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

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Presentation on theme: "Society for Elimination of Rural Poverty Department of Rural Development Govt. of Andhra Pradesh, India Indira Kranthi Patham."— Presentation transcript:

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

2 E ach 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

3 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

4 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 project A.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 V.O 150- 200 MMS 4000 6000 - Z S 200,000 400,000 Village Organization Mandal Samakhya Zilla Samakhya SELF HELP GROUPS

5 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

6 Key Livelihood Activities 1)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

7 MAKING MARKETS WORK FOR THE POOR Marketing Interventions by Women Self Help Groups

8 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.

9 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.

10 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

11 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.)

12 Key Commodities 1.Paddy 2. Maize 3.Redgram 4.Soya 5.Neem 6.Medicinal Plants



15 SHG Federations Out 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 members income.

16 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.

17 Case Study on Paddy S. No.2006 (Market)2007 (VO) 1Quantity Sold20 Qtls.50 Qtls. 2RateRs.530 PQRs.650 PQ 3Distance to Sale Point30 Kms2 Kms 4TransportationRs.300Rs.100 5PaymentAfter 15 daysWithin 7 days 6Farmer Bus fareRs.30Nil 7Time factorOne night HaltReturn on same day 8Wage LossOne day ( on second visit)No wage loss Direct 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

18 Case Study on Maize Name of the farmer – Shri L. Venkatareddy Village – Komera District – Karimnagar. S. No. 2004 (Market)2005 (VO)Difference 1Quantity Sold80 Qtls.128 Qtls. 2Sold AtMarket yard at Jammikunta, 30 Kms from VO VO 3Sale PriceRs.480 PQRs.540 PQ 4Sale ValueRs.38400/- (80 X 480)Rs.69,120/- (128 X 540) 5Price Difference--Rs.60 PQ 6Overall Price Difference--128X60= Rs.7680/- Expenses for 10 Qtls. 7Transportation ChargesRs.150/-Rs.70/-Rs.80 8HamaliRs.100/- - 9Cash DeductionRs.85/-NilRs.85/- 10Food ExpensesRs.15/-NilRs.15/- 11Busfare to and FroRs.20/-NilRs.20/- Rs. 370/-Rs.170/-Rs.200 Direct 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.

19 Case Study on Chillies S. No.2006 (Market)2007 (VO) 1Quantity Sold40 Qtls.50 Qtls. 2RateRs.5100 PQRs.5380 PQ 3Distance to Sale Point 40 Kms- 4TransportationRs.60/- PQRs.50/- PQ 5PaymentAfter 15 daysWithin 4 days 6Farmer Bus fareRs.14Nil 7Time factor2 dayssame day 8Wage Loss1 day (on second visit) No wage loss 9Cost of BagsRs.45/-Nil 10Cash 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

20 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.

21 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

22 Goal: A.P – Free from hunger and poverty


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