District Wise Analysis of Primary Agricultural Credit Societies in Eastern Uttar Pradesh

Abstract

Institutional finance plays a crucial role in the development of the agricultural sector by ensuring timely access to formal credit for farmers. In India, Primary Agricultural Credit Societies (PACS) constitute the grassroots institutions of the cooperative credit structure and act as a key source of short-term and medium-term agricultural finance, particularly for small and marginal farmers. This study examines the inter-district variation in the number of (PACS) per lakh of rural population across selected districts of Uttar Pradesh over the period 2000–01 to 2023–24. Using secondary data, the analysis focuses on temporal changes, regional disparities, and consistency in the distribution of (PACS). The findings reveal a gradual decline in the average number of (PACS) during the period of study., indicating a marginal contraction in institutional outreach relative to rural population. However, the declining trend in standard deviation and coefficient of variation during the same period indicates an improvement in regional uniformity over time. District-level analysis shows that Deoria consistently ranks among the top-performing districts in recent years, followed by Pratapgarh and Azamgarh, reflecting relatively better access to cooperative credit institutions. In contrast, Balrampur and Bahraich persistently appear among the bottom-ranked districts, indicating weaker penetration of (PACS). Further results highlight structural shifts, where traditionally high-performing districts like Gonda and Bahraich witnessed declines, while districts such as Amethi improved their rankings in later years. Overall, the study concludes that although disparities across districts have reduced, the declining average points to a need for policy intervention to strengthen the PACS network and enhance financial inclusion in rural areas.