Village Level Service Centers: Aggregation and Retail Enterprises for Tribal Women in Jharkhand, India

Working Papers in Women's Enterprise Promotion

Village Level Service Centers:

Aggregation and Retail Enterprises for Tribal Women in Jharkhand

By Swati Kumari Parasrampuria And Vanita Viswanath

October 2014

them by Self-Help Groups (SHGs) for sale to traders; retail consumer items, including solar lanterns, sanitary napkins and water purifying tablets. They alsoand “entitlement services” such as life insurance from LIC. They are part of a growing group of tribal women entrepreneurs promoted by Udyogini that manage VSLCs. Sixtyown and operate VLSCs and serve a total consumer base of approximately 7000 tribal families in Ranchi and Khunti districts of Jharkhand apart from serving the agricultural markets of Ranchi and Jamshedpur with semiindustrial market for value-added lac products, such as scrap and button lac.

Saraswati Devi and Kokila Devi eked out a living from agricultural labor and nonforest produce (NTFP) collection in uncertain volumes, uneven pricing, and distress conditions that did not allow them even the basic incomes for food security much less the basic right to reasonably educate their children, until they became the drivers of the aggregation, value addition and marketing facilities which are the VLSCs. Kokila was particularly vulnerable because she had the triple jeopardy of being a widow and from Particularly Vulnerable Tribal Group (PTG), besides being illiterate. She was also ultraHer income was a meagre Rs. 3000 children. The NTFP that started them off in their entrepreneurial journeKokila Devi could not invest in Lac cultivation, despite her access to relevant host trees on her land. She, however, borrowed brood (seed lac) from other producers of the village with the promise that she would share with them half the haspectacular success with lac in just one season (Rs. 12,000 i.e. four times her investment of 3000) motivated her to opt to own a VLSC and build herself up for entering the domain of multiaddition and marketing services.

I. Introduction

Saraswati Devi and Kokila Devi are awardtribal women entrepreneurs from Bundu block, Ranchi district in Jharkhand. Promoted by Udyogini, they own and manage the Village Service Center (VLSC) that is a ‘village level market and livelihood hub’, engaged in provisioning of economic and social goods and services for village consumers as well as downstream market players. VLSCs aggregate and market seasonal agricultural and non-timber forest produce (NTFP) brought to

Help Groups (SHGs) for sale to traders; retail consumer items, including solar lanterns, sanitary napkins and water purifying tablets. They also provide

nt services” such as life insurance from LIC. They are part of a growing group of tribal women entrepreneurs promoted by Udyogini that manage VSLCs. Sixtyown and operate VLSCs and serve a total consumer base of approximately 7000 tribal

ies in Ranchi and Khunti districts of Jharkhand apart from serving the agricultural markets of Ranchi and Jamshedpur with semi-processed rice, vegetables, tamarind and

added lac products, such as scrap and button lac.

i Devi and Kokila Devi eked out a living from agricultural labor and nonforest produce (NTFP) collection in uncertain volumes, uneven pricing, and distress conditions that did not allow them even the basic incomes for food security much less the

sic right to reasonably educate their children, until they became the drivers of the aggregation, value addition and marketing facilities which are the VLSCs. Kokila was particularly vulnerable because she had the triple jeopardy of being a widow and from Particularly Vulnerable Tribal Group (PTG), besides being illiterate. She was also ultraHer income was a meagre Rs. 3000 annually with which she had to support herself and 5 children. The NTFP that started them off in their entrepreneurial journeKokila Devi could not invest in Lac cultivation, despite her access to relevant host trees on her land. She, however, borrowed brood (seed lac) from other producers of the village with the promise that she would share with them half the harvest. Her spectacular success with lac in just one season (Rs. 12,000 i.e. four times her investment of 3000) motivated her to opt to own a VLSC and build herself up for entering the domain of multi-product value addition and marketing services.

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Saraswati Devi and Kokila Devi are award-winning tribal women entrepreneurs from Bundu block, Ranchi district in Jharkhand. Promoted by Udyogini, they own and manage the Village Level Service Center (VLSC) that is a ‘village level market and livelihood hub’, engaged in provisioning of economic and social goods and services for village consumers as well as downstream market players. VLSCs aggregate and market seasonal agricultural commodities

timber forest produce (NTFP) brought to Help Groups (SHGs) for sale to traders; retail consumer items, including solar

provide mobile recharge nt services” such as life insurance from LIC. They are part of a growing group

of tribal women entrepreneurs promoted by Udyogini that manage VSLCs. Sixty-five of them own and operate VLSCs and serve a total consumer base of approximately 7000 tribal

ies in Ranchi and Khunti districts of Jharkhand apart from serving the agricultural processed rice, vegetables, tamarind and

added lac products, such as scrap and button lac.

i Devi and Kokila Devi eked out a living from agricultural labor and non-timber forest produce (NTFP) collection in uncertain volumes, uneven pricing, and distress conditions that did not allow them even the basic incomes for food security much less the

sic right to reasonably educate their children, until they became the drivers of the aggregation, value addition and marketing facilities which are the VLSCs. Kokila was particularly vulnerable because she had the triple jeopardy of being a widow and from a Particularly Vulnerable Tribal Group (PTG), besides being illiterate. She was also ultra-poor.

with which she had to support herself and 5 children. The NTFP that started them off in their entrepreneurial journey was lac though

II. Context and Problem

With its rich mineral and forest resources, has also the highest number of people living below the poverty line (estimated range from 45source: NSS). NSS data shows that rural groups in Jharkhand along with Odisha have the highest poverty intensity in India—higher than ST groups in other states. Approximately, 80% of cash income of rural households comes from the collection and sale of nonforest produce (NTFPs). Principally, these are lac, tamarind, and mahua. Paddy contributes 12 % of their income and rest is made up with agricultural labor. Hence, NTFP productivity and value addition is important to enhance livelihood security.

However, there are gaps in the movement of commodities from villages for downstream markets and goods and services for upstream rural consumers. These need to be corrected to make the lives of the tribal, particularly women, more comfortable and dignified.

Poor access to organized markets:resulting in incorrect weights and measures; price disadvantage due to small volumes;

Similarly in case of Paddyalthough it is a main crop in Jharkhand around 300 to 400 trucks are annually transported to West Bengal and Purulia. The price of Paddy goes down in January as the supply is high. The rategenerally falls between Rs. per kg. The traders with storagefacility at block level hoardedstored Paddy. It was sold in March and April when price rose up to Rs. 13-14 per kg. At the consumer level the rate of primary value added rice is Rs.16-Rs. 17 per kg.

ntext and Problem

mineral and forest resources, has also the highest number of people living below the poverty line (estimated range from 45-55% data

NSS data shows that rural groups in Jharkhand along with Odisha have the highest poverty intensity in

gher than ST groups in other Approximately, 80% of cash

income of rural households comes from the collection and sale of non-timber forest produce (NTFPs). Principally, these are lac, tamarind, and mahua. Paddy contributes 12 % of their income and the rest is made up with agricultural labor.

