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EVALUATION OF WORKING OF KUDUMBASREE IN

NEDUMANGAD TALUK 

Rajesh. T, Assistant Professor, Department of commerce, Mannaniya College of Arts and Science, Pangode

Vineeth Chandra K.S, Research scholar, University of Kerala, Thiruvanathapuram

Before 1990's, credit schemes for rural women were almost negligible. The con

women's credit was born on the insistence by women oriented studies that highligh

discrimination and struggle of women in having access to credit. However, there is a perc

gap in financing genuine credit needs of the poor especially women in the rural sector.Th

certain misconceptions about the poor people that they need loan at subsidized rates of inte

soft terms, they lack education, skills, capacity to save, credit-worthiness and therefore

 bankable. Nevertheless, the experiences of several SHGs(self-help groups) reveal that rural p

actually efficient managers of credit and finance. Availability of timely and adequate cessential for them to undertake any economic activity rather than credit subsidy. Kudumbas

an innovative, women-centred state poverty eradication programme being carried out sinc

and 2000 in rural and urban areas of Kerala State respectively. It aims at eradicating ab

 poverty, within a definite time period, under the leadership of Local Self Governmen

Mission launched by the State Government under the active support of Government of India

  National Bank for Agricultural and Rural Development (NABARD) has adopted a d

methodology in wiping out absolute poverty by organising the poor into community

organisations. udumbashree accomplishes its mission to economically strengthen poor

through the system of collective thrift accounts in the neighbourhood groups. Another economic empowerment is the setting up of micro enterprises with which the women can ca

various activities. The weekly thrift collection is conducted at the ‘Ayalkootam’ (neighbo

group) meetings and with this the women have access to an informal banking system. The

enterprise activity exists both at the urban as well as rural levels. The present sudy is an ana

the various issues faced by the members of kudumbasree in Nedumangad Taluk.

EVALUATION OF WORKING OF KUDUMBASREE IN

NEDUMANGAD TALUK 

The Kudumbasree Poverty Eradication Mission in its 13th year will focus on collective farming as a m

empowering women and guaranteeing their financial emancipation. With more than 37 lakh members, Kudum

had created a well knit network of women in every village, town and city of Kerala. Through concer

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continuous action sustainable livelihood options for the poor are being developed. Persistent efforts to reach o

most vulnerable and reached among the poor are also underway. The 13 years of Kudumbashree have been o

sharp learning curve. Unraveling the complexities of circumstances exacerbating poverty, finding processes th

and processes that do not, finding new livelihood options, improving upon existing options, seeking partner

empowerment – all these have contributed to ensuring that kudumbashree continues to grow and learn.

Milestones in the development of kudumbasree

Genesis

The decentralisation experiment in Kerala and the transfer of powers to local governments came

 bursts. First, in October 1995, when the decision to transfer most of the development institutions to local gove

along with staff was taken, and the second, in August 1996 when the decision to transfer about a third of St

resources to local governments was announced and the People’s Plan Campaign launched. Alongside this

decided to universalise the Anti-Poverty Programme of the State under the name of “Kudumbashree”. The co

Kudumbashree sought to match the energy of the self-help group movement with the need for a community

to interface with local self governments. This anti-poverty programme had evolved through a long p

experimentation. The Urban Basic Services for the Poor (UBSP) implemented in Alappuzha Municipality

focused on a community-based and participatory approach to planning and implementing poverty r

 programme. This was when the nine point index for identifying families at risk of poverty was first evolved.

The promise of the initiative prompted Government to launch the pilot programme in Malappuram d

Kerala, in November 1994, under the Community Based Nutrition Programme (CBNP implemented with U

support). Almost simultaneously, the Government decided to give universal coverage of the programme fo

areas in December 1994. The formal launch of Kudumbashree was on May 18, 1998

Today the community network of kudumbashree covers every grama panchayat and over 90% (1748

 panchayat wards of the state. There are 2.04 lakh NHGs, in which women from 37.43 lakh families participate

one in every two households of Kerala has a representative in Kudumbashree. The coverage of the poor i

universal. The only families remaining to be covered are outliers in remote tribal hamlets, migrant wom

sections of the coastal population. Built around three critical components – micro credit, entrepreneur

empowerment – the Kudumbashree initiative has today succeeded in addressing the basic needs of the less pr

women – thus providing them with a more dignified life and a better future. Kudumbashree differs from conv

 programmes in that it perceives poverty not just as the deprivation of money, but also as the deprivation

rights. The poor need to find a collective voice to help claim these rights.

