ANALYZING THE ROLE OF THE KISAN CREDIT CARD (KCC) SCHEME IN REDUCING AGRICULTURAL INDEBTEDNESS AMONG FARMERS

Rawani S.K; Paliwar L.B.

doi:10.29121/shodhkosh.v5.i3.2024.5036

Authors

Rawani S.K Research Scholar, Dept of commerce and Business management of BBMK University Dhanbad 826004, Jharkhand
Dr. Paliwar L.B. Assistant professor, Dept of commerce and Business management of BBMK University Dhanbad 826004, Jharkhand

DOI:

https://doi.org/10.29121/shodhkosh.v5.i3.2024.5036

Keywords:

Kisan Credit Card (Kcc) Scheme, Agricultural Indebtedness, Farmers, Institutional Credit

Abstract [English]

This paper studies the Kisan Credit Card (KCC) scheme and its contribution in reducing agricultural indebtedness of farmers in Jharkhand. As the awareness of rural indebtedness and farmers’ dependence on informal credit sources is mounting, the KCC scheme was designed as an institutional mechanism to provide timely, affordable credit to agricultural needs. The first objective of this research is to determine if the progress of the KCC scheme has reduced farmers’ debt burdens significantly. Structured questionnaires was used to collect data of 385 randomly selected farmers from the region. The SPSS was used to analyze the data and regression analysis was performed to determine the relationship between the independent variable, progress of KCC scheme and the dependent variable, agricultural indebtedness. Results showed statistically significant relationship with an R square value of 0.106 which means that the scheme explains 10.6 percent of the variance in debt levels. The impact is moderate, but it proves that institutional credit from the KCC scheme helps to reduce farmers’ financial stress. The ANOVA results and regression coefficients also show that the scheme has a significant and positive effect. Finally, the KCC scheme is a good tool for rural credit needs and reducing debt but its potential can only be fully realized when other policy measures like improved market access, financial literacy and income stabilization measures are in place. Expanding and strengthening the KCC scheme and other reforms could result in outcome for farmers that are more sustainable yet, suggests the study.

References

Kumar, A., Yadav, C., Jee, S., Kumar, S., & Chauhan, S. (2011). Financial innovation in Indian agricultural credit market: Progress and performance of Kisan Credit Card. Indian Journal of Agricultural Economics, 66(3).

Namboodiri, N. V. (2005). Agricultural credit and indebtedness. Indian Journal of Agricultural Economics, 60(3).

Venkatesh, R. (2015). Access and impact of Kisan Credit Card Scheme. International Journal in Management & Social Science, 3(5), 270-284.

Singh, H., & Sekhon, M. K. (2005). Cash-in benefits of the Kisan Credit Card Scheme: Onus is upon the farmer. Indian Journal of Agricultural Economics, 60(3).

Viswanath, S. K. (2007). Kisan credit card scheme: An economic evaluation (Doctoral dissertation, Department of Agricultural Economics, College of Horticulture, Vellanikkara).

Nigade, D. D., & Deshmukh, P. R. (2023). Development and standardization of a scale to measure impact of Kisan Credit Card Scheme.

Beriya, A. (2020). Application of ICTs to achieve inclusion of all farmers under Kisan Credit Cards in Indian agriculture (No. 31). ICT India Working Paper.

Sharma, K. D., Sharma, D., & Ghabru, M. (2018). A study on acquisition, use and repayment pattern of Kisan Credit Card Scheme in Himachal Pradesh. Indian Journal of Economics and Development, 14(1a), 277-281.

Gandhimathi, S. (2014). Impact of Kisan Credit Card Scheme on credit distribution in agricultural sector in India. ZENITH International Journal of Business Economics & Management Research, 4(8), 156-166.

Bista, D. R., Kumar, P., & Mathur, V. C. (2012). Progress and performance of Kisan Credit Card Scheme with a case study of Bihar. Agricultural Economics Research Review, 25(1), 125-135.

Chatterjee, S. (2019). The curious case of farmer credit cards: Evidence from an Indian policy reform. The BE Journal of Economic Analysis & Policy, 19(1).

Nigade, D. D., Deshmukh, P. R., & Ekale, J. V. (2022). Profile of the Kisan Credit Card Scheme non-beneficiary farmers of Marathwada region. The Pharma Innovation Journal, 11(1), 999-1003.

Das, S., & Sharma, K. K. (2023). Credit debt and over-indebtedness among the agrarian community: A case study in Krishnagar-I CD Block of Nadia District, West Bengal. Contemporary Voice of Dalit, 2455328X231176469.

Sheela, B., & Rajashekar, H. (1998). Evaluating the effectiveness of the Kisan Credit Card Scheme: A data-driven analysis from Karnataka, India. Contemporary Research in Business, Management and Economics, 62.

Samantara, S. (2013). Inclusive growth under Kisan Credit Cards (KCCs)-An institutional innovation. Indian Journal of Agricultural Economics, 68(3), 488.

Sidhu, R. S., & Gill, S. S. (2006). Agricultural credit and indebtedness in India: Some issues. Indian Journal of Agricultural Economics, 61(1).

Sharma, M. P. (2016). Comprehensive study of Kisan Credit Card at Central Bank of India: A useful credit tool for rural development. IBMRD’s Journal of Management & Research, 5(1), 21-29.

Chatterjee, S. (2015). Effects of agricultural credit reforms on farming outcomes: Evidence from the Kisan Credit Card program in India.

Mishra, J., & Chaudhary, A. K. (2021). Kisan Credit Card and its impact on financial inclusion in India. International Journal of Scientific and Management Research, 5, 80-86.

Kumar, A., Sonkar, V. K., & Aditya, K. S. (2023). Assessing the impact of lending through Kisan Credit Cards in rural India: Evidence from Eastern India. The European Journal of Development Research, 35(3), 602-622.

Chanda, A. (2020). Evaluating the Kisan Credit Card Scheme: Some results for Bihar and India. Arthaniti: Journal of Economic Theory and Practice, 19(1), 68-107.