Question 66

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.

• 1. 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.

• 2. 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.

• 3. 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.

• 4. 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.

• 5. 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.