Dairying as Livelihood Activity among SHGs - An overview. Dr. K. Natchimuthu RAGACOVAS, Puducherry.

Transcription

1 Dairying as Livelihood Activity among SHGs - An overview Dr. K. Natchimuthu RAGACOVAS, Puducherry.

2 Introduction Organised but unregistered groups involved primarily in savings and credit. Neighbourhood groups (NHG) -Kerala Boond Bachat Sangh - Uttar Pradesh Self-help Affinity Groups (SAG) - Karnataka, Kalanjiams -Tamilnadu etc.(rural.nic.in). Accumulating Savings and Credit Associations (ASCAs) found in other countries (Bowman (1995),

3 Introduction. SHGs have changed the lives of poor women, (empowerment, incomes & self-esteem). In recent years, counter-arguments have also been advanced, (Kay, 2003). In general SHGs could not reach a level of enterprise growth which can lift them above poverty (World bank, 1997)

4 SHGs formed with a three pronged approaches Micro-finance Empowerment Sustainable IGA

5 History of Microfinance Started in 1976 by Dr. Muhammad Yunus (Grameen Bank in Bangladesh) In the 1980`s and 90`s Microfinance spread throughout the world. In India-SHG bank linkage started as a pilot project in 1992 with 500 SHGs As on March 2008, 3,477, 965 SHGs were credit linked with bank.

6 Why people join SHGs Easy access to Micro credit facility SHG is the choice source for availing loan When the loan amount required is huge To avail subsidies and benefits of development programmes.

7 Preferred IGAs of WSHGs Bottle necks to non-farming activities Little knowledge of better opportunities Lack of confidence in dealing with officials Majority not taken any IGA Farming activities particularly livestock rearing Typically feminine showing low investmentlow risk-low return cycle

8 Why SHG members prefer LS rearing? Landless poor wants to move away from the status of labour. Does not require complex management skills Lone occupation gives income from day one. Fits very well in the frame of rural economic activity (women, inputs & market) Receives supports of Govt. through programmes Any time animal can be disposed.

9 Why SHG members discontinue LS rearing? Cows purchased are not good quality. High cost in purchase of cow malpractices. Expected and actual milk yield differs lot. Poor knowledge & skill on management Repeat breeding- economic loss- disposal. Disposal of animal is very easy. Wrong selection of beneficiaries.

10 Impact of LS rearing as livelihood SHGs Less impact on household income, expenditure on food and savings. Majority have created assets Substantial impact on children s education, health. High impact on SHG functional & financial sustainability Increase in self esteem, leadership development, risk bearing ability & decision making power among rural women

11 Impact of dairying as livelihood activity of SHGs Other side Increases accessibility to credit. Freedom to utilize the credit (house hold) Increase in debt level of members (Rs. 1,167 to 38,012-Usharani,2007) (Rs,19,379 to 45,960- NABARD, 2008)

12 Credit availed by WSHGs from different sources Sl. No Credit sources No. of respnts Interest rate ( % ) Amt of loan (Rs.) Mean loan amt (Rs.) 1. Banks ,92,600 30, SHG ,33,670 23, Peer group ,79,850 29, Money lender ,31,750 3, Pawn shop ,58,500 19, Neighbours / friends 7. Regd Finance company ,38,000 25, ,89,000 42, Other SHGs ,00,000 18,182

13 Stakeholder Analysis Members of WSHG Advantages Access to credit at low interest Come out of money lender s clutches Better social awareness Improved decision making Better standard of living Limitations Lack of training on IGAs. Lack of promoter s participation. Inability to take up larger issues like livelihood promotion. More debts than before Within the group rich exploits the poor

14 Stakeholder Analysis SHG Promoters Advantages Easy to achieve target in Social and rural Development Easy to approach and organize the programme Limitations Lack of adequate man power. Limited capacity of promoter agencies Limitation in providing capacity building & other necessary inputs at a desired scale.

15 Stakeholder Analysis Micro-finance Bankers Advantages Limitations Increased volume of business. Target achievement in lending to rural development. Easy repayment of loans as the interest is lower than others loan recovery is easy from the defaulters through group pressure. Diversion of loan to unproductive activities. Inability to understand and accommodate the needs of the SHGs. Bank is more concerned about repayment than livelihood promotion.

16 Stakeholder Analysis Advantages Money Lenders Scope for investing in other avenues. Political leaders Easy to interact with mass through their leaders Leadership development Limitations Money Lenders Losing business in rural area Political leaders Withdrawing input &services may lead to termination of the programme. New leaders are emerging through SHG organizations

17 Stakeholder Analysis Society Advantages Good for rich (better off) Limitations Bad for the poor. Transfer of ownership in livestock rearing may lead to high mortality and or morbidity.

18 Challenges Spread of SHGs across the country is uneven. How to bring all poor into the SHG fold? Better off takes the lion s share of the group benefit No transparency in financial handling- no auditing. How to bring out change without change in policy that needed to increase access to resource

19 Conclusions Livestock rearing is preferred IGA but it is discontinued by many. Rural women neither know other options nor accept them as IGAs. Majority use loan for internal lending, or unproductive purposes. Studies on sustainability of IGAs are lacking. Success reported on entrepreneurial activities but not on LS rearing livelihood activity.

20 Conclusions No agency realizes that knowledge & skill are required for livestock rearing. Community/ co-operative animal rearing is not successful. Market for the product of IGA is must. In general Capacity of the group is very low.

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