Breaking Myths - SHGs Succeed in Punjab Also
(This has appeared in the May 2010 issue of the E-Mag of the Chandigarh Management Association pl for which I am thankful to them)
Punjab, the name is taken to imply a prosperous state where the concept of Self Help Groups (SHGs) is alien and not required as in the comparatively under developed parts of India. This is a myth; the concept is required, there is a deep hunger for credit and easy access to credit amongst its women and once shown the pathway; the concept is adopted enthusiastically. The only difference, if any, is in the quantum of funds sought for from banks or vide internal loaning as also subscribed to; both are higher than the conventional amounts in most parts of India. Normal subscriptions will often start at Rs 100/- per month per member (Rs 20/- or os in most parts of India); loans from banks or the demand for a loan would also start at a minimum of Rs 25,000/- or so as gainst Rs 10,000/- in most parts of India; but the overall concept of SHGs as mandated is certainly adhered to. The normal perception around 2000-02 was that Punjab could not have a vibrant SHG movement, however, field level experience based on efforts to grow the movement since then indicates that within the economic success of Punjab, the women are still in need of empowerment and look forward to being members of SHGs, once the concept is understood and internalized. The three success stories summaries below and a short excerpt on the varied interactions with SHGs and officials that follows provides an insight into the SHG concept in Punjab. The profile of the SHGs featured would have changed as the groups evolve over the years and officials involved move out on transfer, but the lessons learnt remain relevant. It is to be noted that the number of SHGs was over 3000 in Rupnaagr, SAS Nagar and Nawanshahr districts by 2009, this article reflects mainly the needs and aspirations of these SHGs as they evolved so to say.
Success Story One - Milking Profits: Rural Women & Dairying - an initiative of Ambuja Cement Foundation ( ACF ) at Ropar
Of the 32 SHGs promoted by ACF in District Ropar, the women of Arjun SHG in Village Alampur formed the SHG in 2003 and after saving around Thirty thousand Rupees, which they saved @ Rs.50/- per member per month, 13 women of the SHG joined by 9 other women of the village decided to form a Group to do Dairying collectively. Some members purchased Cattle through their savings and also from the loan of Rs 25,000/- and subsequently Rs.1.25 lakh that the Group availed from the Punjab Gramin Bank, Malikpur. The Punjab Milkfed agreed to link the dairy group with their existing marketing network. The women by 2008 were collecting 150 litres of milk everyday after starting from 50 litres or so only in 2007. The increase in self confidence of the women is tremendous, with the shyness exhibited at first now gone.
Success Story Two - Mehndipur SHG at Nawanshahr District - Punjab -
The Mehndipur SHG, functioning at village Mehndipur, District Nawanshahr emerged as a major example of success amongst entrepreneurial SHGs by earning Rs 1150/- on an average per member within three years or so of its formation. This SHG focused upon entrepreneurial activities since its inception, the SHG, formed in June 2002, with 10 members, all from the scheduled castes, decided to save Rs 50/- per month per member. The Group President Smt Meena Rani and Secretary Smt Sarbjit Kaur led the planning and steered the group very ably. The then CDPO ICDS, Nawanshahr District, Smt Charanjit Kaur and her staff invested considerable time and efforts in guiding the group and motivating the members with the then Branch Manager of Punjab National Bank, Shri SK Puri.The group had on formation a few members who knew the skill of stitching and tailoring as also embroidery. They motivated the other members to join in and to learn the activity. Secondly, the method of sharing income / losses transparently was also decide upon. This was to be on the level of skill and effort put in the activity - ranging from procuring orders to designing to actually cutting the dress. The group acquired 7 foot operated sewing machines from the three bank loans availed by them with no defaults. Income generation has boosted their economic status as also their self esteem considerably.
3. SHG Kalam : A multi- activity SHG with Infectious Enthusiasm - with 20 members and savings of Rs 50/- each from a village called Kalam near Nawanshahr town, with a predominant presence of lower income families, the interaction with SHG Members is stimulating, they are all excitement and enthusiasm, One member when asked about the advantage of belonging to a group, stated succinctly that she fractured her leg, she was given Rs 2000/- immediately as assistance by the group at her residence, what more could be the usefulness. The group members are literate (normally Class X) and state that they attend all functions together, they enjoy being together and discuss family problems also in meetings. The feeling of belongingness is palpable in the group, this is the main success and aspect of this SHG. There are no defaults to the bank and three members have turned entrepreneurs. The demonstrative effect of the group has been immense.
The Interactions with SHGs and Observations in Brief.
