Under the Kisan credit card scheme, short-term credit support is given to farmers for which of the following purposes?

1. Working capital for maintenance of farm assets

2. Purchase of combine harvesters, tractors and mini trucks

3. Consumption requirements of farm households

4. Post-harvest expenses

5. Construction of family house and setting up of village cold storage facility

Select the correct answer using the code given below:

The correct option is 1, 3 and 4 only.

The Kisan Credit Card (KCC) scheme was introduced in 1998 to provide farmers with timely and hassle-free access to credit for their cultivation and other needs. The short-term credit limit under the KCC scheme is designed to meet various agricultural and allied requirements, but it distinguishes between short-term operational expenses and long-term capital investments.

Here is a detailed breakdown of each statement:
1. Working capital for maintenance of farm assets (Covered): Farmers require funds for the day-to-day maintenance of crops, farm assets, and activities allied to agriculture (such as dairy, fishery, and animal husbandry). KCC provides working capital for these recurring operational expenses.
2. Purchase of combine harvesters, tractors and mini trucks (Not Covered under short-term credit): The purchase of machinery like tractors, mini trucks, and harvesters represents long-term capital expenditure. KCC's short-term credit support is meant for operational and recurring costs, not for purchasing high-value long-term machinery.
3. Consumption requirements of farm households (Covered): To prevent farmers from diverting crop loans to meet household expenses or falling into debt traps of local moneylenders, a portion of the KCC limit (typically 10%) is allocated specifically for the consumption needs of the farm household.
4. Post-harvest expenses (Covered): Immediately after harvest, farmers incur expenses related to cleaning, sorting, packaging, and transporting crops, or waiting for a better market price. KCC explicitly covers these post-harvest expenses (typically allocated at 10% of the limit).
5. Construction of family house and setting up of village cold storage facility (Not Covered under short-term credit): Building a residential house or establishing infrastructure like a cold storage unit are long-term investment activities that require long-term development funds or term loans, not short-term agricultural credit.

Therefore, statements 1, 3, and 4 are valid purposes for which short-term credit support is provided under the KCC scheme, making 1, 3 and 4 only the correct answer.