NTFP productivity and value addition is important to enhance

However, there are gaps in the movement of commodities from villages for downstream markets and goods and services for upstream rural consumers. These need to be corrected to make the lives of the tribal, particularly women, more comfortable and dignified. The gaps are mainly the following:

Poor access to organized markets: Commodities were collected from doorsteps by traders resulting in incorrect weights and measures; price disadvantage due to small volumes;

uncertain and inadequate supplies like in see Box No. 2 & 3) and system asymmetries, i.e., middlemen didn’t get paid on time so they were not able to pay the producers. As emerging markets for goods and services, villages were attractive for companies but they still found it expensive and disorganized in their access to rural customers, especially for new product offerings. An Ayurvedic Pharmaceutical Company wanted to penetrate the rural market in Ranchi district. However, their distributors remained in the urban towns and due to cost of rehousehold individually via commission agents, they were discouraged. They were looking for a facility that could aggregate rural consumers under a single window. On the other hand, rural families generally lost 45% annually from their incomes because they had to

Rural spending outpaced urban consumption in the two years up to 201112, the first time in nearly 25 years. For India, a young population, rising income and low penetration of many consumer

durables means that rural consumptionhas the potential to remain an important source of demand. Between 20092011-12, however, rural consumption per person grew annually at 19 per cent two percentage points higher than its urban counterpart, according to preliminary data released forthe National Sample Survey Organization (NSSO). In incremental terms, spending by rural India during these two years was Rs 3,750 billion, significantly higher than Rs 2994 billion by urbanites. Source: NSSO and CRISIL Estimates

Paddy, although it is a main crop in Jharkhand around 300 to 400

transported to West Bengal and Purulia. The price

January as The rate

9-10 storage ed and

ored Paddy. It was sold in March up to Rs.

14 per kg. At the consumer level the rate of primary value

Rs. 17 per kg.

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Commodities were collected from doorsteps by traders resulting in incorrect weights and measures; price disadvantage due to small volumes;

uncertain and inadequate supplies like in lac (Also see Box No. 2 & 3) and system asymmetries, i.e., middlemen didn’t get paid on time so they were

As emerging markets for goods and services, villages were attractive for companies but they still

isorganized in their access to rural customers, especially for new product

Pharmaceutical Company wanted to penetrate the rural market in Ranchi district. However, their distributors remained in the urban towns and due to cost of reaching each household individually via commission agents, they were discouraged. They were looking for a facility that could aggregate rural consumers under a

On the other hand, rural families generally lost 45% because they had to

outpaced urban consumption in the two years up to 2011-12, the first time in nearly 25 years. For India, a young population, rising income and low penetration of many consumer

rural consumption has the potential to remain an important

Between 2009-10 and 12, however, rural consumption per

person grew annually at 19 per cent — two percentage points higher than its urban counterpart, according to preliminary data released for 2011-12 by the National Sample Survey Organization (NSSO). In incremental terms, spending by rural India during these two years was Rs 3,750 billion, significantly higher than Rs

Source: NSSO and CRISIL Estimates

travel distances of 9-15 km to the nearest store to access their requirements for goodsEven after this, they would often not get the goods they needed and in the small quantities they could afford.

Cash availability & Distress Sales:travelled to market (on an average twice a week) to sell when they needed cash not when price of the produce was high. They had little or no control over the price received for their produce and their NTFPs were not adequately value added to fetch a premium price. For example, premature brood Lac could be sold at Rs. 300 per kg whereas holding it for 15-Rs. 450 per kg.

Prior to VLSC’s, the producer was responsible mainly for the production and harvesting of NTFP or agricultural produce. The intermediaries then aggregated and transported the produce. They worked mainly on economies of scale the crop from the producer and sellto the factories. The traders or factories then processed the produce into various products

in order to market and sell them in both national and international markets. (Sale of agriculture and NTFP produce in the year 2009

Fig: 1 Existing Supply Chain

PRODUCER

Local Market

15 km to the nearest store to access their requirements for goods and services.

en after this, they would often not get the goods they needed and in the small quantities

Cash availability & Distress Sales: Women travelled to market (on an average twice a week) to sell when they needed cash not when price of the produce was high. They had little or no control over the price received for their produce and their NTFPs were not adequately value added

premium price. For example, premature brood Lac could be sold at Rs. 300 per

-20 days would fetch

the producer was responsible mainly for the production and harvesting of NTFP or agricultural produce. The intermediaries then aggregated and transported the produce. They worked mainly on economies of scale – gathering the crop from the producer and selling it in bulk to the factories. The traders or factories then processed the produce into various products

in order to market and sell them in both national and international markets. (agriculture and NTFP produce in the year 2009-10).

Fig: 1 Existing Supply Chain

Local Market

Market

Middleman

Ranchi or other nearby places

In the year 2010, Ranchi was the

biggest trading centre in Jharkhand and the price here influenced its price all over India. Most of the Mahuastate went to Ranchi through 2levels of paikars, traders andcommission agents. Arou250 trucks of Mahua weretransported to Ranchi and Bodhgaya at Rs 17/ kg. transportation cost to Ranchi by truck is Rs 1000 a ton. producer/collector level remains Rs. 11-12 per kg whereas the trader at block level buys it at Rs. 17 per kg. Hence if a collector is directly selling to block level market with the support of VLSC they can fetch better price

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to the factories. The traders or factories then processed the produce into various products

in order to market and sell them in both national and international markets. (Annexure 1:

Ranchi or other nearby places

In the year 2010, Ranchi was the

st trading centre for Mahua and the price here

d its price all over India. ost of the Mahua collected in the

to Ranchi through 2-3 levels of paikars, traders and commission agents. Around 200 - 250 trucks of Mahua were transported to Ranchi and Bodhgaya at Rs 17/ kg. The transportation cost to Ranchi by

Rs 1000 a ton. The price at producer/collector level remains

12 per kg whereas the ck level buys it at Rs.

17 per kg. Hence if a collector is directly selling to block level market with the support of VLSC they can fetch better price.

Rationale for women's interest in aggregation

The key constraint for rural people was their lack of holding capacity for commodities in larger volumes. This problem resulted in the price advantage going to traders rather than to producers. The reasons were the following:

a) Lack of access to credit at reasonable rates that would have enabled them to store the commodities to sell later when the prices were higher.

b) Women producers were dealing individually with the buyers which allowed the buyers to negotiate the selling price.

c) Women lacked knowledge of prevailing rates and could not enforce accurate weights and measures so they sold the commodity at the prices quoted.

d) Many of the traders they sold to were also suppliers of other essential commodities and of consumption credit that the famil

e) Since the market-based traders govern the trade, producers are unable to build a stake in the trade though they are both producers and consumers.

