Agriculture and Allied Sectors (Part -V)

As per the NABARD's Annual Report 2021-22, Commercial Banks accounts for about three-fourth of the total institutional credit (short-term plus long-term) flow to agriculture during 2021-22. The share of Commercial Banks in total agriculture credit flow increased from 53.7% in 1999-2000 to 76.86% in 2022-23 (P), while the share of Co-operative Banks/ Institutions declined from 39.5% to 10.80% during this period. Regional Rural Banks (RRBs) also have expanded their share of institutional credit flow to agriculture sector from 6.9% to 12.34% between this period.

Institutional credit to agriculture and allied activities are provided mainly by Commercial Banks, Cooperative Banks/ Institutions and Regional Rural Banks (RRB), Foreign Private Banks provide negligible credit to agriculture and allied activities.

In the Union Budget 2020-21, the agricultural credit target for 2020-21 had been fixed at Rs. 15 lakh crore to improve institutional agricultural credit flow. In the Union Budget 2021-22, 2022-23 and 2023-24, the agricultural credit target has been fixed at Rs. 16.5 lakh crore, Rs. 18 lakh crore and Rs. 20 lakh crore, respectively.

The Kisan Credit Card (KCC) scheme was introduced in 1998. The prime objective of this credit scheme is to enable farmers in having quick and timely access to affordable credit. The model of KCC scheme was prepared by NABARD on the recommendations of R.V. Gupta Committee.

Objectives: (1) To meet the short term credit requirement for cultivation of crops.

(2) Post harvest expenses. Hence, statement 4 is correct.

( 3) Working capital for maintenance of farm assets and activities allied to agriculture etc. Hence, statement I is

correct.

(4) Consumption requirements of farm households. Hence, statement 3 is also correct.

(5) Investment credit requirement for agriculture and allied activities like pump sets, sprayers and dairy animals etc.

Statement 2 and 5 are not the objectives of the KСС. Therefore, option (b) is the correct answer.

The Kisan Credit Card (KCC) scheme was introduced in 1998. The prime objective of this credit scheme is to enable farmers in having quick and timely access to affordable credit. The model of KCC scheme was prepared by NABARD on the recommendations of R.V. Gupta Committee.

Objectives: (1) To meet the short term credit requirement for cultivation of crops.

(2) Post harvest expenses. Hence, statement 4 is correct.

( 3) Working capital for maintenance of farm assets and activities allied to agriculture etc. Hence, statement I is

correct.

(4) Consumption requirements of farm households. Hence, statement 3 is also correct.

(5) Investment credit requirement for agriculture and allied activities like pump sets, sprayers and dairy animals etc.

Statement 2 and 5 are not the objectives of the KСС. Therefore, option (b) is the correct answer.

The Kisan Credit Card (KCC) scheme was introduced in 1998. The prime objective of this credit scheme is to enable farmers in having quick and timely access to affordable credit. The model of KCC scheme was prepared by NABARD on the recommendations of R.V. Gupta Committee.

Objectives: (1) To meet the short term credit requirement for cultivation of crops.

(2) Post harvest expenses. Hence, statement 4 is correct.

( 3) Working capital for maintenance of farm assets and activities allied to agriculture etc. Hence, statement I is

correct.

(4) Consumption requirements of farm households. Hence, statement 3 is also correct.

(5) Investment credit requirement for agriculture and allied activities like pump sets, sprayers and dairy animals etc.

Statement 2 and 5 are not the objectives of the KСС. Therefore, option (b) is the correct answer.

The Kisan Credit Card (KCC) scheme was introduced in 1998. The prime objective of this credit scheme is to enable farmers in having quick and timely access to affordable credit. The model of KCC scheme was prepared by NABARD on the recommendations of R.V. Gupta Committee.

Objectives: (1) To meet the short term credit requirement for cultivation of crops.

(2) Post harvest expenses. Hence, statement 4 is correct.

( 3) Working capital for maintenance of farm assets and activities allied to agriculture etc. Hence, statement I is

correct.

(4) Consumption requirements of farm households. Hence, statement 3 is also correct.

(5) Investment credit requirement for agriculture and allied activities like pump sets, sprayers and dairy animals etc.

Statement 2 and 5 are not the objectives of the KСС. Therefore, option (b) is the correct answer.

Therefore, the correct chronological order is given in option (a).

According to the New Package announced for the Agricultural by then UPA Government, the landless farmers will get loans from the banks and a proposal in this regard to be made by NABARD to provide institutional credit to more than 50 lakh new farmers. There is no mention of loan waiver or concession in loan payment in this package.

In view of the fluctuating nature of international prices in plantation crops and the dependence of growers on the export market, Government of India launched and implemented the Price Stabilisation Fund (PSF) Scheme from 1 April, 2003 to 30th September, 2013 to provide financial relief to small growers of coffee, tea, rubber and tobacco having land holdings up to four hectares. Hence, as per the question period, option (c) was the correct answer. But, another Price Stabilisation Fund (PSF) was set up in 2014-15 to help regulate the price volatility of important agri-horticultural commodities especially onion and potato (pulses were also added subsequently). Thus, at present option (a) is the correct answer.