Punjab bans land attachment for farmers as govt revamps credit policy

In a major relief for the agricultural sector, the Punjab government has overhauled its 26-year-old Kisan Credit Card (KCC) policy to make it significantly more farmer-centric. Announcing the revamp, Chief Minister Bhagwant Mann stated that the state government has substantially increased crop loan limits, introduced credit facilities for alternative crops, and banned private banks from seizing farmers’ lands or publicly shaming defaulters.

Emphasising the emotional and social distress faced by farmers, Chief Minister Mann stated that clear instructions have been issued to private banking institutions to refrain from executing property attachments or land confiscations for loan recovery.

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The government has directed banks to explore alternative recovery mechanisms instead.

Furthermore, financial institutions have been strictly prohibited from publishing photographs of defaulting farmers, a practice the CM noted leads to social stigma and drives extreme steps. Citing a recent study, Mann claimed that the government’s proactive interventions have already contributed to a decline in farmer suicides across the state.

Detailing the enhanced credit limits under the co-operative banking network, the Chief Minister announced that the loan ceiling for wheat has been raised from Rs 24,380 to Rs 30,000 per acre.

Recognising environmental challenges, the revised policy introduces a dedicated financial provision for stubble management for the first time, offering an additional credit of Rs 2,000 per acre. Sugarcane growers received a massive boost, with their borrowing limit more than doubling from Rs 44,000 to Rs 1 lakh per acre.

To aggressively drive crop diversification away from traditional cycles, the government has extended credit facilities to a wide range of commercial, horticultural, and agro-forestry crops that were previously excluded from institutional credit.

Under the new guidelines, loan limits have been fixed at Rs 20,000 per acre for poplar, Rs 13,000 for bamboo, Rs 22,000 for blackberry (jamun), and Rs 30,000 for lemon grass. Vegetable cultivators can now access credit up to Rs 1,57,372 per acre for garlic, Rs 92,686 for onion, and Rs 80,981 for hybrid tomatoes.

For the first time, exotic and high-value crops have been brought under the structured loan matrix. Farmers cultivating dragon fruit can now avail loans up to Rs 47,000 per acre, while a credit ceiling of Rs 16,000 per acre has been established for chia seed farming. Additionally, the state has augmented credit caps for the fisheries sector, raising the limits to Rs 2.5 lakh and Rs 5.5 lakh across two distinct operational categories to bolster allied agricultural operations.

The Chief Minister noted that the lack of comprehensive institutional credit in the past often forced farmers to navigate complex and distressing alternative channels to fund their operations. Reiterating the administration’s stance on safeguarding the dignity of the farming community, Mann stated that aggressive measures like bank raids and public property attachments disrupt social harmony and will be countered with administrative sensitivity and robust policy support.