III. VLSCs: The Key Innovation

Positioning of VLSC’s in the Value Chain:

VLSCs have been established in such remote areas where there are no existing even retail shops, much less aggregation centers. VLSCs aggregate individual produce and sell it to the block level market or town market in bulk. Theyare upstream enterprises owned and operated by local women with entrepreneurial interest and provide the opportunity to prespecially those in distant villages, to buy and sell in the village itself at a fair price. VLSCs have become the anchors for the chain since they are the 'hubs' for goods and services going both ways (producer to distant market and distant market to producer). VLSCs follow set parameters (such as prices, value addition fees, procurement margins and and recordsystems) for retail and procurement. For example, in mahua, a VLSC entrepreneur gets a margin of 45 paise/kg for value addition of certain determined quality. In case of paddy the entrepreneur earns a margin of Re. 1 per Kg. The figure no. 1 below demonstrates the positioning of VLSC’s in the value chain clearly With Udyogini’s role and training agencies role tied up for producer’s capacity buildin

Rationale for women's interest in aggregation

The key constraint for rural people was their lack of holding capacity for commodities in larger volumes. This problem resulted in the price advantage going to traders rather than to producers. The reasons were the following:

at reasonable rates that would have enabled them to store the commodities to sell later when the prices were higher.

b) Women producers were dealing individually with the buyers which allowed the buyers to

wledge of prevailing rates and could not enforce accurate weights and measures so they sold the commodity at the prices quoted.

d) Many of the traders they sold to were also suppliers of other essential commodities and of consumption credit that the families required. Women were dependent on them.

based traders govern the trade, producers are unable to build a stake in the trade though they are both producers and consumers.

VLSCs: The Key Innovation

Positioning of VLSC’s in the Value Chain:

VLSCs have been established in such remote areas where there are no existing even retail

much less aggregation centers. VLSCs aggregate individual produce and sell it to the block level market or town market in bulk. They are upstream enterprises owned and operated by local women with entrepreneurial interest and provide the opportunity to producers, especially those in distant villages, to buy and sell in the village itself at a fair price. VLSCs have become the anchors for the chain since they are the 'hubs' for goods and services going both ways (producer to distant market and distant

t to producer). VLSCs follow set parameters (such as prices, value addition fees, procurement margins and and record-keeping systems) for retail and procurement. For

, a VLSC entrepreneur gets a margin of 45 paise/kg for value addition of a

In case of paddy the entrepreneur earns a margin of Re. 1 per Kg. The figure no. 1 below demonstrates the positioning of VLSC’s in the value chain clearly With Udyogini’s role and training agencies role tied up

capacity building.

As a Facilitator, Udyogini serves the VLSC Entrepreneur in following manner: A two-month intensive skill and

management training program with customized training kit

1 month internship program to understand business operation practically

Financial Linkage for enterprise establishment

Market linkages for product/service procurement/supply

Corporate and Government partnerships

9 month Handholding Services to run enterprises

Refresher training based on the need assessment.

Start up Kit for business R&D: Products for scale; business

process; institutional models; finance; social and gender support

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The key constraint for rural people was their lack of holding capacity for commodities in larger volumes. This problem resulted in the price advantage going to traders rather than to

at reasonable rates that would have enabled them to store the

b) Women producers were dealing individually with the buyers which allowed the buyers to

wledge of prevailing rates and could not enforce accurate weights and

d) Many of the traders they sold to were also suppliers of other essential commodities and ies required. Women were dependent on them.

based traders govern the trade, producers are unable to build a stake in

Udyogini serves the VLSC Entrepreneur in the following manner:

month intensive skill and management training program with customized training kit 1 month internship program to understand business operation

Financial Linkage for enterprise

Market linkages for t/service

procurement/supply Corporate and Government

9 month Handholding Services to run enterprises Refresher training based on the need assessment. Start up Kit for business R&D: Products for scale; business process; institutional models; finance; social and gender support

Fig 2: Positioning of VLSC in the Value Chain and Udyogini’s role

A special NTFP: Lac is a key Udyogini value chain subbecome successful chain anchors for lac aggregation and value addition. 80% VLSCs now grade, sort, price and sell brood (seed of lac) and scrap lac for 5000 producerssupported by Udyogini. This value addition20-50% increase in incomes for producselling by sack to local traders. VLSCs pay around 20borrowed from SHGs by entrepreneur as atwo weeks) the aggregated scrap lac to traders and industries and brood lac to producers (to facilitate proliferation of deal, they willingly wait to receive the moneyaggregation depending on the quality of lac. VLSCs also ‘market’, in their village, the lac BDSP’s created by Udyogini to provide technical assistance to n

1 Business Development Service Providers (BDSP’s)development services like market linkage, training and hand holding support on commission basis.

: Positioning of VLSC in the Value Chain and Udyogini’s role

Lac is a key Udyogini value chain sub-product in Jharkhand. VLSCs have become successful chain anchors for lac aggregation and value addition. 80% VLSCs now grade, sort, price and sell brood (seed of lac) and scrap lac for 5000 producers

. This value addition which VLSCs made possible results in between 50% increase in incomes for producers compared to returns from earlier practice of

sack to local traders. VLSCs pay around 20-30% upfront to producerby entrepreneur as a member) and rest is paid after they sell (within

two weeks) the aggregated scrap lac to traders and industries and brood lac to producers lac production among SHG’s). Since producers

wait to receive the money. Entrepreneurs earn Rs. 2aggregation depending on the quality of lac. VLSCs also ‘market’, in their village, the lac

created by Udyogini to provide technical assistance to new producers.

Business Development Service Providers (BDSP’s) are a trained cadre of women providing business development services like market linkage, training and hand holding support on commission basis.

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1

product in Jharkhand. VLSCs have become successful chain anchors for lac aggregation and value addition. 80% VLSCs now grade, sort, price and sell brood (seed of lac) and scrap lac for 5000 producers being

which VLSCs made possible results in between ers compared to returns from earlier practice of

30% upfront to producers (from funds rest is paid after they sell (within

two weeks) the aggregated scrap lac to traders and industries and brood lac to producers s). Since producers receive a fair

Rs. 2-5 per kg for aggregation depending on the quality of lac. VLSCs also ‘market’, in their village, the lac

ew producers.

are a trained cadre of women providing business development services like market linkage, training and hand holding support on commission basis.

Retail:

The objective of retailing by VLSC is to ensure availability of quality daily use food and non-food products at fair retail prices in the rural villages. The retail value chain also envisions introducing special products of social significance such as solar lights, water filters, mosquito net and efficient cook stove etc. The products are aimed at providing the poor with access to adequate lighting, clean water, efficient cooking control, thereby improving their productivity and health. The VLSCs are essentially set up by the rural women who are encouraged to take up entrepreneurship through institutional support

Open Architecture System:

The backward (to the producer/customer) and forward linkages are robust not just for marketing but also for helping VLSCs remain accountable to the system. VLSCs have the flexibility of selecting retail products according to what their customers demand. Market linkages are made by Udyogini. VLSCs maintain their own accounts, inventory, and sales data. The record keeping registers have been provided in every VLSCs and to the producers in the catchment so that even the producers can verify the transaction detail osold, the quantity, rate and total amount given to them.

The product range varies among VLSCs depending on the demand of producers in the catchment they serve. Since FMCG products move more rapidly in comparison to processed commodities, the share of retail in turnover for the chain is approximately 56% and that of procurement is 44%. Hence, the locus of support for credit and other serviceto the VLSC entrepreneur who would directly market herself and her services to producers in the catchment to grow her business. This shift helped women to expand their business and make new linkages.

