Assessing the Role of PACS in Credit Allocation and Utilization: Insights from Kerala's Agricultural Sector

Institutional credit in India began in 1904 with the establishment of Cooperative Credit Societies aimed at providing agricultural credit. In Kerala, the Primary Agricultural Credit Societies (PACS) were established with the primary objective of supporting marginalized farmers in rural areas by offering sufficient credit for agricultural activities. Since their inception, PACS have held a dominant position in the disbursement of agricultural credit to farmers. However, over time, these societies shifted their focus from agricultural credit to non-agricultural purposes, thereby deviating from their original mission. This study seeks to examine the credit disbursement practices of PACS and the major challenges faced by farmers in accessing credit. This study made an attempt to know the usage of credit extended by PACSt to famers and also the major obstacles faced by the farmers while availing credit from PACS.