New Delhi: Every Re 1 invested under the Kisan Credit Card– Modified Interest Subvention Scheme contributed Rs 2.30 to net value addition in the agriculture and allied sector, the Parliament was informed on Monday, citing a third-party assessment finding.
The third party assessment by the Institute for Social and Economic Change, Bengaluru, found the scheme has reduced farmers’ interest burden and positively impacted cropping intensity and multi season cultivation, MoS Finance, Pankaj Chaudhary, said in the Lok Sabha in reply to a question.
The scheme significantly reduced the interest burden on farmers, with an estimated subsidy outlay of Rs 1.87 lakh crore since inception till 2024-25.
It helped KCC-MISS farmers cultivate larger areas, adopting more diversified crop portfolios across seasons, supported by reliable irrigation and concessional credit.
It has improved the timeliness of input use through access to adequate working capital, and beneficiaries receiving Prompt Repayment Incentive (PRI) have demonstrated better credit discipline, thereby enhancing banks’ confidence for further lending.
The scheme has supported dairy and livestock expansion and promoted income diversification by supplementing crop income, reducing dependence on seasonal agriculture, and integrating livestock and fisheries farming with crop production.
It has also supported Working Capital Requirements (WCR) for inland fisheries, which is significant for diversification in the North-Eastern Region.
The minister said the government also introduced several technological interventions such as Kisan Rin Portal, Jan Samarth portal, e-KCC, KRISHIKA to streamline the agricultural credit delivery process.
It expanded KCC coverage, simplified application procedures, and strengthened digital access to small and marginal farmers.
The government has introduced several measures, including annual ground level credit targets and priority sector lending targets for banks.
It increased the collateral free loan limit in KCC from Rs 1.6 lakh to Rs 2 lakh with effect from January 1, 2025.
The government, RBI, NABARD, State Level Bankers Committee (SLBCs) and banks conducted various awareness programmes to bring awareness about the benefits of the KCC scheme among farmers.
(IANS)
