Paving Pathways to Possibilities NABARD
Paving Pathways to Possibilities
NABARD
As on 31/3/2013
Pilot Phase
1992-95
GROWTH OF SHGs IN INDIA
microCredit Innovations DepartmentNABARD
*The Mapping is based on coverage of Savings linked SHGs vs potential SHGs.
WOMEN SHGs – THE UNTAPPED POTENTIAL
NABARD micro Credit Innovations Department
Critical determinants Key factors Key learnings• Fish harvesting being the traditional occupation of the
village, most members were aware of the process• Guidance from MAVIM on taking up a hitherto male-
dominated activity
• Vendors providing fingerlings on part payment basis
• Support from male members
• Surplus enough to repay bank loan• Members learnt production,
calamity- management and marketing
FISHING FOR ACCOLADES
microCredit Innovations DepartmentNABARD
Mahila Arthik Vikas Mahamandal Mahila Arthik Vikas Mahamandal
POWER OF PLASTIC
Key factorsKey factorsCritical determinantsCritical determinants Key learningsKey learnings
• Training facilitated by NABARD, Mahalir Thittam project and Gandhigram trust
• State Govt. passed an order advising contractors to buy shredded plastic only from SHGs
• DRDA provided crucial start up loan• Canara Bank supplemented the grant
through their loan
• Income sufficient to repay loan• The volume of business has
increased over the years
CP Rs. 5/kg
SPRs. 25/kg
NABARD micro Credit Innovations Department
Primary Level FederationPrimary Level Federation
Federation of SHGFederation of SHG
• Logistical support by DRDA• Rising demand of LPG
Cylinder in rural areas
• Monitoring by ORMAS & DRDA• Financial assistance from SGSY
loan capacity building by DSMS, both at the block and district level.
• Appropriate training and coordination between agencies.
• Timely delivery of cylinders
Key factorsCritical determinants Key learnings
• Women Self Help Groups from Jagatsinghpur in Odisha took over village level distribution for LPG cylinder.
• DSMS took the dealership of LPG Cylinders from IOCL and engaged local WSHGs as Shakti Retailers and sold 14.2 kg and 19 kg cylinders.
• With deposit of Rs 25000 took bank loan of Rs 90000 with 50% subsidy under the SGSY.
• Cylinders sold to 750 household with Rs 19/- as commission, revenue generated through technical services and sale of accessories
• The DRDA constructed a warehouse to store the cylinders at Purohitpur village. Currently, 16 WSHGs are supplying cylinders to 11,000 connections resulting in a turnover of Rs. 1.43 crores in FY 2012-13
NABARD micro Credit Innovations Department
Women Self Help Groups
District Rural Development AgencyDistrict Rural Development Agency
Odisha Rural Development & Marketing SocietyOdisha Rural Development & Marketing Society
District Supply Marketing Society
STITCHING TOGETHER SUSTENANCE & EMPOWERMENT
NABARD micro Credit Innovations Department
Rajiv Gandhi Saksharata Mission Muskan Mahila Swaya Sahayata Samuh
SHGs - A VIABLE ALTERNATIVE•Many SHGs have undertaken procurement, storage and distribution at different levels and delivered results.
•Most SHG run aanganwadis deliver better quality and quantity of food as compared to privately run enterprises
•SHG run FPS have little to no leakages
The bill aims to provide subsidised food grains to about two thirds of India’s population.Children between the age of 6 months to 14 years are to receive free hot meals or "take home rations”
The bill was passed into law on September 12th, 2013
CHALLENGES IN IMPLEMENTATION Procurement•An expensive process•Ensuring quality of food grainsStorage•Inadequate storage facilities often leads to loss of food grains•Estimated 28 million tons of food grains are stored in open spaces leading to losses of Rs. 60,000 croreDistribution•Report of significant leakages in the PDS•Many Fair Price Shops issue bogus cards in order to sell grains in the open market•Many privately run meal providers do not deliver the quality or the quantity of food promised to the beneficiaries •Only about 42% of subsidized grains issued from the Central pool reach the target group.•Over 36% of the budgetary subsidies on food is siphoned off the supply chain and another 21% reaches the APL households.
NABARD micro Credit Innovations Department
Critical determinantsCritical determinants● Training for staff
and VO on procurement, quality checking and book – keeping
● Close monitoring by SERP, APSCSC and Mandal Samakhya
● Transparent procurement and quick payment to farmersKey factorsKey factors
● SERP provided equipment, land, local health care centre and office space to VOs
● Strong network of SHGs and their federationsKey learningsKey learnings
● Involvement of local structure improves market linkage for farmers & buyers; provides income for the SHG members.