Special Products and Services:

VLSCs can be distinguished from “kirana” stores not only by their facility of aggregation and value addition of identified agriculture and NTFPs, but also by their retailing of special products and services for improving income security, health and dignity of rural customers. These include ORS, sanitary napkins, low cost mosquito net, water purification tablets, iodized salt, fortified wheat flour, poultry feed, seeds, fertilizers, low cost pumps, solar lamps, solar mobile chargers, smokeless stoves, pensions and life insurance.

Research, Development and Market Linkages (RD&ML) facility:

To reach the rural consumers in Ranchi and Khunti district, emerging and established social enterprises have approached Udyogini to link them to VLSCs. The entrepreneurs can choose to sell and market the products after they assess the demancapacity of women as entrepreneurs reflects when they identify a third party on their own. Udyogini encourages such links. After initial conversation and understanding they take Udyogini’s support to assess a third party offer. Udyogini then provides the servcategorized in the RD&ML facility. Udyogini Business Development Services (BDS) Center in Jharkhand is the RD&ML facility for the core value chain including the VLSCs and the support elements.retail products selection is based on need assessment and feasibility conducted by this facility. Retail and special products are selected after analysis in the context of access,

The objective of retailing by VLSC is to ensure availability of quality daily use food and food products at fair retail prices in the rural villages. The retail value chain also

l products of social significance such as solar lights, water filters, mosquito net and efficient cook stove etc. The products are aimed at providing the poor with access to adequate lighting, clean water, efficient cooking control, thereby improving their productivity and health. The VLSCs are essentially set up by the rural women who are encouraged to take up entrepreneurship through

kward (to the producer/customer) and forward linkages are robust not just for marketing but also for helping VLSCs remain accountable to the system. VLSCs have the flexibility of selecting retail products according to what their customers demand. Market inkages are made by Udyogini. VLSCs maintain their own accounts, inventory, and sales

data. The record keeping registers have been provided in every VLSCs and to the producers in the catchment so that even the producers can verify the transaction detail osold, the quantity, rate and total amount given to them.

The product range varies among VLSCs depending on the demand of producers in the catchment they serve. Since FMCG products move more rapidly in comparison to processed

hare of retail in turnover for the chain is approximately 56% and that of procurement is 44%. Hence, the locus of support for credit and other service

who would directly market herself and her services to producers n the catchment to grow her business. This shift helped women to expand their business

Special Products and Services:

VLSCs can be distinguished from “kirana” stores not only by their facility of aggregation and ntified agriculture and NTFPs, but also by their retailing of special

products and services for improving income security, health and dignity of rural customers. These include ORS, sanitary napkins, low cost mosquito net, water purification tablets, iodized salt, fortified wheat flour, poultry feed, seeds, fertilizers, low cost pumps, solar lamps, solar mobile chargers, smokeless stoves, pensions and life insurance.

Research, Development and Market Linkages (RD&ML) facility:

consumers in Ranchi and Khunti district, emerging and established social enterprises have approached Udyogini to link them to VLSCs. The entrepreneurs can choose to sell and market the products after they assess the demand of their catchment area.

acity of women as entrepreneurs reflects when they identify a third party on their own. Udyogini encourages such links. After initial conversation and understanding they take Udyogini’s support to assess a third party offer. Udyogini then provides the servcategorized in the RD&ML facility.

Udyogini Business Development Services (BDS) Center in Jharkhand is the RD&ML facility for the core value chain including the VLSCs and the support elements. The commodity and retail products selection is based on need assessment and feasibility conducted by this facility. Retail and special products are selected after analysis in the context of access,

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The objective of retailing by VLSC is to ensure availability of quality daily use food and food products at fair retail prices in the rural villages. The retail value chain also

l products of social significance such as solar lights, water filters, mosquito net and efficient cook stove etc. The products are aimed at providing the poor with access to adequate lighting, clean water, efficient cooking and pest control, thereby improving their productivity and health. The VLSCs are essentially set up by the rural women who are encouraged to take up entrepreneurship through

kward (to the producer/customer) and forward linkages are robust not just for marketing but also for helping VLSCs remain accountable to the system. VLSCs have the flexibility of selecting retail products according to what their customers demand. Market inkages are made by Udyogini. VLSCs maintain their own accounts, inventory, and sales

data. The record keeping registers have been provided in every VLSCs and to the producers in the catchment so that even the producers can verify the transaction detail of what been

The product range varies among VLSCs depending on the demand of producers in the catchment they serve. Since FMCG products move more rapidly in comparison to processed

hare of retail in turnover for the chain is approximately 56% and that of procurement is 44%. Hence, the locus of support for credit and other services also shifted

who would directly market herself and her services to producers n the catchment to grow her business. This shift helped women to expand their business

VLSCs can be distinguished from “kirana” stores not only by their facility of aggregation and ntified agriculture and NTFPs, but also by their retailing of special

products and services for improving income security, health and dignity of rural customers. These include ORS, sanitary napkins, low cost mosquito net, water purification tablets, iodized salt, fortified wheat flour, poultry feed, seeds, fertilizers, low cost pumps, solar lamps, solar mobile chargers, smokeless stoves, pensions and life insurance.

consumers in Ranchi and Khunti district, emerging and established social enterprises have approached Udyogini to link them to VLSCs. The entrepreneurs can choose

d of their catchment area. The acity of women as entrepreneurs reflects when they identify a third party on their own.

Udyogini encourages such links. After initial conversation and understanding they take Udyogini’s support to assess a third party offer. Udyogini then provides the services

Udyogini Business Development Services (BDS) Center in Jharkhand is the RD&ML facility for The commodity and

retail products selection is based on need assessment and feasibility conducted by this facility. Retail and special products are selected after analysis in the context of access,

existing delivery channels and price competitiveness. The linkages and negotiates with companies for a competitive rate for products needed by producers and sold through the chain.produce in the year 2013-14)

Digitalized Curriculum

I-USE course is conducted in Hindi and is of three months duration. It has two examinations, an internship of two weeks in curriculum of I-USE builds on what Udyogini has already developed and tested over its years of experience in enterprise management training. The contents are, broadly, basics of livelihood and enterprise promotion, gender and enterprise such as women’s qualities as managers, their capacity for riskmarketing, market survey and assessment, basic personality development. The course material has been digitalized for exposure of wup excel sheets for learning accounting).

