51
3.50 It can also be concluded that Interest Subvention as well as incentives for prompt
repayment have positive impact on the agricultural income of farmers covered
under KCC scheme.
3.51 A total of 66 sample farmers in five districts viz., Kapurthala and Bathinda in
Punjab, Sindhudurg in Maharashtra & Dakshin Kannada & Bellary in Karnataka
were issued KCC loan of more than Rs. 3.0 lakh. The KCC limit sanctioned to
these farmers was divided in to the amount eligible for interest subvention (Rs.
3.0 lakh attracting 7% interest rate) and amount excess of Rs. 3.0 lakh attracting
9% interest amount. The weighted average annual interest burden on farmers in
case of these districts was arrived at by applying suitable interest rates on the
proportionate amount falling under various interest slabs.
3.52 It is evident from the table (3.10) that if farmers avail the KCC loan and repay in
time, they would not be incurring any loss from cultivation of agricultural land
although the conditions may vary from farmer to farmer. However, the farmers
in Akola and Bellary districts appeared not to even have covered their interest
burden this year (2015-16), probably, on account of drought conditions in these
two districts.
3.53 The overall impression from the analysis of implementation of KCC scheme is
that the KCC scheme has benefitted the farmers and they are able to generate
profit, although in varying quantities. There may be some issues relating to
the implementation of the scheme in light of the revised guidelines but those
deviations (not being adhered to either by the banks or by the farmers), do not
seem to be affecting the prospects of farmers getting the KCC loans from the
bank and making the best use of it for crop cultivation. Similarly, the Interest
Subvention as well as incentives for prompt repayment too have positive impacts
on the agricultural income of farmers covered under KCC scheme.