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Structure of Kudumbashree

The Community Based Organisation, Kudumbashree, conceived of poverty as a basket of

deprivations and vulnerabilities and has developed an innovative methodology to identify the poor usieconomic parameters. The poor thus identified were organised under a well-networked Community

Organisation (CBO). This methodology has since been incorporated into the policy framework of the State

identification of the underprivileged.

The Kudumbashree community organisation is a three-tiered structure with its apex tier anchored in the l

governments. The three tiers are:

• Neighbourhood groups (NHGs) – Groups of 10-20 women from the same neighbourhood f

foundation of the structure

• Area Development Society (ADS) – Federation of NHGs within a ward of the LSG

• Community Development Society (CDS) – Registered Society as the Federation of ADS within the

COVERAGE

The Kudumbashree Community Organisation network is present in all the 999 Gram Pancha

Municipalities and five Corporations in Kerala.

Table:1

Coverage of Kudumbasre in Kerala

 Number of NHGs 2.03 lakh

Total families covered 37.37 lakh

 Number of ADS 17486

 Number of CDS 1061

Source;www.kudumbasree.org

FUNCTIONING OF THE MISSION

Micro finance

Thrift and Credit

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Kudumbashree promotes Neighbourhood Groups (NHGs) of 10-20 poor women members as an i

 between poor women, banks and government agencies. NHGs are instrumental in thrift mobilization, enco

the poor to save and to avail low cost formal credit. They facilitate easy and timely credit to the un-reach

amount of loan to members and the purpose for which the loan should be utilized are decided by the NH

repayment is collected weekly during the NHG meetings. It is estimated that the thrift mobilized is on an

assessed based on CDS reports to Kudumbashree mission that number of NHGs promoted is 202879 out

9779 NHGs were created during the financial year 2009-10.The cumulative thrift mobilized by all NHGs

 beginning to March 2010 is to Rs.1375 crore and the internal loans disbursed to members are to the

Rs.3914 crore (As on March 2010). It is also estimated that during the year 2011-12, the total thrift coll

all NHGs is Rs 198.56 crores and the internal loan disbursed is Rs 892.76 crores.

1. Linkage banking

 NHG-Bank linkage scheme is one of the flagship programmes of Kudumbashree. NABARD SH

linkage grading procedures are applied while selecting eligible NHGs for availing loan. CDS assists

getting graded by the bank. Bank will provide loans to those NHGs who pass 80 % of marks in the gradin

amount to a NHG is linked to thrift amount mobilized and retained within the group as internal loans. M

loan amount possible for a NHG is four times of its thrift.rage Rs 40 per month per member.

2. Financial literacy Campaign

Kudumbashree programs cover about 37 Lakhs families organized under 2.02 Lakhs NHGs throu

CDSs. All NHGs have bank accounts through which members of NHGs have access to savings and credit

of banks. The NHG is acting as intermediary between banks and ultimate beneficiary. Kudumbash

 promoted 202,879 NHGs but number of NHGs graded and linked are 141,434 and 118,711 respectiv

March 2010. As such about of NHGs only have been graded and of graded NHGs provided Bank linkag

84168 NHGs remain unlinked, of which 61445 NHGs are yet to be graded. At NHG level, it is obser

there is lack of knowledge about banks procedures, misconceptions regarding interest rates and lack of aw

about banking ombudsmen etc.

Kudumbashree has chalked out a comprehensive Financial Literacy Plan in order to provide a platform fo

to be aware of and benefit from formal banking services. The financial literacy campaign conceptua

training to RPs and orientation were completed before March 2011. A detailed literacy plan was pre

extensively cover all NHGs in the first half of the next financial year 2011-12.

