Civil Services Prep

Prelims 2020 · Agriculture · Question 76

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:

  1. 1, 2 and 5 only
  2. 1, 3 and 4 only
  3. 2, 3, 4 and 5 only
  4. 1, 2, 3, 4 and 5

Answer

1, 3 and 4 only

1. Working capital for maintenance of farm assets — Covered under KCC as short-term credit for allied/ancillary farm needs and maintenance expenses. Correct.

2. Purchase of combine harvesters, tractors and mini trucks — These are capital investment items, generally financed through term loans, not short-term KCC credit. Incorrect.

3. Consumption requirements of farm households — KCC includes limited credit for domestic/consumption needs of farmer households. Correct.

4. Post-harvest expenses — Explicitly covered under KCC short-term credit support. Correct.

5. Construction of family house and setting up of village cold storage facility — House construction is not covered under KCC short-term credit; cold storage setup is a capital investment, not short-term crop credit. Incorrect.

Hence, 1, 3 and 4 only are correct.

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