Impact of Kisan Credit Card (KCC) Scheme on Input Use: An Economic Analysis of Non-Basmati Rice Crop

Abstract

The Kisan Credit Card (KCC) scheme implemented for fulfilling the short term credit need of farmers was assessed for its impact on non-basmati rice production in R.S. Pura block of Jammu district. The primary data were collected by interviewing the Kisan credit Card holders as well as non-holders directly through pre-tested schedule. The farmers were categorised into small, medium and large farmers and economics of non-basmati rice crop was estimated. Two criteria were applied for assessing the impact of KCC scheme on non-basmati rice cultivation; firstly, a comparison was made between KCC and non-KCC holders and secondly, a comparison of data from same farms was made pre and post use credit drawn under KCC. The total cost of non-basmati rice cultivation was found to be higher in case of KCC beneficiaries by 5.78 per cent as compared to non-KCC beneficiaries. The productivity, net profit, farm business income, farm labour income of non-basmati rice was also higher in case of KCC beneficiaries by 7.97, 2.41, 1.95 and 3.10 per cent respectively as compared to non-KCC beneficiaries. The cost of all the inputs of non-basmati rice has shown significant difference between farms of KCC and non-KCC beneficiaries. The total cost of non-basmati rice, after drawing and using credit under KCC increased by 25.35 per cent whereas the productivity and net profit increased by 10.90 and 52.42 per cent respectively. The results indicate significant improvement in expenditure on input use, yield and profitability of non-basmati rice after use of credit under KCC scheme.