The Government will provide Kisan Credit Card (KCC) to 1.5 crore dairy farmers belonging to milk unions and milk-producing companies within the next two months (from 1 June to 31 July 2020) under a special drive. The Department of Animal Husbandry and Dairying, in association with the Department of Financial Services, has already circulated relevant circulars and KCC application format to all state milk federation and milk unions for implementing the same on a mission mode.
Under the dairy cooperative movement, approximately 1.7 crore farmers are associated with 230 milk unions in the country.
In the first phase of this campaign, the target is to cover all farmers who are members of dairy cooperative societies and associated with different milk unions and who do not have KCC. Farmers who already have KCC based on their land ownership can get their KCC credit limit enhanced, though interest subvention shall be available only to the extent of Rs 3 lakhs.
Although the general limit for KCC credit without collateral remains Rs 1.6 lakh, the farmers whose milk is directly procured by milk unions fall under tie-up arrangements between the producers and processing units without intermediaries. Hence, the credit limits without collateral can be up to Rs3 lakh. This will ensure more credit availability for dairy farmers associated with milk unions as well as assuring repayment of loans to banks.
Kisan credit cards campaign for 1.5 crore dairy farmers
The special drive to provide KCC to 1.5 crore dairy farmers is part of the Prime Minister’s Atma Nirbhar Bharat package for farmers. The finance minister on 15 May 2020 has announced to cover 2.5 crore, new farmers, under the KCC scheme. This will provide additional liquidity of Rs 5 lakh crore in the hands of farmers suffering from the recent downturn of the economy.
As dairy is among the fastest-growing sectors of the economy with a CAGR of above 6% in the last five years, providing short term credit to dairy farmers for meeting their requirements for working capital, marketing and others will boost their productivity tremendously.