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Every Rs 1 invested under the Kisan Credit Card-Modified Interest Subvention Scheme (KCC-MISS) generates Rs 2.30 in net value addition in the agriculture and allied sector, according to a third-party assessment cited by the government.
The assessment, conducted by the Institute for Social and Economic Change (ISEC), Bengaluru, evaluated the performance of the KCC-MISS across India's diverse agro-climatic regions. The findings were shared by Minister of State for Finance Pankaj Chaudhary in a written reply in the Lok Sabha on Monday. According to the assessment, every Rs 1 invested under KCC-MISS contributes Rs 2.30 to net value addition in the agriculture and allied sector, highlighting the economic impact of the interest subsidy scheme on farm activities. The report also found that the scheme has played a significant role in reducing the interest burden on farmers. It estimated that the government has provided an interest subsidy of Rs 1.87 lakh crore under the scheme from its inception until 2024-25. The assessment said the scheme has also led to improvements in agricultural productivity and cropping patterns. It noted that the KCC-MISS has positively impacted cropping intensity and multi-season cultivation, with beneficiary farmers cultivating larger areas, achieving higher cropping intensity and adopting more diversified crop portfolios across different seasons with the support of reliable irrigation and concessional credit. According to the report, easier access to working capital has improved the timely use of farm inputs. It added that farmers receiving the Prompt Repayment Incentive (PRI) have demonstrated better credit discipline, which has enhanced banks' confidence in extending further loans to them. The assessment further said the scheme has supported the expansion of dairy and livestock activities while promoting income diversification by reducing farmers' dependence on seasonal crop cultivation. It also highlighted support for the working capital requirements of inland fisheries, particularly in the North-Eastern region. The government informed Parliament that it has taken several measures to improve access to institutional agricultural credit and expand the coverage of the Kisan Credit Card scheme. These include annual agriculture credit targets for banks, increasing the collateral-free loan limit under KCC from Rs 1.6 lakh to Rs 2 lakh with effect from January 1, 2025, and introducing digital initiatives such as the Kisan Rin Portal, Jan Samarth portal, e-KCC and KRISHIKA to streamline agricultural credit delivery. The government also said awareness programmes, information, education and communication (IEC) campaigns, and KCC saturation drives are being conducted by the Centre, state governments, the Reserve Bank of India (RBI), NABARD, State Level Bankers' Committees (SLBCs) and banks to increase awareness about the benefits of the scheme and expand its reach among farmers. (ANI)
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