The State Government is according top priority to the agriculture sector, keeping in view contribution in the economic development of the State. 90 per cent of the total population of the State resides in the villages and out of this 70 per cent is dependent on agriculture for their livelihood.  The present State Government has been taking effective measures to strengthen economic base of the farmers.

The agriculture and allied activities are contributing 20 per cent to the gross domestic product of the State. 5.42 lakh hectare of land is under agriculture and the average tillage comes to 1.10 hectare, whereas 86.4 per cent farmers are marginal and small farmers who possess 50.2 per cent cultivable land of the State. 13.2 per cent farmers fall under a medium category. Only 0.4 per cent are big farmers, and the main objective of most of the schemes being implemented by the Government for farmers are aimed at the betterment of marginal and small farmers. The Kisan Credit Card (KCC) has come up with the main source to strength the economy of farmers as it facilitates them in  loan taking from the banks easily.

The KCC has emerged as a big succor for small farmers since it ensures complete and timely payment of loans to them. The farmers can contact any nearby branch of the bank or Cooperative Society for obtaining Kisan Credit Card. The card also provides adequate financial assistance to farmers to enable them  to purchase modern agricultural appliances and adopt mechanized farming techniques.

It has been specifically designed to suit the requirement of the farming community and all eligible farmers have been covered under it. There is no limitation of procuring loans irrespective of the category of crop and quantum of land holdings. The maximum limit of the loan the farmers can take is Rs. 3 lakh. The credit provides revolving cash loan facility and is subject to the convenience of the farmer's loan taking and disbursing capacity.

The Kisan Credit Card is valid upto three years, hence there is no need for the disposal of loan documents every year. Farmers are facilitated to purchase agriculture equipments etc. from the already approved source on cash payment basis and he can draw it from the concerned bank, whereas the card holder continues to enjoy the facilities of interest on his saving bank account. The card also facilitates payment up to Rs. 50,000 as premium for personal accidental insurance, besides agriculture insurance for the notified crops under agriculture insurance scheme by the concerned insurance company. It also reduces the expenses incurred on completion of formalities for procurement and repayment of loans.

It is a multi-beneficial card and its distribution and cash supply process is very easy.   There is no need to apply for the loan for each crop and there is no need for evaluation of crop losses for three consecutive years. The loan limit can be increased on the basis of agricultural income and a provision has been made for repayment of loan even after harvesting season is over. Keeping in view the utility of the card, the Government is contemplating to provide subsidy on fertilization in cash through the Kisan Credit Card. At present, this subsidy is being provided to the fertilizer manufacturers. The Government is considering to extend the card facilities over various other areas also.

To obtain the Kisan Credit Card, a farmer has to contact a nearby public sector bank. Every eligible farmer would get a Pass Book along with KCC, which will bear his name, address, details of his landholdings, loan limit, validity period, a passport size photograph which would work as an identity card, besides having complete details of his loans and payments.

The bank charge a minimum of seven per cent interest on KCC and those farmers who would maintain their loan account regularly would be eligible for another one per cent additional concession. The interest would be charged only when the amount is drawn, if a farmer deposits money in his loan account and there is credit balance in his account then the bank would also provide saving account interest. The Kisan Credit Card would be issued free of cost. 25 per cent of the loan limits or Rs. 50 thousand which ever is less can be spent on education, illness and on buying essential household commodities.

As many as 3, 11,546 Kisan Credit Card have been distributed to farmer by 31st March, 2009. The State Government would launch a special awareness campaign from 30th September, 2009 with an aim to encourage the farmers to go in for KCC. All the Deputy Commissioners and Agriculture Officers have been directed to encourage the farmers to procure their own KCC at the earliest so that they can avail of the facilities provided under the card.