In Orissa, farmers, widows swipe with ease

KISAN CREDIT CARD/ A REALTY CHECK PART - 2

Over 66 million kisan credit cards (KCCs) have been issued by banks ever since the scheme was launched by the government in 1999-2000 to provide credit to small and marginal farmers.

The Union Agriculture Ministry reckons over Rs 10,000 crore has been disbursed through the Kisan Credit Cards in the last seven years. But has it changed the fortunes in any way of the small farmers? Has their indebtedness come down? Business Standard reporters travelled to villages in Chhattisgarh and Orissa to find out.

Prabhat Kumar Dalai of Pathara village in Orissa's Ganjam district now does not have to wait for a loan for his crop. He can get the money, whenever he needs, from the primary cooperative service societies of Bahadurpeta near his village.

The facilitator in all this is a Kisan Credit Card (KCC) that he got from the Berhampur Cooperative Central (BCC) Bank. Dalai can now get loans through a cheque book. "The amount can be up to Rs 20,500," he says.

"I an withdrawing Rs 10, 000 in the first phase and Rs 5,000 in the second. I'll withdraw the rest if I need it," he says.

The cards are also helping village women. K Sabita Reddy of Dura, who lost her husband four years ago, says the card helped her when she had no one to turn to. She got the card from the BCC Bank as a member of the primary cooperative society in Bahaduepeta. "I take a loan whenever I need it and repay it through the KCC. It is like a passbook for me," she says.

A resident of Pahara village, Suryakanti Jena, who also lost her husband, says she has been banking on the card in emergencies.

In Bahadurpeta, the cooperative societies under the BCC have issued 411 cards to farmers. The BCC has 540 members, out of which only 298 use their cards for loans.

"Most card-holders repay on the due date, before March 25, so that they can get fresh loans for the next season," says P.Parsurm Reddy, the secretary, cooperative societies.

The card is a great help to the poor to get timely and hassle-free credit, says Pradeep Kumar Panigrahi, the president of the BCC. With the instruction of the state government and the Orissa State Cooperative Bank, the BCC was encouraging its primary cooperative societies to distribute the cards to as many farmers as possible, he added.

The Orissa State Cooperative Bank has issued 2.7 million cards to the farmers in the state through its 17 central cooperative banks, sources say.