Executive Summary:
The Ministry of Agriculture and Farmers Welfare addresses questions regarding credit access for SC/ST/OBC farmers under the Prime Minister DhanDhaanya Krishi Yojana (PMDDKY), approved on July 16, 2025, covering 100 districts. The scheme leverages existing programs, including the Modified Interest Subvention Scheme (MISS), to improve agricultural productivity, diversification, post-harvest storage, irrigation, and credit availability. The RBI increased the collateral-free loan limit in KCC to Rs 2 lakh w.e.f. 01.01.2025 to facilitate easy access to Small and Marginal Farmers SMF.
Key Points / Main Content:
* **PMDDKY Overview:**
* Aims to enhance agricultural productivity, crop diversification, sustainable practices, post-harvest storage, irrigation, and credit availability.
* Implemented through the convergence of existing schemes.
* **Modified Interest Subvention Scheme (MISS):**
* Provides concessional interest rates on short-term agricultural loans via Kisan Credit Cards (KCC).
* Farmers, including SC/ST/OBC, landless, and small/marginal farmers, receive KCC loans at a 7% interest rate.
* Financial institutions receive a 1.5% upfront interest subvention (IS).
* Farmers who repay promptly receive a 3% Prompt Repayment Incentive (PRI), effectively reducing the interest rate to 4%.
* The IS/PRI benefit is limited to Rs. 3 lakh, with a Rs 2 lakh limit for allied activities (Animal Husbandry, Dairy, Poultry, Fisheries).
* MISS is a demand-driven scheme available to all farmers.
* **KCC Loan Limit Increase:**
* RBI increased the collateral-free loan limit in KCC from Rs 1.6 lakh to Rs 2 lakh, effective January 1, 2025, to facilitate access for Small and Marginal Farmers (SMF).
Impact Analysis:
Farmers (including SC/ST/OBC, Landless, Small, and Marginal)
* *Impact:* Benefit from enhanced access to credit at subsidized interest rates (potentially 4% with prompt repayment) through KCC loans under MISS and PMDDKY. The increased collateral-free loan limit enables easier access to credit.
* *Action Required:* Apply for KCC loans and ensure prompt repayment to avail of the 3% PRI, thereby reducing the interest rate to 4%.
Financial Institutions:
* *Impact:* Receive a 1.5% upfront interest subvention for providing concessional KCC loans.
* *Action Required:* Implement the MISS scheme and facilitate KCC loans at subsidized rates while adhering to the loan limits and guidelines.
Government (Ministry of Agriculture and Farmers Welfare):
* *Impact:* Responsible for implementing and monitoring the PMDDKY and MISS schemes to ensure credit access to farmers.
* *Action Required:* Continue implementing and monitoring the schemes, ensuring convergence of relevant programs, and addressing concerns about equitable distribution and scheme capture.
RBI:
* *Impact:* Responsible for regulatory oversight related to the KCC scheme and loan limits.
* *Action Required:* Ensure that the collateral free loan limit increase is implemented by financial institutions.
Key Entities Referenced
Adv. Chandra Shekhar: Member of Parliament who raised the question in Lok Sabha.
Prime Minister DhanDhaanya Krishi Yojana (PMDDKY): A government scheme aimed at enhancing agricultural productivity, promoting crop diversification, improving irrigation, and facilitating credit access.
Kisan Credit Card (KCC): A scheme to provide short-term agricultural loans to farmers for their working capital requirements.
Modified Interest Subvention Scheme (MISS): A centrally funded scheme providing concessional interest rates on short-term agricultural loans obtained through Kisan Credit Cards (KCC).
Scheduled Castes (SC): A group of historically disadvantaged communities in India.
Scheduled Tribes (ST): A group of historically disadvantaged indigenous communities in India.
Other Backward Classes (OBC): A group of historically disadvantaged communities in India, other than SCs and STs.
Reserve Bank of India (RBI): The central bank of India.
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO-2734
TO BE ANSWERED ON 05th August, 2025
Credit Access under PMDDKY
2734. Adv. Chandra Shekhar:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) the measures to ensure credit access for SC/ST/OBC farmers under PMDDKY;
(b) the details of PMDDKY's caste-specific impacts on SC/ST/OBC farmer's income and
productivity, why disaggregated evaluations absent, what plans exist for independent
studies assessing outcomes for these communities;
(c) the manner in which recent KCC loan limit increase benefit these communities and the
expected outcomes;
(d) the steps taken to monitor progress to prevent capture of the scheme by elite farmers;
(e) the manner in which PMDDKY through targeted interventions address the credit access
challenges faced by SC/ST/OBC farmers;
(f) the steps taken to address concerns about inequitable benefit distribution and rising input
costs;
(g) the details of caste-specific assessment, whereby PMDDKY supports marginalized
farmers;
(h) the details of specific inclusion strategies, to support marginalized farmers who form 86%
of India's small farmers; and
(i) the details of mechanisms to prevent fund diversion and address landlessness,
discriminatory lending, and limited technology access faced by SC/ST/OBC farmers?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) to (i): The Union Cabinet approved the Prime Minister Dhan-Dhaanya Krishi Yojana
(PMDDKY) on 16th July, 2025 to cover 100 districts. Implementation of the scheme is being
done through convergence of appropriate schemes. Prime Minister Dhan-Dhaanya Krishi
Yojana aims to enhance agricultural productivity, increase adoption of crop diversification
and sustainable agricultural practices, augment post-harvest storage at the panchayat and
block levels, improve irrigation facilities and facilitate availability of long-term and short-term
credit.The Government is implementing a 100% centrally funded Central Sector Scheme
known as the Modified Interest Subvention Scheme (MISS) across various States and UTs
in pan India. This scheme aims to provide concessional interest rates on short-term
agricultural loans obtained by farmers through Kisan Credit Cards (KCC) for their working
capital requirements.
Along with other schemes, Modified Interest Subvention Scheme (MISS)/Kisan Credit
Card (KCC) is one of the schemes converged under the PM-DDKY to ensure credit access
to the farmers.
Under MISS/KCC scheme, farmers (including SC/ST/OBC/ landless and small &
marginal farmers) receive KCC loans at a subsidized interest rate of 7%. To facilitate this,
an up front interest subvention (IS) of 1.5% is provided to financial institutions. Additionally,
farmers who repay their loans promptly receive a 3% Prompt Repayment Incentive (PRI),
effectively reducing the interest rate to 4% per annum. the Interest Subvention (IS)/ Prompt
Repayment Incentive (PRI) benefit under MISS is limited to Rs. 3 lakh with a limit of Rs 2
lakh for the loan taken for allied activities (viz., Animal Husbandry / Dairy/ Poulty/ Fisheries)
only. MISS is a demand driven scheme and benefit is available to all farmers.
To facilitate easy access to Small and Marginal Farmers (SMF), the RBI has recently
increased collateral free loan limit in KCC for existing Rs 1.6 lakh to Rs 2 lakh w.e.f.,
01.01.2025.
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