How about repaying a loan in kind? This is exactly what a Kisan Bank set up in Dehradun intends to do — give small and marginal farmers the option to repay the financial support it extends to them by way of farm produce, besides, of course, cash.

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.

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