3. Interest Subsidy Scheme

Government have sanctioned the interest subsidy scheme for Kudumbashree NHGs vide GO

2725/09/LSGD dated 22.10.2009. As per the scheme, all commercial and cooperative banks that are pre

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lend to Kudumbashree NHGs under the linkage banking programme at 9% or below, will be participan

scheme. The CDS would be raising the claim with the banks and the amount would be dispersed to a des

nodal branch by Kudumbashree State Mission in the case of commercial banks and to the concerned coo

 banks/societies by the district missions in the case of cooperative institutions. The interest subsidy w

 provided as annual installments to the banks

Micro Enterprises

Supporting and sustaining micro enterprises has always been a challenge for development admini

Problems of scale, capability, market and vulnerability etc. do not offer easy solutions. In the rec

Kudumbashree had been attempting to analyse and resolve these problems specifically and jointly, both by in

the interface with the LSG and the entrepreneur regarding existing programmes, and by bringing new strate

new programmes that help converge resources and address arising issues proactively and creatively

Schemes under Micro Enterprises

1. RME Scheme

The success of centrally sponsored enterprise programme in the urban areas prompted the Mission to

with similar enterprise programme in rural areas. The Rural Micro Enterprises (RME) Programme was ini

help women to set-up Individual and Group enterprises. The minimum number of people required for

enterprise being five. Various activities like catering groups, tailoring, traditional delicacies, paper product

markets, direct marketing, various food products, goat rearing, dairy units, rabbit rearing, etc have been forme

the RME programme. Even traditional activities like Goat rearing and Dairy have been set-up under RME.

Yuvashree

In order to meet the increasing demands of setting up Micro enterprises, the Yuvashree (program

generating jobs for 50000 youth) was launched in the year 2005. It provides an opportunity to the unemploye

 both men and women in the age group 18-35 from Kudumbashree families

NEDUMANGAGAD TALUK 

Nedumangad Taluk is in Thiruvanathapuram district in the Indian state of Kerala It situated in the easter

the Thiruvanathapuram district. It comprises 28 villages and one municipality.It is bounded on the west by Triv

Taluk, on the east by the State of Tamil Nadu, on the south by Neyyattinkara Taluk and on the north b

District.There are 27 villages and one Municipality are in the taluk.

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METHODOLOGY

In Nedumangad Taluk there are 27 villages and one municipality. There are ----- SHGs. The

 population data has been depicted below

Table 2

Number of SHGs functioning in Nedumangad Taluk 

SI.

 NO

 Name of 

Village

Total

SHG

1 Anad, 62

2 Aruvikkara, 33

3 Aryanad 56

4 Kallara 53

5 Karakulam 18

6 Koliyakode 65

7 Kurupuzha 88

8 Manikkal 14

9 Mannoorkara 12

10  Nedumangad, 47

11  Nellanad 1312 Vamanapuram 35

13 Uzhamalackal, 45

14 Tholicode 23

15 Thennoor , 43

16 Theakada 44

17 Pullampara 18

18 ,Perumkulam 33

19 Pangode 64

20 Panavoor  59

21 Palode 45

22 Peringamala 1823 Vattappara 32

24 Veeranakavu, 69

25 Vellanad 18

26 Vembayam 35

27Vithura

18

Total

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Source:www.kudumbasree.org

Sample selection

Among the total unit sample selection was done on multistage technique. The total geograph

has divided into three viz; North, South and Central. Vamanapuram from North, Nedumangad from

and Tholicode from south were taken as sample unit for the study. In Vamanpuaram there are 35

functioning and in Nedumangad there are 47 SHGs and in Tholicode there are 23 SHGs. Thus ther

units function in the selected are. Among the 102 units 50% are taken as the sample unit for the stud

17 unit from the North zone, 23 unit from the central zone and 12 units from the south zone consti

selected sample for the study.

