UPSC CSE Prelims
Question 38
Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
- Working capital for maintenance of farm assets
- Purchase of combine harvesters, tractors and mini trucks
- Consumption requirements of farm households
- Post-harvest expenses
- Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:
View correct answer and explanation
Correct answer: B
Correct Option: B (1, 3 & 4 only)
Explanation: Kisan Credit Cards provide short-term support for crop production and farm working capital, household consumption and post-harvest needs; purchasing large capital equipment and building houses/cold stores needs separate term financing.
Statement / Pair / Item-wise Analysis:
1. Correct - KCC includes working capital for maintenance of farm assets and allied activities.
2. Incorrect - Tractors and combine harvesters generally require investment/term loans, not short-term KCC support.
3. Correct - KCC may cover specified farm-household consumption requirements.
4. Correct - Post-harvest expenses are an eligible short-term purpose.
5. Incorrect - House construction and establishing a village cold store are capital investments outside ordinary KCC crop credit.
Option-wise Analysis:
A. Incorrect-includes incorrect item 2 (Tractors and combine harvesters generally require investment/term loans, not short-term KCC support); includes incorrect item 5 (House construction and establishing a village cold store are capital investments outside ordinary KCC crop credit); omits correct item 3 (KCC may cover specified farm-household consumption requirements); omits correct item 4 (Post-harvest expenses are an eligible short-term purpose).
B. Correct-includes all and only valid statements/items 1, 3, 4.
C. Incorrect-includes incorrect item 2 (Tractors and combine harvesters generally require investment/term loans, not short-term KCC support); includes incorrect item 5 (House construction and establishing a village cold store are capital investments outside ordinary KCC crop credit); omits correct item 1 (KCC includes working capital for maintenance of farm assets and allied activities).
D. Incorrect-includes incorrect item 2 (Tractors and combine harvesters generally require investment/term loans, not short-term KCC support); includes incorrect item 5 (House construction and establishing a village cold store are capital investments outside ordinary KCC crop credit).