Lok Sabha Question No. 2469 (UNSTARRED), answered on 2019-12-03
Subject: Kisan Credit Cards
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rita Bahuguna Joshi

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMER S WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMER S WELFARE

## LOK SABHA UNSTARRED QUESTION NO.2469

TO BE ANSWER ED ON THE 3 RD DEC EMBER, 2019

## KISAN CREDIT CARDS

## 2469.  SHRIMATI RITA BAHUGUNA JO SHI:

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Will the Minister of AG RICU L TU R E AND FA RM E R S WEL FA R E कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) the details of the eligibility rules/ criteria laid down by the Government for issue of the Kisan Credit Cards (K C C) to farmers;
- (b) the details of the various benefits covered under K C C holders;
- (c) whether the Government is considering the modifications in the schemes;
- (d) if so, the details thereof; and
- (e) if not, the reasons therefor and the details of the challenges in K C C schemes?

## ANSWER

## MINISTE R OF AG RI CULTUR E AND FARMER S WEL FA R E

कृ ष एवं कसान कयाण मंी ( S H RI NA R E N D R A S IN G H  T OMA R)

- (a): All farmers including small farmers, marginal farmers, share croppers, oral lessees and tenant farmers are eligible to be covered under the KC C  scheme for crop loans. Self Help Groups (SH G) or Joint Liability of Groups (JL Gs) of farmers including tenant farmers, share croppers, etc. are eligible under the KCC crop loan scheme.

The  following  is  the  eligibility  rules  for  farmers  practicing  Animal  Husbandry  and  Fisheries (AH&F):

## Fishery

-  Inland Fisheries and Aquaculture : Fishers, Fish Farmers (individual & groups/partners/share croppers/ tenant farmers), Self Help Groups, Joint Liability Groups and women groups. The beneficiaries must own or lease any of the fisheries related activities such as pond, tank, open water bodies, raceway, hatchery, rearing unit, possess necessary license for fish farming and fishing related activities, and any other State specific fisheries and allied activities.
-  Marine Fisheries : Beneficiaries listed above, who own or lease registered fishing vessel/boat, possess necessary fishing license/permission for fishing in estuary and sea, fish farming/mariculture activities in estuaries and open sea and any other State specific fisheries and allied activities.

Poultry and small ruminant : Farmers, poultry farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmer of sheep/goats/pigs/poultry/birds/rabbit and having owned/rented/leased sheds.

Dairy : Farmers and Dairy farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers having owned /rented/leased sheds.

- (b): The details of the various benefits covered under K C C holders:
- (i) Short term limit is sanctioned for meeting short term credit requirements for cultivation of crops, post-harvest expenses, produce marketing loan, consumption requirements of farmer household, working capital for maintenance of farm assets and activities allied to agriculture.
- (ii) Further,  term  loan  is  sanctioned  for  meeting  investment  credit  requirement  for agriculture and allied activities.
- (iii) Besides the mandatory crop insurance, the KC C holder has the option to avail the benefit of any type of asset insurance, accident insurance (including PAIS), health insurance (wherever product is available) and have premium paid through KC C account.
- (iv) Prompt Repayment Incentive (PRI)
-  On prompt repayment of KC C crop loans, farmers are eligible for 3% Prompt Repayment Incentive under  the Government of India's Interest Subvention Scheme upto crop loans of Rs.3.00 lakh per farmer.
-  KCC holders  of  Animal  Husbandry  and Fisheries  are  also  eligible  for  3% P RI  upto  a maximum  loan  limit  of Rs.2  lakh  per  farmer  involved  in  activities  only  related  to  Animal Husbandry and Fisheries.
-  In case of farmers possessing KC C for raising crops and involved in activities related to Animal Husbandry and/ or Fisheries, the Prompt Repayment Incentive on short term loans (i.e. crop loan + working capital loan for Animal Husbandry and Fisheries) will be available only on an overall loan limit of Rs.3 lakh per annum.

(c) to (e): From 1 st February, 2019, KC C was extended to farmers in allied activities like Animal Husbandry and Fisheries to existing KC C holders within a limit of Rs.3.00 lakh and issue of new KC C for Animal Husbandry and Fisheries farmers with provision of benefit of interest subvention and Prompt Repayment Incentive (PRI) for loan amount upto Rs.2.00 lakh per annum. Interest subvention of 2% and PRI of 3% on restructured crop loans to farmers affected by severe natural calamities for a maximum period of 5 years on the basis of report of Inter Ministerial Central Team (IMCT) for grant of NDRF assistance and Sub-Committee of Natural Executive Committee (S C-NE C).

In order to discourage distress sale by farmer and  to encourage them instead to store their produce in warehouse, the benefit of IS S is made available to SMF (small and marginal farmers) having KCC for a  further  period  of six months post  the  harvest  of  the crop  produce stored  in  warehouse accredited with WDRA (Warehouse Development Regulatory Authority) against negotiable warehouse receipts at the same rate as is available on crop loan.

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