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UPSC CSE 2020 · PYQ · Agriculture · medium

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. A.1, 2 and 5 only
  2. B.1, 3 and 4 only✓ Correct
  3. C.1, 2, 3, 4 and 5
  4. D.2, 3, 4 and 5 only

Explanation

KCC provides short-term credit for working capital on farm assets, consumption requirements and post-harvest expenses. Purchase of tractors/harvesters and house construction are long-term/term loans, not short-term KCC purposes.
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