● Direct procurement at MSP helps farmers sustain their income levels
● Decentralized service delivery model reaching the farmers at their doorsteps.
• In 2006 – 07, under the close supervision of the SERP, APSCSC entrusted the task of paddy procurement to VOs to provide a stable market and favorable prices to a large numbers of small and marginal farmers in Andhra Pradesh
• Upon announcement of the procurement dates by the AP government, the SHG committee issues slips indicating the date and time of procurement for farmers who want to sell their harvest.
• The paddy is then checked for moisture content and other quality parameters after which it is accepted for weighing. The farmers are paid by the VO in three working days.
• In 2012-13, the VO procured 11,162 quintals of paddy in Kharif season and 1,478 quintals in Rabi season.
• The income of the VO was Rs 3.78 lakhs in 2012.• 30 % of the income is paid to the Zilla Samakhya and the balance is retained
for internal lending.• The SHG members are compensated by payment of honorarium.
CONVENIENCE PROCURED AT DOOR-STEP
NABARD micro Credit Innovations Department
Village Organization
Andhra Pradesh State Civil Supplies Corporation
Society for Elimination of Rural Poverty
Minimum Support Prices
CRITICAL DETERMINANTS KEY FACTORS KEY LEARNINGS
• Fair Price Shop did not have fear of loosing beneficiary.
• Created competition between FPSs and thus improve service delivery
• State Government made a provision of Rs 42 Crore during 2011-12 at Rs. 75000/- per shop for 20 years.
• One month credit facility or loss compensation to FPS with free smart card machine facilities
• Due to implementation of smart cards, consumers can take ration anytime anywhere.
● Online real time mechanical authentication to target diversions.
NABARD micro Credit Innovations Department
Public Distribution System Prina Samudayik Vikas Samiti
Fair Price Shops
• Distress sales by farmers in Andhra Pradesh is an issue of major concern
• SHG members are helping farmers increase profits by providing storage facilities
• SHG federations constructed two godowns in Daulatabad and Alugunur to store maize, redgram and paddy
• Godowns were built on land owned by MMS courtesy a loan of Rs 7.2 lakhs from them
• In 2003-04, 288.72 quintals and in 2007-08, 1,257 quintals of redgram were purchased and stored
• The stored grains were then sold at a profit of 15%+2%• The committee repaid the loan of Rs 7.2 lakhs in three years • With expansion to Mahbubnagar, Village Organizations
began paddy procurement.• Village Organizations procure 1,200 - 1500 MT and 3,000 -
4,000 MT of paddy in Kharif and Rabi seasons respectively
288.72 quintals2003-04
1,257 quintals2007-08
Critical determinants • Ensuring a fair price for redgram and a ‘Minimum support price’
for paddy. • Source of income for Village Organizations as well as SHGs. • Close monitoring by SERP staff through a Management
Information System
Key Factors • SERP provided required infrastructure, equipment and training . • Civil Supplies Corporation ensued Minimum Support Price,
transportation and payment of service charge at 2.5 % of the value of paddy
Key Learnings • Grains stored in covered storage space to avoid wastage and
spoilage. • Source of income that prevents distress sales to a large extent.
Dedicated support from the government in the activity
PREVENTING DISTRESS SALES
Mandal Mahila Samakhya
NABARD
micro Credit Innovations Department
In the healthcare and hygiene sector, many SHGs have shown excellent results. They have :
• Deficiency of Iodine, vital vitamins and minerals in children leads to various diseases.
• 70 percent of the female population cannot afford to buy sanitary napkins which leads to various bacterial infections
• Lack of proper toilets and social taboos results in half the girls to drop out of schools once they reach menarche
• Millions of people in India succumb to curable diseases because of the high cost of health care
• Around 4 crore people are plunged into poverty each year due to expenses incurred in health care
• One in every three malnourished child in the world, lives in India
• Produced sanitary napkins and promoted a healthy lifestyle
• Delivered quality medical services at the doorsteps at half the market rates
• Produced nutritious food supplements for children at lower rates than private producers
NABARD micro Credit Innovations Department
• Maa Shoolini SHG, consisting of 15 women from BPL families were promoted and given revolving fund by DRDA under the SGSY.
