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UPSC Prelims 2020 · Agriculture · Farm Money
Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes? Select the correct answer using the code given below:
- Working capital for maintenance of farm assets
- Purchase of combine harvesters, tractors and mini trucks
- Consumption requirements of farm households
- Post-harvest expenses
- Construction of family house and setting up of village cold storage facility
- (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
Show the answer and explanation
Answer: (b) 1, 3 and 4 only
Working capital, consumption and post-harvest costs are KCC short-term purposes.
Statement by statement
1. ✓ YES Working capital to maintain farm assets is covered.
2. ✗ NO Tractors and harvesters are long-term investment loans, not KCC short-term credit.
3. ✓ YES KCC covers household consumption needs (a set share).
4. ✓ YES Post-harvest expenses are covered.
5. ✗ NO Houses and village cold storage are long-term investments.
Why the others are wrong
(a) Includes tractors and houses.
(c) Includes long-term assets.
(d) Includes long-term assets.
The trap
KCC also allows some investment credit, but the question asks about short-term support.
🔒 KCC (1998): crop loans, post-harvest, consumption (10%), working capital; extended to fisheries and animal husbandry (2018).