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Mcq. under the kisan credit card scheme, short-term credit support is given to farmers for which of the following purposes ? (upsc-prelims-2020)

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 codes:

[a) 1, 2 and 5 only
[b) 1, 3 and 4 only
[c) 2, 3, 4 and 5 only
[d) 1, 2, 3, 4 and 5

User Boycy
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Final answer:

The correct option for the Kisan Credit Card scheme is [b) 1, 3, and 4 only, which covers working capital for maintenance of farm assets, consumption requirements of farm households, and post-harvest expenses.

Step-by-step explanation:

The Kisan Credit Card scheme provides short-term credit support to farmers mainly for agricultural purposes. The specific provisions under this scheme are meant to help farmers with working capital for the maintenance of farm assets, consumption requirements of farm households, and post-harvest expenses, which are critical for supporting the agricultural cycle and helping farmers avoid high-interest debt. Notably, the scheme does not support the purchase of heavy machinery such as combine harvesters, tractors, and mini trucks or non-agricultural investments like the construction of a family house or the setting up of village cold storage facilities.

The historical context given in the reference does not directly relate to the Kisan Credit Card scheme, but it illustrates the rationale behind providing affordable credit to farmers. Similar to the historical example of state-supported seed lending, the purpose of the Kisan Credit Card is to prevent farmers from falling into cycles of debt by providing them with timely and low-cost resources, thereby increasing their fiscal stability and securing the agriculture sector's financial foundation.

User Tyshock
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