Saraswati Devi: As a member of “Adivasi Mahila Samuh” a Women Enterprise Group when she came to know about “Intel-Udyogini school of Entrepreneurship” (I-USE). Her zeal to learn something and become an “Entrepreneur” and earn for her family’s support didn’t allow any hindrance to pull her back and she took the pains to travel (by foot) 8 km every alternate day to attend the sessions at 8:00am in the morning. She can now differentiate between labour and entrepreneurship and is a proud entrepreneur, able to calculate her profits and loss or even do a market survey for any of the new products that she wishes to introduce in her VLSC. She feels, “ab ghar ka sara jarurat asani se pura ho pata hi. Main apni beti ko bhi bahut padana chahti hun aaur desh ka accha nagrik banana chahti hun.”

existing delivery channels and price competitiveness. The facility also provides market linkages and negotiates with companies for a competitive rate for products needed by producers and sold through the chain. (Annexure Table 2: Aggregation of agriculture and NTFP

Access to Finance

Udyogini has made financial linkages with Rang De, a social venture firm for seed-financing for the VLSCs. Rang De vets the selected candidates. Udyogini plays the role of bundling the credit with a service spread to cover itextending the venture loan to the individual.

Selection and Training women to be entrepreneurs

Udyogini markets the concept of VLSCs in meetings and actively seeks the interest of women in taking up the enterprise once the demand for aggregation and retail has been established by Udyogini througin the villages. Most skill training programs are focused on technical skills linked to a specified industrythe men and women to migrate. Many women frareas cannot take advantage of these opportunities because they prefer to live close to their families as their local social and cultural ties are strong and they face mobility issuesVLSCs became attractive as a skilled entrepreneurial optionthe cobranded Intel-Udyogini School of Entrepreneurship (IUSE) was established alongside to train potential women to run VLSCs. Potential candidates are selected based on their ability to complete the I-USE course and for it as well as finance a part of the start-(with the other part financed by loan from Rang De).

USE course is conducted in Hindi and is of three months duration. It has two examinations, an internship of two weeks in Udyogini’s field programs, and final placements. The

USE builds on what Udyogini has already developed and tested over its years of experience in enterprise management training. The contents are, broadly, basics of

promotion, gender and enterprise such as women’s qualities as managers, their capacity for risk-taking, strategic constraints, concept of market and marketing, market survey and assessment, basic personality development. The course

alized for exposure of women to new tools for learning (such as popheets for learning accounting).

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facility also provides market linkages and negotiates with companies for a competitive rate for products needed by

ggregation of agriculture and NTFP

Udyogini has made financial linkages with Rang De, a social financing for the VLSCs. Rang De vets

the selected candidates. Udyogini plays the role of bundling the credit with a service spread to cover its costs of extending the venture loan to the individual.

Training women to be entrepreneurs

Udyogini markets the concept of VLSCs in Gram Sabha, SHG of women in taking

demand for aggregation and retail has been established by Udyogini through its research

Most skill training programs are focused on technical skills linked to a specified industry and it requires

. Many women from rural areas cannot take advantage of these opportunities because they prefer to live close to their families as their local social

and they face mobility issues. As entrepreneurial option,

Udyogini School of Entrepreneurship (I-USE) was established alongside to train potential women to

Potential candidates are selected based on their USE course and to pay the Rs. 500

-up costs for a VLSC financed by loan from Rang De).

USE course is conducted in Hindi and is of three months duration. It has two examinations, Udyogini’s field programs, and final placements. The

USE builds on what Udyogini has already developed and tested over its years of experience in enterprise management training. The contents are, broadly, basics of

promotion, gender and enterprise such as women’s qualities as taking, strategic constraints, concept of market and

marketing, market survey and assessment, basic personality development. The course omen to new tools for learning (such as pop-

IV. Impact and Outreach

This intervention has shown multifaceted impact in promoting sustainable livelihood services for rural people. In addition tJharkhand in 2014, altogether there are needs of approximately 8000 familiesVLSC’s have now reached the sum of Rs. 1, 01,650 in Jharkhand income of 28 entrepreneurs by Rs. 300 per month.schemes of public interest, spread social innovations, bridge information barrier with respect to good agriculture practices, current of Entrepreneurship (I-USE) we have

This two-way services (procurement and retail) facility increases the viability of the VLSC’s resulting also in increased incomes for entrepreneurs. Second, it helps in poverty alleviation as producers get more margins for commodities sold, better prices agricultural and NTFP products that they purchase for their needs as well as availability of better-value services closer to home.

On an average it has taken only reach the break even. 70 catchment (size generally varies between 80100 households in each village)facility at their door step andcatchment is benefitting through aggregationand collective marketing practices for all the rural products (both Agri. & NTFP).

The specific impact has been the following: producers’ income has gone up by 10resulting in total additional Rs. 5000/year (increased margins of Rs. 2kg of commodity sold to the VLSC, significant savings on transportation; gainwages as a result of access to a VLSC); (from service fees for primary levcommission on primary healthcare servicesThere is also a demand for VLSC and women aestablished systems and benchmarked prices

Entrepreneurship and VLSC are not only benefiting one woman but 220 SHG’s in total(with an average no. of 12 members in each)the economic gains with cash availability have motivated women producers to form cooperatives for further value addition in lac. are running in Jharkhand.

The freedom to decide the services and products required in their catchment villages gives women entrepreneurs decisionskill and autonomy leading to empowerment of women entrepreneurs are evident through the commitment to remain in the business and grow it. However, there were also VLSC’s which closed due to shift of control from the entrepreneur to the fsome that closed due to lack of confidence and capacity of the women to run it.

Impact and Outreach

This intervention has shown multifaceted impact in promoting sustainable livelihood addition to 50 VLSC’s in 2013, another 35 VLSC’s were added in

Jharkhand in 2014, altogether there are 85 village level service centers000 families of their respective areas Solar Products sold through

ow reached the sum of Rs. 1, 01,650 in Jharkhand increasing the average income of 28 entrepreneurs by Rs. 300 per month. The chain can be used to promote schemes of public interest, spread social innovations, bridge information barrier with respect to good agriculture practices, current mandi prices etc. At the Intel

USE) we have trained 110 women entrepreneurs.

way services (procurement and retail) facility increases the viability of the VLSC’s resulting also in increased incomes for entrepreneurs. Second, it helps in poverty alleviation as producers get more margins for commodities sold, better prices and quality for processed agricultural and NTFP products that they purchase for their needs as well as availability of

value services closer to home.

only 6-9 months to 70 – 90% of the

e generally varies between 80-in each village) have got retail

lity at their door step and 40 – 50% of the through aggregation

and collective marketing practices for all the al products (both Agri. & NTFP).

The specific impact has been the following: producers’ income has gone up by 10-15%

additional benefit of about (increased margins of Rs. 2-3 per

kg of commodity sold to the VLSC, significant savings on transportation; gainwages as a result of access to a VLSC); and entrepreneur’s income has gone up by 35

primary level processing of commodities, commission on retailcommission on primary healthcare services provision for a for-profit social enterprise).

a demand for VLSC and women are willing to pay for training. ished systems and benchmarked prices against prevailing rates that they check daily.

are not only benefiting one woman but 220 SHG’s in total(with an average no. of 12 members in each). By the services provided by VLSC for Lac, and the economic gains with cash availability have motivated women producers to form co

value addition in lac. Currently, 5 value addition co

The freedom to decide the services and products required in their catchment villages gives women entrepreneurs decision-making power and confidence. The increased knowledge, skill and autonomy leading to empowerment of women entrepreneurs are evident through the commitment to remain in the business and grow it. However, there were also VLSC’s which closed due to shift of control from the entrepreneur to the family or relatives as well some that closed due to lack of confidence and capacity of the women to run it.

