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 expense 5. Construction of family house and setting up of village cold storage facility. Select the correct answer
Explanation
Under the Kisan Credit Card (KCC) scheme, short-term credit support is provided to farmers for purposes that directly support agricultural activities and the farm household.
Statement 1 is correct. The KCC scheme provides working capital for the maintenance of farm assets, which includes expenses for irrigation, fertilizers, and labor costs.
Statement 2 is incorrect. The KCC scheme's short-term credit component does not cover the purchase of capital-intensive assets such as combine harvesters, tractors, and mini trucks. These are typically financed through long-term investment credit, not short-term working capital.
Statement 3 is correct. The KCC scheme provides credit for the consumption requirements of the farm household (usually capped at a certain percentage of the limit).
Statement 4 is correct. The KCC scheme covers post-harvest expenses, including costs for storage, transportation, and marketing of produce.
Statement 5 is incorrect. The construction of a family house and setting up of village cold storage facilities are long-term capital investments and are not covered under the short-term credit support of the KCC scheme.
As per RBI/NABARD guidelines, the eligible activities for KCC are: - Short-term credit requirements for cultivation of crops. - Post-harvest expenses. - Produce marketing loan. - Consumption requirements of farmer household. - Working capital for maintenance of farm assets and activities allied to agriculture like dairy animals, inland fishery, etc. - Investment credit requirement for agriculture and allied activities like pumpsets, sprayers, dairy animals, etc. (Note: The question specifically asks for short-term credit support).
Hence, option B is the correct answer.