Concept, status and impact of foodgrain banking in Indian villages: A review

Abstract

Utilization and distribution of foodgrain always remain as an un-ending riddle to the policy makers and administrators despite surplus in foodgrain production in an agriculture dominated economy. At one hand, glut in market leads to distress sale by the debt-ridden farmers and consequent disinterest in farming among village youth in long run; on the other hand rural societies in difficult terrain faces regular cycle of seasonal hunger due to climate, crop and infrastructure related reasons. The time has come to think beyond the overburdened public distribution system to channelize the surplus produce properly since more than 20 million tonnes of grains produced are destroyed annually due to improper transport, inadequate storage facilities both in institutionalized sector as well as farmers' home. Grain banking is a remedy to the food loss and food insecurity, is mostly applied for tribal areas and difficult terrain with high seasonality of agriculture and harsh climate. It has been successfully applied in Odisha, Jharkhand and Uttarakhand, where community managed grain banks with set rules and norms provide the needy with grain, who in turn returns it through cash or kind. Clusters all over the country could be conceptualized with grain banks in glut region and the nearest starved region exchanging food and that may be hoped to reduce distress sale, wastage and hunger. Present paper is an attempt to review the grain bank concept implemented in India, its pros and cons along with the strategies for scaling up.