Chandigarh, June 2
Punjab Chief Minister Bhagwant Singh Mann on Tuesday announced a major overhaul of the state’s Kisan Credit Card (KCC) system, describing it as the biggest agricultural credit reform in Punjab in more than 26 years. The decision will benefit over 1.3 million farmers by increasing crop-wise credit limits, reducing dependence on private moneylenders, expanding loan coverage to new crops and allied sectors, and making farm credit more accessible through digital banking platforms such as ATMs and UPI.
Addressing a press conference, Mann said the existing KCC system had remained largely unchanged for more than two decades and no longer reflected the actual cost of farming. He said the new policy was designed to ensure that institutional credit reaches farmers more efficiently and at lower cost. “We have replaced an outdated system based on paperwork, passbooks and cheques with a transparent, digital and farmer-friendly credit structure,” he said.
Under the revised policy, the scale of finance for wheat has been increased from ₹24,380 per acre to ₹30,000 per acre, while paddy farmers will now be eligible for credit of ₹39,000 per acre, up from ₹25,440. The government has also set aside ₹2,000 per acre within the paddy credit limit specifically for crop residue management, making Punjab the first state to include stubble management support under the KCC framework.
The reforms significantly expand support for diversification. For the first time, crops such as bamboo, poplar, jamun, lemongrass, dragon fruit, chia seeds and quinoa have been brought under the credit system. Credit support for horticulture crops has also been revised, with some crops now eligible for loans of up to ₹1.57 lakh per acre.
Sugarcane growers are among the biggest beneficiaries. The credit limit for planted sugarcane has more than doubled from ₹44,000 per acre to ₹1 lakh per acre, while ratoon crops will receive a new credit provision of ₹65,000 per acre.
The state government has also expanded support for fisheries and aquaculture. The scale of finance for fisheries has been increased from ₹2.5 lakh per hectare to ₹3 lakh per hectare, while white shrimp farming will receive credit support of ₹5.5 lakh per hectare.
Mann said farmers would now receive six-year KCC sanctions with annual reviews and greater flexibility in using loans for seeds, fertilisers, cattle feed, custom hiring, land levelling, stubble management and even drone services. Funds will be transferred directly into farmers’ bank accounts, reducing paperwork and the role of intermediaries.
The chief minister said the new system would also lower interest costs and encourage digital transactions. Farmers will be able to access and repay loans through ATM cards, UPI and other digital banking services, with incentives available for online repayments.
Calling the reforms a step towards making farming more profitable and sustainable, Mann said they would help farmers move beyond the traditional wheat-paddy cycle and create new opportunities in high-value agriculture and allied sectors.
The chief minister also announced that 5.2 million women in Punjab would start receiving monthly financial assistance under the Mukh Mantri Mawan Dhiyan Satkar Yojana from 1 July. Under the scheme, women will receive ₹1,000 per month, while Dalit women will receive ₹1,500. The government said cards had already been issued to 3.5 million beneficiaries.
