MTS I_ Final Report_SRM

Promotion of Small and Medium Enterprises through Microfinance
in Tribal areas of Udaipur District, Rajasthan
Authors
Astha Bajpai
Vikas Rana
Host Organization
CEE (Centre for Environment Education)
Ahmedabad
Faculty Guide
Prof. Bikash Ranjan Dash
“A REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF
THE REQUIREMENTS FOR MASTERS IN RURAL
MANAGEMENT.”
School of Rural Management
Kalinga Institute of Industrial Technology (KIIT) University
Bhubaneswar, Orissa, India.
September 2009
Management Traineeship Segment (MTS) I

SCHOOL OF RURAL MANAGEMENT, KIIT UNIVERSITY
Bhubaneswar
The MTS Report of
Astha Bajpai and Vikas Rana
Candidates for the degree of MBA Rural Management
Is hereby APPROVED
Prof. Bikash Ranjan Dash
September 16, 2009

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Executive Summary
The title of the project is Promotion of Small and Medium Enterprises through Microfinance.
The Host Organization is Centre for Environment Education (CEE), Ahmedabad. CEE is the
nodal agency for the current project funded by RMoL (Rajasthan Mission on Livelihoods); a
government organization with the grassroots partner NGOs, namely, Kotra Adivasi Sansthan
(KAS), Sangam Sansthan, Sahyog Sansthan and Prayatan Samiti respectively. It is a live
project i.e. it is in the implementation phase. Our Reporting officer is Mr. Pramod Sharma;
Project Coordinator, CEE West, Ahmedabad under whose guidance we (Astha Bajpai and
Vikas Rana) completed our Management Traineeship Segment (MTS)- I from 11th
June’09 to
15th
August’09.
The objectives of the project are to assess the status of the NGOs under which the project is
being carried out and to understand the status of SHGs and FTTGs (Farmer’s Technology
Testing Groups), their contribution and the role they can play in developing rural enterprises
and to identify the potential enterprises that can be possible in the area of treatment and their
economic analysis. First of all we have stratified/ divide all the SHGs into different groups
based on their year of formation. The classification was done so that every member of the
population is found in one and only one stratum. After that, separate random samples are
drawn from each stratum. The sample size was taken as 23 SHGs. The Partner Organizations
are having FTTGs groups formed under the GEF- Small Grants Programme of UNDP. Thus,
likewise SHGs, to study the status of these FTTGs is of the essence of the current project.
The methodology of the study remains the same except the status is analyzed in terms of their
livelihood opportunities, agricultural scenario, livestock, rate of migration, annual income
etc. Therefore, to analyze their current status the questionnaire for the field survey was re-
structured according to the FTTGs and tried out beforehand and necessary rectifications were
incorporated after pre-testing in the field. The sample was taken as 47 individual farmers.
Primary data are collected with the help of a structured questionnaire. The informal group
discussions and case studies were also the main source of primary data collection. This gave
us the opportunity to think in this direction and analyze the situation. The secondary data
were provided by the organization. They have provided the list of interventions in that area
and also the beneficiaries in the villages. The other source of secondary data is the reports of
the projects undertaken by both the NGOs.

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The formation of SHGs was basically project oriented. There is lack of operational
effectiveness in terms of capacity, governance and patronage cohesiveness among groups. In
the absence of monitoring by the organization, the lack of faith on each other among the
members of SHG was found out to be the major reason for the de-functioning of the SHGs.
There is noticeable vision at apex level but it has not been disseminated throughout the
hierarchy of partner Organizations. The initiatives from the community are lacking and there
is dependence on organization for support. There are experiences of enterprises at individual
level but inter and intra group sharing of experiences needs to be strengthened. The groups
seem to be weak in terms of Network, liaison and coordination. Agriculture is totally
subsistence and practices are traditional. The yield per unit area is very low. With limited
land resources, too much dependence of work-force on agriculture makes the returns non-
remunerative. The tribal belt is basically a cattle dominant area with non-descript cattle
specially to meet the animal power requirement for farm operations. It is a goat belt also due
to grazing potential and low capital requirement. There is huge potential of farm based
enterprises like Jatropha, Custard Apple and Kakdi (Cucurbitaceous crop) etc. The other
potential enterprises seem to be poultry and goat husbandry, which are replicable also
throughout the tribal dominated Southern Rajasthan region. We have done the Cost Volume
Profit (CVP) Analysis of above mentioned three major enterprises to examine the behavior of
total revenues, total costs and operating income as changes occur in the output level, the
selling price and the variable cost per unit or the fixed costs of a particular enterprise. Break
Even Point (Total Revenue=Total Costs) was calculated for each enterprise.
Though Promotion of Small and Medium enterprises (PSME) is new to Partner grassroots
organizations, they need capacity building but if they will follow the strategies sincerely then
some successful model for the micro enterprise can be created. The grassroots NGOs needs
hand holding support from the professional organizations like CEE for capacity building and
proper implementation of the strategies formulated. Since not much accountable work has
been done in the work area of the grassroots organizations on PSME, it should be taken as an
opportunity. Through proper implementation of the strategies and experiments, a successful
model can be developed. Moreover, being in the vicinity of the Udaipur, they get a developed
market nearby. This increases the scope of the development of the Enterprises.

iii
Acknowledgements
We are grateful to the School of Rural Management (SRM) for having provided us the
opportunity to take up this project in the Management Traineeship Segment (MTS-1) which
provided us with a scope to work with an organization which is unique in itself.
We are deeply indebted to Prof. L.K.Vaswani; Director, SRM and SOM, whose stimulating
suggestions and encouragement helped us all the time. We are grateful to Prof. A.V.R.
Acharyulu for giving us his valuable time for discussions, providing his useful advices and
insights on the project topic. We take this opportunity to express our deep sense of gratitude
to our faculty guide Prof. Bikash Ranjan Dash; Professor, SRM for his valuable guidance
provided to us throughout our study.
We express our gratitude to our reporting officer Mr. Pramod Sharma; Project Coordinator,
Centre for Environment Education (CEE) West, Ahmedabad for giving us the precious
opportunity to work on this project. We extol our sincere gratitude for devoting the precious
time in providing us his painstaking guidance as well as his abiding inspiration all throughout
the project period to accomplish our work successfully.
Our sincere thanks to the officials of different partner grassroots NGOs for displaying keen
interest in our project and providing us all the valuable data and information without which
our project would not have taken the present shape.
Finally we are thankful to all the staff members of Centre for Environment Education (CEE)
and the grassroots NGOs namely, Kotra Adivasi Sansthan and Sangam Sansthan and for
their invaluable cooperation and support extended to us throughout our project period.
Astha Bajpai
Vikas Rana

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Table of Contents
Contents Page No.
1. Introduction 1
1.1. Micro-enterprise Scenario of the world 1
1.2. Micro-enterprise development scenario in India 2
1.3. Organization overview 2
1.4. Project overview 3
1.5. Objectives of the Study 6
2. Methodology 7
2.1. Research Design 7
2.1.1. Sample Design 7
2.1.1.1. Sampling method and Sample Size 7
2.1.1.2. Survey Design 8
2.1.1.3. Collection of Primary data 8
2.1.1.4. Collection of Secondary data 8
3. Literature Review 9
4. Findings and Discussions 12
4.1. Evaluation of Status of Partner grassroots NGOs 12
4.1.1. Status Analysis of Kotra Adivasi Sansthan (KAS) 12
4.1.1.1. Inferences out of the field survey 15
4.1.1.2. Status of Farmer’s Technology Testing Group 15
4.1.2. Status Analysis of Sangam Sansthan 17
4.1.2.1. Inferences out of the field survey 18
4.1.2.2. Status of Farmer’s Technology Testing Group 19
4.1.2.2.1. Inferences 19
4.2. Findings and Key Observations 22
4.3. Identification of potential Enterprises and the proposed Institutional Mechanism 25
4.3.1. Identifying the potential target group 26
4.3.2. Selection of the possible sector or the activity and the village 27
4.4. Analysis of Goat Rearing as a Sustainable Economic Enterprise for Tribal Families 29

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4.4.1. Background 29
4.4.2. Goat as a livelihood Option 29
4.4.3. Goat promotion for livelihood generation 30
4.4.4. About the Sirohi breed: Suitability 31
4.4.5. Economic Analysis of “Sirohi” Breed 32
4.4.6. Recommended Package 33
4.5. Analysis of Backyard Poultry as a Sustainable Economic Enterprise for Tribal Families 34
4.5.1. Poultry as a livelihood Option 35
4.5.2. Backyard Poultry for livelihood generation 35
4.5.3. About the Nirbheek breed 35
4.5.4. Economic Analysis of Backyard Poultry 37
4.5.5. Recommended Package 37
4.6. Analysis of Trading in Jatropha as a Sustainable Economic Enterprise for Tribal
Families 38
4.6.1. Jatropha as a livelihood Option 38
4.6.2. About the Jatropha Plant 39
4.6.3. About the Jatropha Oil and Biodiesel- Success Stories 39
4.6.4. Enterprise ideas for Community Benefit 40
4.6.5. Sustainability 42
4.6.6. Economic Analysis for 50 Quintals of Trading in Market at SHGs level 43
5. Conclusion 45
References 46
Appendices 47

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List of Tables
Table No. Title Page No.
Table 1 Distinguished analysis of the functional and defunct SHGs from
the sample size of Kotra Adivasi Sansthan (KAS)
15
Table 2 Landholding and irrigation scenario from the sample size of KAS 16
Table 3 Scenario for the use of Seeds, manures and chemical fertilizers
from the sample size of KAS
17
Table 4 Distinguished analysis of the functional and defunct SHGs from
the sample size of Sangam Sansthan
19
Table 5 Landholding and irrigation scenario from the sample size of
Sangam Sansthan
20
Table 6 Scenario for the use of Seeds, manures and chemical fertilizers
from the sample size of Sangam Sansthan
21
Table 7 Rates of important items in villages (Gogunda Block) 22
Table 8 Goat breeds in Western India and their Conformations. 30
Table 9 Performance of different genotypes of Poultry breeds in villages 36
Table 10 District wise progress of Jatropha Nursery Raising Till March
2009 in Rajasthan
40

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List of Figures
Figure No. Title Page No.
Figure 1 Phases of the Project 7
Figure 2 Scenario of livestock and poultry from the Sample size of
KAS
16
Figure 3 Average yield (in quintals/ bigha) of major crops grown in the
area (Kotra Block)
17
Figure 4 Scenario of the SHGs of Sangam Sansthan 18
Figure 5 Scenario of livestock and poultry from the Sample size of
Sangam Sansthan
20
Figure 6 Average yield (in quintals/ hectare) of major crops grown in
the area (Gogunda Block)
21
Figure 7 Market value (Rs./Kg) of the important crops of the area
(Gogunda Block)
22
Figure 8 Pattern of Expenditure in the Normal lifestyle of tribes in
Gogunda Block
25
Figure 9 Identifying the common strength 26
Figure 10 Capacity Vs Willingness Matrix 27
Figure 11 Proposed Institutional Mechanism 28
Figure 12 Jatropha Production Chain 41

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List of Abbreviations
CEE Centre for Environment Education
MSE Micro and Small Enterprises
RMoL Rajasthan Mission on Livelihoods
MSECDP Micro and Small Enterprises Cluster Development Programme
CFC’s Common Facility Centres
MoEF Ministry of Environment and Forests
PSME Promotion of small and medium enterprises
KAS Kotra Adivasi Sansthan
EF Enterprise Fund
VLOs Village Level Organizations
CBOs Community Based Organizations
EIC Enterprise Investment Committee
TAF Technical Assistance Fund
IGAs Income Generating Activities
NGOs Non Government Organizations
SHGs Self Help Groups
TSP Tribal Sub-Plan
GEF Global Environment Facility
SGP Small Grants Programme
FTTGs Farmer’s Technology Testing Groups
NREGS National Rural Employment Guarantee Scheme
FYM Farm Yard Manure
DAP Di-ammonium Phosphate
NRM Natural Resources Management
MPUAT Maharana Pratap University of Agriculture and Technology
FGDs Focused Group Discussions
CARI Central Avian Research Institute
NPK Nitrogen, Phosphorus, Potassium
MED Micro Enterprises Development

School of Rural Management, KIIT University.
Promotion of Small and Medium Enterprises through Micro‐finance

