The bank will also cater to their other requirements, including technical needs.
The Kisan Bank is a way to ensure that the farmers do not fall prey to the vicious market circle, said Dr Anil Joshi, of Himalayan Environmental Studies and Conservation Organisation (HESCO), the organisation that has set up the bank.
The bank will have 10 branches that will be linked with each other. The idea is that the farmers should not waste time and energy in gathering inputs like seeds, pesticides, insurance cover, etc. from various sources. Everything should be available under a single window, said Dr Joshi.
The branches of the bank will be set up at Agustmuni in Rudraprayag, Sahaspur in Dehradun, Dunda in Uttarkashi, Ranikhet in Almora and Kalsi in Dehadun.
One of the ways that the bank plans to realise interest is by selling farm produce in the open market. In case of crop failure, the bank will not resort to forced recovery but will explore other possibilities to empower the farm community to return the same. A relief period, effective next cropping, choice of crop insurance and cover through earlier profit could be some alternatives, says Dr Rakesh Kumar, the co-ordinator of the bank.
The idea to set up such an institution had come up during interactions with the farmers in a more than 4,000-km cycle yatra undertaken by Dr Joshi across the country last year.
According to him, the concept has been developed solely from the age-old kisan-mahajan (farmer-moneylender) relationship. The practice of moneylenders exploiting farmers continues even today. In many cases, farmers are paid back in the form of produce which they sell at a much higher rate in the market. Now the Kisan Bank will act as the mahajan but with a mutual interest, says Dr. Joshi.
An interesting aspect of the bank is that it will source quality seeds from development agencies and will ensure its access to farmers. Dr Joshi said a well-known company, MAHYCO, has already promised to provide seeds worth Rs 6 lakh to the bank.
According to Manju Sharma, former union secretary with the department of bio-technology, there is a need to link the bank with Krishi Vigyan Kendra so that progressive farmers get to know the latest techniques in farming.
The Khadi Village Industries Commission (KVIC) has already announced a service centre for the bank.
Its a new beginning and we will do everything to make the venture a success. The farmers have the capacity to weather the ongoing global meltdown. All we have to give them is proper facilities, said Uttarakhand Agriculture Minister Trivendra Rawat.