In a major move to empower farmers, Finance Minister Nirmala Sitharaman, in the Union Budget 2025, announced an increase in the Kisan Credit Card (KCC) limit.
Key Update:
- The KCC limit will rise from ₹3 lakh to ₹5 lakh.
- This increase aims to provide farmers with greater access to funds, helping them meet agricultural needs.
What is the Kisan Credit Card (KCC)?
- Introduced in 1998, the KCC is a vital scheme for farmers to secure credit for agricultural purposes.
- Based on land holdings, it provides a simplified way to access loans for buying agricultural inputs like seeds, fertilizers, and pesticides.
Impact of the Limit Increase:
- The rise in credit limit will help farmers meet financial requirements for both crop production and allied activities.
- It strengthens the agricultural sector by allowing easier access to credit, supporting modern farming techniques, and boosting productivity.
Why This Matters:
- This move will support farmers in improving their financial management, investing in better farming practices, and promoting economic stability in rural areas.
- A significant step towards enhancing rural development and increasing access to financial resources in agriculture.