Impact of Kisan credit card scheme on crop production and productivity in Bilaspur district of Chhattisgarh state
Abstract
This study evaluates the impact of the Kisan Credit Card (KCC) scheme on agricultural development in Bilaspur district of Chhattisgarh. The objectives were to assess the growth and coverage of the scheme, compare crop economics between KCC and non-KCC farmers, and identify adoption constraints. Primary data were collected from 168 farmers using stratified random sampling, while secondary information was obtained from NABARD, RBI, and cooperative banks. Results showed that only 55.56% of registered farmers accessed KCCs, with higher coverage in Durg, Narayanpur, and Bemetara, and poor penetration in Jashpur and Balrampur. The cooperative sector issued over 90% of total cards, while Bilha and Kargi Road branches led in Bilaspur. Despite a 7.11% growth rate in issuance, credit disbursement trends remained inconsistent. Economic analysis revealed that KCC farmers incurred slightly higher costs (?67,952/ha vs. ?65,986/ha) but achieved greater profitability, with higher net returns (?59,031/ha vs. ?55,776/ha), input-output ratio (1.87 vs. 1.85), and cost-benefit ratio (0.87 vs. 0.85). The study highlights key issues: 63.40% farmers lack awareness of KCC benefits, 55.14% face complex paperwork, and 47.74% remain ineligible due to no land documents. Further, 43.66% face digital barriers and 38.16% report disbursement delays. Suggested measures include awareness drives, simplified processes, flexible eligibility norms, digital access, timely credit, wider bank participation, irrigation support, and farmer training.
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Introduction
Agriculture remains the backbone of India's rural economy, employing nearly 60% of the population and serving as the primary source of livelihood. Yet, adoption of modern technology requires substantial investment, which most farmers cannot afford without institutional support. Historically, farmers relied heavily on informal credit due to delays, rigid procedures, and limited outreach of formal lending institutions, often leading to high interest burdens. To bridge this gap, the Government of India introduced the Kisan Credit Card (KCC) scheme in 1998, designed by NABARD in consultation with RBI, to ensure timely, affordable, and flexible credit. The scheme simplified access to loans for crop cultivation, marketing, post-harvest expenses, household needs, and farm investments, and has since become a cornerstone of agricultural credit delivery. Over the years, cooperative banks, commercial banks, and regional rural banks have expanded coverage, and by 2021 more than 73 million KCCs had been issued nationwide. Despite this growth, disparities persist across regions. In Chhattisgarh, 17.66 lakh KCCs were sanctioned in 2020-21, with cooperative banks accounting for 76% of issuance, contrasting with the national trend. Bilaspur district, dominated by paddy cultivation, recorded only 45.16% coverage, leaving a significant proportion of farmers without access. The district's high share of small and marginal farmers, diverse cropping patterns, and reliance on cooperative institutions make it a critical area for microlevel assessment. Against this backdrop, the present study seeks to examine the salient features, growth, and status of the KCC scheme, evaluate the comparative economics of crop production between KCC and non-KCC farmers, and identify adoption constraints, thereby offering insights for strengthening institutional credit delivery and improving farm productivity.
Methodology
The study was conducted in Bilaspur district of Chhattisgarh, purposively selecting two blocks (Kota and Takhatpur) and six villages. A total of 168 farmers were chosen using proportionate random sampling, equally divided into KCC and non-KCC groups. Paddy, being the major crop, was selected for analysis. Primary data were collected through structured questionnaires on cost, returns, and credit utilization, while secondary data were obtained from government and institutional reports. Analytical tools included compound growth rate, cost concepts, input-output ratio, and Garrett's ranking technique.
Result and Discussion (I) Coverage of KCC in Chhattisgarh
In Chhattisgarh, out of 40.11 lakh registered farmers, only 22.28 lakh have received Kisan Credit Cards (KCC), reflecting 55.56 percent coverage. District-wise variation is www.extensionjournal.com significant. Durg achieved the highest coverage at 97.68 percent, followed by Narayanpur (93.18%), Bemetara (93.01%), Balod (92.58%), and Rajnandgaon (92.25%), showing effective outreach. In contrast, Jashpur (20.24%), Balrampur-Ramanujganj (21.89%), and Gaurela-Pendra-Marwahi (23.22%) reported very low coverage, indicating gaps in awareness or institutional access. Among key agricultural regions, Baloda Bazar Bhatapara had the largest number of farmers (2.49 lakh) but only 40.13 percent coverage. Similarly, Bilaspur (45.16%), Raipur (47.57%), and Korba (38.92%) recorded below-average performance. Overall, the data suggests uneven implementation of the KCC scheme, highlighting the need for stronger institutional support and farmer mobilization in weaker districts.
(III) Status of KCC in different co-operative bank branches in Bilaspur
The branch-wise analysis of Kisan Credit Card (KCC) distribution in the study area reveals that a total of 69,763 farmers had availed KCC facilities through various branches of the District Central Cooperative Bank. Among all branches, the Bilha branch recorded the highest number of KCC farmers (9,024), followed by Kargi Road (7,437), Tendubhatha (6,014), and the Main Branch (6,441). These four branches together accounted for a significant portion of total KCC beneficiaries in the district. Other notable branches with considerable KCC coverage include Takhatpur (5,736), Ratanpur (5,636), and Masturi (5,037). On the other hand, branches like Central (1,244), Sarkanda (1,991), and Dhani (2,470) had relatively lower numbers of KCC farmers. 54.75), and large (58.50 vs. 56.90)-with an overall 55.31 q/ha compared to 53.42 q/ha for non-KCC. At ₹2,300 per quintal, main product income reached ₹1,12,125-₹1,34,550 for KCC versus ₹1,04,282-₹1,30,870 for non-KCC, averaging ₹1,27,205.33 against ₹1,22,858.33. By-product income was equal (₹3,547.50). Overall, KCC farmers achieved higher productivity and gross returns.
(IX) Input output and Benefit-Cost Ratio of KCC and Non-KCC Farmers
The cost of cultivation was consistently higher for KCC farmers than non-KCC across all categories. Marginal www.extensionjournal.com farmers spent ₹62,621.09/ha against ₹60,605.57/ha for non-KCC, while small farmers incurred ₹65,179.91 versus ₹63,180.63. Medium KCC farmers reported ₹69,747.87 compared to ₹67,557.17, and large farmers ₹74,259.99 against ₹72,600.89. On average, KCC farmers invested ₹67,952.22/ha, about ₹1,966 more than non-KCC at ₹65,986.07. Despite this higher cost, net returns were better for KCC holders. Marginal farmers earned ₹52,753.91/ha, nearly ₹5,827 higher than non-KCC, while small farmers gained ₹56,939.09 versus ₹51,969.37. Medium farmers earned ₹62,279.13, slightly above non-KCC at ₹62,077.83, and large farmers received ₹64,150.01 compared to ₹62,129.11. Overall, KCC farmers achieved ₹59,030.53/ha, surpassing non-KCC at ₹55,775.68 by ₹3,254.85. Efficiency indicators also favored KCC, with an input-output ratio of 1.87 (vs. 1.85) and cost-benefit ratio of 0.87 (vs. 0.85).
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