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1. Introduction
Rajasthan is 11% of the country's geographical area. It is situated in the northwestern part of
the Indian Union and lies between 23º30´ and 30º 11’ North latitude and 69º 29’ and 78º 17’
East longitude. It has only 9.5 % of total geographical area recorded as forest. The state is
girdled by Punjab and Haryana states in the north, Uttar Pradesh in the east, Madhya Pradesh
in the southeast and Gujarat in the southwest.
As part of the Management Traineeship Segment, the major persona was status analysis of
two partner NGOs and their respective SHGs as well as find out the potential enterprises
based on the available resources and potential of the people. A study of business analysis in
both financial and operational aspect of different opportunities was carried out to understand
the various perspectives for the initiatives undertaken by RMoL (Rajasthan Mission on
Livelihood). In order to identify challenges for the organization in current and future context
different concepts that were learnt in the classroom were utilized. The period of the study was
from the 1st of June to the 15th of August 2009.
1.1. Micro-enterprise Scenario of the world
“Worldwide, the micro and small enterprises (MSEs) have been accepted as the engine of
economic growth and for promoting equitable development. The MSEs constitute over 90%
of total enterprises in most of the economies and are credited with generating the highest
rates of employment growth and account for a major share of industrial production and
exports. In India too, the MSEs play a pivotal role in the overall industrial economy of the
country. It is estimated that in terms of value, the sector accounts for about 39% of the
manufacturing output and around 33% of the total export of the country. Further, in recent
years the MSE sector has consistently registered higher growth rate compared to the overall
industrial sector. The major advantage of the sector is its employment potential at low capital
cost. As per available statistics, this sector employs an estimated 31 million persons spread
over 12.8 million enterprises and the labour intensity in the MSE sector is estimated to be
almost 4 times higher than the large enterprises.” (MSME, 2009)


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1.2. Micro-enterprise development scenario in India
“The Micro and Small Enterprises Cluster Development Programme (MSECDP) is
implemented for holistic development of clusters of micro-enterprise. The programme
envisages measures for capacity building, skill development, technology up gradation of the
enterprises, improved credit delivery, marketing support, setting up of common facility
centers, etc., based on diagnostic studies carried out in consultation with cluster units and
their collectives and management of cluster-wide facilities by the cluster collectives. This is,
in fact, the flagship scheme of the Ministry of MSME and it attempts to cover (in phases) all
or most of the "Clusters of Micro & Small Enterprises" scattered throughout the country. It
aims at a focused programme of upgrading skills and technologies that exist in these clusters
through various stages, like proper diagnostic studies; interaction with the existing enterprises
(on the recommendations of the study); exposing the entrepreneurs/workers to better
products, processes & practices; upgrading the existing skills available that finally lead to the
creation of 'common facility centres' (CFCs) that these enterprises could utilize. These CFCs
can be in the form of processing facilities, finishing or packaging centres, tool rooms,
testing/certifying laboratories, training centres and so on. Till October 2007, the Ministry of
MSME has undertaken the development of over400 clusters of village, micro and small
enterprises; while 8 other Ministries and agencies of the federal government have also
undertaken similar interactions in about 800 more clusters. India has now acquired
considerable expertise in "Cluster Development Programme" and UNIDO as well as many
developing countries are eager to learn about the Indian success story.” (MSME, 2009).
1.3. Organization overview
Centre for Environment Education (CEE) was established in 1984 as a centre of
excellence in Environment Education, supported by the Ministry of Environment and Forests
(MoEF). It is affiliated to the Nehru foundation for development. CEE is a national institution
engaged in development and material to increase awareness about the environment and
sustainable development.
CEE’s head office is in Ahmedabad , Gujarat. In order to effectively reach out of various
parts of the country and facilitate programmes that are culturally sensitive and locally
relevant, establishing a presence in different parts of India has been recognized as essential.


3
Its Regional cells are situated at Ahmedabad, Banglore, Pune, Lucknow and Guwahati. CEE
has its international branches at Sydney, Colombo, Toronto.
CEE worked on 21 different thrust areas like Education for children, Education for youth,
Sustainable rural development, Water and sanitation, Waste management, Biodiversity
conservation, Eco-Tourism, Knowledge management for sustainable development, Disaster
Preparedness and Rehabilitation etc. The current project- Promotion of small and medium
enterprises (PSME) was under the thrust area of Sustainable Rural Development.
1.4. Project overview
Centre for Environment Education (CEE) is a nodal agency for the current project funded by
RMoL (Rajastham Mission on Livelihoods); a government organization with the grassroots
partner NGOs, namely, Kotra Adivasi Sansthan (KAS), Sangam Sansthan, Sahyog Sansthan
and Prayatan Samiti respectively. The strategy is to work with partners with which CEE has
long standing relationship of about 5-8 years. CEE has facilitated a number of programmes
directly and in partnership with other agencies for enterprise development. The current
project is Promotion of Small and medium enterprises through microfinance. For this, the
initial task is to create the profile of the partner grassroots NGOs and to assess the current
status of SHGs and the federation/VLOs (where ever it is initiated). KAS had already led up
the task of constituting its SHGs into a federated structure. The approach of the project is an
amalgamation of two systems;
i. A financial system comprising of an Enterprise Fund (EF) that provides working
capital credit to VLO members for investments in Enterprises.
ii. An institutional system that administers the fund and simultaneously provides
capacity building and information service support for the establishment of
entrepreneurs.
The Institutional Structure for management and implementation of the proposed project will
primarily consist of a three-tier system of the following with CEE, as a lead partner in the
project, coordinates the project:


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i. Grassroots NGOs/CBOs as local partners to facilitate community mobilization and
field coordination of the project activities.
ii. Local village level organizations (VLOs) federated from the existing SHGs of the
project areas of the grassroots NGOs.
iii. The Enterprise Investment Committee (EIC) comprising the members of VLOs,
NGOs and other stakeholders to manage the revolving fund for facilitating the
enterprises.
To fulfill the above mentioned needs and aspirations, the primary thing is to assess the
present conditions and status of the NGOs/CBOs as well as SHGs in terms of their socio-
economic conditions, livelihoods, scope of enterprises, linkages with banks and market,
capacity and empowerment etc.
Two funds will be created under the project. The details of the fund are as follows-
i. Enterprise Fund (EF)
The fund would be created as a revolving capital to provide financial assistance to
communities at individual and group level to start the enterprises. EIC will manage
the fund deposited in bank account of a nationalized bank. EIC will decide upon the
interest rate and management costs of managing the fund. The funds will be
sanctioned and disbursed based on norms and criterion set by the committee.
ii. Technical Assistance Fund
There is a greater need for training and technical assistance, in order to be able to
meet the credit needs of Enterprise and reduce the operating costs, increased revenue,
reduce risks and organizational adaptation. CEE seeks to achieve this through the
Technical Assistance Fund (TAF). The main advisory services include enterprise
planning, marketing, value addition, training in technical subject areas, financial
control and accounting, environmental indicators and monitoring programmes.
An important issue today is to create an environment of gender equality in the society to
make it more humanistic in terms of secularism and human rights for sharing nature’s bounty
in the development process. The efforts are, therefore, directed towards ensuring equality and
capacity building of the women, particularly in the rural areas where traditionally women


5
have been excluded from the mainstream societal and economic processes in spite of the fact
that they constitute one third of the natural labour force and a major contributor to the
survival of the family. It has almost become a phrase that ‘the poorer the family, the greater
its dependence on women’s income’. Despite the progress in several key indicators, a gender
analysis of most social and economic data demonstrates that women in India continue to be
relatively disadvantaged in matters of survivals, health, nutrition, literacy and productivity.
Most of rural women in India are unskilled, restricting them to low paid occupations and
subsequent exploitation at different levels in various forms. Women generally have no or less
control over land and other productive assets, which excluded them from access to
institutional credit and render them dependent on high-cost informal sources of credit to
secure capital for consumption and/or productive purposes. Although women are the main
providers of basic services in poor settlements, their key role remain largely unrecognized.
SHGs are now playing an important role in poverty alleviation in many countries across the
world. “SHGs are small informal associations created for the purpose of enabling members
to reap economic benefit out of mutual help, solidarity, and joint responsibility”. A growing
number of poor people, mostly women, have become the members of SHGs and are actively
engaged in saving and credit practices as well as in various activities of income generation,
natural resources management, literacy, child care and nutrition, etc.
SHGs of women are recognized as an effective tool for their empowerment in rural as well as
urban areas bringing them together from all spheres of life to fight for their rights. The access
to credit can be seen as the motivational factor behind the formation of SHGs and the bond
that sustains the groups over time. However, SHGs have a potential that goes beyond the
mere economics of loan management. Once an SHG has been formed, the credit link is
established and the meetings of the members are managed regularly, the group tends to take
on a much wider social role. More precisely the SHGs provide a forum in which people can
meet on a regular basis and discuss various issues or concerns that the members face in their
daily life. The overall objective of the study was to come out with the learning on the
processes and efforts required for developing SHGs into successful micro-enterprises, to
determine the variants to be adopted by SHGs for moving to entrepreneurial mode,
suggestion to overcome the problems and constraints attached with micro enterprises and
marketing etc, to elicit the support required by the SHGs from multiple sources for IGA
(Income Generating Activities) promotion and to assess the lacunas, gaps and needs to
support IGA based SHGs. The objectives of the present study were framed in consultation


6
with all relevant stakeholders and experts concerned with this sector and SHGs related
activities.
1.5. Objectives of the Study
i. To get exposure and understanding of the economic, cultural and social aspects of the
target population.
ii. To develop a holistic understanding of livelihoods and to get an insight on the lives of
the villagers through selected questions about their livelihood.
iii. To assess the status of the NGOs under which the project is being carried out and to
understand the status of SHGs, their contribution and the role they can play in
developing rural enterprises.
iv. To acquaint ourselves with the current agricultural scenario viz. cropping pattern,
income generated out of farming, no. of family members engaged in agricultural
activities etc.
v. To create a benchmark data on SHGs with respect to monthly savings, total savings
till date, Bank- Linkages if any, loans taken, repayment etc. and to know about the
present status of people in terms of capacity building and empowerment and also the
means (if any) like training, exposure visits, commodity trading within and in nearby
markets etc.
vi. To identify the potential enterprises that can be possible in the area and their
economic analysis.


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2. Methodology
Figure 1- Phases of the Project
Sample design admits sample collection, secondary data collection and deciding tools for
data collection. Field Work includes Focused Group Discussions, Survey through structured
questionnaire, general discussion and personnel interviews. Data analysis is done by using
statistical tools and MS Excel. Report writing is the final phase, before going for the final
report a draft report is drawn and re-checked.
2.1. Research Design
Kotra and Gogunda blocks of Udaipur District, Rajasthan were selected for the research. The
reason for the selection of Kotra is that, Kotra Adivasi Sansthan, one of the partners NGO is
operational in this area since 1998. Sangam Sansthan, other partner NGO for the project, is
situated in Gogunda block, operational in this area since 1999.
2.1.1. Sample Design
2.1.1.1. Sampling method and Sample Size
First of all we have stratified/ divide all the SHGs into different groups based on their year of
formation. The classification is done so that every member of the population is found in one
and only one stratum. After that, separate random samples are drawn from each stratum. The
sample size was taken as 11 SHGs from Kotra Adivasi Sansthan and 12 from Sangam
Sansthan .


8
2.1.1.2. Survey Design
In order to conduct a comprehensive and meaningful study the basic requirement is of
accurate and reliable data. In our study we have collected data from both primary as well as
secondary sources in order to meet the true purpose of our study.
2.1.1.3. Collection of Primary data
Primary data are collected with the help of a structured questionnaire. The questionnaire was
tested beforehand and necessary corrections were incorporated after pre-testing in the field.
The revised questionnaire was finalized then for survey. We have started approaching to the
SHGs with the help of Village level workers of respective NGOs. The organizations have
given us their references. The aim of survey and purpose of use of the questionnaire was
explained properly to these workers in detail before starting the survey. Focused group
discussions were conducted about some important facts, issues, before and present situation
of the beneficiaries etc. The informal group discussions and case studies were also the main
source of primary data collection. This gave us the opportunity to think in this direction and
analyze the situation. Important argument and information were ranked according to their
priority, check list were also used to facilitate the discussion. Some of the information was
collected about the general household conditions and their daily routine work also.
2.1.1.4. Collection of Secondary data
The secondary data were provided by the organization. They have provided the list of
interventions in that area and also the beneficiaries in the villages. The other source of
secondary data is the reports of the projects undertaken by both the NGOs.


