Kudumbashree: Kerala's all-women Rs 2,262 crore savings group finances microenterprises of members
In
2007, Bindu Pallichal, a homemaker from the Pravachambalam village
near Thiruvananthapuram, decided to turn entrepreneur.
She began to experiment with ayurvedic oils and cosmetics because she knew Sanskrit (the oldest known ayurvedic texts were written in the ancient language). Problem was Sanskrit was her only capital or asset to speak of. There was no money to invest or land to build a manufacturing unit.
She began to experiment with ayurvedic oils and cosmetics because she knew Sanskrit (the oldest known ayurvedic texts were written in the ancient language). Problem was Sanskrit was her only capital or asset to speak of. There was no money to invest or land to build a manufacturing unit.
Today,
Bindu's unit makes 21 ayurvedic food and cosmetic products, its
mainstay an ingredient that claims to enhance memory. Her turnover
stands at Rs 7 lakh, no mean achievement in a state where an
entrepreneur is as rare as a teetotaller. Bindu has also bagged
several awards at the state and national levels as a woman
entrepreneur.
How did she do it? Bindu became a member of Kudumbashree, an all-women collective of members selected from poor households. The microenterprises of members like Bindu, who have been streamlined into neighbourhood groups (NHGs), are sustained by microfinance. The 2.59 lakh NHGs facilitate thrift mobilization — also known as small savings — and provide customized credit to its members, according to Manjula Bharathy, CEO, Organisation and Social Development of Kudumbashree.
How did she do it? Bindu became a member of Kudumbashree, an all-women collective of members selected from poor households. The microenterprises of members like Bindu, who have been streamlined into neighbourhood groups (NHGs), are sustained by microfinance. The 2.59 lakh NHGs facilitate thrift mobilization — also known as small savings — and provide customized credit to its members, according to Manjula Bharathy, CEO, Organisation and Social Development of Kudumbashree.
Small
savings of a few individuals may not amount to much. But what about
41 lakh women? That's the number of Kudumbashree members in Kerala.
Taken together, their savings add up to Rs 2,262 crore. No company
with operations based in Kerala has a turnover to match this money.
Their sheer number allows Kudumbashree members to access linkage
banking — loans extended to self-help groups (SHGs), or
'ayalkoottams', by cooperative and nationalized banks under the aegis
of government-run Nabard — insurance schemes, grants, interest
subsidies and the like.
In many ways, the success of Kudumbashree should not surprise. In Kerala, politics smothers the lonely pursuits of individuals. A collective effort is a different story. Trade unions are mighty because they have the numbers. Total literacy mission and the widely lauded People's Planning Programme are all people's efforts. The state, put simply, is a shining example of places that tap the vast power of people's collectives to resolve vexing problems in society. The Kudumbashree Mission, at the heart of which is 'group formation and collectivization' of women to fight poverty and achieve economic empowerment, is the latest in a series of such efforts.
To understand the impact of Kudumbashree, one simply has to look at its scope. The 41-lakh members in the movement translate into nearly 50% of the households in the state. In other words, half the state's population makes a living out of this programme. Kudumbashree's success gains even more shine because of one constant problem in Kerala. The men usually spend a big part of their income on vices such as liquor, cigarettes, drugs and gambling.
The family gets little. Ergo, the money earned by a woman becomes critical. Kudumbashree today runs about 35,000 microenterprises in fields as diverse as food processing and handicraft and cosmetics. These units are managed by women from poor families with no formal training, remember.
In many ways, the success of Kudumbashree should not surprise. In Kerala, politics smothers the lonely pursuits of individuals. A collective effort is a different story. Trade unions are mighty because they have the numbers. Total literacy mission and the widely lauded People's Planning Programme are all people's efforts. The state, put simply, is a shining example of places that tap the vast power of people's collectives to resolve vexing problems in society. The Kudumbashree Mission, at the heart of which is 'group formation and collectivization' of women to fight poverty and achieve economic empowerment, is the latest in a series of such efforts.
To understand the impact of Kudumbashree, one simply has to look at its scope. The 41-lakh members in the movement translate into nearly 50% of the households in the state. In other words, half the state's population makes a living out of this programme. Kudumbashree's success gains even more shine because of one constant problem in Kerala. The men usually spend a big part of their income on vices such as liquor, cigarettes, drugs and gambling.
