New Delhi: KCC-MISS created ₹2.30 in net value addition for every ₹1 invested in agriculture and allied sectors, an ISEC assessment found. The Institute for Social and Economic Change (ISEC), Bengaluru, conducted the third-party review across India’s agro-regions.
Minister of State for Finance Pankaj Chaudhary shared the findings in the Lok Sabha on Monday. The assessment showed that KCC-MISS reduced the interest burden on farmers. The scheme received an estimated subsidy support of ₹1.87 lakh crore from its start until 2024-25.
The report also found that KCC-MISS improved cropping intensity and encouraged multi-season farming. Farmers under the scheme cultivated larger areas and adopted more diverse crops across seasons. Reliable irrigation and concessional credit supported these changes.
The scheme also helped farmers access working capital on time. Beneficiaries who received the Prompt Repayment Incentive showed stronger repayment habits. This improved banks’ confidence in providing further loans.
KCC-MISS expands farm income opportunities
The assessment highlighted the scheme’s role in supporting dairy, livestock and fisheries activities. It helped farmers reduce dependence on seasonal crop income. It also encouraged the integration of livestock and fisheries with crop production.
The report noted that KCC-MISS provided working capital support for inland fisheries. This support remained important for diversification in the North-Eastern Region.
The government has introduced several steps to improve agricultural credit access. These include annual farm credit targets and priority sector lending goals for banks.
The Centre increased the collateral-free loan limit under Kisan Credit Card from ₹1.6 lakh to ₹2 lakh from January 1, 2025. It also introduced digital platforms such as Kisan Rin Portal, Jan Samarth Portal, e-KCC and KRISHIKA.
These platforms aim to simplify agricultural credit delivery. The Centre, states, RBI, NABARD and banks also conduct awareness campaigns to expand KCC coverage among farmers.
