74
5.2 The net sown area and the grossed cropped area in India as per the latest figure
available (Pocket Book on Agricultural Statistics, 2014, Min of Agriculture, Govt
of India) are 140.80 million ha and 195.25 million ha, respectively, with cropping
intensity of 138.67 per cent. The agricultural cropped area covered by KCC
financing during 2014-15 has been estimated at 85.21 million ha (7.41 crore
operative KCC accounts multiplied by average size of holding 1.15 ha) which
implies that 60.5 per cent of the net sown area has been brought under KCC fold.
The actual coverage may be a little high or low than this estimate (60.5%) as this
figure is based on number of operative/ live KCC accounts and may have ignored
the number of accounts which were closed during the year. Although, an analysis
based on the cumulative number of KCC accounts opened during last five years
would have helped to cross verify the estimated figure of area (60.5% of net sown
area) covered by KCC financing.
5.3 The above estimate of coverage of net sown area under KCC financing (60.5%)
appears to be quite comparable if we compare the same with the ‘Agricultural
Census 2010-11’ figure of total number of operational holdings (13.83 crore)
covered by KCC financing (53.6%).
5.4 The sample data indicates that 66 farmers (58 in Punjab, 2 in Maharashtra &
6 in Karnataka) out of total 714 sample farmers (9.2%) were sanctioned KCC
loan more than Rs. 3.0 lakh. The average size of holding and average KCC loan
sanctioned to these 66 farmers were 13.4 acres and Rs. 8,83,864, respectively.
The average area not covered under interest subvention and the average loan
sanctioned in case of these 66 farmers were 8.85 acres and Rs. 5,83,864,
respectively. The area not covered under interest subvention comes 15.7 per
cent of the total area (3720 acres) of entire 714 sample farmers.
Impact of KCC financing on Farm Income of KCC loanees
5.5 The gain in net farm income of KCC farmers over and above the net farm income
of non-KCC farmers (Table 3.12 & 3.13) has been used to estimate the macro
impact of KCC financing on income of the farmers in the country. It may be seen
from Table 5.1 that the crop loan disbursement of Rs. 6,35,412 crore during
2014-15 has resulted in an increase of net farm income of all the KCC loanee
to
Rs. 1,32,199
crore. The net farms income net of interest (9% per annum
on Rs. 6,35,412) comes down to Rs. 62,670 crore which clearly indicates that
availability of credit from institutional sources through KCC mode has made a
significant contribution to the farm income of the farmers.
Overall Picture of Issuance of Smart Cards against KCC live accounts
5.6 As may be seen from Table 5.2, at the All India level, the progress of issuance
of Smart Cards is quite slow as only 12.2 per cent live KCC accounts have been
issued the smart cards. The agency-wise break up of coverage of operative KCC
accounts by smarts cards is highest in case of Commercial banks (33.8%) followed
by RRBS (11.2%). This percentage is very negligible in case of cooperative banks
at 0.06 per cent.