The family gets little. Ergo, the money earned by a woman becomes critical. Kudumbashree today runs about 35,000 microenterprises in fields as diverse as food processing and handicraft and cosmetics. These units are managed by women from poor families with no formal training, remember.
Building
a Future
Initially, the Kudumbashree movement restricted itself to a few areas in farming and agri-business such as rice and vegetable cultivation and making curry powder, pickles, rice powder and so on. Members have since ventured into fields such as construction, driving, cafes, brand development — long seen as the preserve of men in Kerala. "Thanks to our huge fund, our senior officials can even think of promoting a bank," said Sindhu K, a Kudumbashree member in Alangode, a village in Malappuram district that borders Thrissur.
Alangode, for example, is today a model for community farming and agri-based product development for the rest of the state thanks to the work by Kudumbashree workers like Sindhu. The Alangode Kudumbashree Community Development Society (CDS) — Sindhu is its vice-president — has many members cultivating paddy. Their produce was once sold through the state-owned Kerala Civil Supplies Corporation (Supplyco). But Supplyco withdrew from procurement because of financial problems. The women of Alangode were taken aback only briefly. They began selling their rice directly under the Kudumbashree brand name. The area under paddy cultivation by Kudumbashree in the state stands at 157,926 acres. The women are raring to increase the area under cultivation. Besides Kudumbashree rice, the group also makes and sells rice flakes and organic vegetables. Success stories like these are legion. Beena Paul, a 40-plus leader of a 38-member team, including engineers and supervisors, has undertaken the construction of 87 singlestorey houses for tribals in Edakkattuvayal panchayat in Ernakulam district, "This is our first project.
Initially, the Kudumbashree movement restricted itself to a few areas in farming and agri-business such as rice and vegetable cultivation and making curry powder, pickles, rice powder and so on. Members have since ventured into fields such as construction, driving, cafes, brand development — long seen as the preserve of men in Kerala. "Thanks to our huge fund, our senior officials can even think of promoting a bank," said Sindhu K, a Kudumbashree member in Alangode, a village in Malappuram district that borders Thrissur.
Alangode, for example, is today a model for community farming and agri-based product development for the rest of the state thanks to the work by Kudumbashree workers like Sindhu. The Alangode Kudumbashree Community Development Society (CDS) — Sindhu is its vice-president — has many members cultivating paddy. Their produce was once sold through the state-owned Kerala Civil Supplies Corporation (Supplyco). But Supplyco withdrew from procurement because of financial problems. The women of Alangode were taken aback only briefly. They began selling their rice directly under the Kudumbashree brand name. The area under paddy cultivation by Kudumbashree in the state stands at 157,926 acres. The women are raring to increase the area under cultivation. Besides Kudumbashree rice, the group also makes and sells rice flakes and organic vegetables. Success stories like these are legion. Beena Paul, a 40-plus leader of a 38-member team, including engineers and supervisors, has undertaken the construction of 87 singlestorey houses for tribals in Edakkattuvayal panchayat in Ernakulam district, "This is our first project.
Almost
90% of the work is done by women starting from planning to design to
masonry," she said. This is a sea change in a state, perhaps
India, where women are usually engaged as head load workers at
construction sites, according to Beena. In Ernakulam district, women
have taken to driving commercial vehicles through a venture called
Kudumbashree Travels. (Kudumbashree facilitates bank loans for buying
the cars.) "Several women drive taxis. We have women as
conductors and cleaners in buses. Soon we will have a woman bus
driver too,'' said Tanie Thomas, Kudumbashree mission co-ordinator,
Ernakulam.
In Kochi, Rowhanath, 36, drives an Indica for a unit under the Kochi Corporation between 9 am and 5 pm. She can use the Indica as a taxi to drive other customers before and after the duty hours. Rowhanath's monthly pay is fixed at Rs 22,000 for 1,700 km but she ends up making Rs 20,000 a month. She earns an extra Rs 2,000-3,000 a month from her taxi service. It was only this May that Rowhanath was able to own a car — thanks to Kudumbashree — despite getting a driving licence 10 years ago.
In Kochi, Rowhanath, 36, drives an Indica for a unit under the Kochi Corporation between 9 am and 5 pm. She can use the Indica as a taxi to drive other customers before and after the duty hours. Rowhanath's monthly pay is fixed at Rs 22,000 for 1,700 km but she ends up making Rs 20,000 a month. She earns an extra Rs 2,000-3,000 a month from her taxi service. It was only this May that Rowhanath was able to own a car — thanks to Kudumbashree — despite getting a driving licence 10 years ago.
