7.75 CRORE KISAN CREDIT CARDS OPERATIONAL AS OF MARCH 2024

The Economic Survey 2024-25, presented by Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, emphasizes the importance of providing adequate credit support to farmers across India. This support is especially crucial for small and marginal farmers, as well as vulnerable sections of society. The survey highlights that improving agricultural productivity and income is vital for the nation’s economic growth. As of March 2024, there are 7.75 crore operational Kisan Credit Card (KCC) accounts, with an outstanding loan amount of โ‚น9.81 lakh crore. This article delves into various initiatives and schemes aimed at bolstering agricultural support in India.

Modified Interest Subvention Scheme (MISS)

Starting from the fiscal year 2025, the Modified Interest Subvention Scheme (MISS) has undergone significant changes. The claim processing for this scheme has been digitized through the Kisan Rin Portal (KRP). This move aims to enhance the efficiency of capturing and settling MISS claims. By the end of December 2024, over โ‚น1 lakh crore in claims had been processed. Currently, around 5.9 crore farmers benefit from the MISS-KCC scheme, which has been effectively mapped through the KRP.

To further assist small and marginal farmers, banks are now required to allocate 40 percent of their Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE) to priority sectors, including agriculture. This initiative has significantly reduced the reliance on non-institutional credit sources, which dropped from 90 percent in 1950 to approximately 25 percent in FY22. Such measures are crucial for ensuring that farmers have access to the financial resources they need to thrive.

Ground-Level Credit Growth

Ground-level credit (GLC) for agriculture has experienced impressive growth over the past decade. The compound annual growth rate (CAGR) from 2014-15 to 2024-25 stands at 12.98 percent. GLC has surged from โ‚น8.45 lakh crore in 2014-15 to โ‚น25.48 lakh crore in 2023-24. Notably, the share of small and marginal farmers in this credit has increased significantly. Their share rose from โ‚น3.46 lakh crore, accounting for 41 percent of total GLC, to โ‚น14.39 lakh crore, which now represents 57 percent of the total.

This growth in GLC is a positive indicator of the increasing financial inclusion of small and marginal farmers. It reflects the government’s commitment to ensuring that these farmers have access to the necessary funds for their agricultural activities. By providing easier access to credit, the government aims to empower farmers, enhance their productivity, and ultimately improve their livelihoods.

Pradhan Mantri Fasal Bima Yojana (PMFBY)

The Pradhan Mantri Fasal Bima Yojana (PMFBY) has seen increased participation from state governments and insurers. In FY25, 24 state governments and 15 insurers are involved, up from 20 and 11 in 2020-21. This expansion has led to a 32 percent reduction in premium rates compared to previous years. As a result, the number of enrolled farmers reached 4 crore in FY24, marking a 26 percent increase from 3.17 crore in FY23. The insured area also expanded to 600 lakh hectares in FY24, reflecting a 19 percent rise from 500 lakh hectares in FY23.

These developments indicate a growing recognition of the importance of crop insurance in safeguarding farmers against unforeseen losses. The PMFBY aims to provide financial support to farmers in times of distress, ensuring that they can recover and continue their agricultural activities. This scheme plays a crucial role in enhancing the resilience of farmers and promoting sustainable agricultural practices.

Government Initiatives for Farmer Welfare

Several government initiatives have been launched to support farmers and enhance their income. The PM-KISAN scheme provides direct income support to farmers, benefiting over 11 crore individuals. Additionally, the Pradhan Mantri Kisan Maandhan Yojana (PMKMY) offers pension schemes for farmers, with 23.61 lakh farmers enrolled as of October 31, 2024. These initiatives aim to bolster farmers’ incomes and improve their social security safety nets.

Moreover, reforms such as e-KYC compliance under the One Nation One Ration Card (ONORC) initiative and credit guarantee schemes for electronic Negotiable Warehouse Receipts (e-NWR) financing address systemic inefficiencies in the agricultural sector. By implementing these reforms, the government aims to create a more robust support system for farmers, ensuring their financial stability and promoting agricultural growth.

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