KCC-MISS Delivers Crucial Boost: Every ₹1 Invested Under Scheme Adds ₹2.30 to Rural Net Value Addition

KCC-MISS Delivers Crucial Boost: Every ₹1 Invested Under Scheme Adds ₹2.30 to Rural Net Value Addition​

A comprehensive third-party assessment commissioned by the Department of Agriculture & Farmers Welfare, Government of India, has affirmed the transformative power of the Kisan Credit Card–Modified Interest Subvention Scheme (KCC-MISS). Conducted by the Institute for Social and Economic Change (ISEC), Bengaluru, the report details how this scheme is actively fortifying agricultural productivity across diverse agro-regions in India.

Impact Assessment: KCC-MISS Drives Net Value Addition​

The study highlights that every ₹1 invested through KCC-MISS contributes to a net value addition of ₹2.30 within the agriculture and allied sector. This significant finding underscores the scheme's efficiency and deep penetration into rural economies. Furthermore, the MISS has played a critical role in alleviating farmer debt burdens, recording an estimated subsidy outlay of ₹1.87 lakh crores since inception through 2024-25.

Fostering Agricultural Transformation and Diversification​

The KCC-MISS scheme is demonstrably linked to improving crop cultivation practices. Farmers utilizing the scheme are achieving higher cropping intensity and cultivating larger areas, which facilitates multi-season cultivation. This success is underpinned by reliable irrigation support and access to concessional credit, enabling beneficiaries to adopt diverse crop portfolios across seasons.

By improving timely input use through adequate working capital availability, the scheme has also enhanced overall economic resilience. Beneficiaries who receive the Prompt Repayment Incentive (PRI) have exhibited superior credit discipline, thereby boosting confidence levels among lending institutions for expanded financial support.

Government Reforms Strengthen Agricultural Credit Ecosystem​

The government has introduced several key technological and procedural measures to ensure that institutional credit is timely and affordable for farmers. These interventions include the Kisan Rin Portal, Jan Samarth portal, e-KCC, and KRISHIKA, all designed to streamline the agricultural credit delivery process.

In a major step to reduce financial barriers, the collateral free loan limit within KCC has been increased from Rs 1.6 lakh to Rs 2 lakh, effective January 1, 2025. To bolster awareness and expand coverage, Union/State Governments, RBI, NABARD, and SLBCs are conducting various IEC and KCC Saturation campaigns.

Analysis of Credit Disbursement Across States​

The overall agricultural lending sector shows robust activity nationwide. A total of 7,14,90,107 accounts were active in the general agricultural segment across all states during the assessed period. The corresponding amount outstanding for this category stood at ₹7,34,70,282 crore as of 2023-24.

The state-wise data shows widespread engagement with KCC, with Rajasthan leading in the total number of accounts (68,45,762) and Maharashtra holding a substantial outstanding amount (₹72,17,854 crore). The continued trend reflects the steady expansion of institutional credit across agricultural states.

Performance of Animal Husbandry and Fisheries Lending​

The scheme has effectively promoted income diversification by supporting livestock and fisheries farming alongside crop production. This is particularly vital for North-Eastern regions in supporting Working Capital Requirements (WCR) for inland fisheries.

Total accounts issued under KCC for Animal Husbandry stood at 40,07,199 with an outstanding amount of ₹46,166 crore across all states during the measured period. Similarly, lending for Fisheries reached 1,19,525 accounts with a total outstanding amount of ₹4,096 crore nationwide, indicating strong focus on integrated farming diversification.

Financial Health and Risk Profile in Agricultural Lending​

While credit disbursement remains high, the performance regarding non-performing assets (NPAs) requires continuous monitoring. Across all scheduled commercial banks that are not Regional Rural Banks, a total of 67,11,096 accounts were recorded with NPAs. The amount outstanding under NPA was reported at ₹93,370 crore for the period reviewed.

In states like Bihar and Punjab, which show high levels of credit disbursement, NPAs remain significant variables to be managed by financial institutions. However, the presence of strong lending indicators and targeted governmental interventions across various agricultural sectors suggests a stable trajectory for KCC-MISS utilization.