Punjab Increases Cooperative Credit Limits for Farmers to Boost Crop Diversification
Punjab CM announces hike in co-op credit limit for various crops
Image: Hindustan Times
Punjab Chief Minister Bhagwant Mann announced a significant increase in cooperative credit limits for various crops under a revamped Kisan Credit Card (KCC) system. The reforms aim to benefit over 1.3 million farmers by providing better access to institutional credit, encouraging crop diversification, and reducing dependency on private lenders.
- 01The new KCC framework will allow loans for horticultural crops up to ₹1.57 lakh per acre, a significant increase from previous limits.
- 02The credit limit for wheat has been raised from ₹24,300 to ₹30,000 per acre.
- 03For the first time, loans will be provided for managing crop residue at ₹2,000 per acre.
- 04The sugarcane loan limit has increased from ₹44,000 to ₹1 lakh per acre.
- 05New credit provisions include agro-forestry crops like poplar and bamboo, with specific loan amounts for each crop introduced.
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In a major policy shift, Punjab Chief Minister Bhagwant Mann has announced an increase in cooperative credit limits for various crops, aiming to enhance the Kisan Credit Card (KCC) system that has remained unchanged for 26 years. This overhaul is designed to provide better financial support to farmers, allowing them to access institutional credit and reduce reliance on private moneylenders. The new framework is expected to benefit over 13 lakh farmers across Punjab. Notably, the credit limit for horticultural crops has been raised to ₹1.57 lakh per acre, while wheat farmers will see an increase from ₹24,300 to ₹30,000 per acre. For the first time, loans for crop residue management will be provided at ₹2,000 per acre. Additionally, the sugarcane loan limit has been significantly increased to ₹1 lakh per acre. The initiative also encourages farmers to diversify into high-value crops, with specific loan amounts established for agro-forestry and agro-horticulture crops, including poplar, bamboo, and jamun.
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The increase in credit limits is expected to provide farmers with better financial resources, encouraging them to diversify their crops and reduce dependency on private lenders.
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