9
3. Literature Review
Financial services play an important role in assisting the poor in managing their money and in
improving their economic status. It has not only created institutional mechanism, but also has
had targeted schemes that help the poor to come out of poverty. However, most of the efforts
have been supply-driven and have looked at the credit and not the savings need of the poor. It
is believed that poor know how to manage their flows (Rutherford 2000). They need money
in lumps and finding ways to meet such requirements is a challenge. Saving is nothing but the
choice of not consuming cash. We should look at the issue pertaining to saving and credit
together, to understand the needs of poor (Rutherford 2002).
The risks are temporary risks, permanent risks like life cycle risks, structural risks and crisis
risks. These risks disrupt the functioning of the household’s economic portfolio to such an
extent that the income required to fulfill basic needs can no longer be maintained. People ask
for more for safety and liquidity and less for returns in case of savings. The savings at home,
loans from moneylenders and emergency loans from SHGs are most frequently used in
overcoming crisis risks. Regular savings help in building large sums, are often useful in
dealing with such risks.
A good financial service enables the poor to manage money effectively and allows them to
use it when required in a quick, affordable and transparent manner. Ruthven and Kumar
(2000) argue that the success of the moneylenders, deposit collectors, pawnbrokers who reach
people where others fail, is in providing lump sums instantly, with no security and also
regular savings devices on a sufficiently small scale basis. There are many tricks that the
formal institutions need to learn from informal players if they want to widen their client base
to reach the poor. It was also found that poor give importance to security and liquidity aspect
of savings and not look for significant returns.
Throughout the world the enterprises run by SHGs has been growing since last three decades
period. In the developing world also the women’s enterprise is often referred to as ‘income
generation’ which describes the reasons behind activity. Income generation projects are now
being increasingly used as a major entry point for agencies and organizations concerned with
wider development.


10
Women Microenterprise springs largely from economic necessity. Indeed they have to be, in
order to survive. Women involved in microenterprises are largely concerned with survival for
their families and themselves rather than running a successful enterprise. Indeed, it is not
often that the word ‘business’ is used when discussing women’s enterprise. A more common
term is income generation, which describes exactly what these women are trying to do to
generate an income. Women doing microenterprise are in better position to serve their needs
as well as of their family.
Goldman Sachs recently cited Jatropha curcas as one of the best candidates for
future biodiesel production. However, despite its abundance and use as an oil
and reclamation plant, none of the Jatropha species have been properly domesticated and, as
a result, its productivity is variable, and the long-term impact of its large-scale use on soil
quality and the environment is unknown. Jatropha curcas seeds is used for making
biodiesel fuel, where it grows naturally. Likewise, jatropha oil is being promoted as an easily
grown biofuel crop in hundreds of projects throughout India and other developing
countries. The railway line between Mumbai and Delhi is planted withJatropha and the train
itself runs on 15-20% biodiesel. In Africa, cultivation of Jatropha is being promoted and it is
grown successfully in countries such as Mali. In the Gran Chaco of Paraguay, where also a
native variety (Jatropha matacensis) grows, studies have shown suitability of Jatropha
cultivation and agro producers are starting to consider planting in the region.
Estimates of Jatropha seed yield vary widely, due to a lack of research data, the
genetic diversity of the crop, the range of environments in which it is grown, and Jatropha's
perennial life cycle. Seed yields under cultivation can range from 1,500 to 2,000
kilograms per hectare, corresponding to extractable oil yields of 540 to 680 litres per
hectare. Time Magazine recently cited the potential for as much as 1,600 gallons of diesel
fuel per acre per year. Jatropha can also be intercropped with other cash crops such as
coffee, sugar, fruits and vegetables.
Small scale poultry production systems- either in the form of small semi or fully scavenging
household flocks or a slightly larger more intensive units have developed in a large number
of developing countries around the world as a source of livelihood support for the rural poor
In recent years there has been growing recognition among the development community of the
role of small scale commercial poultry production in accelerating the pace of poverty


11
reduction and reaching out to the poorest of the poor. There is also growing evidence to
demonstrate the role of small scale poultry in enhancing the food and nutrition security of the
poorest households and in the promotion of gender equality (Dolberg, 2004; Ahuja, 2004,
INFPD, http://www.fao.org./ag/AGAInfo/subjects/en/infpd/). At the same time, the market
and production context of poultry production has been changing rapidly over the last two
decades. Rapid economic growth and urbanization in developing countries has resulted in fast
expansion of industrial large scale, vertically integrated, poultry production units, especially
in Asia. Opportunities have also expanded for small scale poultry enterprises due to improved
market access infrastructure and a preference structure that might still favour free range birds
and eggs (Conroy, et al 2005).
Goat is a multifunctional animal and contributes largely to agrarian economy, especially in
the area where crop and dairy farming is not economical. Thus goat plays an important role in
livelihood of large proportion particularly small farmers, women, landless and marginal
farmers inhabiting geography isolated areas and who do not have other means of survival.
Goat is reared traditionally and ideally suited to poorest of poor particularly who cannot
afford to maintain large ruminants. With the growing demand for livestock product, Goat
husbandry is becoming an attractive activity. Due to short gestation period, low risk capital
investment and low cost of investment. It is considered as a poor man’s cow in India. Goat
also considered as “Walking Refrigerator” for storage of milk and she can give milk as and
when required, several times a day.


12
4. Findings and Discussions
4.1. Evaluation of Status of Partner grassroots NGOs
4.1.1. Status analysis of Kotra Adivasi Sansthan (KAS)
Kotra is a Tribal dominant area of Udaipur District, and falls in the Tribal Sub-Plan (TSP)
Area. Tribals contribute 89% of total Population. The block is located at a distance of 125
Kms from Udaipur City. The block consists of 31 panchayats made up of 265 Villages. The
majority of the population belongs to Bhil and Garasia communities. These are originally
farming communities, with very low per family cultivable area. Due to scarcity of cultivable
area the population is highly dependent upon forests for livelihood. Important minor forest
products in the area are Tendupatta, Aonla, Glue, Honey, Ratanjyot, Dolma, White musli,
custard apple. The main Kharif crops are corn, Tuver and chawla while the important rabi
crops are Gram, Wheat and mustard. 30% of the total area is forest; most of it is under
Reserve Forest Area. Due to undulating terrain the agricultural land is also limited. Only 39%
of the total agricultural land in the block is irrigated. Majority of people are marginal farmers
with the average land holding of 2-4 bigas (1 Hectare= 4.5 bighas). The agricultural land was
basically prepared by leveling the forest land. 3500 Households still struggle for their
ownership right for land. Agriculture, forest products and upto a limited extent livestock are
the traditional sources of livelihood of the tribals of Kotra
KAS is fundamentally a people centered organization. The key elements of its working
strategy is operating through people’s institution at the village level and taking up village
level development issues. The development issues basically are related to tribal communities,
women & Children, Migrants, Labor issues, farmers, Minorities and weaker section of the
society. Community mobilization and facilitating the process of making village level
organizations proactive, continues to be done through creating issue based organizations and
block wide organizations.
The Focus areas of KAS are education, Health, Women Empowerment, Self governance,
Minimum Wage, Social Development, Retaining Cultural Heritage, Water, Forest and Land
related issues, Abolition of corruption, building up the resource base through developmental
activities, creating and strengthening the people’s organization, advocacy and lobbying for
the accomplishment of rights.


13
KAS has currently 52 SHGs in 31 panchayats of Kotra tehsil. KAS has divided their area of
operation into three clusters, namely; Kotra, Devla and Mandva.
Name of the cluster No. of SHGs No. of villages addressed
Kotra 36 21
Devla 16 15
Mandva Nil 5
Source: Secondary data from KAS
The five villages mentioned in the Mandva cluster are addressed under the GEF Small Grants
Programme of UNDP. These villages do not have any SHGs.
To overcome the inherent limitations of small unregistered group, promoters facilitated the
formation of federations. The benefits of federations include (a) those arising from economies
of scale, (b) reduction in transaction costs, (c) reduction in default rates at all levels, (d)
provision of value adding services, (e) reduction in the cost of promoting new SHGs (that is,
in the cost of reaching out to every poor woman) and (f) increasing levels of financial
discipline and accountability among SHGs. 21 SHGs were identified in 21 Villages of Kotra
block covering 9 panchayats for the implementation of the project of UNDP titled Social
mobilization around Natural Resource Management for women-upliftment and poverty
alleviation in 2002. Initially, the SHGs were provided with seed money deposited into their
respective saving bank accounts for Improving and strengthening the economic base of
women by ensuring access to productive resources and sustainable management of these
resources. The seed money that SHG members receive are intended to improve their
livelihoods so that they can receive greater and steadier cash flows. In rural areas, livelihoods
range from agriculture, animal husbandry, dairy and various other goods and services
activities. Experience has shown that SHGs have had improved livelihoods to the extent of
providing the leveraging needed to start an enterprise. The seed money ranges in between Rs.
20000 to Rs. 25000. During the project, various income generating activities like honey
collection, green gram processing, collection of palash and gum, marketing of tuar dal etc.
were started successfully. Later on during the middle of the project in 2004, the seed money
which was deposited earlier into the bank accounts of SHGs was extracted out and the 21
SHGs were federated and the total amount was deposited in a common federation account.
By that time the SHGs have a sound corpus because of their regular monthly savings and the
profit generated through the above mentioned IGAs. It was done with a view that the corpus
of the SHGs was utilized for inter-loaning whereas the need of seed money for raising a new


14
enterprise or maintenance of existing ones can be addressed under the federation.
Simultaneously it also enhances the up-coming of medium scale enterprises. The corpus for
developing IGAs was made available to the 21 SHGs at a common platform. The monitoring
of the proper utilization of funds and providing trainings according to the need of the possible
IGAs was addressed by KAS. The federation is made up of 21 members, one from each SHG
out of which 3 members were given the signatory authority.
Soon after the project was over in 2006, in the absence of any monitoring and look after by
the organization, the SHGs started collapsing. Presently, the unutilized corpus with the
federation is around Rs. 3, 50,000. Out of twenty one, 9 SHGs are inoperative. During the
project the organization acts as a binding force in keeping the SHGs intact but soon after the
completion of the project proper technical assistance and guidance was not provided which is
a main cause for the de-functioning of the federation.
On the other hand, KAS perceives its role as a facilitator of change and thus envisages the
Development of Tribals; through a process of conscientiousness, mobilization and economic
empowerment, whereby they become self-reliant and self-sufficient and rightfully claim their
status in society to become makers of their own destiny wherein they could live with human
dignity. But it is straightaway discernible that the SHGs are still not in position to be self-
sufficient and thus the federation.
As mentioned earlier, the five villages mentioned in the Mandva cluster are addressed under
the GEF Small Grants Programme of UNDP. Those villages do not have any SHGs but
during the project the Farmers Technology Testing groups (FTTGs) were formed to increase
their food security by providing them timely assistance and information about new
innovations and practices in Agricultural improvement. Farmers in project villages have
resource persons available in the area.
Thus, likewise SHGs, to study the status of these FTTGs is of the essence of the current
proposed project. The methodology of the study remains the same except the status is
analyzed in terms of their livelihood opportunities, agricultural scenario, livestock, rate of
migration, annual income etc. A total of around 70 beneficiaries from five different villages
were the members of these FTTGs formed by KAS.


