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 ✓ UPSC's answer
- (c) 2, 3, 4 and 5 only
- (d) 1, 2, 3, 4 and 5
Why the answer is (b)
• The Kisan Credit Card (1998) provides short-term revolving credit for crop cultivation and allied needs at subsidised interest.
• Its short-term component covers crop-production needs, post-harvest expenses (4), produce-marketing loans, consumption requirements of the farm household (3), and working capital for maintaining farm assets and allied activities like dairy and fisheries (1).
• Buying tractors, harvesters and trucks (2) and building a house or cold storage (5) are long-term investment credit, handled under a separate term-loan component or other schemes.
• Hence 1, 3 and 4 only, option (b).
Why the other options are wrong
- (a) 1, 2 and 5 only
- Items 2 and 5 are long-term investment credit, not short-term KCC support.
- (c) 2, 3, 4 and 5 only
- Items 2 and 5 are not short-term purposes.
- (d) 1, 2, 3, 4 and 5
- Items 2 and 5 fall outside short-term credit.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2020, held on 4 October 2020. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.