Page 9

This intervention has shown multifaceted impact in promoting sustainable livelihood VLSC’s were added in

village level service centers catering to the of their respective areas Solar Products sold through

increasing the average The chain can be used to promote

schemes of public interest, spread social innovations, bridge information barrier with Intel-Udyogini School

way services (procurement and retail) facility increases the viability of the VLSC’s resulting also in increased incomes for entrepreneurs. Second, it helps in poverty alleviation

and quality for processed agricultural and NTFP products that they purchase for their needs as well as availability of

kg of commodity sold to the VLSC, significant savings on transportation; gain of a day's gone up by 35-40%

commission on retail; profit social enterprise).

re willing to pay for training. VLSCs have also against prevailing rates that they check daily.

are not only benefiting one woman but 220 SHG’s in total By the services provided by VLSC for Lac, and

the economic gains with cash availability have motivated women producers to form co-tion co-operatives for Lac

The freedom to decide the services and products required in their catchment villages gives reased knowledge,

skill and autonomy leading to empowerment of women entrepreneurs are evident through the commitment to remain in the business and grow it. However, there were also VLSC’s

amily or relatives as well some that closed due to lack of confidence and capacity of the women to run it.

Some lost interest in this enterprise and could not retain their interest till breakthere were other microenterprises such as tent house that broke even faster and burdensome on the woman alone

Sustainability

Strengths: Division of Costs incurred by Trainees and Udyogini The potential trainee pays a fee for her training which means she sees value in it; she follows a business plan that she is able to and the scale is encouraging since most of the VLSC have achieved break-even point within a single year.

the actors involved in the value chain and identify the point of intervention a detailed Value Chain Analysis is done after which the product aeach product through VLSC.

Special Products and Retail: done to assess the demand as well as gaps in supplysocial enterprise is done to fill the gaps.

For example: In case of solar products after sales service was not available hence, a social enterprise was identified which could

Percentage of Cost Incurred in Training

By Entrepreneur

By Udyogini

Percentage of Capital Investment for establishing

enterprise

Maximum Loan Sanctioned by Rang-De

Minimum Initial Investment by Entrepreneur

Some lost interest in this enterprise and could not retain their interest till break-even since there were other microenterprises such as tent house that broke even faster and were not so burdensome on the woman alone.

Division of Costs incurred by Trainees and

The potential trainee pays a fee for her training which means she sees value in it; she follows a business plan that she is able to understand; and the scale is encouraging since most of the

even point within a

Procedure for selection of products

For NTFP and agricultural products:chains are increasingly recognized as a means to reduce the rural poverty prevalent in the region, interventions are based on well-considered needs of the value chain and its participants, rather than a “solution looking for a value chain”.

A rapid assessment of all the products collected or harvested in the area is followed by a desk review to shortlist the key products

the actors involved in the value chain and identify the point of intervention a detailed Value Chain Analysis is done after which the product and process of intervention is finalized for

Needs assessment at both the consumer and market level is done to assess the demand as well as gaps in supply and careful selection of social enterprise is done to fill the gaps.

For example: In case of solar products after sales service was not available hence, a social e was identified which could fill this gap. The solar products sold through VLSC’s

By Entrepreneur

By Udyogini

Lakhimani Devi, from West Bengal started her VLSC in October, 2010 and achieved Break2011. Her husband, being a government emPara-teacher insisted that VLSC providesmeals to schools. Due to irregular payment and recovery system the VLSC incurred lossconsecutive quarters. Udyoginiagency, intervened to provide Lakhimani Devi and suggested to stop the loss incurring deal with school. However, herstrongly disagreed and Lakhimani from the scene. The husbandVLSC and decided to change the products that were its earlier identity and ensured viability. Heprovided only ration for meals to schoolsVLSC. His plan was to maintain the connection with the school so that the money invested quickly. However, it failed. Avillage established a shop the VLSC earlier had provided thus filling the gap the VLSC had created. This competition prevented Lakhmani from reestablishing her VLSC that had been so successful earlier. Such cases of shift of control as well. Hence, a training moduleModule has been developed to be integrated with the enterprise management curriculumtrain women (and men) to understanding and combating socioconditions that constrain growth of

Percentage of Capital Investment for establishing

Maximum Loan Sanctioned by

De

Minimum

Investment by Entrepreneur

Page 10

Procedure for selection of products & services

For NTFP and agricultural products: Although Value recognized as a means to

reduce the rural poverty prevalent in the region, considered needs of

the value chain and its participants, rather than a “solution looking for a value chain”.

A rapid assessment of all the products either collected or harvested in the area is followed by a

to shortlist the key products. To analyze the actors involved in the value chain and identify the point of intervention a detailed Value

nd process of intervention is finalized for

assessment at both the consumer and market level is and careful selection of a vendor and

For example: In case of solar products after sales service was not available hence, a social fill this gap. The solar products sold through VLSC’s

Lakhimani Devi, from West Bengal started her VLSC in October, 2010 and achieved Break-Even Point in July, 2011. Her husband, being a government employed

insisted that VLSC provides ration for . Due to irregular payment and

ry system the VLSC incurred loss in three consecutive quarters. Udyogini, as a facilitating

intervened to provide a second loan to Lakhimani Devi and suggested to stop the loss

g deal with school. However, her husband Lakhimani gradually withdrew

The husband took control over the change the products that were its

and ensured viability. He instead ration for meals to schools through his

. His plan was to maintain the connection with the that the money invested gets recovered

quickly. However, it failed. Another person from the to provide the products that

the VLSC earlier had provided thus filling the gap the VLSC had created. This competition prevented Lakhmani from reestablishing her VLSC that had been

control occurred in other cases training module-Gender Justice developed to be integrated with the

curriculum under I-USE to train women (and men) to build their capacity for

combating socio-patriarchal conditions that constrain growth of enterprises.

are both guarantee and warranty products. The rural customers get the products serviced/replaced in case of any damage at their doorstep. Incentives have been institutionalized. It is done by trained Business Development Service Providers (BDSP’s)are trained by the Social Enterprise agency.cadre of women has been trained to repair and provide servicing to the solar products in case of any damage so that the product is easier to use for the villagers and not a expensive commodity with no scope for repair/replacement or travel cost is lost in making the trip to town for repair.

