Prelims 2020

Q. 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 : b) 1, 3 and 4 only

Question from UPSC Prelims 2020 GS Paper


Kisan Credit Card (KCC) Scheme

The Kisan Credit Card (KCC) scheme is designed to provide farmers with timely and adequate credit for their agricultural needs. The scheme covers various aspects of farming and related activities, but it is primarily focused on ensuring that farmers have the financial support they need for their cultivation needs, including the purchase of inputs, day-to-day operations, and dealing with unforeseen expenses.

Breakdown of Purposes

Based on the purposes listed in the question, here’s a breakdown:

  1. Working capital for maintenance of farm assets – Yes, the KCC scheme provides support for working capital requirements, including maintenance of farm assets.
  2. Purchase of combine harvesters, tractors, and mini trucks – The primary focus of the KCC scheme is on providing credit for short-term needs related to cultivation and other agricultural operations. While it may cover some aspects of mechanization, large scale financing for the purchase of heavy machinery like combine harvesters, tractors, and mini trucks typically falls under different financing schemes or loans specifically designed for agricultural equipment.
  3. Consumption requirements of farm households – Yes, the KCC scheme allows for a certain portion of the credit to be used for the consumption requirements of farm households, recognizing that the well-being of the farmer is integral to agricultural productivity.
  4. Post-harvest expenses – Yes, the scheme covers post-harvest expenses, acknowledging the importance of these costs in the overall agricultural cycle.
  5. Construction of family house and setting up of village cold storage facility – The KCC scheme is not designed to finance long-term projects like the construction of family houses or setting up of village cold storage facilities. These types of projects would typically require a different form of financial assistance or loan.

Given the purposes outlined and the focus of the Kisan Credit Card scheme, the correct answer to the question is:

b) 1, 3, and 4 only

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