A “Post-Budget Webinar on Agriculture & Rural Prosperity” was held on Saturday to discuss the implementation of the Union Budget 2025-26 Announcements. The opening remarks were delivered by the Prime Minister and chaired by the secretaries of various departments from the Department of Agriculture & Farmers’ Welfare (DoA&FW).
The participants included various representatives from the DoA&FW along with other stakeholders namely RBI, NABARD, Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), State Cooperatives and District Central Cooperative Banks (StCBs and DCCBs), State Level Bankers’ Committees (SLBCs), Krishi Vikas Kendras (KVKs), and farmers from across the nook and corner of the country.
As also mentioned in the Economic Survey 2024, as on 31.3.2024, there are 7.75 crore operational Kisan Credit Card (KCC) accounts. By meeting short-term credit needs, the KCC scheme has played a crucial role in enhancing agricultural productivity and boosting farmers’ incomes. The KCC-Modified Interest Subvention Scheme (KCC-MISS) has been offering loans to farmers at an effective subsidized rate of interest at 4 percent.
To further ensure easy access to affordable credit, the Reserve Bank of India (RBI) has increased the collateral-free KCC loans from ₹1.6 lakh to ₹2 lakh. In a major step forward, the Union Budget 2025-26 has enhanced the credit limit under the Modified Interest Subvention Scheme (MISS) from ₹3 lakh to ₹5 lakh. This move is expected to reduce financial stress on small and marginal farmers while promoting greater investment in agriculture. This will significantly help in meeting the increased working capital requirements of the farmers for crop production, horticulture, animal husbandry and fisheries.
The government has provided Rs. 1.44 lakh crores to farmers through MISS in the past decades. Through these initiatives, the government aims to further increase the agriculture short-term credit from Rs 9.81 lakh crores in 2023-24 to reach Rs 20 lakh crore by 2029-30.
Through these measures, the government is not only enhancing rural credit accessibility but also empowering farmers with financial independence. As the initiative rolls out nationwide, it has the potential to redefine agricultural credit in India, ensuring that timely and affordable credit reaches those who need it the most.