Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks 3. Consumption requirements of farm households 4. Post-harvest expenses 5. Construction of family house and setting up of village cold storage facility Select the correct answer using the code given below:
- A1, 2 and 5 only
- B1, 3 and 4 onlyCorrect
- C2, 3, 4 and 5 only
- D1, 2, 3, 4 and 5
Explanation
The Kisan Credit Card (KCC) scheme was introduced to provide farmers with timely and adequate short-term credit support for their cultivation and other needs. It primarily focuses on working capital requirements.
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Working capital for maintenance of farm assets: This is a core purpose. KCC provides credit for meeting the working capital requirements for crop production, maintenance of farm assets (like minor repairs, fuel), and other associated activities. This is correct.
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Purchase of combine harvesters, tractors and mini trucks: These are long-term capital investments. While banks provide agricultural term loans for such purchases, KCC is specifically designed for short-term credit and typically does not cover the purchase of large farm machinery. This is incorrect.
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Consumption requirements of farm households: The KCC scheme includes a component to meet the short-term consumption needs of farm households. This is aimed at preventing farmers from resorting to informal credit sources for their daily household expenses. This is correct.
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Post-harvest expenses: KCC provides credit for meeting expenses related to post-harvest activities, such as transportation of produce to markets, storage costs, and processing. This is correct.
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Construction of family house and setting up of village cold storage facility: These are long-term investments in housing and agricultural infrastructure, respectively. They are not covered under the short-term credit provided by KCC. Separate long-term loan schemes are available for such purposes. This is incorrect.
Therefore, statements 1, 3, and 4 are purposes for which short-term credit support is given to farmers under the KCC scheme.

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