Union Agriculture and Rural Development Minister Shivraj Singh Chouhan on Tuesday called
for overhauling agricultural finance to make it simpler, more practical and farmer-friendly,
reducing dependence on moneylenders, high interest rates and complex loan systems.
The Minister noted that while the Kisan Credit Card (KCC) has expanded credit access, the
next phase should priorities technology adoption, stronger rural banking, better implementation
and integrated farming to raise small farmers’ incomes.
Speaking at a Civil Services Day session at Vigyan Bhawan, Chouhan said loan procedures
remain cumbersome, with farmers burdened by layers of paperwork and administrative hurdles,
underscoring the need for simplification.
He highlighted the need for greater sensitivity in the system, noting that farmers approach
institutions with rights and dignity, not as supplicants. Citing cases of rising debt burdens due to
accumulated interest, he suggested practical solutions such as one-time settlements. The Union
Minister also cautioned against over-reliance on technology, pointing to issues like satellite-
based verification errors during procurement.
Chouhan flagged staff shortages in rural banks, where rising workloads from schemes like DBT,
MGNREGA, and PM-KISAN have strained limited personnel, leading to long queues and delays
for farmers.

He noted that KCC alone is insufficient for modern agriculture, as high-value activities like
horticulture and protected cultivation require larger investments. Enhanced financial support and
access to capital are needed to help farmers adopt such practices.
Emphasizing integrated farming, Chouhan said small and marginal farmers need to diversify into
allied activities such as livestock, fisheries and beekeeping to secure sustainable incomes, backed
by better convergence of schemes. On warehouse receipt of financing, he stressed the need to
make the system more practical so farmers can access timely credit and avoid distressing sales.

Urging self-reflection and innovation, Chouhan called on civil servants to focus on outcomes,
tackle ground-level challenges, and turn ideas into effective action for farmers’ welfare.

(SOURCE: THE ECONOMIC TIMES)