This article has been written keeping in mind the research scholars for taking up research studies in their respective areas/States for the award of degrees like M. Phil and Ph.D. The article is based on the publication on “IFPRI Discussion Paper on Assessing the Impact of Lending through Kisan Credit Cards (KCC) in Rural India: Evidence from Eastern India”, January 2021. The International Food Policy Research Institute (IFPRI) is a research-based policy solution to sustainably reduce poverty and end hunger and malnutrition in developing countries. Established in 1975, and now has been working in more than 50 countries.
The findings are presented in a nutshell point by point. At the outset, few points about Kisan Credit Cards (KCC) are presented. The Kisan Credit Card (KCC) is a credit scheme introduced in August 1998 by the Banks. This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of the R.V.GUPTA Committee. The main objective is to provide term loans for agricultural needs.
Features and Benefits of Kisan Credit Card (Source: bankbazaar.com/kisan-credit-card)
• Farmers are given credit for meeting their financial requirements of agricultural and other allied activities along with post-harvest expenses.
• Investment credit for agricultural requirements such as dairy animals, pump sets, etc.
• Farmers can take loans of up to Rs.3 lakh and also avail produce marketing loans.
• Insurance coverage for KCC holders up to Rs.50,000 in the case of permanent disability or death. A cover of Rs.25,000 is given in the case of other risks.
• An eligible farmer is issued a savings account with an attractive interest rate along with a smart card and a debit card in addition to the Kisan Credit Card.
• Single credit facility/ term loan for all agricultural and ancillary requirements.
• Credit is available for a period of up to 3 years and repayment can be made once the harvest season is over.
Now based on “IFPRI Discussion Paper on Assessing the Impact of Lending through Kisan Credit Cards (KCC) in Rural India: Evidence from Eastern India”, few important findings as mentioned by IFPRI are presented.
1) Based on a primary survey conducted during 2018-19 in five eastern states of viz., Bihar, Jharkhand, Odisha, eastern Uttar Pradesh, and West Bengal the Report has been prepared.
2) The important finding is “only a small proportion of agricultural households have access to a KCC, and they are more likely to be of upper socio-economic strata”.
3) Another noteworthy finding is that “the KCC scheme can help farmers by providing timely credit which facilitates optimal input use. However, program access is limited to a relatively small group of educated farmers. Creating more awareness of the program and improving access can stimulate agricultural development in eastern India”.
4) Lastly I am straight away quoting from the Report, “Timely credit through the KCC scheme can help promote technology adoption and increase input intensity. Given Indian policy efforts aimed at doubling the income of farmers, the KCC scheme can play a catalytic role in boosting income among farming households”.
So I request our Union Government and the State Governments of the study areas to see that all sort of farmers are covered under KCC as our farmers are ‘Annadaata’ and "the soul of India lives in its villages".
Dr. Shankar Chatterjee, Hyderabad
25 February 2021
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