Lok Sabha Question No. 3570 (UNSTARRED), answered on 2021-08-10
Subject: Issuance of Credit Cards to Farmers
Ministry: FISHERIES, ANIMAL HUSBANDRY AND DAIRYING
Asked by: Vivek Narayan Shejwalkar

## MINISTRY OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING

## GOVERNMENT OF INDIA DEPARTMENT OF FISHERIES

## LOK SABHA

UNSTARRED QUESTION NO. 3570 TO BE ANSWERED ON 10 th AUGUST, 2021

## Issuance of Credit Cards to Farmers

## 3570.    SHRI VIVEK  NARAYAN SHEJWALKAR:

Will  the  Minister  of  FISHERIES,  ANIMAL  HUSBANDRY  AND  DAIRYING मत्स्यपालन , पशुपालन और डेयरी मंत्री be pleased to state :

- (a) whether a policy has been formulated regarding issuance of credit cards to the farmers associated  with  the  fisheries  and  animal  husbandry  sector,  but  due  to  the  lack  of interest in giving such credit cards by the bank, the needy farmers associated with this sector are deprived of this scheme;
- (b)  whether such complaints have come to the cognizance of the Government, if so, the action being taken in the above context;
- (c)  the details of rules set for issuance of such credit cards;
- (d)  the details of the rate of interest on such credit cards; and
- (e)    the  details  of  the  number  of  beneficiaries  in  the  State  of  Madhya  Pradesh,  districtwise?

## ANSWER

## MINISTER OF FISHERIES, ANIMAL HUSBANDRY AND DAIRYING

## (SHRI PARSHOTTAM RUPALA)

(a)  to  (c):  The  Government  of  India,in  the  year  2018-19  extended  the  facility  of  Kisan Credit Card (KCC) to fisheries and animal husbandry farmers to help them to meet their working  capital  requirements.The  detailed  guidelines  for  issuance  ofKCCs  to  animal husbandry farmers and fisheries laying down the eligibility criterion and scale of finance etc. were issued by the Reserve Bank of India (RBI) on 4 th February, 2019 and a copy of the same is furnished at Annexure-I.As part of Atmanirbhar Bharat Package for farmers, special drive was launched w.e.f 1 st June 2020 to provide KCC to farmers, with special focus  on  PM-KISAN  beneficiaries,  Animal  Husbandry  farmers  and  fishermen.  Further, the  Ministry  of  Fisheries  and  Animal  Husbandry  and  Dairying  in  association  with  the Department of Financial Services is pursuing with all the State Governments/UTs, Milk Unions  and  State  Level  Bankers  Committee  (SLBCs)  to  sensitise  and  disseminate information amongst the farmers about KCC through special camps and other modes of communications. Till 31 st July  2021,  a  total  of  8,89,752  KCCs  have  been sanctioned to animal husbandry and fisheries farmers.

(d) : The rate of interest on KCC for Animal Husbandry and Dairy farmersand Fisheries is 4%  after  taking  into  account2%  interest  subvention  by  Govt.  of  India  and  additional prompt repaymentincentive at the rate of 3% for loan amount uptoRs 2 lakhs.

(e) : The District-wise details of number of beneficiaries ofanimal husbandry and fisheries farmers in the State of Madhya Pradesh who are provided with the Kisan Credit Cards are furnished at Annexure-II.

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Annexure I

Statement  referred  to  in  reply  to  the  part  (a)  to  (c)  of  the  LokSabhaunstarred question No. 3570 for reply on 10

th

August 2021- District-wise details of KCC issued to  the  Animal  husbandry farmers, fishers and fish farmers in the State of Madhya

Pradesh as on 31 st July, 2021

Kisan Credit Card (KCC) Scheme: Working Capital for Animal Husbandry and

Fisheries

RBI/2018-19/112FIDD.CO.FSD.BC.12/05.05.010/2018-19February 04, 2019

1. Introduction

In the Budget 2018-19 the Union Government had announced their decision to extend the facilities of Kisan Credit Card (KCC) to Animal Husbandry farmers and Fisheries (AH &

F) to help them meet their working capital requirements. In pursuance of the said budget announcement the matter has been examined, and in consultation with all stakeholders, it

has been decided to extend the KCC facility for working capital requirement for activities related to Animal Husbandry and Fisheries.

2. Purpose:

The KCC facility will meet the short term credit requirements of rearing of animals, birds, fish, shrimp, other aquatic organisms, capture of fish.

3. Eligibility:

The criteria for eligible beneficiaries under KCC for Animal Husbandry and Fisheries will be as under:

3.1 Fishery

3.1.1 Inland Fisheries and Aquaculture

3.1.1.1  Fishers,  Fish  Farmers  (individual  &  groups/  partners/  share  croppers/  tenant farmers), Self Help Groups, Joint Liability Groups and women groups.

3.1.1.2 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.

## 3.1.2 Marine Fisheries

3.1.2.1 Beneficiaries listed at 3.1.1.1 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.

## 3.2 Poultry and small ruminant

3.2.1 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.

## 3.3 Dairy

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

## 4. Scale of Finance

4.1 The scale of finance will be fixed by the District Level Technical Committee (DLTC) based on local cost worked out on the basis of per acre/per unit/per animal/per bird etc.

