Andhra Pradesh is basically an agrarian economy and by producing one-tenth of India’s total output of food grains. Initially the agriculturists depend more on non-institutional sources for their credit requirements which used to squeeze the blood of the poor peasants by charging high rates of interest. Cooperatives are considered as the agencies for mobilization and development of rural resources in a planned and cost effective manner besides providing inputs, services and marketing facilities to the rural economy. The Cooperative Credit Societies Act 1904 permitted only to form PACS, which laid more emphasis on the promotion of agricultural credit. The Cooperative Credit Societies Act of 1912 removed the defects of 1904 Act and was made applicable to both credit and non-credit cooperative societies. In Andhra Pradesh, Credit Co-operatives are playing a significant role in serving the needy farmers by fulfilling their credit requirements. On this backdrop, an attempt is made to analyze its role in the agricultural development of the state. The distinction between rural and urban societies was abolished and provision was made for societies with limited or unlimited liability. In this way, the 1912 Act paved the way to widen the Cooperative Credit Structure. These are providing not only credit, but also non-credit services for all activities under primary, secondary and tertiary sectors of rural economy. Through cooperative credit the farmers benefitted to maximum extent by increasing their agricultural output which in turn increased their levels of employment and income. The main objective of this paper is to evaluate the role of primary agricultural credit society to develop agriculture in Andhra Pradesh.