Society for Elimination of Rural Poverty Department of Rural Development Govt. of Andhra Pradesh, India Indira Kranthi Patham.

Society for Elimination of Rural PovertyDepartment of Rural Development

Govt. of Andhra Pradesh , India

Indira Kranthi Patham

Each family in the state should be out of poverty and enjoy:

Life with dignity

Equity within the family

Freedom from hunger

Decent Income: >Rs.5000 per month, 3 - 4 sources (agriculture, allied, non-farm, jobs in urban areas, etc)

Planned household expenditure

Risks managed - life, health, assets and incomes

Shelter, education, and, health

Vision

Prerequisites for poverty eradication

Core beliefs about poor:

• Poor have strong desire and innate ability to come out of poverty

• Poor have a strong spirit of volunteerism

Obstacles – psychological, social, economic, political - suppress this capability

• Social mobilization – to unleash innate abilities

• Social mobilization – not automatic, needs to be induced

Poor can come out of poverty only through their own institutions

Mandal Samakhyas and V.Os plan and implement the various

project components

– Each Mandal is divided into three Clusters of 10-12 habitations.

– A development professional, called Community Coordinator (CC) is placed in each Cluster. S/he stays in her cluster.

– SERP selects and trains them. After completion of training, they are contracted by the MS and are accountable to MS.

– M.S responsible for social mobilisation, institution building and funding the microplans of S.H.Gs/V.Os from C.I.F

– Micro credit plans are evolved by the S.H.Gs in each village. These plans are funded by their own savings, CIF fund and Bank Linkage.

– V.Os responsible for appraising the microplans and recommending them to M.S for financing from C.I.F

– V.Os appraise microplans and also finance them from the recycled C.I.F

C.B.Os implement the projectA.P Federation Model

SHGs

•Thrift and credit activities

•Monitoring group performance

•Micro Credit Planning•Household inv plans

• E.C -2 from each S.H.G, 5 Office bearers

•Strengthening of SHGs

•Arrange line of credit to the SHGs

•Social action

•Village development

•Marketing and food security

•Support activists – 3 -5

• E.C -2 from each V.O, 5 Office bearers

•Support to VOs

•Secure linkage with Govt. Depts.

fin institutions, markets

•Auditing of the groups

•Micro Finance functions

10 - 15

SHGs SHGs SHGsSHGs SHGs

V.O

150 -200

MMS4000 6000 -

Z S200,000

400,000

Village Organization

Mandal Samakhya

Zilla Samakhya

SELF HELP GROUPS

Impacts of social mobilization – organizing the poor

– Participatory identification of poor

– Focus on poorest of poor

– 90% of rural poor households organized

– 87.5 lakhs women organised into 7.0 lakh S.H.Gs

– 33,747 VOs, 1083 MSs and 22 Z.Ss formed

– 180,000 village level para-professionals working for the S.H.Gs and V.Os and paid by them

– 12,000 community resource persons fuelling the social mobilisation process

Key Livelihood Activities1) Dairy: Remunerative price - Committees at Village

and Mandal level - Convergence with APDDCF - 64500 Beneficiaries – 22.4 Million Lts of Milk, Value Rs.41 Millions.

2) NPM: Covered 4.74 Lakh Acres in 18 districts. 1.72 Lakh farmers, 1715 Villages, Increased net realization.

Goal : 10 Lakh Hectares in 5 years Covering 10% of Cultivable area of Andhra Pradesh.

3) Employment Generation Marketing Mission (EGMM): One Job for Every poor family. Market link training to rural Youth, employment to one lakh youth in public and private partnership. 24,800 training with 80% placement.

Major Mentors: Services, Textile, Constructions, G4 Security companies

4) Marketing: Main focus will be on Marketing

MAKING MARKETS WORK FOR THE POOR

Marketing Interventions

by

Women Self Help Groups

Objective

Target group: Members of SHGs

Farm Sector- Poor farmers

Non-Farm Sector – Tribals whose main livelihood is collection of NTFPs

To enable the poor producers to obtain the best price for their Agricultural Commodities and NTFPs.

To create Marketing facility at their door steps.

Problems of the poor Producers

Low Price

Delayed Payment

Traders malpractices – Weighment & Price

More expenditure on Transportation

Lack of knowledge on quality.

No market intelligence.

• VOs started Marketing activity from May 2001 as pilot intervention in one commodity (Neem Fruit) one Mandal, one district (1000 Producers).

• Encouragement from farmers, enthusiasm from VOs Marketing activities scaled up from one district to 19 districts (300,000 producers in 2007-2008).

Progress in Marketing

Marketing Interventions

• Potential Survey of Agricultural Commodities and NTFPs

• Monthly Action Plan.

• Micro Credit Plans

• Sourcing of Finance.

• Constitution of Procurement Committee and Advisory Committee.

• Training to Committee Members and Book Keepers

• Supply of required Physical Infrastructure to the VO.

• Farmers education (on Price, Quality & Markets)

• Marketing Tie-ups with trade, govt.agencies (MSP & Direct Mktg.)