Services: Apart from providing information about government schemes, VLSC’s have now been linked with a primary healthcare service provider. The partnership has been facilitated by Udyogini in a revenue sharing model wherein an entrepreneur gets total value of subscription fees)months, VLSC Entrepreneurs with the support of the vendor and Udyogini staff have conducted awareness campaignsmeetings. The entrepreneur shares information for mobile campsthe users, collects subscription fees and takes necessary followhealthcare of her catchment. services to 50% people in her catchment15% of her income annually. Threats:

a) The traditional practice of barter may still prevail among producers who do not have ready cash for their purchases. This could hamper their participation in the value chain and continue the unfairness in the market. However, this is a small number at tnot expected to affect viability of the chain.

b) Side-selling of produce to the market by the producers can be an issue especially when market prices are high. Other market players try to influence the producers by offering short term benefits. This has resulted in breach of trust by some producers. However, increased participation of community has controlled the side selling. These cases may not be completely eliminated (and fortunately, this case of side selling happened early in the intervention) but with adequate volumes flowing through the chain (and the function of retail as well for the VLSC), the viability is unlikely to be affected even when such cases arise. Additionally, the fact that there are more VLSCs being established suggestsdemand for more fairly-priced shops in the village.

rranty products. The rural customers get the products serviced/replaced in case of any damage at their doorstep. Incentives have been institutionalized. It is done by trained Business Development Service Providers (BDSP’s). They

nterprise agency. A cadre of women has been trained to repair and provide servicing to the solar products in case of any damage so that the product is easier to use for the villagers and not a expensive commodity with no scope for

vel cost is lost in making the trip to town for repair.

from providing information VLSC’s have now

been linked with a primary healthcare service . The partnership has been facilitated

nue sharing model wherein an entrepreneur gets 7.5% (on the total value of subscription fees). In only 4

VLSC Entrepreneurs with the support Udyogini staff have

campaigns regarding primary healthcare in Gram Sabha and SHG shares information for mobile camps with villagers

subscription fees and takes necessary follow-up actions to ensure the Currently, we have been able to provide primary healthcare

people in her catchment through which an entrepreneur has

a) The traditional practice of barter may still prevail among producers who do not have ready cash for their purchases. This could hamper their participation in the value chain and continue the unfairness in the market. However, this is a small number at tnot expected to affect viability of the chain.

selling of produce to the market by the producers can be an issue especially when market prices are high. Other market players try to influence the producers by offering short

its. This has resulted in breach of trust by some producers. However, increased participation of community has controlled the side selling. These cases may not be completely eliminated (and fortunately, this case of side selling happened early in the

vention) but with adequate volumes flowing through the chain (and the function of retail as well for the VLSC), the viability is unlikely to be affected even when such cases arise. Additionally, the fact that there are more VLSCs being established suggests

priced shops in the village.

Criteria for selection of women (as potential trainees for Ipotential entrepreneur for VLSC) Should have a zeal to work Minimum 5th standard pass Should be able to invest around

25% of the capital requirement Should be able to pay training fee Already has or can garner family

support Already has or will overcome

mobility issues Should understand the concept

VLSC Already has or can build

acceptance in community In selection test and post

evaluation shows knowledge growth

Page 11

Sabha and SHG with villagers, registers

up actions to ensure the primary healthcare

through which an entrepreneur has increased 10-

a) The traditional practice of barter may still prevail among producers who do not have ready cash for their purchases. This could hamper their participation in the value chain and continue the unfairness in the market. However, this is a small number at the moment and

selling of produce to the market by the producers can be an issue especially when market prices are high. Other market players try to influence the producers by offering short

its. This has resulted in breach of trust by some producers. However, increased participation of community has controlled the side selling. These cases may not be completely eliminated (and fortunately, this case of side selling happened early in the

vention) but with adequate volumes flowing through the chain (and the function of retail as well for the VLSC), the viability is unlikely to be affected even when such cases arise. Additionally, the fact that there are more VLSCs being established suggests an expanded

Criteria for selection of women (as potential trainees for I-USE and potential entrepreneur for VLSC)

e a zeal to work Minimum 5th standard pass Should be able to invest around 25% of the capital requirement Should be able to pay training fee Already has or can garner family

Already has or will overcome mobility issues Should understand the concept of

Already has or can build acceptance in community In selection test and post-training evaluation shows knowledge

c) Programmatically a decentralized democratic process to select the potential entrepreneur from few volunteers at the village level through SHG and Gram Sabha meeting is employed. This curbsreplication in the village itself by any other inhabitant.

V. Replicability

Anchor commodity

The VLSCs were established as part of the structure for aggregation and value addition in the value chain for lac that Udyogini was promoting in Jharkhand. Udyogini identified brood lac (seed of lac) as the critical gap in the sustainability and growth of lac as a livelihood for NTFP-dependent communities in the tribal areas of Jharkhand. Though other NGOs had been involved in lac work over two decadthe success of Udyogini in lac can be primarily attributed to the following factors; the innovations even in PSCL applications (some of it Udyogini’s own), involvement of women (who do not migrate and are available to manage the host trees) and the crebrood lac development clusters (that not only augmented the requirement of brood but was also the giving the highest return on investment as a product). Once the brood development technology and sustainable practices had been implemented, an aggrerequired to market the volumes in an organized way and realize the fair returns for brood (given its high price) to the lac producer. VLSCs were thus established and further supported the marketing of value added plac, VLSC’s also aggregate vegetables.

Role of NGO as facilitator and not owner of the chain

VLSCs were supported for their direct costs by selected entrepreneursfunds and also being supported by Rang De, a social venture firm based in Chennai. Udyogini bundled the financial support on behalf of Rang De. The startwas small (Rs. 10,000) and, since women who opted tVLSCs were also successful lac producers, they had the capital to contribute their share of the startup funds. Udyogini had learnt from its work on VLSCs in Madhya Pradesh (MP) where they were established earlier where Rangwas high as VLSCs were established without having a core commodity travelling through it and the diverse number of small volume NTFP commodities that were aggregated and value added were not adequate to ensure suearly on with the intention to spread the risk with Udyogini creating its own retail supply

c) Programmatically a decentralized democratic process to select the potential entrepreneur from few volunteers at the village level through SHG and Gram Sabha meeting is employed. This curbs the issues of replication in the village itself by any other

The VLSCs were established as part of the structure for aggregation and value addition in the value chain for lac that Udyogini was

arkhand. Udyogini identified brood lac (seed of lac) as the critical gap in the sustainability and growth of lac as a livelihood

dependent communities in the tribal areas of Jharkhand. Though other NGOs had been involved in lac work over two decades, the success of Udyogini in lac can be primarily attributed to the following factors; the innovations even in PSCL applications (some of it Udyogini’s own), involvement of women (who do not migrate and are available to manage the host trees) and the creation of brood lac development clusters (that not only augmented the requirement of brood but was also the giving the highest return on investment as a product). Once the brood development technology and sustainable practices had been implemented, an aggregation, grading and sorting mechanism was required to market the volumes in an organized way and realize the fair returns for brood (given its high price) to the lac producer. VLSCs were thus established and further supported the marketing of value added products of scrap lac and soon, button lac as well.

vegetables.