15
Therefore, to analyze their current status the questionnaire for the field survey was re-
incorporated after pre-testing in the field. The sample was taken as 25 individual farmers (5
from each FTTG).
4.1.1.1. Inferences out of the field survey
i. Out of the sample population, 3 SHGs are de-functional.
ii. Average no. of members in the SHGs is 16.55 out of which BPL members are 8.73
and others are 7.82 respectively.
iii. Average monthly rate of savings is Rs 12.27.
iv. Average corpus with the sample SHGs is Rs 11433.
v. Average no. of times inter-loaning is going on in the sample SHGs is 8.18.
vi. Out of the sample SHGs, 2 SHGs have not even started the inter-loaning.
vii. The average rate of interest on inter-loaning is 28%.
viii. There is only 1 SHG out of the sample population which is lending money outside the
group. The rate of interest on intra-loaning is 60%.
ix. Only 3 SHGs of our sample population are linked to Banks through grading last year
but the money is not received yet.
Table 1- Distinguished analysis of the functional and defunct SHGs from the sample size:
Functional SHGs Defunct SHGs
8 SHGs are functional 3 SHGs are defunct
BPL members- 37.17%; APL members- 63.46% BPL members- 87.9%; APL members- 12.1%
Savings amount/ month- Rs 13.10 Savings amount/ month- Rs 10
Average Corpus- Rs 13106.50 Average Corpus- Rs 6970.30
Average no. of Inter-loaning- 9.875 Average no. of Inter-loaning- 3.7
Rate of Interest on inter-loaning- 26% Rate of interest on inter-loaning- 16%
Intra-loaning- 2 SHGs are doing @ 60% p.a. Intra-loaning- NIL
Source: Field Survey
4.1.1.2. Status of Farmer’s Technology Testing Group
i. Out of the sample population, 11 farmers were illiterate, others are below 10th
standard.


16
ii. The primary source of income is Agriculture as 100% of the sample population is
engaged in agriculture.
iii. Labor including NREGS is the secondary source of income as 96% of the sample
population is engaged in it.
iv. The average no. of migrating people/ household from the sample population is 0.92.
v. The most preferred places of migration are Mount Abu and Palanpur.
vi. The average duration of migration from the sample population comes out to be
approximately 26 days.
vii. The average total income of a household p.a. is Rs. 22536 out of which the
contribution from agriculture is Rs. 7832, from labor (inc. NREGS) is Rs. 11420
while from other sources is Rs. 2080.
Figure 2- Scenario of livestock and poultry
Table 2- Landholding and irrigation scenario (in bighas)
Average owned land 4.41
Average landholding under the forest area 1.58
Average total landholding 5.99
Average irrigated land 2.86
Average non-irrigated land 3.13
Respondents having their own Well as source of irrigation 15


17
Respondents who have access of other's wells for irrigation 7
Respondents who have access to pond for irrigation NIL
Respondents who have access to river/nullah for irrigation 16
Table 3- Seeds, manures and chemical fertilizers
Respondents using certified seeds NIL
Respondents using only their own seeds for sowing 1
Respondents using only seeds purchased from market for sowing 3
Respondents using both seeds purchased from market as well as
their own for sowing
20
Average total use of manures (FYM)/year (in kgs) 624
Average use of DAP (in kgs)/year 49.6
Average use of urea (in kgs)/year 98.6
(Note: 1 Hectare= 4.5 bigha)
Figure 3- Average yield (in quintals/ bigha) of major crops grown in the area
4.1.2. Status analysis of Sangam Sansthan
Sangam Sansthan is located 78 Kilometers from Udaipur in the Northern direction on the
Ranakpur thoroughfare at Village Padrada in Panchayat Chitrawas of Gogunda block.
Gogunda block is situated 27 Kilometers away from District headquarters; Udaipur in the


18
interior of Aravalli hills. The organization was established in 1999 with the vision of holistic
rural development.
Figure 4- Scenario of the SHGs of Sangam Sansthan
4.1.2.1. Inferences out of the field survey
i. Out of sample population, 4 SHGs are de-functional.
ii. Out of sample SHGs 6 are Male SHGs, 5 are Female SHGs and 1 is mixed SHG.
iii. Out of 6 Male SHGs 2 SHGs, out of 5 Female SHGs 1SHG and the mixed SHG
are de-functional.
iv. Average no. of member in SHGs is 16.
v. Average monthly rate of savings is Rs. 31.
vi. Average corpus with the sample SHGs is Rs 11,123.
vii. Average no. of times inter-loaning is going on in the sample SHGs is 13.25.
viii. Out of the sample SHGs, 2 SHGs have not even started the inter-loaning.
ix. The rate of interest on inter-loaning is 24%.
x. There is no any SHG out of the sample population which has started lending
money outside the group.
xi. 11 SHGs out of the sample population is linked to Banks through grading and 4
SHGs already received the amount from Banks.
xii. Average amount of loan from Bank is Rs.66837.5


19
Table 4- Distinguished analysis of the functional and defunct SHGs from the sample size
Functional SHGs Defunct SHGs
8 SHGs are functional 4 SHGs are defunct
Savings amount/ month- Rs 30 Savings amount/ month- Rs 32.5
Average Corpus- Rs 9879 Average Corpus- Rs 13610.75
Average no. of Inter-loaning- 15 Average no. of Inter-loaning- 9.75
Rate of Interest on inter-loaning- 24% Rate of interest on inter-loaning- 24%
Intra-loaning- NIL Intra-loaning- NIL
4.1.2.2. Status of Farmer’s Technology Testing Group
Sangam have formed the Farmers group in 5 villages under SGP project, in which 70
members are involved. Out of 70 members 22 are the members of FTTG. Thus, likewise
SHGs, to study the status of these FTTGs is of the essence of the current proposed project.
The methodology of the study remains the same except the status is analyzed in terms of their
livelihood opportunities, agricultural scenario, livestock, rate of migration, annual income
etc. A total of around 22 beneficiaries from five different villages were the members of these
FTTGs formed by Sangam Sansthan.
Therefore, to analyze their current status the questionnaire for the field survey was re-
incorporated after pre-testing in the field. The sample was taken as 22 individual farmers.
4.1.2.2.1. Inferences
i. Out of the sample population, 10 farmers were illiterate, others are below 10th
standard.
ii. The primary source of income is Agriculture as 100% of the sample population is
engaged in agriculture.
iii. Labor including NREGS is the secondary source of income as 97% of the sample
population is engaged in it.
iv. Average household size is 6 members out of which male and female constitute
52% and 48% respectively.


20
v. Average children/ household are 4 out of the sample population.
vi. The average no. of migrating people/ household from the sample population is
0.9.
vii. The average duration of migration from the sample population comes out to be
approximately 31 days.
viii. The average total income of a household p.a. is Rs. 19947 out of which the
contribution from agriculture is Rs. 6638, from labor (inc. NREGS) is Rs. 11309
while from other sources is below Rs. 2000.
Figure 5- Scenario of livestock and poultry
Table 5- Landholding (in bigha) and irrigation scenario
Average owned land 3
Average landholding under the forest area 2
Average total landholding 5
Average irrigated land 2
Average non-irrigated land 3
Respondents having their own Well as source of irrigation 15
Respondents who have access of other's wells for irrigation 7
Respondents who have access to pond for irrigation NIL
Respondents who have access to river/nullah for irrigation 14


21
Table 6- Seeds, manures and chemical fertilizers
Respondents using certified seeds NIL
Respondents using only their own seeds for sowing 2
Respondents using only seeds purchased from market for
sowing
3
Respondents using both seeds purchased from market as well
as their own for sowing
20
Average total use of manures (FYM)/year (in kgs) 524
Average use of DAP (in kgs)/year 50.4
Average use of urea (in kgs)/year 102.1
Figure 6- Average yield (in quintals/ hectare) of major crops grown in the area


22
Figure 7- Market value (Rs./Kg) of the important crops of the area
Table 7- Rates of important items in villages
Item Unit Rate
Fuel wood 1Kg Rs. 15
Irrigated land 1 Ha Rs. 27000
Un-irrigated land 1 Ha Rs. 23000
Waste land 1 Ha Rs. 7000
Labor- in village 1 day Rs. 60
Labor- outside 1 day Rs. 80
4.2. Findings and Key Observations
No doubt the area of operation is tough and interior too. The opportunities are fewer and
infrastructure is wanting.
The formation of SHGs was project oriented. There is lack of operational effectiveness in
terms of capacity, governance and patronage cohesiveness. In the absence of monitoring by
the organization, the lack of faith on each other among the members of SHG was found out to
be the major reason for the de-functioning of the SHGs. The other reasons are the conflict
among group members on different issues, migration of the whole family of group member,
defaulting by the members, negligence by field workers and irregularity of members in
monthly meetings and group based activities. On the other hand, mixed groups are there apart
from male and female groups. Ultimately it yields to family support in long term.


23
There is noticeable vision at apex level but it has not been disseminated throughout the
hierarchy of organization. The initiatives from the community are lacking and there is
dependence on organization for support. The main motive of the formation of the SHGs was
the livelihood generation but the SHGs are still in the stabilization phase after the many years
of formation. Their mindset of SHG formation is limited up to savings. The SHGs are not in
the self sustaining mode and depends upon organization for information, services, support
and guidance. Simultaneously, the SHGs which have linkages with bank are repaying the
loan on time even after the group is un-operational in terms of monthly meetings and savings.
The educational status of the women is very poor, which further led them into the trap of
dependence on others. Exposures, trainings, demonstration and the motivational forces are
lacking. In general, the issue seems to be weak in terms of vision, capacity, sub- critical
corpus etc. at both SHGs as well as the NGO level. There are experiences of enterprises at
individual level but inter and intra group sharing of experiences needs to be strengthened.
The groups seem to be weak in terms of Network, liaison and coordination.
Villagers grow crops mostly in kharif season. Farmers who have access to water through
wells or ponds grow crops in rabi and zayed season also. The kharif crops are grown in the
rainy season, in the months of June to November whereas the Rabi crops are grown in the
winter, October to April. In both the season their farming depends on the monsoon, if the
monsoon is favorable and there is no natural calamities it turn in to good yield, if it is adverse
they suffer a huge loss. Kharif crops are totally rainfed while Rabi crops are somewhat
irrigated. Agriculture is totally subsistence and practices are traditional. The yield per unit
area is very low. With limited land resources, too much dependence of work-force on
agriculture makes the returns non-remunerative. Last year, under the project of UNDP GEF-
Small Grants Programme the Farmer’s Technology Testing groups were formed in 5 Villages
to increase the food security in migration dependent households. The vision is to develop an
approach that is both sustainable and replicable in difficult but resource rich region facing
extreme poverty, chronic food insecurity, rising out migration, low levels of skills and
productivity. The immediate purpose is to improve the practices followed in Agriculture/
NRM that increases the food security and simultaneously improves the degraded resource
base. There are total of 70 beneficiaries in 5 villages. Concurrently, the FTTGs will examine
options for improving soil fertility and crop husbandry. This year the seeds of improved
maize variety were provided to the member farmers with suitable practices as against the
traditional ones. The soil samples of the participating farmers are tested at MPUAT


24
(Maharana Pratap University of Agriculture and Technology), Udaipur. The primary
emphasis is to cut down the costs of production while simultaneously increasing the
productivity. The tribal belt is basically a cattle dominant area with non-descript cattle
specially to meet the animal power requirement for farm operations. It is a goat belt also due
to grazing potential and low capital requirement. Poultry enterprises are also common.
Coverage of pasture and grazing land is more in the tribal dominated villages, which prompts
the scope for developing animal husbandry as a potential source of income and employment
in the tribal area. There is a seasonality of migration. Migrants generally return to their
respective families during rainy season or during kharif season. However, during rabi season
they generally stay at their migratory places, for lack of rain and irrigational
underdevelopment, there is hardly sufficient agricultural activity to provide employment in
this season.
The pattern of migration is both seasonal as well as daily labor to nearby towns.
i. Seasonal- Falna, Pindwara, Surat, Shivganj, Bali, Pali, Sumerpur (Tent work, RCC)
ii. Daily – Sayra, Gogunda, Padrada (wage labour).
An effort is done to get an insight of the pattern of expenditure in their normal lifestyle (see
fig. 8 ). The figures are the essence of the direct observations and FGDs with villagers and
inhabitants of the treatment area.
There is huge potential of farm based enterprises like Jatropha, Custard Apple and Kakdi
(Cucurbitaceous crop) etc. The other potential enterprises seem to be poultry and goat
husbandry, which are replicable also throughout the tribal dominated Southern Rajasthan
region.


