Zaid Crops Under Kisan Credit Card (KCC)

• 24 Mar 2025

Why in News? 

On 19th March,2025, the Uttar Pradesh government decided to include 9 zaid crops under Kisan Credit Card (KCC) and Pradhan Mantri Fasal Bima Yojana (PMFBY) . 

Key Points 

• About Zaid Crops: 
  • Zaid crops are those crops which are grown in the period between Rabi and Kharif seasons. These crops have greater ability to tolerate intense heat and dry winds 
  • Major zaid crops include crops like cucumber, pumpkin, bitter gourd, watermelon, cucumber, sugarcane and peanut . 
    • In North India, zaid crop is usually sown in March-April . 
  • Farmers will now  be able to avail the benefits of  KCC and crop insurance scheme for crops like groundnut, maize, green gram, urad, papaya, litchi, watermelon, melon and amla . 
    • This will provide  them easy loans for agricultural work and compensation for crop loss due to natural calamities . 
  • Under KCC , loans are provided to farmers at low interest rates as per their needs . If farmers repay the loan on time, then an interest discount of up to 3% is also given.  
  • Under PMFBY , if a farmer's crop is destroyed due to famine, excessive rain or other natural disasters , he is given compensation in the form of insurance money by the government. This helps farmers avoid financial crises . 

Kisan Credit Card 

• About: 
  • Kisan Credit Card Scheme was started in 1998. To provide adequate and timely credit facility to meet the credit requirements of farmers (agricultural expenses), as well as to meet the expenses related to ancillary activities apart from contingency expenses. This loan facility is provided on a need basis through a simple procedure. 
  • In 2004 , this scheme was extended to meet the investment credit requirement of farmers for allied and non-agricultural activities. 
  • In Budget 2018-19, the Government announced expansion of the Kisan Credit Card (KCC) facility to help fisheries and livestock farmers meet their working capital needs . 
• Implementing Agencies: 
  • Commercial Banks 
  • Regional Rural Banks (RRBs) 
  • Small Finance Banks 
  • Co-operative Societies 

Pradhan Mantri Fasal Bima Yojana (PMFBY) 

• About: 
  • PMFBY was launched in the year 2016 and is being administered by the Ministry of Agriculture and Farmers Welfare. 
  • It replaced the National Agricultural Insurance Scheme (NAIS) and the Modified National Agricultural Insurance Scheme (MNAIS) . 
• Eligibility: 
  • All farmers including tenant farmers/holding farmers growing notified crops in the notified areas are eligible for coverage. 
• Objective: 
  • To provide a comprehensive insurance cover in case of crop failure due to natural calamities, pests and diseases or any other reason so as to help stabilize the income of the farmers. 
  • To stabilise the income of farmers to ensure continuity in farming . 
  • To encourage farmers to adopt new and modern agricultural methods. 
  • To ensure flow of credit to the agricultural sector.