Role of NGO as facilitator and not owner of the chain

VLSCs were supported for their direct costs by selected entrepreneurs putting in their own funds and also being supported by Rang De, a social venture firm based in Chennai. Udyogini bundled the financial support on behalf of Rang De. The start-up operation costs for VLSCs was small (Rs. 10,000) and, since women who opted to own and manage the first round VLSCs were also successful lac producers, they had the capital to contribute their share of the startup funds. Udyogini had learnt from its work on VLSCs in Madhya Pradesh (MP) where they were established earlier where Rang De provided the loan as well, but the risk was high as VLSCs were established without having a core commodity travelling through it and the diverse number of small volume NTFP commodities that were aggregated and value added were not adequate to ensure sustainable returns to producers. Retail was added early on with the intention to spread the risk with Udyogini creating its own retail supply

The following were the main interventions with lac producers: widening and intensifying the reach of the new climate-resistant package of scientific cultivation of lac (PSCL) developed by the Indian Institute of Natural Resins and Gums (IINRG) to train lac producers, especially women; creation of brood-lac development clusters for augmenting the availability of brood lac in the areas and meticulous monitoring of PSCL applications for ensuring results; creation of producer cooperatives for receiving government support for brood lac subsidies and lac promotion from government; and training and deployment of women as lac business development service provfor proliferation of PSCL among new producers enabled Udyogini to dramatically improve lac production (with adequate brood availability) among more than 5000 women producers in a short span of 4 seasons. Even in the the worst case scenario, women rectimes return on investment but most on average received 5 times the return on investment with a few getting even 15 times).

Page 12

augmented the requirement of brood but was also the giving the highest return on investment as a product). Once the brood development technology and sustainable

gation, grading and sorting mechanism was required to market the volumes in an organized way and realize the fair returns for brood (given its high price) to the lac producer. VLSCs were thus established and further supported

roducts of scrap lac and soon, button lac as well. Apart from

putting in their own funds and also being supported by Rang De, a social venture firm based in Chennai. Udyogini

up operation costs for VLSCs o own and manage the first round

VLSCs were also successful lac producers, they had the capital to contribute their share of the startup funds. Udyogini had learnt from its work on VLSCs in Madhya Pradesh (MP)

De provided the loan as well, but the risk was high as VLSCs were established without having a core commodity travelling through it and the diverse number of small volume NTFP commodities that were aggregated and value

stainable returns to producers. Retail was added early on with the intention to spread the risk with Udyogini creating its own retail supply

The following were the main interventions with lac producers: widening and intensifying the reach of

resistant package of cultivation of lac (PSCL)

developed by the Indian Institute of Natural Resins and Gums (IINRG) to train lac producers, especially women;

lac development clusters for augmenting the availability of brood lac in the areas and meticulous

nitoring of PSCL applications for ensuring results; creation of producer cooperatives for receiving government support for brood lac subsidies and lac promotion from government; and training and deployment of women as lac business development service providers for proliferation of PSCL among new producers enabled Udyogini to dramatically improve lac production (with adequate brood availability) among more than 5000 women producers in a short span of 4 seasons. Even in the the worst case scenario, women received 3 times return on investment but most on average received 5 times the return on investment with a few getting even 15

chain at the cluster level to supply (mainly FMCG) products to VLSCs but without a successful income source for prolimitations of consumer and producer support, reducing their viability and sustainability.

VI. Way Ahead

A model is being explored wheretogether in a formal institution to provide leadership and support to the expansion of the idea and strategy in Jharkhand and other states. When this happens, it will be a gamechanging assertion of empowerment through aggregation and entrepreneurwomen like Saraswati, Kokila, were earlier engulfed in drudgery and hopelessness but who can now proudly state the benefits of a VLSC.

chain at the cluster level to supply (mainly FMCG) products to VLSCs but without a successful income source for producers that could be additionally provided, the VLSCs faced limitations of consumer and producer support, reducing their viability and sustainability.

model is being explored where a critical mass of women-owned VLSC’s exist together in a formal institution to provide leadership and support to the expansion of the idea and strategy in Jharkhand and other states. When this happens, it will be a gamechanging assertion of empowerment through aggregation and entrepreneur

, Rita, Parmeshwari, Savita, Mary, Lakhpati and were earlier engulfed in drudgery and hopelessness but who can now proudly state the

Page 13

chain at the cluster level to supply (mainly FMCG) products to VLSCs but without a ducers that could be additionally provided, the VLSCs faced

limitations of consumer and producer support, reducing their viability and sustainability.

exist can come together in a formal institution to provide leadership and support to the expansion of the idea and strategy in Jharkhand and other states. When this happens, it will be a game-changing assertion of empowerment through aggregation and entrepreneurship from rural

and Amrita who were earlier engulfed in drudgery and hopelessness but who can now proudly state the

Annexure 1

Table 1: BEFORE UDYOGINI’s INTER

in the year 2009-10

Sl.

No.

Product Approximate number of producers / collectors

1 Lac (Kusumi – brood)

5500

2 Lac (Kusumi – scraped)

2500

3 Lac (Rangeeni- brood)

1200

4 Lac (Rangeeni - scraped)

650

5 Paddy 1000

6 Mahua 1200

7 Tamarind 350-400

8 Ber 300

9 Potato 250

10 Tomato 150

11 Urad 85

12 Arhar 125

13 Maduwa 550

NI’s INTERVENTION: Sales of various agriculture and NTFP produce

Approximate Approximate value sold individually to intermediary

Primary value addition

Margin per kg at producer level( in Rs)

6-8 None 1-2

6-8 None 0.5-1

5-7 None 0.5-1

5-7 None 0.5-1

12-15 None 0.5-1

14-16 None 0.5-1

4-6 None 0.5

4-6 None 0.5-1

3-5 None 0.5-1

2-4 None 0.5-1

3-5 None 1

3-5 None 1

5-7 None 1

Page 14

various agriculture and NTFP produce

Market linkage

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Middlemen (Agent or Haat level trader)

Table 2: AFTER UDYOGINI’s INTERVENTION

and NTFP produce in the year 2013

Sl.

No.

Product Approximate number of producers / collectors covered by one VLSC

1 Lac (Kusumi – brood)

50

2 Lac (Kusumi – scraped)

50

3 Lac (Rangeeni- brood)

50

4 Lac (Rangeeni - scraped)

50

5 Paddy 50

6 Mahua 50

7 Tamarind 20

8 Ber 20

9 Potato 25

10 Tomato 25

11 Urad 30

12 Arhar 25

13 Maduwa 40

AFTER UDYOGINI’s INTERVENTION: Sales post value-addition of various agriculture

and NTFP produce in the year 2013-14

Approximate number of producers / collectors covered by one VLSC

Approximate value aggregated in kg per VLSC

Primary value addition

Increase in margin per kg atproducer level( in Rs)

400-500 None 5-7

750 - 1000 None 2-3

300 - 450 None 2

250-350 None 1-2

1200-1500 Thrashing 2-3

500-600 Sun drying 2

75-100 Removal of upper layer

0.5 -

50-100 Sun dry 1-2

200 None 1 - 2

200 None 1-2

150-200 Removal of cover through trashing

2-3

150-200 none 2-3

100-150 none 2-3

Page 15

of various agriculture

Increase in margin per kg at producer level( in

Market linkage

Local and outside Jharkhand

Local

Local

Local

Local and west Bengal

Ambikapur

1 Local

West Bengal

Local

Local

Local

Local

Odissa and Local