25
Figure 8- Pattern of Expenditure in the Normal lifestyle of tribes in Gogunda Block
4.3. Identification of potential Enterprises and the proposed Institutional
Mechanism
Udaipur has more than 50% Scheduled Cast and Schedule Tribe population. The average
yearly average income of the target population ranges from Rs 15000 to Rs 25000. Micro
enterprise development is a tool in developing and improving the livelihood for them. The
essence of the assignment was to identify such opportunity for PSME. This assignment
targeted the small and marginal farmers and rural laborers, organize them in group and
identify self help. One basic motive of conducting this assignment was to make the target
population more confident and make them believe that they can also start some enterprise. It
was observed that they have been marginalized of all the resources and of date the schemes
like NREGA is hindrance to the enterprise development. One motive was to break these
shackles of dependency. Make them more enterprising and risk taking. The assignment was
carried out in different phases. The first phase was to understand the three basic entities
involved for PSME; the grassroots organization, the target area, the target population. This
was carried out by field visit and desk based research. The field visit was an exploratory
research which was conducted by the semi formal interview of the target population with the
help of the checklists. During this some of the activities were identified and that was further


26
validated with the local and sectoral experts. The technical, financial and market analysis was
done and thus filtered the low hanging fruits. Again the potential target group was identified
on the willingness and the capacity matrix.
Figure 9- Identifying the common strength
4.3.1. Identifying the potential target group
This phase was conducted in order to identify the potential target group out of the target
population on the basis of the capacity and willingness matrix. Basically, this task was
given to the respective partner organizations because of the fact that they know their
clients better than anybody else. However, we were given the task to assist them as and
when required.


27
Figure 10- Capacity Vs Willingness

This group will not selected
This group needs training and some exposure visits
This group will be selected for harnessing the ‘low hanging fruits
This group needs intervention on capacity improvement
4.3.2. Selection of the possible sector or the activity and the village
The possible activities were selected in phases. The first phase was the idea generation phase
in which all the ideas was invited. In this phase the grassroots organization’s view was taken
and few activity and possible target villages were taken which could be possible in their
opinion.
In the second phase that is during the field visit and after the field visit some of the activities
were filtered and some were added in list of possible activities. It was decided on the
availability of the resources of the target area and the skills of the target population of the
grassroots organization.
Presently the enterprises which came out of the two phases are:


28
Jatropha trading Nursery Raising Ghee and other milk products
Custard Apple based Vegetable production Sewing and Embroidery
Honey trading Backyard Poultry Sweets making
Vinegar and Ark of Jamun Goat Husbandry Agricultural tool bank
There are possibilities of other enterprises as well. The above mentioned enterprises satisfy
the capacity of entities like the grassroots organization, the target area, the target population.
As suggested by our host organization, we were supposed to work out the economic analysis
of three major enterprises in the respective area of operation of both the partner NGOs.
EIC (10 members)
NGOs/ Cluster of
Beneficiaries
SHGs/ FTTGs
Individual or Group
Entrepreneurs
D
E
M
A
N
D
@ 12%
@ 8% R
E
P
A
Y
M
E
N
T
FUND FLOW
Figure 11- Proposed Institutional Mechanism
The figure shows the proposed institutional mechanism for the implementation of the project.
EIC (Enterprise investment committee) is the regulatory body composed of representatives
from respective partner NGOs, representatives from the beneficiaries (SHGs, FTTGs etc),
representative from CEE and RMoL. There were total of 10 members in EIC which governs
the flow of fund from apex level to the grassroots. The figure clearly depicts that Individuals
have to repay the loan at 12% interest p.a. but the cluster of beneficiaries have to pay only 8%
p.a. interest to the EIC. The 4% is left to meet the operational cost of the cluster of
beneficiaries. As soon as the beneficiaries receive the loan amount, advance dated cheques
(duly signed) were taken from them to prevent defaulting and to orient them towards more
serious and genuine efforts for enterprise development.


29
4.4. Analysis of Goat Rearing as a Sustainable Economic Enterprise for Tribal
Families
4.4.1. Background
Udaipur is located in the southern part of Rajasthan. It is bound to the north by Rajsamand
and Pali districts, to the south by Dungarpur and Banswara, to the east by Chittaurgarh, and
to the west by Sirohi and Gujarat. The district has 26,32,210 people (2001 census) living in
2248 villages of eleven blocks. The Scheduled Caste population is about 6 percent and
Scheduled Tribe population constitute about 47.86 percent of the total population. It has a
mean annual rainfall of 624 mms and normally experiences drought every three years. The
area has very low CMIE1
index indicating poor secondary and tertiary sectors.
4.4.2. Goat as a livelihood Option
The total goat population in the world is 790 million. China ranks first in goat population in
the world with 199 million, followed by India with a population of 124 million. Over 54
million goats are slaughtered every year with an average meat yield of 9.63 kg per goat. The
annual population growth of goat has been 0.22 percent. However, as per the 2003 livestock
census, the goat population has recently increased with an annual growth of 0.6 percent, in
spite 38 percent slaughter rate and approximately 15 percent mortality. The rate of increase in
goat population during the last five decades has been the highest among all the ruminants.
Among the Indian states, west Bengal has the largest goat population of 18.77million,
followed by Rajasthan (16.80 million), Uttar Pradesh (12.94 million), Maharashtra (10.68
million) and Bihar (9.49 million).
There are nearly 102 breeds of goats in the world, of which India’s vast genetic resources in
goats are reflected by the presence of over 20 well defined breed, reared for milk, meat and
wool.

1
Centre for monitoring Indian Economy


30
Table 8- Some of the breeds that are found in Western India and adapted to the conditions
are:
Breed Utility Size Weight Conformations
Male Female
Sirohi Milk and Meat Large 51 23 Compact Body, coat colour
predominantly brown with light
or dark patches, flat ears, udder
medium sized and round
Barbari Milk and Meat Medium 31 23 Compact body, coat colour is
white with brown patches,
short erect years, shining eyes,
udder well set with small teats
Kutchi Milk and Meat Medium 44 40 Coat is predominantly black,
few with brown or white spots,
long hair, long and drooping
ears, udder well developed
Marwari Milk and Meat Medium 34 26 Predominantly black coat with
long hair, few animals with
white or brown patches, udder
is round and small
Mehsana Milk and Meat Medium 38 33 The coat is black with white
spots at the hose of the ears.
Leaf like and drooping years,
twisted horns, developed udder
Zalwadi Milk and Meat Medium 39 33 Coat is black with long hairs,
long and drooping ears, long
twisted horns, large udder with
conical teats
Source: Eco-friendly goat husbandry for Sustainable Livelihood of small farmers, BAIF
Development research foundation.
4.4.3. Goat promotion for livelihood generation
Goat as a livelihood option provides multifarious benefits. The initial investment needed for
Goat rearing is low and due to small body size and docile nature, housing requirements and
management problems with goats are less. Goats are prolific breeders and achieve sexual
maturity at the age of 10-12 months gestation period in goats is short and at the age of 16-17
months it starts giving milk. Twinning is very common and triplets and quadruplets are rare.
In drought prone areas risk of goat farming is very much less as compared to other livestock
species. Goats are ideal for mixed species grazing. The animal can thrive well on wide
variety of thorny bushes, weeds, crop residues, and agricultural by-products unsuitable for
human consumption.


31
The goat meat is more lean (low cholesterol) and relatively good for
people who prefer low energy diet especially in summer and
sometimes goat meat (chevon) is preferred over mutton because of
its "chewability". Goat milk is easy to digest than cow milk because
of small fat globules and is naturally homogenized. Goat milk is said
to play a role in improving appetite and digestive efficiency. Goat
milk is non allergic as compared to cow milk and it has anti-fungal and anti bacterial
properties and can be used for treating uro-genital diseases of fungal origin.
Goats are 2.5 times more economical than sheep on free range grazing under semi arid
conditions. Goat creates employment to the rural poor besides effectively utilizing unpaid
family labour. There is ample scope for establishing cottage industries based on goat meat
and milk products and value addition to skin and fiber.
4.4.4. About the Sirohi breed: Suitability
Sirohi is a common Indian breed, which derives its name from the Sirohi district of
Rajasthan. The breed is also known by other names such as Devgarhi, Parbatsari, and
Ajmeri. It is a dual-purpose animal, which are reared for both milk and meat. The animals are
popular for their weight gain and better lactation even under poor quality rearing conditions.
The animals are resistant to major diseases and are easily adaptable to different climatic
conditions. Though the main breeding tracts of Sirohi animals are situated in the Aravalli
hills of Rajasthan, they are also widely distributed in several other Indian states.
The skin colour of the goat varies from light brown to dark brown sometimes with light
brown patches on the body. The ears are big and droop downwards. The tail is small and
curved upwards. Sirohi bucks (males) are heavier than the does (females). Animals with a
tapering body shape are preferred for milk and those with a cylindrical body shape for meat
production.
The animals can be stall-fed as well as sent for grazing. It is ideal to feed the animals reared
in a stall with about 3-5 kg of green fodder every day.
Sirohi when compared with the common breeds of the region score well in terms of lactation
period and meat yield. If milk is valued at Rs. 6/Kg and weight at Rs. 150 kg.
Milk Composition
Total solids 13.5%
Fat 4.5 %
SNF 9 %


32
Box 1- Goat Husbandary in Intensive System
4.4.5. Economic Analysis of “Sirohi” Breed (Based on secondary data and discussions
with the farmers in the field).
Option 1: One Buck and Two Does
Particulars Amount
A Revenue from Sales 17200
B Cost incurred
Cost of Animals 4500
Cost of feed 494
Miscellaneous 1500
Interest @12% 2498
Cost incurred 8992
Profit 8208
Benefit/Cost* 1.9
*Including Fixed Cost of Rs. 4000 for shed etc and value of remaining animals
Option 2: One Buck and Four Does


33
Particulars Amount
A Sales Revenue 24400
B Cost incurred
Cost of feed 840
Miscellaneous 1500
Interest @12% 3320
Cost incurred 13160
Profit 11240
Benefit/Cost* 2.5
*Including Fixed Cost of Rs. 4000 for shed etc and value of remaining animals
Option 3: Two Buck and Six Does
Particulars Amount
A Sales Revenue 40100
B Cost incurred
Cost of feed 1334
Miscellaneous 1500
Interest @12% 4520
Cost incurred 19354
Profit 20746
Benefit/Cost* 3.4
*Including Fixed Cost of Rs. 4000 for shed etc. and value of remaining animals
Source: Based on data from Field Survey
4.4.6. Recommended Package
1. Animals as per option chosen or capacity of the family.
2. At least 5 saplings along with each option for future fodder requirements.
3. Shed of the animals along with flooring for the animals – maintains hygiene and
makes the collection of urine and dung easy
4. One month stock of the recommended concentrate feed.
5. Insurance with a GIC


34
The animals would be provided on assessment of the capacity of the family, participation in
training. Before the supply of animals the family should plant the saplings and create the shed
with suitable flooring.
4.5. Analysis of Backyard Poultry as a Sustainable Economic Enterprise for
Tribal Families.
4.5.1. Poultry as a livelihood Option
Though poultry development in the country has taken a quantum leap in the last three
decades, the growth has been mainly restricted to commercial poultry. Rural backyard
poultry, though still contributing nearly 30% to the national egg production, is the most
neglected one. This is in spite of the fact that their poultry eggs and meat fetch a much higher
price than that from commercial poultry. 70 percent of the poultry products and eggs are
consumed in urban and semi urban areas and the rural consumption is quite low. Private
poultry producers are also not able to attend to the needs of major rural consumers and to the
consumers of the north-eastern states and other difficult regions. The major limiting factor in
the way of increasing consumption of egg and poultry meat in rural area is poor availability.
Most of the commercial poultry egg and meat production is centered in the urban and semi-
urban areas. Due to their operation being of an industrial nature, the private sector is not
inclined to go to the rural areas, particularly to small farmers and landless farmers including
women. The private commercial sector is understandably reluctant to enter the rural backyard
poultry sector as they aim at higher and quick profits, through larger investments. The
commercial poultry sector is doing business, through integrated approach of contract farming
using high-input and high-output birds. For the poorest of the poor and the landless, the major
issues are food security and risk spreading through subsidiary income, which are not
addressed by the private commercial sector. It is well known fact that a significant proportion
of the landless and marginal farmers eke out their living from poultry and other small
ruminants. Backyard poultry requiring hardly any infrastructure set-up is a potent tool for
upliftment of the poorest of the poor. Besides income generation, rural backyard poultry
provides nutrition supplementation in the form of valuable animal protein and empowers


35
women. It has also been noticed that the demand for rural backyard poultry is quite high in
tribal areas.
It may also be mentioned that groups of small rural producers cater to the needs of consumers
who have a specific preference for coloured birds and brown-shelled eggs, both of which are
mostly produced in the rural sector/ backyard poultry. Thus there is a need to take up specific
rural poultry production programs, to meet the requirements of the rural consumers while
constituting a source of subsistence income as a subsidiary occupation by taking up coloured
bird units ranging from 30 to 50 birds per family in their backyards. Such units require very
little hand feeding and can give a fairly handsome return with bare minimum night shelter.
4.5.2. Backyard Poultry for livelihood generation
Rural poultry farming implies rearing of poultry in small numbers in the backyards under free
range or semi-intensive system. Abundant availability of natural food base such as waste,
cereal, grain, pulse, grain by-products, kitchen waste, insects, worms, green grass etc is a
boon to backyard poultry in all parts of this region. Egg and meat production in 100%
scavenging mode is largely low yielding. Adopting poultry farming in backyard of rural
household can ensure the availability of eggs and meat in rural/tribal areas, which could help
in alleviating the incidence of protein deficiency of the susceptible group, women, children,
expectant mothers and aged; besides providing supplemental income. Due to several above
limitations to establish the intensive poultry farming in this region, it is always convenient to
encourage small-scale rural poultry in Southern Rajasthan region.
Backyard Poultry farming involves rearing of chicken varieties, under free range or semi
intensive condition. Rearing method largely depend on the type of the bird reared, availability
of resources and the preference of local population for meat or eggs. Native (desi) birds are
available for both (dual purpose). In areas where plenty of natural feed resources (insects,
white ants, fallen grains, green grass etc) are available, a small number of birds (20-40) can
be reared for meat purpose under free-range condition. If the local demand is for meat in
large quantity, the dual purpose or colored feathered chicken can be reared under semi-
intensive conditions by providing all the essentials impacts.


