Fixed deposits of grain help villagers keep off debt

From the article in - The Hindu Business Line - Life supplement - Sarada Lahangir - Jan 26, 2012

In Koraput district, Orissa, half the population are tribals and working as agriculture labour.  Any mishap, a death, crop failure was leading to debt and bondage.  It was the initiative of a social activist Bidyut Mohanty who established a grain bank to help out the villagers.

Mohanty heads the NGO Society for Promoting Rural Education and Development (SPREAD) - and after consulting with the villagers,  set up the grain bank.  Each household contributed 3-5 kg of paddy and ragi. And the organisation contributed an equal or greater amount. 

Self Help groups managed the grain banks.  Excess stock was sold in the open market and the proceeds invested to earn interest. 

The villagers in two blocks, at present have contributed 33 quintals of paddy and 42.22 quintals of ragi, and SPREAD contributed 198 and 264 quintals respectively.  520 families received loans in the first year.Repayment is always after harvest when the farmers have a disposable income.  The villagers have been able to keep off debt. 

The grain bank has given the villagers a symbol of self-respect and community ownership and brought financial stability to many.  The World Food Bank has recognised the positive impact the grain bank has on ensuring food security and has set up more grain banks in Orissa and Madhya Pradesh.