The financial services department is teaming up with the Ministry of Agriculture and Farmers Welfare to make some significant changes aimed at better supporting farmers. These changes include increasing the limits on Kisan Credit Card (KCC) loans and introducing a new scheme similar to the successful PM Street Vendor’s Atmanirbhar Nidhi (PM-SVANidhi) program for tenant farmers.
In a recent special address at the CII Financing 3.0 Summit on August 3, MP Tangirala, Additional Secretary at the Department of Financial Services, shared some exciting updates. One of the main highlights is the plan to increase the Kisan Credit Card loan limits, which were initially set three or four years ago. Currently, the maximum credit limit on these loans is Rs 3 lakh. As of now, the total outstanding credit in KCC accounts stands at a whopping Rs 9.81 lakh crore. Tangirala emphasized that the KCC scheme, which was launched in 1998, needs an update. Specifically, he mentioned that the scheme should also cover the cost of agricultural tools and implements, which would be a significant boost for farmers.
Additionally, Tangirala revealed that the department is working on a new initiative modeled after the PM-SVANidhi scheme. This program, which has been very successful in supporting street vendors, will be adapted to help tenant farmers. Tenant farmers, who often face unique challenges, will benefit from a scheme tailored to their needs.
Another crucial point Tangirala raised is the need to expand the definition of agriculture to include allied activities. Currently, these activities make up only about 12 percent of the credit provided. Broadening this definition could ensure more comprehensive support for various agricultural-related activities.
Tangirala also highlighted some pressing issues related to agricultural insurance and regional disparities. He noted that many farmers are underinsured and stressed the importance of addressing regional imbalances. For example, the northeastern states receive less agricultural credit compared to the southern states, which impacts their overall agricultural growth.
In summary, these upcoming changes and new initiatives aim to enhance financial support for farmers, update existing schemes, and address regional imbalances in agricultural credit. By expanding loan limits, introducing new programs, and rethinking insurance and credit distribution, the goal is to create a more robust and inclusive support system for all farmers.