36
4.5.3. About the Nirbheek breed
Nirbheek is a cross of Indian Aseel and Rhode Island Red (RIR). It is being promoted as a
suitable breed in scavenging system of Backyard Poultry for both meat and egg purpose for
Southern Rajasthan region by CARI (Central Avian Research Institute). In lab conditions, the
cost benefit analysis is as follows:-
Table 9- Performance of different genotypes in villages (CARI, Izatnagar (Lead centre) –
Co-PI: Dr. D. P. Singh)
TRAITS CARI
NIRBHEEK
CARI
SHYAMA
HITCARI UPCARI
Body weight at 4th
weeks of age (g) 225 207 230 210
Body weight at 8th
weeks of age (g) 422 390 443 403
Body weight of cockerels at 20th
weeks of age (g)
1925 1650 2070 1690
Body weight of pullets at 20th
weeks
of age (g)
1390 1190 1420 1290
Age at first egg (days) 173 165 167 162
Egg weight (g) 56 54 58 59
Annual egg production (No.) 158 165 168 172
Ranking (based on performance) 4th
3rd
2nd
1st
Ranking (based on liking) 1st
3rd
2nd
4th
B:C Ratio 3.01:1
Mortality (%) 7.28
Source: CARI, www.icar.org.in/natp/intro.htm
The Nirbheek breed is being promoted by Maharana Pratap University of Agriculture
and Technology (MPUAT) for about two years in Southern Rajasthan. The observation
and discussions in the field with the beneficiaries have given the following experience:-
i. The Nirbheek breed (20 units) was given about two and a half years back free of cost
to tribal families in Khandar, Kantharia, Jambua, Malawadi, Koklakheda Villages of
Gogunda block, district Udaipur.
ii. The average egg production in villages (Kantharia and Jambua)2
ia around 120
eggs/annum. The local breed on the other hand produced about 80-90 eggs/annum.

2
The villages were visited on 7th
August 09. Discussions were held with about 15 families to assess the
performance and suitability of Nirbheek in actual field conditions.


37
iii. Nirbheek which is Aseel cross requires replacement with new chicks to maintain the
improved germ-plasm. Inbreeding results in chicks with native birds characteristics.
This is a big hindrance in success of the enterprise as there is only one hatchery
running on project support with MPUAT, Udaipur. It involves additional cost to
procure the birds and also make the entrepreneur dependent on external market for
input in terms of chicks.
iv. The interaction with the community showed that the egg of Nirbheek only fetches Rs.
3/egg and is not considered to be of the same therapeutic value as that of native bird.
The egg of the native bird is sold at Rs. 5 in the local market. In Udaipur the
prevailing price is Rs.6/egg but, due to distance, short shelf life and smaller scale the
market is not accessible.
v. The meat is also not liked in the local market. The perception is that it is more fibrous
than the native. The bones are also brittle.
vi. Nirbheek hens do not usually sit on eggs for hatching. Farmers had to hatch the eggs
using native breeds.
4.5.4. Economic Analysis of Backyard Poultry
Option 1: Unit size- 40; all native birds (desi).
Particulars Amount
A Revenue 11100
B Cost incurred
1 Chicks 2000
2 Cost of feed 1077
3 Miscellaneous 200
4 Interest @ 12% 876
Total Cost incurred 4153
Profit 6947
Benefit : Cost* 2.45
*The cost includes the fixed cost of cage etc. and benefit includes the asset value of the birds
left after one cycle.
Option 2: Unit Size-40, 30 Nirbheek and 10 Desi
Particulars Amount
A Revenue 14161
B Cost incurred


38
1 Chicks 2000
2 Cost of feed 1843
3 Miscellaneous 200
4 Interest @ 12% 968
Total Cost incurred 5011
Profit 9150
Benefit : cost 2.45
*The cost includes the fixed cost of cage etc. and benefit includes the asset value of the birds
left after one cycle.
4.5.5. Recommended Package
1. The entrepreneur can take any of the packages as returns after one cycle are the same.
2. The birds should be given after training, installation of the cage and other
infrastructure requirements are fulfilled.
3. The infrastructure are as follows:-
a. Cage
b. Water bowl
c. Feeder
d. Weighing machine – one per SHG
4.6. Analysis of Trading in Jatropha as a Sustainable Economic Enterprise for
Tribal Families
4.6.1. Jatropha as a livelihood Option
Biofuel development in India centers mainly around the cultivation and processing of
Jatropha plant seeds which are very rich in oil (40%). The drivers for this are historic,
functional, economic, environmental, moral and political. Jatropha oil has been used in India
for several decades as biodiesel to cater to the diesel fuel requirements of remote rural and
forest communities; Jatropha oil can be used directly after extraction (i.e. without refining) in
diesel generators and engines.
Jatropha provides immediate economic benefits at the local level since it grows well in dry
marginal non-agricultural lands, thereby allowing villagers and farmers to leverage non-farm
land for income generation. As well, increased Jatropha oil production delivers economic
benefits to India on the macroeconomic or national level as it reduces the nation's fossil fuel
import bill for diesel production (the main transportation fuel used in the country);


39
minimizing the expenditure of India's foreign-currency reserves for fuel allowing India to
increase its growing foreign currency reserves (which can be better spent on capital
expenditures for industrial inputs and production). And since Jatropha oil is carbon-neutral,
large-scale production will improve the country's carbon emissions profile. Finally, since no
food producing farmland is required for producing this biofuel (unlike corn or sugar cane
ethanol, or palm oil diesel), it is considered the most politically and morally acceptable
choice among India's current biofuel options; it has no known negative impact on the
production of the massive amounts grains and other vital agriculture goods India produces to
meet the food requirements of its massive population (1.1 Billion people as of 2008). Other
biofuels which displace food crops from viable agricultural land such as corn ethanol or palm
biodiesel have caused serious price increases for basic food grains and edible oils in other
countries.
4.6.2. About the Jatropha Plant
Jatropha curcas is known also as Barbados nut or White Physic nut. It is a perennial
poisonous shrub (normally up to 5 m high) belonging to the Euphorbiaceae or spurge family.
The plant originally comes from Central America. It has spread to tropical and subtropical
countries and mainly grown in Asia and Africa.
Animals do not consume Jatropha, so it is used as a living fence to protect gardens and
fields. It grows extremely fast and during a span of 4-5 years it attains a height of around 4
meters. Within 2 years of plantation, Jatropha Curcas starts to produce seeds and keeps on
producing until the age of 50 years.
Jatropha Curcas grows best on well drained soils with good aeration but is well adapted to
marginal soils with low nutrient content as well as shallow fields and rocky terrains. Jatropha
can withstand long periods of drought, its water requirement is extremely low (1 litre per
plant per day and can be provided once in 15 days.
Jatropha Curcas prefers temperatures averaging 68-85 degrees Fahrenheit (20-28 degrees
Celsius), it can, however, withstand a very light frost. The plant flowers between September
and November and the fruits come from October to December. Recommended planting rates
of Jatropha Curcas are 2,000 / 2,500 plants per hectare (2.5 acres); this will produce,
depending on density and quantity, 3-10 tonnes of Jatropha seed.


40
Fruit of Jatropha is green capsule shaped, and contains 3 to 4 seeds. One tonne of Jatropha
Curcas seeds will produce approximately 350-550 litres of bio-diesel, while the residue can
also be processed into biomass to power electricity plants.
4.6.3. About the Jatropha Oil and Biodiesel- Success Stories
Currently the oil from Jatropha curcas seeds is used for making biodiesel fuel in Philippines
and in Brazil, where it grows naturally and in plantations in the Southeast, and the
North/Northeast Brazil. Likewise, Jatropha oil is being promoted as an easily grown biofuel
crop in hundreds of projects throughout India and other developing countries. The railway
line between Mumbai and Delhi is planted with Jatropha and the train itself runs on 15-20%
biodiesel. In Africa, cultivation of Jatropha is being promoted and it is grown successfully in
countries such as Mali. In the Gran Chaco of Paraguay, where also a native variety grows,
studies have shown suitability of Jatropha cultivation and agro producers are starting to
consider planting in the region.
Realising the potential of the bio diesel from Jatropha, many State governments including
Government of Rajasthan has initiated large scale plantation of Jatropha. District wise
progress of Jatropha Nursery Raising Till March 2009 is as follows:-
Table 10- District wise progress of Jatropha Nursery Raising in Rajasthan
S. No. Districts Total Plantation
(in lacs)
1. Baran 9.43
2. Banswara 25.76
3. Bhilwara 6.20
4. Bundi 3.92
5. Chittorgarh 7.00
6. Dungarpur 44.00
7. Jhalawar 18.50
8. Kota 15.90
9. Rajsamand 27.50
10. Sirohi 25.00
11. Udaipur 52.75
Total 235.96
Source: Internet
The Jatropha which grows in Udaipur district have been found to be of very good in oil
content and has become a source for seeds for other States taking up Jatropha plantation. The
rural communities has benefited with this surge in demand for the seeds but are at loss in long


41
term as they are not able to derive benefit from the same for their own energy security needs
and enhanced income through processing and value additions.
4.6.4. Enterprise ideas for Community Benefit
The biodiesel production process provides lot of opportunities to benefit the local community
comprising largely of tribals and marginal farmers. The intervention required mainly is in
form of capacity building and technological inputs. Some project ideas emerging from the
process to enhance the income and energy security of the local community are as follows-
1. Enhanced income through transition from selling of seeds to crude oil or bio
diesel. This would benefit the community as they would be able to realize better
income from the local resource.
2. Locally producing bio diesel for meeting the agriculture and transportation needs.
This will not only reduce the dependence on fossil fuel but would also reduce the
input cost as the resource is locally grown and produced.
3. Technological interventions by transferring the technologies from “lab to field”.
Some of the technology ready for transfer is in form of bio diesel run stoves,
pumps etc.
4. Selection of local genotypes with high oil content and seed production.
Multiplication of the same through nursery raising and grafting.
5. Small scale industries with Jatropha oil as inputs – Soap making, medicinal use
etc.
Figure 12- Jatropha Production Chain
Source: Internet


