Case6-February-2013

Uravugal Kalanjiam facilitates Livelihood Development

Devanampattinam is one of the tsunami-affected villages in Cuddalore district. DHAN Foundation is working in this village since January 2005. It has organized the victims into SHGs and supported to restart their livelihoods. The fisher folks were supported to buy nets and renovate their damaged boats. As per the international standard (Sphere Standard 2004), the poor households in disaster-affected areas were covered through restoration programmes. In 2011, DHAN Foundation facilitated the promotion of Uruvugal SHGs by organizing left-out labourers and poor families. The details given below narrate how this group facilitated enterprise development.

Everyone is Our Relative – Origin of the Group Name

The Tamil meaning of the term “Uravugal” means relatives. The group has 20 members representing five different caste that include, Fisher folk, Mudaliar, Naidu, Padayatchi and Parvatharajakulam. All these members live in a same street irrespective of differences.

Nandini the treasurer of the group said, “We are one, and we don’t find any differences based on caste. When we came together for the first time, we decided to name our group as Uravugal as we consider everyone as our relative. Our group members have helped each at times of hardships.”

Tsunami – Vanished Hopes

“Our village has seen many changes in last ten years. Previously, Devanampattinam was known for floriculture and flowers produced here were marketed in Chennai and other cities before the tsunami disaster. My husband and I used to work in this field in morning and evening to collect flowers. We used to get र 1 per 100 gram of flower collected. Even during the festival days, we used to work in the field as it provides regular income to us. Garland preparation was the home-based work for the rural women. The tsunami waves in 2004 inundated and damaged the floriculture fields. Our livelihood was directly affected. After tsunami, the soil salinity has increased and these days very few are engaged in floriculture said Vijeya president of the group.

Scary Cycone and Financial Status of the families

“You may find our home to be very new, but few days before our situation was pathetic said Vijeya“. “We renovated this house a few months before with asbestos roof with support of my group and relatives. Previously we had thatched roof. The scary thane cyclone damaged our roof, which fell into the home. In that situation, we saved whatever we could and stayed at Nadini’s home for about 5 months. She also shared food with us and I am thankful for her kind support. Without employment opportunity, we struggled a lot in that situation.

My husband who is working as a mason did not get regular employment. However, this was not the first occasion that we suffered for the basic needs. Earlier our family income was very low. Before joining group, I used to get loan from the moneylenders at an interest rate of 4% per month. We will get र 870 and we need to pay र 1000 in 100 days (Rs. 10 per day). This lending system is called as Thandal. There is another group of people engaged in lending at 5% interest rate. Last time I took र 10000 for my home needs. Not only me, but also all our members have fallen into this trap at regular intervals” she added. “When –my husband suffered from forehand fracture, he preferred traditional healers, since hospital treatment was costlier to them. When he faced fracture for the second time, the group extended support for the hospital treatment“ said Vijeya.

Why this group was promoted?

Jeyanthi the secretary of the group replied, “We have promoted this group to access credit at cheaper interest rate, save money and to promote livelihood activities.” Nandini added that, “some the members in the same village have initiated dairy activity. We too have plans to promote dairy activity. We need to generate income and contribute for our children education, and family needs.”

How the group contributed to economic well-being?

“Women of my community are engaged in fisherybased activities. None of them is engaged in other than fisheries-based activities. Rather being idle at home, I thought I can do garment sale to support my family. I expressed my thought with the group and my husband finally everyone agreed. Now I have started selling cotton and poonam variety sarees within the village. Before three months, I took र 10000 from the group and started selling cotton sarees with a margin of about र 20 - 30. I was able to sell completely and gain Rs. 1200. Since this activity is profitable, I borrowed र 10000 from my relative and purchased sarees from Chennai. Presently I am selling these sarees with Rs. 50 margin. Already I have gained र 2100 by selling sarees. Since it is Deepavali (Indian Festival) time, I believe I can earn more out of this business. Presently I am selling with a margin of र 50 and if I sell it for credit, I can increase the margin to र 100. Whenever I came in late after buying sarees from chennai, my husband used to support me to reach home. Recently, when my children came home he took र 500 from me. Now I am able to support my husband and my children at times of financial needs, said Nandini. “Earlier, I had only one grinder, using which I produced and marketed wet flour. Due to frequent power-cuts, and increased heat due to continuous usage of existing grinder, I decided to buy another grinder. In Cuddalore district, we face about 8 – 10 hours of power-cut during the critical hours. I expressed the credit need for purchasing a second grinder and the group supported me by providing Rs. 5000 credit. Now I am using two grinders to produce wet flour.

Since I have another grinder, I have plans to expand my business. With about र 350 investment per day I earn र 50 - 60. My husband sells this wet flour to five shops. We sell 41 packets at र 10 per packet and the retailers sell at र 16 per packet. Apart from selling flour to shops, we retain two packets for home consumption. Thus, we are able to make money and cook food for ourselves said Vijeya. S.Jeyanthi, said, I have started (duplicate jewels) renting jewels with the support of my group. I have started this very recently and people in this village are highly interested hiring jewels. I took र 15,000 from my group to initiate this activity. After initiating this activity routine schedule has changed. This activity is profitable.

What we have gained through group?

All the three entrepreneurs expressed that after joining group, they have better access to information on recent updates, mobility has increased, they were able to initiate small trade and interact with the bankers. Members also said, previously they have visited banks only for mortgaging their jewels and now they feel that they are competent enough to deal with bankers. They also expressed that, they were able to learn from each other. Through cluster development association, they have learned about group level norms, dairy activity, and group level norms.

What we wish to do in future?

Nandini and Vijeya have plans to promote a canteen, as there is a teacher-training institute near to their home. Nandini believes that her group will support her in promoting a canteen. In addition, Nandini has independent plan of promoting dairy activity. Vijeya has an independent plan to expand her wet flour selling business. She and her husband are planning to identify new shops to sell the flour. Jeyanthi has planned to focus her existing activity.