4.2  The  working  capital  components  in  fisheries,  under  the  scale  of  finance,  may include recurring cost towards seed, feed, organic and inorganic fertilisers, lime/other soil conditioners, harvesting and marketing charges, fuel/electricity charges, labour, lease rent (if  leased  water  area)  etc.  For  capture  fisheries,  working  capital  may  include the  cost  of fuel,  ice,  labouring  charges,  mooring/landing  charges  etc.  may  form  part  of  the  scale  of finance.

4.3 The working capital components in Animal Husbandry, under the scale of finance, may include recurring cost towards feeding, veterinary aid, labour, water and electricity supply.

- 4.4 The maximum period for assessment of working capital requirement may be based on the cash flow statement or completion of one production cycle.
- 4.5 Fisheries and Animal Husbandry experts of the Govt. may be made members of the DLTC for giving technical inputs for assessing the cash credit requirement.
- 4.6  Progressive  entrepreneurs  of  livestock/fisheries  sector  may  also  be  included  in  the DLTC for providing field level inputs while assessing the working capital requirements.

## 5. General Guidelines

- 5.1 Drawing power: The drawing power will be worked on the basis of the latest valuation of stocks, receivables and/or cash flows as per terms of sanction.
- 5.2 Repayment: The loan will be in the nature of a revolving cash credit limit. Repayment will be fixed as per the cash flow/income generation pattern of the activity undertaken by the borrower.
- 5.3 Monitoring of end use: The account/smart card for the loan issued under the scheme is to be maintained/issued separately from the existing KCC loan to monitor the utilization limit. The monitoring of end use of funds will be in line with other loans (KCC on crop loans included) viz., field visits to the site of unit/project to be carried out by the branch officials for checking the progress of the unit. Banks will periodically review the facility and continue/withdraw/scale down the facility based on the performance of the borrower.
- 5.4 Prudential norms: The extant prudential norms on income recognition, asset classification and provisioning on allied activities will apply.
- 5.5 Rate of Interest : The rate of interest will be as stipulated in DBR's Master Direction Reserve Bank of India (Interest Rate on Advances) Directions 2016.
- 5.6 All other guidelines laid down in Kisan Credit Card Scheme for short term crop loans will be applicable mutatis mutandis.

Statement referred to in reply to the part (e) of the Lok Sabha unstarred question No. 3570 for reply on 10 th August 2021- District-wise details of KCCissued to the Animal husbandry farmers, fishers and fish farmers in the State of Madhya Pradeshas on 31 st July, 2021

|   S N. | District    |   Number of beneficiaries covered under the KCC |
|--------|-------------|-------------------------------------------------|
|      1 | AGARMALWA   |                                              94 |
|      2 | ALIRAJPUR   |                                             108 |
|      3 | ANUPPUR     |                                              46 |
|      4 | BALAGHAT    |                                              55 |
|      5 | BARWANI     |                                             667 |
|      6 | BETUL       |                                              62 |
|      7 | BHIND       |                                             154 |
|      8 | BHOPAL      |                                             355 |
|      9 | BURHANPUR   |                                             104 |
|     10 | CHHINDWARA  |                                            1492 |
|     11 | DATIA       |                                             296 |
|     12 | DEWAS       |                                             578 |
|     13 | DHAR        |                                             713 |
|     14 | DINDORI     |                                              64 |
|     15 | GWALIOR     |                                             236 |
|     16 | HARDA       |                                             129 |
|     17 | HOSHANGABAD |                                             310 |
|     18 | INDORE      |                                             296 |
|     19 | JABALPUR    |                                             409 |
|     20 | JHABUA      |                                             262 |
|     21 | KATNI       |                                             104 |
|     22 | KHANDWA     |                                             447 |
|     23 | KHARGONE    |                                             645 |
|     24 | MANDLA      |                                             140 |
|     25 | MANDSAUR    |                                             214 |

| 26   | MURAINA     |    82 |
|------|-------------|-------|
| 27   | NARSINGHPUR |   806 |
| 28   | NEEMUCH     |   293 |
| 29   | RAISEN      |  1586 |
| 30   | RAJGARH     |   806 |
| 31   | RATLAM      |   132 |
| 32   | SEHORE      |   658 |
| 33   | SEONI       |   798 |
| 34   | SHAHDOL     |     3 |
| 35   | SHAJAPUR    |   315 |
| 36   | SHYOPUR     |   130 |
| 37   | UJJAIN      |   136 |
| 38   | UMARIA      |    51 |
| 39   | VIDISHA     |   492 |
| 40   | SAGAR       |   482 |
| 41   | DAMOH       |   490 |
| 42   | PANNA       |   146 |
| 43   | SHIVPURI    |   572 |
| 44   | GUNA        |    45 |
| 45   | ASHOKNAGAR  |   146 |
| 46   | TIKAMGARH   |  1459 |
| 47   | CHHATARPUR  |    71 |
| 48   | SATNA       |    92 |
| 49   | REWA        |   104 |
| 50   | SIDHI       |    74 |
| 51   | SINGRAULI   |    85 |
|      | Grand Total | 18034 |

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