(a) First, what would be really representative of residents of smaller villages dotting the kandi areas in Punjab; - from three villages near Anandpur Sahib town, the following was noticed - Not a single woman - from amongst all present from age groups of approximately 18 to 45, was reading a newspaper or magazine. Reading was strictly religious, if at all, There was no awareness about products of banks, either of asset or liability classification, Literacy was upto class VIII normally with a few matriculates, but literacy skills were lost due to lack of application, A felt need for subsidy or grants from the government was maximum amongst members, Small credit needs for consumption expenditure was found to be the main demand.
(b) At a village in district Nawanshahr, near an industrial belt, where a major commercial bank had decided to be pro active; it was found that, Small credit needs, specially for operations - say Rs 7000/-, a washing machine for Rs 15,000/-; Rs 5000/- for three women to start making detergent powders, Rs 25,000/- to stock items at a shop, Rs 50,000/- to repair a house etc. were the main demands. Dairy animals to be added by individual members was another demand from members of SHGs. The need for a tangible security by the local branch head was the main obstacle in credit outreach inspite of no need to demand the same.
(c). At villages near Chamkaur Sahib and near Daburji, which are partially urbanised and have a more aware profile, women were found to be extremely desirous of earning and adding to the family incomes.
(d) Social mores however continue to be a strong negative influence as regards women, specially enforced by the established opinion makers at villages, at the level of sarpanch / ex sarpanch etc. Even the police is observed to be biased against women in noting complaints from them. Social power structures continue to be vested with men even if the women are elected to certain positions. The women support SHGs as this facilitates access to empowerment and a collective approach to problems. Rural women, once aware and trained in financial literacy - specially rates of interest and fixing installments - are found to generally demonstrate a higher degree of financial literacy and awareness as also discipline than the men. Women were also found to be serious in learning the concept and adopting it. Marketing facilitation is a major demand by SHG members as social mores prevent many from considering venturing out to even nearby towns for marketing their products. Quality of products remains a gray area though individual success stories are occurring. The deep felt need of these women to access credit and opportunities can only be felt and understood by interaction.
In addition to the above, a deep hunger for economic progress and financial prosperity is noticed very clearly amongst women in rural areas coupled with a strong desire for infrastructural amenities. While addressing the needs of rural Punjab, the policy makers have to ensure that the women and their needs are addresed equally.
(This has appeared in the May 2010 issue of the E-Mag of the Chandigarh Management Association pl for which I am thankful to them)
Punjab, the name is taken to imply a prosperous state where the concept of Self Help Groups (SHGs) is alien and not required as in the comparatively under developed parts of India. This is a myth; the concept is required, there is a deep hunger for credit and easy access to credit amongst its women and once shown the pathway; the concept is adopted enthusiastically. The only difference, if any, is in the quantum of funds sought for from banks or vide internal loaning as also subscribed to; both are higher than the conventional amounts in most parts of India. Normal subscriptions will often start at Rs 100/- per month per member (Rs 20/- or os in most parts of India); loans from banks or the demand for a loan would also start at a minimum of Rs 25,000/- or so as gainst Rs 10,000/- in most parts of India; but the overall concept of SHGs as mandated is certainly adhered to. The normal perception around 2000-02 was that Punjab could not have a vibrant SHG movement, however, field level experience based on efforts to grow the movement since then indicates that within the economic success of Punjab, the women are still in need of empowerment and look forward to being members of SHGs, once the concept is understood and internalized. The three success stories summaries below and a short excerpt on the varied interactions with SHGs and officials that follows provides an insight into the SHG concept in Punjab. The profile of the SHGs featured would have changed as the groups evolve over the years and officials involved move out on transfer, but the lessons learnt remain relevant. It is to be noted that the number of SHGs was over 3000 in Rupnaagr, SAS Nagar and Nawanshahr districts by 2009, this article reflects mainly the needs and aspirations of these SHGs as they evolved so to say.
Success Story One - Milking Profits: Rural Women & Dairying - an initiative of Ambuja Cement Foundation ( ACF ) at Ropar
Of the 32 SHGs promoted by ACF in District Ropar, the women of Arjun SHG in Village Alampur formed the SHG in 2003 and after saving around Thirty thousand Rupees, which they saved @ Rs.50/- per member per month, 13 women of the SHG joined by 9 other women of the village decided to form a Group to do Dairying collectively. Some members purchased Cattle through their savings and also from the loan of Rs 25,000/- and subsequently Rs.1.25 lakh that the Group availed from the Punjab Gramin Bank, Malikpur. The Punjab Milkfed agreed to link the dairy group with their existing marketing network. The women by 2008 were collecting 150 litres of milk everyday after starting from 50 litres or so only in 2007. The increase in self confidence of the women is tremendous, with the shyness exhibited at first now gone.
