37
3.18 ‘Scale of Finance’ (SOF) is another important parameter for the fixation of KCC
limit. The SOF was found to have been applied in the majority of the cases of
sample farmers, however, the space for the same was found blank in the appraisal
form in a few cases irrespective of the type of the agency (commercial banks,
RRBs or cooperative banks). In fact hardly any appraisal form of any bank was
found complete in all respect. Many farmers interviewed were not aware of the
benefits of KCC, such as composite loan facility, annual enhancement, etc., and
therefore, farmers were having liberty of fixing the KCC limit as per their choice.
Table- 3.5: Cropping pattern as observed in the application cum appraisal form
Sl
Particulars/
Parameter
Assam Bihar
UP Punjab Maha
Kar
Overall
No of Sample
Farmers
104 120
124 120
119
127 714
1
No of
farmers
whose
Cropping
pattern in
appraisal
form shows
Kh+Rb
crops
34
120
124
120
36
0
434
(60.8%)
Only Kh
crops
42
0
0
0
83
127
252
(35.3%)
Only Rb
crops
28
0
0
0
0
0
28
(3.9%)
2
Major
crops
shown in
appraisal
form
Kh+Rb
crops
Kh-
Paddy/
sali &
Rb-Veg
Kh
Paddy/
tur/ veg
& Rb-
Wheat/
gram/
pea/ veg
Kh Paddy/
Sugarcane/
mentha &
Rb-Wheat/
sugarcane/
potato/ veg
Kh-
Paddy/
fodder/
veg &
Rb-
wheat/
potato
Kh-
coconut/
mango/
bamboo/
veg & Rb-
Chili /water
melon
-
Only Kh
crops
Paddy/
Sali
paddy
-
-
-
Soybean /
cotton
Chili/
onion/
arecanut
/ coconut/
pepper
Only Rb
crops
Potato/
tomato/
other
veg
-
-
-
-
-
3.19 In Uttar Pradesh, although DCCBs were preparing the KCC loan limit for five
years including crop loan, consumption and maintenance components; the actual
disbursement was restricted to multiple times of the share capital deposits of
respective PACS with the DCCB (maximum Rs. 1.0 lakh). Further, 75% of the
KCC sanctioned were being disbursed as cash component as the remaining 25%
as kind component and the farmers were issued two separate cheque books
for withdrawing the cash and kind components, separately. The cheque for
kind component was required to be deposited with the PACS in lieu of seeds
or fertilizers purchased. This practice was defended by the DCCB officials who
informed that unless this was ensured the PACS would lose crucial business
as around 2.5% of the fertilizer sales proceeds was being credited to the salary