Kudumbashree's
main activities such as farming, social development programmes and
microenterprises are common to all the 14 districts of Kerala. But
the women in some districts are known to be traditionally strong,
even better, in certain activities. "Goat farming and apparel
making have gained momentum in Kannur while sales of cashew nuts
under the brand Saphalam have picked up in Kasargod where there is
large-scale cultivation of the nut," said Shahul Hameed, a
programme officer of Kudumbashree.
Micro
Entrepreneurs
Likewise, Kozhikode, a hub for footwear, excels in the manufacture of soles for footwear. Idukki is strong in dairy farming, Ernakulam in pineapple farming, Pathanamthitta in jute bag making and Kollam in doormat production. Thrissur grows plenty of a type of plantains called kathali which are supplied to Guruvayur Krishna temple.
Goat farming has become so remunerative that Kudumbashree units for rearing goats have mushroomed across Kannur. The district has 953 goat farm units, each comprising five women and at least 25 goats. Kudumbashree gives subsidy and arranges for loans from the banks to buy goats. It even organizes a market for the sale of goats.
"Goat farming has been so successful that a team from Liberia had visited the farms to study. The Malabar genus of goats is special. We intend to start Kannur Goat Farmers Company and plan to extend goat farming to all the panchayats in the district,'' said Kannur district Kudumbashree coordinator Premarajan. A woman can earn anywhere between Rs 1.5 lakh and Rs 4 lakh a year depending on how much time she spends on looking after the goats. Dairy farmers, taxi owners, handicraft makers — Kudumbashree has spawned a long list of entrepreneurs in Kerala. Yet, economic improvement is not the only legacy of the movement, according to Bharathy. More importantly, Kudumbashree has empowered women politically and socially, she adds
Likewise, Kozhikode, a hub for footwear, excels in the manufacture of soles for footwear. Idukki is strong in dairy farming, Ernakulam in pineapple farming, Pathanamthitta in jute bag making and Kollam in doormat production. Thrissur grows plenty of a type of plantains called kathali which are supplied to Guruvayur Krishna temple.
Goat farming has become so remunerative that Kudumbashree units for rearing goats have mushroomed across Kannur. The district has 953 goat farm units, each comprising five women and at least 25 goats. Kudumbashree gives subsidy and arranges for loans from the banks to buy goats. It even organizes a market for the sale of goats.
"Goat farming has been so successful that a team from Liberia had visited the farms to study. The Malabar genus of goats is special. We intend to start Kannur Goat Farmers Company and plan to extend goat farming to all the panchayats in the district,'' said Kannur district Kudumbashree coordinator Premarajan. A woman can earn anywhere between Rs 1.5 lakh and Rs 4 lakh a year depending on how much time she spends on looking after the goats. Dairy farmers, taxi owners, handicraft makers — Kudumbashree has spawned a long list of entrepreneurs in Kerala. Yet, economic improvement is not the only legacy of the movement, according to Bharathy. More importantly, Kudumbashree has empowered women politically and socially, she adds
"People
like us were confined to the kitchen. Today, we are negotiating with
banks for loans worth crores of rupees, addressing large groups of
people to discuss various aspects of our venture and working in close
coordination with senior government officials," said Sindhu.
And
there is more to come. "This year we plan to brand 10 products
of Kudumbashree and launch a chain of 20 modern restaurants across
the state called Cafe Shree,'' said KB Valsala Kumari, executive
director of Kudumbashree.
To upgrade the skills of its members, Kudumbashree is also partnering with Tata Institute of Social Sciences for a PG diploma course. Another PG diploma course on integrated farming in association with state agriculture and veterinary universities is on the anvil. Two community colleges for short-term courses in infrastructure, particularly construction activities like painting, plumbing, electrical work, are also in the works.
To upgrade the skills of its members, Kudumbashree is also partnering with Tata Institute of Social Sciences for a PG diploma course. Another PG diploma course on integrated farming in association with state agriculture and veterinary universities is on the anvil. Two community colleges for short-term courses in infrastructure, particularly construction activities like painting, plumbing, electrical work, are also in the works.
S
Sanandakumar & PK Krishnakumar, ET 140914
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