Bhagwant Mann Announces Historic KCC Reforms To Boost Farmers’ Income Across Punjab

In one of the most significant agricultural reforms in recent decades, Chief Minister Bhagwant Singh Mann announced a complete revamp of Punjab’s 26-year-old Kisan Credit Card system. The reforms are designed to provide farmers with greater financial support while making credit more accessible and transparent.

Higher Credit Limits For Farmers

Under the revised framework, crop-wise credit limits have been significantly increased to better match actual cultivation costs. Wheat farmers will now be eligible for loans of up to ₹30,000 per acre, while paddy farmers can access up to ₹39,000 per acre through the KCC system.

Dedicated Support For Stubble Management

Punjab has become the first state in the country to include Crop Residue Management under the KCC framework. Out of the revised paddy credit limit, ₹2,000 per acre has been earmarked specifically for stubble management, encouraging environmentally responsible farming practices.

Massive Boost For Diversification

The new policy expands loan eligibility to several high-value crops and allied sectors. Farmers cultivating crops such as bamboo, poplar, jamun, lemongrass, garlic, hybrid tomatoes, dragon fruit, chia seeds and quinoa will now be able to access institutional credit under the KCC framework.

Horticulture And Sugarcane Farmers Benefit

The government has substantially increased credit support for horticulture crops. Depending on the crop, farmers can now avail loans of up to ₹1.57 lakh per acre. Sugarcane growers have also received a major boost, with loan limits rising to ₹1 lakh per acre for planted crops.

Digital Banking Facilities Introduced

A major feature of the revamped KCC system is the introduction of digital banking services. Farmers will now be able to access and manage funds through ATMs, UPI and modern banking platforms, reducing dependence on traditional cheque-based systems.

Six-Year Sanction Period And Lower Interest Burden

The new framework provides a six-year KCC sanction period along with annual reviews. The government has also streamlined interest benefits and linked the system to digital platforms to ensure faster and more transparent delivery of financial assistance.

Over 13 Lakh Farmers Expected To Benefit

Chief Minister Bhagwant Singh Mann said the reforms are expected to benefit more than 13 lakh farmers across Punjab. He described the initiative as a major step towards strengthening the agricultural economy, encouraging diversification and protecting farmers from debt traps created by private moneylenders.