Under the Kisan Credit Card scheme, short-term credit support is given

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ?

  • Working capital for maintenance of farm assets
  • Purchase of combine harvesters, tractors and mini trucks
  • Consumption requirements of farm households
  • Post-harvest expenses
  • Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below :

1, 2 and 5 only
1, 3 and 4 only
2, 3, 4 and 5
1, 2, 3, 4 and 5
This question was previously asked in
UPSC IAS – 2020
The Kisan Credit Card (KCC) scheme is designed to provide short-term credit support to farmers for various agricultural and related activities. The specified purposes for which credit is extended under the scheme typically include working capital for cultivation (covering inputs like seeds, fertilisers, pesticides), post-harvest expenses (like storage, marketing), produce marketing loans, consumption requirements of the farm household, and working capital for maintenance of farm assets and allied activities (like dairy, poultry, fisheries).
– Statement 1: Working capital for maintenance of farm assets is a valid purpose for short-term credit under KCC.
– Statement 2: Purchase of large farm machinery like combine harvesters, tractors, and mini trucks typically falls under long-term investment credit, not short-term KCC.
– Statement 3: Consumption requirements of farm households are included as a component of KCC credit.
– Statement 4: Post-harvest expenses are covered under the scheme.
– Statement 5: Construction of family house and setting up of village cold storage facilities are long-term investments, not covered by the short-term KCC scheme.
The KCC scheme aims to provide flexible and simplified credit access to farmers, covering both cultivation needs and certain non-farm activities and personal consumption, all within the short-term framework. Long-term capital investments are typically financed through separate term loans.
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