Impact of Kisan Credit Card on Agricultural Productivity and Framers Income: A Study of Amravati City

The Kisan Credit Card (KCC) scheme represents a landmark shift in rural financing, aimed at liberating farmers from the cycle of informal high-interest debt. This research paper evaluates the socio-economic impact of the KCC scheme on agricultural productivity and the livelihood of farmers within the Amravati city periphery. By providing a streamlined mechanism for securing short-term credit, the KCC aims to empower farmers to adopt modern agricultural practices and improve their standard of living. The study adopts a descriptive and analytical research design, utilizing primary data gathered from a representative sample of 50 farmers in Amravati. Data was collected through a structured questionnaire focusing on credit accessibility, input utilization, and crop yields. To validate the hypothesis, the Chi-square test was applied to examine the statistical relationship between the regular usage of KCC and the subsequent improvement in agricultural productivity and household income. The statistical analysis reveals a significant positive association between KCC usage and farm performance. The Chi-square test results indicate that the availability of timely credit allows farmers to purchase high-quality seeds, fertilizers, and pesticides, leading to a marked increase in per-acre productivity. Furthermore, the findings suggest that beneficiaries experienced a more stable income flow and a reduction in dependency on local moneylenders. In Amravati, specifically, the transition toward cash crops was more pronounced among KCC holders. The study confirms that the KCC scheme is an effective tool for boosting the agricultural economy of Amravati. While the impact on productivity is evident, the research suggests that increasing the credit limit in line with rising inflation and simplifying the bank renewal process would further enhance the scheme’s efficacy.