• The group went for credit linkage from JCCB and the loan amount was repaid fully well within time.
• Three members of the group were selected by DRDA for training in sanitary napkin making in Sholapur, Maharashtra.
• The training expenses, raw materials and the machinery cost of Rs 2 lakh was borne by the department.
• The product was purchased by DRDA itself for supply to BPL women in various panchayats.
• The SHG now supplies sanitary napkins to the Department of Welfare and Department of Health.
• The group sells it’s products in various melas / exhibitions thereby propagating a healthy lifestyle among rural women folk.
• Provision of free training, machinery and raw materials
• Initial buy back arrangement by DRDA
• DRDA helped in building contacts with other government departments
• Provision of free training, machinery and raw materials
• Initial buy back arrangement by DRDA
• DRDA helped in building contacts with other government departments
• Melas and exhibitions served as a
good platform for direct marketing
• Melas and exhibitions served as a
good platform for direct marketing
• Repayment discipline helped instill faith in bankers to sanction further loans
• Poor rural women can achieve something with proper motivation and guidance
• Repayment discipline helped instill faith in bankers to sanction further loans
• Poor rural women can achieve something with proper motivation and guidance
KEY FACTORSCRITICAL
DETERMINANTSKEY LEARNINGS
NABARD micro Credit Innovations Department
Jogindra Central Co operative bank
Swarnjayanti Gram Swarojgar Yojana
District Rural Development Agency
COMBATTING LIFESTYLE DISEASES• Under Swanthanam, a health care intervention run by
Kudumbashree, SHG members in Kollam are delivering low cost but high quality health services at the doorstep.
• Poor women from neighborhood groups with Higher Secondary education or completed laboratory technician or midwifery courses are selected and trained by HAP, an NGO.
• Rs 40000/- was granted to members with subsidy of Rs 7500 by Kudambashree for two wheelers, mobile and uniform.
• The rates charged for regular tests are 50% cheaper than market rates. In case of advanced tests, samples are collected and couriered to the laboratory run by HAP. 40% of the amount collected by way of charges for the tests. On an average, each member earns about Rs 15,000–20,000 per month.
micro Credit Innovations DepartmentNABARD
Health Action by People
MIXTURE OF HEALTH AND HAPPINESS
Critical Determinant •Efficient distribution preventing leakages in the outreach of benefits•Convergence of the local bodies, Kudumbashree, departments of the State Government, banks and agencies like CPCRI
Critical Determinant •Efficient distribution preventing leakages in the outreach of benefits•Convergence of the local bodies, Kudumbashree, departments of the State Government, banks and agencies like CPCRI
Key Factors•Lower rent space to house the unit and procurement of machinery at a lower cost decreased the cost of production •Proper training and monitoring for smooth functioning of unit
Key Factors•Lower rent space to house the unit and procurement of machinery at a lower cost decreased the cost of production •Proper training and monitoring for smooth functioning of unit
Key Learnings •Focus on right kind of entrepreneur•Strict adherence to production protocol
Key Learnings •Focus on right kind of entrepreneur•Strict adherence to production protocol
• The Government of Kerala has initiated the THRS, a feeding programme for children below 3 years of age from BPL (Below Poverty Line) families
• The food supplement 'Nutrimix' was developed by CPCRI (Central Plantation Crops Research Institute) and approved by the Social Welfare Department In 2005. Private agencies use to supply the product to anganwadis.
• 575 women micro groups of five members each were identified and the necessary training to set up micro enterprises for making Nutrimix was provided
• A loan of Rs 2.1 lakh was provided by the State Bank of Travancore with a subsidy of Rs 50,000 by the mission to set up the unit and machinery
• Necessary ingredients like wheat, Bengal gram etc were procured in bulk resulting in a substantial reduction in cost, enabling the selling price to be 12% less than that of the private producers
• The loan of Rs. 2.1 lakh has been fully repaid and the unit is able to produce 5,000 kgs of Nutrimix in a month. The Social Welfare Department procures about 13 lakh metric tonnes of Nutrimix in a month
• The members of the unit earn an average monthly income of Rs 6,000 from the enterprise
Take Home Ration Strategy
micro Credit Innovations DepartmentNABARD
"A dazzling publication - so rich and so reflective. Shows what's possible with SHGs with a little imagination and true example of people-public - private partnership.”
Prof. Kim Wilson, Tufts University, Boston, USA
micro Credit Innovations DepartmentNABARD