACSs continue to be the main source of agricultural credit to the farmers in rural areas