The Chorao Farmer participated in a day-long workshop organized by Botanical Society of Goa in association with the International Centre-Goa with part sponsorship by NABARD to address biggest issue that farmers face in achieving profitability: Marketing of their produce.
Experiments at our Club over the last have shown that it is possible to sell produce profitably if a long-term strategy to employ non-conventional methods is put in place. To illustrate and share our experiences for the benefit of other farmers in Goa, the process of this approach was explained. The example that we used was of our popular “AAMche Mancurad Mangoes” experiment, which was described by Mr. Premanand Mahambare, President of the Chorao Farmers’ Club of Chodan-Madel and Mr Jaganath Pai who is a mango-growing member of the Club.
See coverage here (via TargetGoa)
Sometime in March 2009, 19 members of the Club applied for and got Kissan Credit Cards (KCCs). The KCC is a NABARD scheme aimed at providing timely credit to farmers.
Chorao Farmers Club receive Kisan Credit Cards
What is the KCC?
The KCC is like a regular credit card given by various banks where the holder has a credit limit up to which she/he can spend, without needing to carry cash with them. Like regular credit cards, the farmer pays interest ONLY on the the amount withdrawn and not the entire credit-limit amount. This credit facility is set up as a revolving cash credit facility that allows farmers unlimited withdrawals and repayments.
The difference here is that unlike a regular credit cards that are used in stores/restaurants etc… the KCC is used only with the bank that issues the KCC, to withdraw money that is used to meet the production credit need, cultivation expenses, and contingency expenses of the farmers. Farmers can withdraw cash up to the credit limit available.
Who is eligible?
Most farmers with proof of land holding are eligible for a Kisan Credit Card (KCC).
What if I am a tenant and I do not have a and land to my name?
NABARD has a scheme by the name Joint Liability Group (JLG) scheme that is mean precisely for landless farmers.
A JLG is an assembly of 5-10 member clients (new or existing) informally recognised by the bank as a group. The main aim of this scheme is to offer bank funds to small and marginal farmers and village artisans who have no land or assets to provide as collateral.
Thus farmers without any land to their name can also get credit through the JLG scheme.
This page on the NABARD website has more information on JLGs.
What papers are needed for apply for a KCC?
We approached the branch manager of the bank we are linked to. He asked all farmers to provide the following documents:
- Bank Savings Account details
- 1 Photograph
- Photocopy of Ration Card
- Photocopy of Election Card
- Copy of Form 1 and 14
- Details of a Guarantor
One guarantor is needed. Members agreed to stand as guarantors for one another.
On a predetermined day, the club members met with necessary papers. They filled out forms and helped each other with specific issues they might have. These forms weher then collectively submitted to the bank, which batch-processed them and gave 19 members the KCCs.
This page on the NABARD website provides more information on the KCC scheme.
Approach your local bank to fully understand the features and details about the scheme.