Key Commodities

1. Paddy

2. Maize

3. Redgram

4. Soya

5. Neem

6. Medicinal Plants

Marketing Interventions

1.42 1.26

3.10

6.50

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2005-2006 2006-2007 2007-2008(Achievement ason 25.01.2008)

2008-2009(Projections)

YEAR

Rs

. in

Bill

ion

s

SHG FederationsOut Comes

200 State Level Marketing Resource Persons coordinating the Marketing activities.

Procurement Centers are managed independently.

Capacity enhancement in commodity handling.

Clear business vision, Increased levels of Confidence.

Able to deal with external markets and traders independently.

Increased knowledge in Book keeping

Regular economic activities enhanced member’s income.

Benefits to farmers

DIRECT:

Remunerative price.

Procurement at door step.

No exploitation in weighment and price.

Reduction in costs under various components(Rs.50 to Rs.100 PQ)

No wage loss.

No hassles like in Market yards.

INDIRECT:

Better terms from trade.

More tranparency.

Case Study on Paddy

S. No. 2006 (Market) 2007 (VO)

1 Quantity Sold 20 Qtls. 50 Qtls.

2 Rate Rs.530 PQ Rs.650 PQ

3 Distance to Sale Point 30 Kms 2 Kms

4 Transportation Rs.300 Rs.100

5 Payment After 15 days Within 7 days

6 Farmer Bus fare Rs.30 Nil

7 Time factor One night Halt Return on same day

8 Wage Loss One day ( on second visit) No wage lossDirect Benefit

1) Price Difference – 120 PQ X 50 Qtls. - Rs.6000/-

2) Transportation – Rs.13 PQ X 50 Qtls. - Rs.650/-

3) Bus fare – Rs. 30 - Rs. 30/-

Total – Rs.6680/- on 50 Qtls.

• Name of the Farmer – Shri S.Venkatareddy

• Village – Muskanipet

• District- Karimnagar

Case Study on Maize

• Name of the farmer – Shri L. Venkatareddy • Village – Komera• District – Karimnagar.

S. No.

2004 (Market) 2005 (VO) Difference

1 Quantity Sold 80 Qtls. 128 Qtls.

2 Sold At Market yard at Jammikunta, 30 Kms

from VO

VO

3 Sale Price Rs.480 PQ Rs.540 PQ

4 Sale Value Rs.38400/- (80 X 480) Rs.69,120/- (128 X 540)

5 Price Difference - - Rs.60 PQ

6 Overall Price Difference - - 128X60= Rs.7680/-

Expenses for 10 Qtls.

7 Transportation Charges Rs.150/- Rs.70/- Rs.80

8 Hamali Rs.100/- Rs.100/- -

9 Cash Deduction Rs.85/- Nil Rs.85/-

10 Food Expenses Rs.15/- Nil Rs.15/-

11 Busfare to and Fro Rs.20/- Nil Rs.20/-

Rs. 370/- Rs.170/- Rs.200Direct Benefit : Over all difference @ Rs.60 PQ X 128 Qtls. = Rs.7680/-

Difference in Expenditure @ Rs.20 PQ X 128 Qtls. = Rs.2560/-

Total Difference = Rs.2560 + Rs.7680 = Rs.10,240/- on 128 Qtls.

Case Study on Chillies

S. No. 2006 (Market) 2007 (VO)

1 Quantity Sold 40 Qtls. 50 Qtls.

2 Rate Rs.5100 PQ Rs.5380 PQ

3 Distance to Sale Point

40 Kms -

4 Transportation Rs.60/- PQ Rs.50/- PQ

5 Payment After 15 days Within 4 days

6 Farmer Bus fare Rs.14 Nil

7 Time factor 2 days same day

8 Wage Loss 1 day (on second visit)

No wage loss

9 Cost of Bags Rs.45/- Nil

10 Cash Discount 3% & Adithi Dhadwai 2%

5% Nil

Direct Benefit

1) Price Difference – 280 PQ X 50 Qtls. - Rs.14000/-

2) Transportation – Rs.10 PQ X 50 Qtls. - Rs.500/-

3) Bus fare – Rs. 14 - Rs. 14/-

4) Cash Discount 3 % - Rs.8070/-

5) Adithi Dhadwai – 2 % - Rs.5380/- Total – Rs.27964/- on 50 Qtls. Rs.559 PQ

• Name of the Farmer – Shri Errabelli Kamalakar

• Village – Relakunta

• District– Warangal

Road map ahead

7000 procurement centers to cover all villages in the State covering about 10,50,000 farmers.

Provide adequate infrastructure – storage, drying, value addition facilities to each procurement Cente.

Value addition activities

Food Security and Direct Marketing tie ups.

MSP linked operations through Government agencies.

Market linkages with exporters, processors, Multinationals and service providers.

Retail chain in every town to sell essential commodities viz., rice, other cereals, pulses, spices, edible oil etc.

Marketing Vision

Marketing, NPM, Dairy and Jobs are key livelihood activities

“Every VO should work as a mini Market yard and every farmer and NTFP collector should not carry their produce beyond 5 Kms.”

3 years from now, Value added branded products of the VO shall compete with major existing players in the market.

Main Goal - Sustainability

Goal:

A.P – Free from hunger and poverty

THANK YOU