Success Story Two - Mehndipur SHG at Nawanshahr District - Punjab -
The Mehndipur SHG, functioning at village Mehndipur, District Nawanshahr emerged as a major example of success amongst entrepreneurial SHGs by earning Rs 1150/- on an average per member within three years or so of its formation. This SHG focused upon entrepreneurial activities since its inception, the SHG, formed in June 2002, with 10 members, all from the scheduled castes, decided to save Rs 50/- per month per member. The Group President Smt Meena Rani and Secretary Smt Sarbjit Kaur led the planning and steered the group very ably. The then CDPO ICDS, Nawanshahr District, Smt Charanjit Kaur and her staff invested considerable time and efforts in guiding the group and motivating the members with the then Branch Manager of Punjab National Bank, Shri SK Puri.The group had on formation a few members who knew the skill of stitching and tailoring as also embroidery. They motivated the other members to join in and to learn the activity. Secondly, the method of sharing income / losses transparently was also decide upon. This was to be on the level of skill and effort put in the activity - ranging from procuring orders to designing to actually cutting the dress. The group acquired 7 foot operated sewing machines from the three bank loans availed by them with no defaults. Income generation has boosted their economic status as also their self esteem considerably.
3. SHG Kalam : A multi- activity SHG with Infectious Enthusiasm - with 20 members and savings of Rs 50/- each from a village called Kalam near Nawanshahr town, with a predominant presence of lower income families, the interaction with SHG Members is stimulating, they are all excitement and enthusiasm, One member when asked about the advantage of belonging to a group, stated succinctly that she fractured her leg, she was given Rs 2000/- immediately as assistance by the group at her residence, what more could be the usefulness. The group members are literate (normally Class X) and state that they attend all functions together, they enjoy being together and discuss family problems also in meetings. The feeling of belongingness is palpable in the group, this is the main success and aspect of this SHG. There are no defaults to the bank and three members have turned entrepreneurs. The demonstrative effect of the group has been immense.
The Interactions with SHGs and Observations in Brief.
(a) First, what would be really representative of residents of smaller villages dotting the kandi areas in Punjab; - from three villages near Anandpur Sahib town, the following was noticed - Not a single woman - from amongst all present from age groups of approximately 18 to 45, was reading a newspaper or magazine. Reading was strictly religious, if at all, There was no awareness about products of banks, either of asset or liability classification, Literacy was upto class VIII normally with a few matriculates, but literacy skills were lost due to lack of application, A felt need for subsidy or grants from the government was maximum amongst members, Small credit needs for consumption expenditure was found to be the main demand.
(b) At a village in district Nawanshahr, near an industrial belt, where a major commercial bank had decided to be pro active; it was found that, Small credit needs, specially for operations - say Rs 7000/-, a washing machine for Rs 15,000/-; Rs 5000/- for three women to start making detergent powders, Rs 25,000/- to stock items at a shop, Rs 50,000/- to repair a house etc. were the main demands. Dairy animals to be added by individual members was another demand from members of SHGs. The need for a tangible security by the local branch head was the main obstacle in credit outreach inspite of no need to demand the same.
(c). At villages near Chamkaur Sahib and near Daburji, which are partially urbanised and have a more aware profile, women were found to be extremely desirous of earning and adding to the family incomes.
(d) Social mores however continue to be a strong negative influence as regards women, specially enforced by the established opinion makers at villages, at the level of sarpanch / ex sarpanch etc. Even the police is observed to be biased against women in noting complaints from them. Social power structures continue to be vested with men even if the women are elected to certain positions. The women support SHGs as this facilitates access to empowerment and a collective approach to problems. Rural women, once aware and trained in financial literacy - specially rates of interest and fixing installments - are found to generally demonstrate a higher degree of financial literacy and awareness as also discipline than the men. Women were also found to be serious in learning the concept and adopting it. Marketing facilitation is a major demand by SHG members as social mores prevent many from considering venturing out to even nearby towns for marketing their products. Quality of products remains a gray area though individual success stories are occurring. The deep felt need of these women to access credit and opportunities can only be felt and understood by interaction.
In addition to the above, a deep hunger for economic progress and financial prosperity is noticed very clearly amongst women in rural areas coupled with a strong desire for infrastructural amenities. While addressing the needs of rural Punjab, the policy makers have to ensure that the women and their needs are addresed equally.
Dear mr. kapila, it was an interesting reading. I completely agree with you; SHGs is not only about income generation, it is also about empowerment and I think that is what is majorly needed in the States like Punjab. looking forward to read more of your thoughts later. regards/ Vishal
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