Synopsis
The Economic Survey reveals a significant increase in Kisan Credit Cards and agricultural loans, emphasizing the importance of financial support for small farmers to improve productivity and income.Key Takeaways
- 7.75 crore Kisan Credit Cards active.
- Loans outstanding at Rs 9.81 lakh crore.
- 40% bank credit to agriculture mandated.
- GLC growth at 12.98% CAGR.
- 4 crore farmers enrolled in PM-FBY.
New Delhi, Jan 31 (NationPress) The Economic Survey emphasizes that providing adequate credit support to farmers, particularly small and marginal farmers and vulnerable communities, is essential for enhancing agricultural productivity and incomes in the agriculture sector.
It notes that as of March 2024, the nation has 7.75 crore active Kisan Credit Card (KCC) accounts with an outstanding loan amount of Rs 9.81 lakh crore. By March 31, 2024, 1.24 lakh KCCs and 44.40 lakh KCCs were issued for activities related to fisheries and animal husbandry, respectively.
Beginning in FY25, the claim processing under the Modified Interest Subvention Scheme (MISS) has been digitized via the Kisan Rin Portal (KRP) for quicker and more efficient capturing and settlement of MISS claims. By December 31, 2024, over 1 lakh crore claims have been processed, with about 5.9 crore farmers currently benefiting from the MISS-KCC scheme, all mapped through the KRP.
The government has mandated that banks allocate 40 percent of their Adjusted Net Bank Credit or the Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is greater, to priority sectors, including agriculture, to further assist small and marginal farmers.
These initiatives have significantly decreased reliance on non-institutional credit sources from 90 percent in 1950 to approximately 25 percent in FY22, according to the survey.
The survey also highlights that ground-level credit (GLC) for agriculture has displayed remarkable growth with a compound annual growth rate of 12.98 percent from 2014-15 to 2024-25. GLC has increased from Rs 8.45 lakh crore in 2014-15 to Rs 25.48 lakh crore in 2023-24. Within this, the share of small and marginal farmers has risen significantly from Rs 3.46 lakh crore (41 percent) to Rs 14.39 lakh crore (57 percent) from 2014-15 to 2023-24.
Furthermore, the survey highlights the advantages of the Pradhan Mantri Fasal Bima Yojana available to farmers. The involvement of state governments and insurers has grown to 24 and 15, respectively, in FY25, up from 20 and 11 in 2020-21. Additionally, these interventions have led to a 32 percent reduction in premium rates compared to previous years. Consequently, in FY24, the number of enrolled farmers reached 4 crore, a 26 percent increase from 3.17 crore in FY23. The insured area also expanded to 600 lakh hectares in FY24, indicating a 19 percent rise from 500 lakh hectares in FY23, as per the survey.
Government initiatives like PM-KISAN, which provides direct income support to farmers, and Pradhan Mantri Kisan Maandhan Yojna (PMKMY), offering pension schemes for farmers, have effectively contributed to enhancing farmers' incomes and strengthening their social security safety nets. More than 11 crore farmers have benefitted under PM-KISAN, and 23.61 lakh farmers had enrolled in PMKMY as of October 31, 2024. In addition to these efforts, reforms such as e-KYC compliance under the ONORC initiative and credit guarantee schemes for e-NWR financing address systemic inefficiencies that have historically affected the agricultural sector, the survey added.