Table 3

Sample selection

SI

NO

Selected villges Total

SHG

Sample

 North Vamanapuram 35 17

Central  Nedumangad, 47 23

South Tholicode 23 12

Total 105 52

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Table 4

Data analysis

Si

No

statement Highly

agree

agree d

1 We Use of resources (credit) for income

generating activities

40(77%

)

12(23%

)

0

2 We Adopt of non-traditional activities 35(67%

)

15(29%

)

2

3 There is Improvement in the income levels of SHGs members 45(87%

)

7(13%) 0

4 It helps in Generation of small savings in the rural sector 

among women

48(92%

)

4(8%) 0

5 There is Maintenance of proper accounts by the SHGs 38(73%)

14(27%)

0

6 There is Healthy relation and coordination between SHGs,

 NGOs and banks

12(23%

)

18(34%

)

2

7 There is Regular meetings of the SHGs members to tackle

 problems among themselves

13(25%

)

8(15%) 3

8 We Use of local knowledge and resources in productive

activities

38(73%

)

12(23%

)

2

9 There is difficulty in procuring funds 45(87%)

7(13%) 0

10 training is Insufficient 48(92%

)

4(8%) 0

11 We face Difficulty in getting license 22(43%

)

18(34%

)

1

12 We face Difficulty in getting loan 38(73% 14(27% 0

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) )

Source; Primary data

FINDINGS

1) Most of the units use the credit sanctioned from banks for income generating activities

2)  Non traditional activities were given preference by the units

3) Most of the representatives of the units hold the view that there is a substantial increase in inc

4) Large portion of the members view that It helps in Generation of small savings in th

sector among women

5) A larger portion of the members hold that There is Maintenance of proper accouthe SHGs

6) with drunkards as husbands and small children to take care of, most women found it impos

attend the week long residential training camps

7) The provisions required for production are not available at one single time which in turn fo

women to make more than the necessary number of trips to purchase the items and this hik

transportation expenses.

8) The women in Vamanpuram Panchayat mentioned that in order to market the product outs

anganwadis they required the necessary trainingto advertise it.

9) Some units like the unit in vamanpuram,Nedumangad and tholicode panchayats mentioned

 process of getting a license was too long drawn and this marred their efficiency levels conside

10) The units of tholicode and Vamanapuram panchayats mentioned that getting finances from t

was a herculean task and that in dire situations, they were even forced to borrow from money

at very high interest rates and this is something which goes against the very principle o

finance.

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CONCLUSION

Kudumbashree has enabled the women to share their personal experiences and this in turn ha

  perspective to the individual situation of many women and transformed their personal fee

hopelessness into a feeling of being part of a collective spirit. They have been able to develop a

network in the neighbourhood area, which to some extent has evoked a feeling of social security. T

their involvement in micro enterprise activities, the women are now more confident and independen

gain in social space generated a feeling of inability to act, and the prospect of higher social status”

women got involved in micro enterprises, the workload of the women increased as they were still in

of household related work. Even though the earnings from micro enterprise activities are rather

 partly due to the repaying of the loan and partly due to problems of finding a space of agency in the m

of the market, the possibility of becoming an earning member and the ability to contribute economic

resulted in a modification in attitudes within some families. If the above mentioned problems are

into, the micro enterprise industry will definitely work wonders and the mission statement of Kudum

can be achieved easily.

REFERENCES

Bergquist, Emma Lindwall Petra, “Women – The Way Out of Poverty - Locating women empowerment in a c

of Kudumbashree “

Human Development Report,2005 pg 154

‘Measuring Individual Agency or Empowerment: A study in Kerala, 15-16

Jayan, K.N and Sadanandan, Sindhu: Chapter five in ‘Women and Rural Development’: SociCapital as Produc

Poverty Initiative-The Kudumbashree Approach

Human Development Report,2005 pg 156

Kudumbashree: Concept, Organisation and Activities, State Poverty Eradication Mission

Kudumbashree Head office, Thiruvananthapuram Kerala

Kudumbashree: Concept, Organisation and Activities, State Poverty Eradication Mission

Kudumbashree Head office, Thiruvananthapuram Kerala

Human Development Report,2005 pg 156

Kudumbashree: Concept, Organisation and Activities, State Poverty Eradication Mission