SRINAGAR: The Jammu and Kashmir Government on Friday informed the Legislative Assembly that no proposal is under consideration for waiving Kisan Credit Card (KCC) loans.
The clarification came in response to a question raised by MLA Devinder Kumar Manyal, who sought details on whether the government planned to waive KCC loans in view of losses suffered by the agriculture and horticulture sectors due to recent floods and the National Highway blockade.
In its reply, the Agriculture Production Department stated that no such waiver is being contemplated. It further informed the House that the KCC scheme is a flagship credit programme of the Government of India aimed at providing timely and affordable institutional credit to farmers for agriculture and allied activities.
The department clarified that the scheme is implemented through designated banking institutions and is not a financial scheme of the Jammu and Kashmir Government. Crop loans under KCC are extended at concessional interest rates, along with interest subvention benefits for prompt repayment, in accordance with Government of India norms. The facility operates as a revolving cash credit limit to meet farmers’ cultivation and working capital needs.
The government reiterated that any decision regarding a loan waiver under the KCC scheme falls within the jurisdiction of the Government of India and not the Union Territory administration. It added that the scheme continues to facilitate adequate and timely credit flow to farmers and support the agricultural sector.