42
The economic scale for cost of bio-diesel production is determined taking into account the
amount of raw oil extracted from a seed to be +30 percent. The amount of raw oil content in
the seed again depends on the quality of the seed. The output of the raw oil from the
extraction unit is a key determining factor for deciding the capacity of the transesterification
unit. The cost of the extraction stage is based on the capacity of the extraction plant, which, in
turn, is based on the seed yield.
Together with the oil, by-products of the production are:
i. Press seed cake
ii. Residual of sedimentation process
The Press seed cake has mineral contents of nitrogen (6%), phosphorous (2.75%) and
potassium (0.94%) similar to chicken manure, the press cake can be used as organic
fertilizer. An application of 1 ton press cake is equivalent to 200 kg of mineral fertilizer
(NPK 12:24:12).
In the present calculation, the price for the press cake is taken lowest possible (42 $/ton=
Rs.2/Kg). The estimated price for 1 ton of residual (sediment) is 120 US$/ton (Rs. 6) which is
used for making washing soaps.
4.6.5. Sustainability
Given the realities of the biodiesel markets, a successful biodiesel business plan begins with
an effective feedstock strategy from which process design flows. To make biodiesel a long-
term business opportunity, attention must be to the critical issue of availability of right
feedstock at right cost. Jatropha will be a vast source of biofuel and a key to reducing our
dependence on fossil fuel Jatropha can bring significant environmental benefits. It can
replace jet fuel and diesel from petroleum without interfering with food crops or leading to
the clearing of forests. The good thing about Jatropha is that you're producing a tree shrub
that lives for a long time and does its job, producing oil, while it also sequesters lots of
carbon dioxide from the atmosphere
Jatropha is a valuable multi-purpose crop to alleviate soil degradation, desertification and
deforestation, which can be used for bio-energy to replace petro-diesel, for soap production
and climatic protection, and hence deserves specific attention


43
Jatropha can help to increase rural incomes, self-sustainability and alleviate poverty for
women, elderly, children and men, tribal communities, small farmers. It can as well help to
increase income from plantations and agro-industries.
There are various trees that are suitable for bio-diesel production. Out of all these trees,
Jatropha must be regarded as a sure inclusion and the foundation around which a plan can be
built if for nothing but its pure hardiness and stress handling ability. It is just a tree that has
enough credentials. That is why the Planning Commission of India has nominated it as ideal
plant for biodiesel.
Biodiesel produced from Jatropha is one of the most promising solutions for tackling the
growing carbon emissions from transport
India & other developing countries have the potential to be a leading world producer of
diesel, but the rural farmers still need to get comfortable with the idea that diesel fuel can be
"harvested," but they understand one thing very clearly that they can use Jatropha plants as a
source of extra earnings by utilizing the land that was of no use.
Farmers need to know that there is going to be a good market for what they produce. We are
very keen to build that confidence and promote Jatropha and other non-food oil crops
cultivation by assisting planting, buying the seeds for refining and providing the refining
technology to enable growers to make their own biodiesel."
4.6.6. Economic Analysis for 50 Quintals of Trading in Market at SHGs level
Trading of Jatropha is being suggested in the beginning to involve the community in
collection and sales. The current market is being controlled by middlemen who have recently
jumped into it as it provides high returns on low investment. The analyses have been prepared
on the basis of interaction with the community in Gogunda block which has naturally
growing Jatropha as fence and on commons.
After one year with the income generated from trading as projected below, other enterprises
listed as ideas earlier in the paper can be explored. This would require capacity building,
entrepreneurship and future scenario in terms of legislation, policy, governance etc.


44
Option 1: Current Market Scenario (Sales @ Rs. 20/kg. and procured at Rs. 13.5/Kg.)
Current Scenario
Amount Rs./Kg.
Revenue 100000 20
Cost incurred
Raw material 67500 13.5
Initial capital invest
600 0.12
(Rs. 9700= Establishment cost)
Salary of procurement manager 1000 0.2
Sales in charge 1000 0.2
Labour for packaging & loading 1000 0.2
Gunny Bag 1000 0.2
Interest (@12 %) 5748 1.1
Transportation pick up (250 Km. Jodhpur) 6000 1.2
Cost incurred 83848 16.72
Profit 16152 3.28
Operational cost 3.22
Option 2: Projected Market Scenario (Worst case) (Sales @ Rs. 8/kg. and procured at Rs.
3.5/Kg.)
Worst Scenario
Amount Cost/ unit
Revenue 40000 8
Cost incurred
Raw material 17500 3.5
Initial capital invest
600 0.12
(Rs. 9700= Establishment cost)
Salary of procurement manager 1000 0.2
sales incharge 1000 0.2
Labour for packaging & loading 1000 0.2
Gunny Bag 1250 0.25
Interest rate@ 12% 1578 0.31
Transportation 6000 1.2
Cost incurred 23928 5.98
Profit 16072 2.02
Operational cost 2.48


45
Assumptions-
1. The cost analysis is for the trading of Jatropha seeds directly to market (Jodhpur
Mandi) where it is currently being traded.
2. The analysis is an essence of the business carried by the cluster of SHGs.


46
5. Conclusion
It was observed that there was no intervention on the micro-enterprise development, PSME
by any development agency in the areas of treatment. Till now the organizations have worked
indirectly in improving the livelihood opportunities. Though PSME is new to Partner
grassroots organizations they need capacity building but if they will follow the strategies
sincerely then some successful model for the micro enterprise can be created. The grassroots
NGOs needs hand holding support from the professional organizations like CEE for capacity
building and proper implementation of the strategies formulated. Since not much accountable
work has been done in the work area of the grassroots organizations on PSME, it should be
taken as an opportunity. Through proper implementation of the strategies and experiments, a
successful model can be developed. Moreover, being in the vicinity of the Udaipur, they get a
developed market nearby. This increases the scope of the development of the MED.


47
References
1. Colectorate, C. c. (2009, May 30th). District profile. Retrieved June 2nd, 2009,
from http//www.udaipur.nic.in.
2. Foundation, J. R. (2005). Overview Jaipur Rugs Foundation. Jaipur, Rajasthan,
India: Jaipur Rugs Foundation.
3. icar. (2005). Products. Retrieved 6 16, 2009, from
http://www.icar.org.in/cari/product. html: http://www.icar.org.in
4. MSME. (2009, 5 29). http://msme.gov.in/msme_aboutus.htm. Retrieved 6 15,
2009, from Home page for Ministry of Micro, Small and Medium Enterprises:
http://msme.gov.in.
5. ssi. (2007). overview. New Delhi: ssi.
6. Eco-friendly goat husbandry for Sustainable Livelihood of small farmers, BAIF
Development research foundation.
7. www.fao.org (www.fao.org/docrep/004/x6532e/X6532E03.htm. viewed on 11-8-
2009)
8. http://www.vuatkerala.org/
9. Modern bankable projects, NABARD (2007)
10. www.icar.org.in
11. Getting your Goat: An Analysis of Animal Husbandry Income Generation
Initiatives and Suggestions for Future Directions, Sara McHattie, April 2004
12. http://www.planning.rajasthan.gov.in/Annual%20plan_0809/pdf/chap_6.pdf
13. www.dahd.nic.in.
14. www.icar.org.in/natp/intro.htm.
15. http://www.atlantisenergy.co.cr/jatropha.html.
16. http://www.jatrophaworld.org/


48
Appendices
Appendix 1: Questionnaire for field Survey
Questionnaire
District:
Tehsil/Block:
City/Town/Village:
Date of Interview:
Interviewer:
Preliminary information
1. Household Composition
Name of the Household Members
Begin with yourself
Sex Age Education Status Marital Status
1.
2.
3.
4.
5.
6.
7.
2. Occupation
Classification Source Specify Income (in Rs.)
Primary Occupation
Secondary Occupation
Other Occupation
3. Do you yourself own land?
Total Land Owned (in Bigha)
Irrigated Land
Non-irrigated Land


49
4. Cropping Pattern and Income from Farming (Average from last few years)
Cropping Season Crops grown Total Yield Surplus Income
(in Rs)
Rabi Season
Zayed Season
Kharif Season
5. Total number of working family members
a) Male b)Female
6. Total income of the family (in Rs.)
1.
2.
3.
4.
Total
…………………………………………………………………………………………
Remarks (if any) …………………………………………………………………………………………………………………


50
Regarding SHG
Name of SHG
Year of formation
1. When did you join SHG
2. Objectives of your SHG
Item Describe
What was your motive of forming
the SHG?
How frequently do members of
your group save?
(weekly/fortnightly/monthly)
Do the group members make any
extra savings apart from the
regular savings?
3. What is your monthly savings in SHG?
Initial Saving Amount-
Current Saving Amount-
4. What is your total savings?
5. Why you did not able to save the anticipated amount?
(a)
(b)
6. Other sources of funding other than regular savings
Name
and Year
of Bank
linkages
Name
of
The
Bank
Purpose of
grant/loan
Total
amount
(In Rs.)
Purpose
for
which
utilized
Subsidy/
grant
amount
(In Rs.)
Loan
amount
(In Rs.)
Interest
rate
(in
percent)
Amount
repaid
(In Rs.)


51
Any other
7. Do you have borrowings other than SHG?
(a) Yes (b) No
8. Sources and amount of loan taken in last 5 years (In Rs.)
Sources 2005 2006 2007 2008 2009
Bank loan
Money lenders
NGO support
Govt. agency
Any other…………………….
9. Did you get loan from the SHG? (a) Yes (b) No
Loan amount
Rate of interest
Repayment period
Purpose of the loan
Amount repaid
10. Maximum limit of credit that your SHG can provide as inter-loaning (specify amount in
Rs)
…………………………….
11. Did you felt pressure in getting loan from the SHG at the time of disbursement?
(a) High pressure
(b) Somewhat pressure
(c) Slight pressure
(d) No pressure at all


52
12. What did field staff/ SHG Members see in you at time of disbursing loan?
(a) Need
(b) Attendance
(c) Expenditure Pattern
(d) Repayment History
(e) Family size
(f) After checking the register
(g) Participation in meeting
(h) Major stakeholder in society
(i) Any other (please specify)3
13. Does your SHG maintain the following books and ledgers?
14. Who is responsible for maintenance of above mentioned books and ledgers?
15. Who is responsible for depositing the savings in the bank?
16. Have any of your members taken training regarding SHG activities from any agency? If
yes,
Name of the
training
programme
Duration/specify
date if possible
No of
Members
involved
Conducted
by
Comments/limitations
or areas not covered in
the training

3
It includes ‘need’ for the loan etc.
Books/ledgers Yes/No Books/ledgers Yes/No Books/ledgers Yes/No
Admission book Savings ledger Stock book
Minutes book Loan ledger Any other (specify)
Attendance register Bank passbook
Cash book Books/ledgers
General ledger Individual passbook
Receipt vouchers


53
17. Have you had any exposure visit conducted by any agency? If yes,
Conducted
by
Place of
exposure/
Year
Area/domain of
exposure
Duration/number
of times
Feedback
18. Are you feeling confident in decision making and whether you are participating in it?
Health …………………………………………………………………………….
Education………………………………………………………………………..
Purchasing of Goods…………………………………………………………
Marriage………………………………………………………………………….
Child Care………………………………………………………………………..
Household Finance/ debt…………………………………………………..
Other, Please specify ………………………………………………………..
19. How have the above training facilitated you in
Organizing the group
Taking up income generating activities
Understanding accounting, book keeping and
financial management
Tackling everyday family related, community
related and gender related issues
Any other
20. Do you buy/sell commodities/inputs to
Category Commodity bought/sold Comments
Other SHGs
Farmers
Wholesalers


54
Govt. agency
Exhibition
Local market
Outside local market
21. Did you find favoring field staff/ SHG Members to other members without any special
reason?
(a) Very often
(b) Often
(c) Seldom
(d) Rare
22. What was the special reason can you mention?
23. Do you know from where the loan is coming to you?
(a) Yes (b) No
If yes, then mention where?
24. Do you know about your loan repayment schedule?
(a) Yes (b) No
25. Does the information regarding the repayment have been properly conveyed to you?
(a) Yes (b) No
26. What has been conveyed to you? Tell two important points.4
(a) (b)
27. Who has conveyed the information?
(a) Field staff (b) area manager (c) Program Specialist
(d)Any other
28. What kind of activities usually done by field staff at the time of non repayment?
(a) Rude and physical
(b) Indecent and scolding
(c) Asking many times
(d) Decent and kindly
29. What is the major reason for your non repayment?


55
(a) Economic crisis
(b) Government’s money, so no need to repay
(c) Field staff told not to repay
(d) I have other need
(e) Others (Specify)
30. How many times Executive Committee has told you to repay?
31. Do you know any Defaulters in your group? Possible reasons for defaulting are-
a.
b.
32. If you are provided training on SHG activities, what would you expect to be trained on?
Item Yes/No Describe/Comments
Subject matter
Method of teaching (group
study, individual sessions, field
studies, lectures, interactive
sessions)
Interaction with experts
Any other
33. Tell us five good practices within your group
34. Tell us five bad practices within your group
35. Are there conflicts within your group? If yes, how do you manage them?


