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An Insurance Against Hunger

The grain bank movement is saving farmers from starvation and the cycle of debt and desperation
Baba Umar

BABA UMAR, Tehelka

May 31, 2013

Illustration: Vikram Nongmaithem

Illustration: Vikram Nongmaithem

NOT MANY summers ago, only tamarind seeds, wild berries and mango kernels stood between the tribals of Ranjagoda village and death by . However, activist Achyut Das found that there were no deaths in the neighbouring villages in ’s Rayagada district, which had set up . “The concept, though, had never reached Ranjagoda,” says Das.

Until recently, Ranjagoda’s tribals had to part with most of their produce to pay back moneylenders. “Debt bondage was the root cause of starvation,” says Das. “With interest rates as high as 200 percent, most villagers lost their mortgaged land and productive assets. Many were forced to work as bonded labour for the moneylender, sometimes over generations.”

To help the villagers break out of the cycle of debt and starvation, Das mobilised them to form self-help groups. A local grain bank was set up with all 50 families of Ranjagoda contributing 9 kg of ragi, the local staple.

“Unlike rice, ragi can be stored for almost three years,” says Das. “So the villagers, who couldn’t afford to buy food in the lean summer months, could now borrow, say, 5 kg of ragi from the grain bank, and put back 25 percent more within five months.” It has been a decade since the initiative took off, and today Ranjagoda is able to loan grain and seeds to other villages.

The grain bank experience has been a boon for — a food-surplus nation that has, paradoxically, always performed poorly in terms of the  (GHI). It has been placed below Sri Lanka, Pakistan and Nepal in 2012 by the International Food Policy Research Institute.

As a way to battle hunger, the Centre announced plans to set up grain banks for the first time in 1996. So far, 21,751 village grain banks have been sanctioned across 20 states. “These can be set up in drought-prone areas, deserts, tribal areas and inaccessible hilly areas that remain cut off because of natural calamities. Foodgrain will be loaned to BPL families at one quintal per family under the scheme,” said Union Food Minister KV Thomas in October 2012.

In some cases, like at Pyallayaram village in Andhra Pradesh’s Medak district, the grain banks also offer seeds and chemical inputs like fertilisers and pesticides to impoverished farmers. “The grain bank has helped the villagers get rid of both moneylenders and seed-sharks,” says Girdhar Babu of Deccan Development Society, one of the NGOs behind the grain bank initiatives in the state.

Poverty and food insecurity caused by prolonged drought and loss of traditional varieties of seeds had broken the back of Pyallayaram’s local economy, forcing many villagers to migrate. Those who stayed back were utterly destitute and malnourished. “That was 20 years ago. Relying solely on government relief schemes had encouraged a culture of dependency,” says Babu. “That changed when 34 women of the village took things into their own hands and started growing their own food.”

Subsequently, the villagers established a grain bank for poor farmers to ensure a steady supply of quality seeds by preserving the traditional varieties and restoring cultivation on marginal lands. “We have repeated the same experiment with self-help groups in 85 other villages,” adds Babu.

 

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