Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following…

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

Solution

KCC short-term credit covers working capital for farm assets, consumption requirements of farm households and post-harvest expenses. Purchase of combine harvesters/tractors is investment credit (long-term, not KCC short-term). House construction/cold storage falls outside KCC short-term scope. Answer: (b) 1, 3 and 4 only.

Asked in: UPSC Prelims 2020

Practice more Sectors & Inclusive Development questions on Aicharya