56
36. Do you often change the group President and Secretary? If yes, why do you do so?
37. What are the areas in which you would need assistance from a project intervention?
Please describe in detail.
Appendix 2: Detailed Economic Analysis of Goat Husbandry as an Enterprise
Details of Option 1
(# Pink color represents the Particulars to be given in Package)
Cost Analysis of Goat Husbandry (Sirohi) - Option 1
A. Fixed cost
S. No. Particulars Units Cost (Rs.) Total (Rs.)
1 Shed construction with Manger 1 1500 1500
2 Weighing Machine 1 2500 2500
Sub Total 4000
Variable cost
B. Particulars Units Cost (Rs.) Total (Rs.)
1 1 Buck and 2 Doe (4month old) 3 1500 4500
2 Feed (Up to 1 year)
A 2 Does (For 2 months) 6.75Kg/month 5 135
B Buck(For 2 months) 7.5 Kg/month 5 75
C 2 Kids (For 1 month) 3.75Kg/month 5 37
D Miscellaneous 1000
Sub Total 5747
Total 9747
2nd Year


57
S. No Particulars Units Cost Total
1 Feed {Up to 5 months(next
Breeding Season)}
D Miscellaneous 500 500
Sub Total 747
Total cost up to 2nd year 10494
Details of Sale from Revenue
S. No. Particulars Units Cost Total
1 Sale of Buck (2 year old) 1 6000 6000
2 Sale of Doe (1 year old) 1 3500 3500
4 Market Value of Milk (if sold) 450 lts Rs 6/lt 2700
Total 17200
Total No. of Goats left at the end of 2nd
year are 4, which value around Rs 11000/-
Details of Option 2
Cost Analysis of Goat Husbandry (Sirohi)- Option-2
A. Fixed cost
S. No. Particulars Units
Cost
(Rs.)
Total
(Rs.)
Sub Total 4000
Variable cost
B. Particulars Units
Cost
(Rs.)
Total
(Rs.)
1 1 Buck and 4 Doe (4month old) 5 1500 7500
Sub Total 8920
Total 12920
2nd Year
Breeding Season)}


58
D Miscellaneous 500 500
Sub Total 920
Revenue Details
Total 24400
Total No. of units of Goats left at the end of 2nd year are 8, which value around Rs 23000/-
Details of Option 3
Cost Analysis of Goat Husbandry (Sirohi)- Option-3
A. Fixed cost
S. No. Particulars Units
Cost
(Rs.)
Total
(Rs.)
Sub Total 4000
Variable cost
B. Particulars Units
Cost
(Rs.)
Total
(Rs.)
1 2 Buck and 6 Does (4month old) 8 1500 12000
B 2 Buck(For 2 months) 7.5 Kg/month 5 150
Sub Total 13667
Total 17667
2nd Year
Breeding Season)}
a 6 Does (For 2 months) 6.75Kg/month 5 405
b 2 Buck(For 2 months) 7.5 Kg/month 5 150
c 6 Kids (For 1 month) 3.75Kg/month 5 112


59
d Miscellaneous 500 500
Sub Total 1167
Revenue Details
Total 40100
Total no. of units at the end of 2nd year are 3 Doe parent, 1 Doe of 1st generation, 2
Buck of 1st generation and five kids. Total asset value is Rs.28500.
Note:
i. Weight of 4 month old kid= 8KG
ii. Age of Maturity= 8-10 months
iii. Concentrated Feed at the time of maturity
iv. Adult Goat (one month before and one month after breeding)=6.75Kg/month
v. Buck (2 month/Breeding season)=7.5Kg/Month
vi. Kid (30 days)=3.75 Kg/Month
vii. Cost of concentrated feed= Rs.5/Kg
viii. Other feed is free of cost
ix. Each Doe gives 2 lit. milk per day which is used for household consumption
x. 15 percent mortality
xi. A Buck, which is 1 year old, can be replaced with another Buck of same age in the
vicinity of the village to check inbreeding.
Appendix 3: Detailed Economic Analysis of Backyard Poultry as an Enterprise
Details of Option 1
(# Pink colour represents the Particulars to be given in Package)
Cost Analysis of Backyard poultry- option 1
A. Fixed cost
1 Cage construction 1 1500 1500
3 Waterer 1 25 25


60
Sub Total 4025
Variable cost
Particulars Units Cost (Rs.) Total (Rs.)
1 Chicks (45 days old) 40 50 2000
2
Cost of feed - 2 kg/bird
upto 90 days @ Rs.6/ kg
80 Kg for
90 days
6 480
3 Miscellaneous 200
4
After six month need to
feed only 19 Birds 19 Kg 6 114
Feed for chicks up to 45
days 20
0.15 /day/
chick
135
Sub Total 2929
Total 6954
Revenue Details (In 6 months)
1 Sale of eggs 300 5 1500
2 Sale of Birds 12 300 3600
3 Sale of offsprings 10 50 500
Total 5600
After 6 months
1 Cost of feed up to 90 days 29 6 348
Revenue Details
Total 5500
Note: 5 cocks and 7 hens sold. In new generation if 20 are cocks and 7 are hen the
total no of birds are 47 out of which 22 are cocks and 25 are hens.
In first generation- 3 Hen and 7 cocks.
Total= 12 cock and 20 hens.
2nd time 7 hens and 5 cocks are sold


61
In 2nd generation: 20 cocks and 7 hens.
Total No. of units at the end of 1 year= 12690
Details of Option 2
Cost Analysis of Backyard poultry- option 2
A. Fixed cost
1 Shed construction 1 1500 1500
3 Waterer 1 25 25
Sub Total 4025
Variable cost
Particulars Units Cost (Rs.) Total (Rs.)
1 Chicks (45 days old) 40 50 2000
2
Cost of feed - 2 kg/bird upto 90
days
@ Rs.6/ kg
80 Kg
for 90
days
6 480
3 Miscellaneous 200
4
After six month need to feed
only 26 Birds 35 Kg 6 208
Feed for chicks up to 45 days
45
0.15 /day/
chick
303
Sub Total 3191
Total 7216
Revenue Details (In 6 months)
1 Sale of eggs (Desi) 60 5 300
Sale of eggs (Nirbheek) 312 3 936
2 Sale of Birds (Nirbheek) 8 350 2800
Total 6036
After 6 months
1 cost of feed up to 90 days 71 6 852
Revenue Details


62
Total 8125
Total Asset cost left with the family at the end of 1 year is Rs 13000/-
Assumptions:
Mortality rate = 15%.
There are 20 cocks and 20 hens in the set.
Appendix 4: Detailed Economic Analysis of Trading in Jatropha as an Enterprise
Details of Option 1
Cost Analysis of Jatropha- Option 1
Current Scenario for 50 Quintals
Fixed cost (Capital investment)
1 Weighing machine 1 2500 2500
2 Additional weight 100
3 Building Expanses
Transportation 1000
Brick 1500 2 3000
Cement 1500
Hardware 600 600
Labour (@ 100 Rs/ lab.) 10 1000
4 Covering Polythene 2 300 600
Total Capital investment 10300
Variable Cost for 50 Quintals
A Direct cost (Fixed cost) Cost Total
1 Purchasing Raw Material 5000 13.5 67500
2 Direct Lbour (Packing & Loading) 1000
B Indirect cost
Storage Rent 0 0 0
Salary of procurement manager cum sales incharge 1 2000 2000
Thread 100 100
Gunny Bag 50 20 1000
Transportation 2 pick-up 3000 6000
Labour 2 500 1000
78600
Sales= Rs 40000


63
Contribution= Sales- Variable cost= 12150
per unit contribution= 2.43
BEP= fixed cost/per unit contribution= 4238.6= 43 qt
Details of Option 2
Worst Scenario for 50 Quintals
Fixed cost (Capital investment)
1 Weighing machine 1 2500 2500
2 Additional weight 100
3 Building Expanses
Transportation 1000
Brick 1500 2 3000
Cement 1500
Hardware 600 600
Labour (@ 100 Rs/ lab.) 10 1000
4 Covering Polythene 2 300 600
Total Capital investment 10300
Variable Cost for 50 Quintals
A Direct cost (Fixed cost)
Cos
t Total
1 Purchasing Raw Material 5000 3.5 17500
2 Direct Labour (Packing & Loading) 1000
B Indirect cost
Storage Rent 0 0 0
Salary of procurement manager cum Sales
Incharge 1
200
0 2000
Thread 100 100
Gunny Bag 50 25 1250
Transportation
2 pick-
up
250
0 5000
Labour 2 500 1000
27850
Sales= Rs 100000
Contribution= Sales- Variable cost= 21400
per unit contribution= 4.28
BEP= fixed cost/per unit contribution= 2406.5= 25 qt


64
Appendix 5: Cases
An adept example of Nursery Raising
Bharma Ram; 30 years old man from village Nichli Kadech produced an exclusive example of
Nursery raising. He developed a nursery for plants like Karanz, Khakra, Bamboo, Su-babul, Mango,
Mahua etc. He makes a net profit of 1.5 lakhs in 3 years by selling the plants at Rs 2.5 to 3 (at
government nursery rates). While the rate of the same nursery plants in market was around Rs 5. The
operational cost for raising a nursery for 3 years is somewhere around Rs 45000 according to his
estimate. Besides this, he has started his own flour mill and a kirana shop in the village. If we look at
his assets in livestock, he has 2 buffaloes, 1 cow and 12 goats.
Success story of Hari om Mahila bachat samuh
Hari Om Mahila bachat samuh, Kaucha was formed in 1990. Reshmi bai is the head of the SHG.
Initially they faced many problems because they have no freedom to participate in household
decisions. Their family members were not in favor of her to join SHG. They all were very shy and
occasionally come out of the home. By seeing the benefits of saving and credit their family
members allowed them to be a part of it.
This SHG had 12 members. Initially they save Rs. 5/month, now it increases to Rs.20/month. Thus
this group has saving of Rs. 29564. The members are very enthusiastic and decided to run different
small scale enterprises to increase their income and to help their family members economically.
Due to their dependence on forest produce which are mostly seasonal they decided to marketing
and processing of different forest produce according to availability of products. They started
marketing of Honey, producing and selling of Ark and Sirka of jamun, urad processing, purchasing
of different products from the village itself in a critical mass and sold in nearby market. They
distributed the profit among the group members. They earn this confidence to run the business by
being together and having trust on each other. This is an achievement of the SHG formation,
reflects the involvement of the women in the participation process.


65
Success story of Savlal
Savlal is a 36 years old man, living in village Visma. The family size is 9 members and the main
source of livelihood is Farming. He has 5 bighas of Agricultural land, but farming is not only
sufficient for his family requirements. He is very enthusiastic person and able to take risk. He
saw the poultry in his relatives’ home and planned to start poultry business to support his family
requirements.
He purchased 40 local variety chicks at the rate of 50 Rs./chick, from nearby village on June 2,
2009. All the chicks were 1.5 month old. In the whole set 8 were Cock and 32 were Hen. He
purchased a cage, of size 7x4.5 feet, costing Rs.5,500 for chicks. He decided the feed for chicks
according to their requirement. Initially he fed 1.5 Kg mixture of Maize, Masoor floor and
grinded Gram. He has adjusted feed according to his experience and according to his relative’s
experience. He increases the feed with the age of the chicks. After two months the mortality rate
is 0%. All the birds gained good weight. Few birds start laying eggs. The price of an egg is
between Rs.5-7.
Success story of Sama Ram
Sama Ram is 22 years old, living in Gara village of Udaipur District. He is a member of FTTGs
formed by KAS under the project of UNDP GEF- Small Grants Programme.
Few years back his source of livelihood was only Agriculture. He has only 5 beegha Agricultural
land. The total productivity was not sufficient to earn necessitated amount of money for his
family members. He is a very enthusiastic person, and interested to start a small enterprise. He
has two buffaloes which gives around 12 liters of milk per day. But there is no dairy in the village
and the market is kotra which is 55 kms away from his village. He has identified the market in the
nearby villages itself. He decided to start business of ghee making because milk is highly
perishable and the market is far from the village. He sells 1 liter of ghee at Rs. 200 and earns
Rs.5000-6000 per year.


66

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