GS PrelimsAgricultureGovernment Policies and Schemes for Agriculture2020

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes ? 1. Working capital for maintenance of farm assets 2. Purchase of combine harvesters, tractors and mini trucks 3. Consumption requirements of farm households 4. Post-harvest expenses 5. Construction of family house and setting up of village cold storage facility Select the correct answer using the code given below:

A

1, 2 and 5 only

B

1, 3 and 4 only

C

2, 3, 4 and 5 only

D

1, 2, 3, 4 and 5

Correct Answer: Option B

Explanation

1. The Kisan Credit Card (KCC) scheme primarily provides short-term credit support to farmers for their cultivation and other needs. 2. Purpose 1: Working capital for maintenance of farm assets is a valid purpose under KCC as it relates directly to cultivation activities. (Correct) 3. Purpose 2: Purchase of combine harvesters, tractors and mini trucks involves significant capital investment. While KCC has a component for term loans, the primary focus and limit are generally for short-term needs. Large machinery purchases usually fall under specific term loan schemes, not the typical short-term KCC limit. (Incorrect for short-term support) 4. Purpose 3: Consumption requirements of farm households are explicitly covered under the KCC scheme to ensure the farmer's basic needs are met during the crop cycle. (Correct) 5. Purpose 4: Post-harvest expenses, such as storage, marketing, etc., are also covered under the KCC to help farmers avoid distress sales. (Correct) 6. Purpose 5: Construction of family house and setting up of village cold storage facility are long-term investments and typically fall outside the scope of the short-term credit support provided under the KCC scheme. Specific housing or infrastructure loans would be required. (Incorrect) 7. Therefore, the purposes covered under short-term credit support are 1, 3, and 4.

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