By TCN News,
New Delhi: ‘Father of Green Revolution’ Prof. M S Swaminathan has supported introduction of interest-free microfinance (IFMF) system in districts with more farmers suicides. He was delivering keynote address at a National Consultation on “Interest Free Microfinance through Cooperatives: Challenges and Opportunities” organized by Sahulat Microfinance Society on 8th May 2012 at India International Centre, New Delhi.
Prof Swaminathan emphasized on the need of piloting the model of IFMF in a country like India which always has a high credit demand. He said that the Government of India has identified 35 districts as areas of agricultural distress (where farmers suicide in large numbers) and labelled these districts as “Agrarian Hotspots”. Prof. Swaminathan proposed an urgent need to try out the model of IFMF in these areas, with contextual approach and strategies. He suggested that the model should be an integrated one which shall provide a strong credit link together with other support mechanisms for sustainability. Thus emphasizing that, Interest Free Microfinance does not mean Cost free or Return free Microfinance. It can rather be built into an effective tool for poverty alleviation.
Speaking as chief guest Dr. (Ms.) Syeda Saiyedain Hameed, Member, Planning Commission highlighted the relentless pursuance of women in the current framework of Microfinance which results in distress and suicides by women which are apparently less talked about. She placed the idea of “Gender Neutral Credit” on the table. Referring to the increasing understanding of feminisation of poverty, she said, it is important to take into account the issues of women while designing the strategies for IFMF. She seconded the idea of piloting IFMF, elaborating its potentials in the naxalite affected districts as well as 90 minority concentrated districts in India.
Earlier the consultation began with welcome speech of Arshad Ajmal, Chief Executive Officer of Sahulat Microfinance Society, a Delhi based NGO.
The program concluded with the vote of thanks by Mr H Abdur Raqeeb, General Secretary of Indian Centre of Islamic Finance who is also the board member of Sahulat Microfinance Society.