Punjab Newsline | Chandigarh

Punjab government has announced a major overhaul of its 26-year-old Kisan Credit Card (KCC) policy, introducing higher crop loan limits and expanding credit coverage to several crops and allied agricultural activities. Chief Minister Bhagwant Mann said the revised policy has been designed to better serve farmers and ease their financial burden.

Addressing the media, Mann said the government has significantly increased crop loan limits through cooperative banks. The loan limit for wheat cultivation has been raised from ₹24,380 per acre to ₹30,000 per acre. Farmers will also be eligible for an additional ₹2,000 per acre loan specifically for stubble management, a facility that was previously unavailable.

Sugarcane growers have received one of the biggest benefits under the revised policy. The credit limit for sugarcane cultivation has been increased from ₹44,000 per acre to ₹1 lakh per acre, providing greater financial support to farmers cultivating the crop.

More Crops Included Under Credit Coverage

The Chief Minister said several crops and horticulture segments that previously had no dedicated loan facility have now been brought under the credit framework. Under the revised limits:

  • Poplar cultivation: ₹20,000 per acre

  • Bamboo cultivation: ₹13,000 per acre

  • Jamun cultivation: ₹22,000 per acre

  • Lemon grass cultivation: ₹30,000 per acre

For the first time, fruit cultivation has also been included under the loan scheme. Farmers growing dragon fruit will now be eligible for loans of up to ₹47,000 per acre, while chia seed cultivation has been brought under the credit system with a loan limit of ₹16,000 per acre.

Boost for Fisheries Sector

The government has also enhanced loan limits for the fisheries sector. Depending on the category, credit limits have been increased to ₹2.5 lakh and ₹5.5 lakh, respectively. Mann said the move would encourage diversification in agriculture and strengthen allied farming activities across the state.

Banks Told Not to Harass Farmers

The Chief Minister emphasized that farmers often faced difficulties because several crops were not covered under existing credit facilities, forcing them to seek alternative financing methods.

He said the state government has directed private banks to avoid property attachment or land seizure proceedings against farmers and instead explore alternative recovery mechanisms. Mann also urged banks not to display photographs of farmers in defaulter lists, stating that such practices can cause social humiliation and mental distress.

The Chief Minister added that the government is committed to protecting farmers' interests and handling debt-related issues with greater sensitivity. He also claimed that farmer suicides have declined due to the government's efforts, citing studies conducted on the issue.