Credit for Farm Growth

Agricultural credit is one of the strongest tools for transforming Jammu and Kashmir’s rural economy, but it must now be delivered with greater speed, ambition and accountability. The review chaired by Chief Secretary Atal Dulloo has rightly underlined that the agriculture and allied sectors cannot achieve their full potential unless farmers, agri-entrepreneurs, livestock owners, horticulturists, fishers and Farmer Producer Organisations receive timely, affordable and accessible institutional finance.

Agriculture in Jammu and Kashmir is changing. It is no longer limited to traditional farming. Farmers now need support for storage, food processing, value addition, livestock units, horticulture expansion, fisheries, and branding, marketing and rural enterprise. All this requires credit. Without finance, even the best ideas remain trapped in villages and files. With the right credit support, the same ideas can become income, employment and economic growth. The Kisan Credit Card scheme remains central to this effort. With around 11.57 lakh active KCC account holders in Jammu and Kashmir, the base is strong. However, this is not enough. Every eligible farmer must be covered, existing accounts must be renewed on time and repayment incentives must be disbursed without delay. Farmers should not have to run from one office to another for benefits already promised under the scheme. Awareness must be strengthened so that every farmer understands the incentives, conditions and repayment benefits linked with KCC. The push for the Unified Lending Interface in areas where land records have been digitized is also a welcome step. Digital systems, Farmer IDs and updated land records can reduce delays and make the loan process more transparent. But technology must help farmers, not frighten them. In remote areas, many farmers still struggle with documentation, internet access and digital procedures. The administration must ensure that no genuine farmer is denied credit because of technical errors, outdated records or lack of guidance. The focus on Farmer-Producer Organisations is equally important. FPOs can change the economic position of small and marginal farmers by giving them collective strength. They can help farmers buy inputs at lower cost, sell produce better, enter value chains and access larger markets. But FPOs cannot become strong by registration alone. They need training, bookkeeping, business planning, governance discipline and regular mentoring. The decision to designate mentors for handholding FPOs must be implemented seriously and not reduced to a formality. The progress under various schemes shows promise. Under the Agriculture Infrastructure Fund, loans worth Rs 680 crore have been sanctioned and Rs 431 crore disbursed among 392 beneficiaries. Under HADP Credit, Rs 302.78 crore has been sanctioned and Rs 172.69 crore disbursed up to May 2026. Under PMFME, 545 cases involving Rs 22 crore were reported during 2024-25. These numbers are encouraging, but the real question is whether this credit is creating productive assets, increasing incomes and generating rural employment. The disbursement of Rs 425 crore to 54 FPOs out of Rs 604 crore sanctioned in favour of 67 FPOs is a significant development. If monitored properly, this can create strong rural institutions and support collective enterprise. Similarly, credit under livestock, fisheries and food processing schemes can help farmers diversify income and reduce dependence on seasonal crop cycles. The PM-KISAN scheme, with around 9.16 lakh active beneficiaries in Jammu and Kashmir, remains a useful support mechanism. Still, the administration must continue to ensure that eligible farmers are not left out because of documentation gaps or technical mismatches. The proposed use of Khet Bachao Abhiyan as a village-level outreach platform is practical and necessary. Farmers need direct information, not complicated official language. They must know which scheme suits them, where to apply, what documents are needed and how banks will process their cases. Departments and banks must go to villages with solutions, not wait for farmers to struggle with procedures.

The message is clear. Agriculture credit must not remain a slow-moving banking exercise. It must become a mission for rural prosperity. Banks must act faster, departments must coordinate better and districts must compete to improve performance. Jammu and Kashmir has the potential to turn farming into enterprise and farmers into stronger economic actors. What is needed now is credit that reaches on time, supports real activity and delivers visible results. Rural prosperity cannot wait.