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TRANSCRIPT
Task Force on Eliminating Poverty in India
Regional Consultation Workshop
Presentation by APMSS, GoAP
13th April 2016
Income Poverty Trends in AP
2
0
5
10
15
20
25
30
35
40
2004-05 2009-10 2011-12
Po
vert
y R
ate
s
Years
Poverty Trends (Tendulkar Committee Estimates)
Andhra Pradesh India Tamil Nadu Karnataka Kerala
•Between 1973-74 and 2004-05, HCR dropped by 67.7% in Andhra Pradesh, higher than that observed for other southern states except Kerala (74.91%). It is also higher than the poverty drop experienced by India as a whole.
Non Income Poverty- MPI
3
0.065
0.211
0.141
0.223
0.296
0.051
0.209
0.13
0.206
0.283
Kerala Andhra Pradesh Tamil Nadu Karnataka India
MPI for 2007 & 2011
2007 2011
Andhra Pradesh stands the lowest among the southern states when non-income dimensions of poverty are taken into account.
Enablers of Poverty Eradication
Income Dimension
Credit Livelihoods Skills
Non Income Dimension
IEC/BCC Demand Side Interventions
Enterprise Linked
Enablers Social
Mobilisation Public Private Partnerships
Departmental Convergence
SDG Aligned. Household based- SHG supported. Individual & Cohort Based Tracking
823 1348 2096
4623 5062 5463 6001 6754
8459
10343 9247
12500 SHG Bank Linkage
10650
Credit
37%
16% 14% 14%
5%
14%
Andhra Pradesh Karnataka Tamilnadu Telangana Kerala Other states
Share of National SHG- Bank Linkage (NRLM)
Rs. Cr.
SHG Recapitalisation • Drivers
– Use of SHG Bank Credit for Agriculture and Allied Activities – GoAP Decision to support SHG Member and Farmers – Loan Waivers Vs. Capital Infusion
• Sustainable • Promotes Economic Activity • GoAP drive towards making capital productive • SHG Enterprise Strategy
• Process – Identification and authentication of SHG members through Aadhaar seeding – Drafting and issue of clear guidelines – Provision of Publicity and IEC materials – Training to all SHGs and SHG members on the benefits and most appropriate
methods of deployment – Preparation of FIOS
• Scale – Rs. 2442 Cr as first tranche to 8.2 Lakh SHGs – Rs. 1338 Cr. as Interest Redemption Grant – Total Scale- Rs. 10,000 Cr.
3850 12350 12350 12350 9517
30529
49400
98800
Potential Impact on Credit (Rs. Cr.)
Corpus SHG Borrowings
Leverage 2.5
Leverage 4
Leverage 8
Current Status
Before After
Livelihoods Approach
Enterprise Based Livelihoods
Trading/Value Chain Based Livelihoods
Livelihoods of Sustenance
• Technical Support
• Financial Linkage
• Separate strategies for local markets, fairs and bazaars as well as higher value markets
Nature
Farm & Non-Farm
High Value Addition High Value Products-
extended markets Low value products-
local markets
• Aggregate demand
• Supply and quality control
• Focus on increasing scale
• NABARD, SFAC, SIDBI
Nature
Individual/Small Dispersed Collectives
Agricultural and Horticultural
Products Procurement and
Trading
• Linkage with Government schemes
• Small scale financing;
• Intensive nurturing and hand holding at community level
Nature
Household Focused Food Security CMSA Based NTFP Based,
Small Ruminants and Dairy
Approach
Approach
Approach
Intensive Approach 30 Lakh SHG Members
Extensive Approach 57 Lakh SHG Members
FPOs/ Interest Groups/
Individual/Group
Economic Activity
Livelihoods
• Farm Based Livelihoods – FPO Strategy &
Surrounding Enterprise Eco-System • Greater Share of Consumer
Price to Farmers • Cost Reduction & Other
Aggregation Benefits • Private Sector Participation
and Engagement across value chains & interventions
• Link to SHG System for credit needs
– Nuanced, Diversified Strategy • 17,50,000 Members
• 4,50,000 Farmers in FPOs – Commodity and Value Chain
• 150,000 Agri Related Enterprises – Bank Linkage, Stree Nidhi and
MKSP
• 4,50,000 Members in Dairy Value Chains
• 4,50,000 Small Ruminant Units – SCSP/TSP Convergence
• 150,000 36X36 Models – Livelihoods for the most
vulnerable- MKSP/ SCSP
Best Practices Private Sector Partnership- Olam International
• Procurement methodology:
– At the village level, Electronic weighing, Free gunny bags
– Quality parameters – 10% or less moisture
– Minimum 50 bags for lifting
– Incentive for good quality
• Pricing
– Factory gate price
– SMS on daily basis
– Facilitation fee to MMS: Rs.0.25/Kg RCN
• Trainings
– Trained Cluster activists and APMs on quality parameters
• Support for Productivity enhancement
– Demonstration plots in three places totaling 200 ha.
– Organic certification
– Exposure visits
– Trainings on improved production practices
– Dedicated team for training staff and farmers
Supporting Eco System
Para Vets- Enterprise Linked Capacity Building
Annual Income Rs. 28000/-
Sale Price Rs. 32000 Net Income per Batch- Rs. 14,000; 2 Batches per year
Rs. 1260 Cr per annum overall impact
Unit cost
4 Ram lambs Rs. 18000/- Lambs+ Transport and
Incidentals Funding Convergence
SCSP/TSP
Best Practices Diversified Livelihoods- Ram Lamb Units
SHG Enterprise Support Platform
•NID
•NIFT
• ISB
•DMI
•Handloom/Handicraft Corporations
•NABARD/SIDBI
• SFAC
• FSSAI
• ISO
• Green Labeling
•Product Design
•Raw material
•Machinery
•Business Intelligence
Technical Support
Licensing
Institutions of
Excellence
Existing Support
Structures
Marketing Platforms
Traditional Retail
E-Commerce
Government
Social Enterprise
Corporate
Livelihoods- Non Farm • Overall Plan
– 12.5 Lakh members to be impacted through a bouquet of initiatives
– Integrating Skill, SVEP, ILO-SIYB, Credit & Aggregation
• Generics Medical Stores
– 192 Stores; 4.4 Cr Turnover ; Over 50% savings to consumers
• Concrete Mixers
– Funding through bank/SN Loan; Tie up with Roads & Buildings
• Food Enterprises
– Capacity Building through Hotel management Institutes
• School Sanitation Management
– Wages & Backward Integration
• Stitching Centres
– Leverage bank linkage for machinery; Advanced training through NID etc.
• Non Farm Producer Companies
– Market Demand; Supply Chain Integration; Design Intervention & Market Access
Best Practices
Backward Integration in School Sanitation
Food Enterprise Listing on IRCTC
Benefitting from and Contributing to Development-
Concrete Mixers
25 Cr. Per annum- Wages 7.5 Cr. Per annum-
Materials Prepared by SHGs for
school sanitaiton initiative
Also Sold in Open Market
Cost of Mixer- Facilitated through
Bank/SN Loan Leased out for R&B
Construction Converging with Smart
Village Programme
Dovetailing with Central Government Programmes New and Improved Access
to SHG Products/Enterprises Capacity Building &
Certification
Kirana Store
Transformation
Kirana Transformation Framework
• Each MNS to be registered under the MACS Act
• Members are from kirana store associations
• External management team to be appointed
• Reduces cost of goods of members via
bulk purchases from suppliers
• To source from FMCG suppliers and SHGs, MSMEs
&
FPOs
• 1 MNS to be established per mandal
Upgrading scales and packaging
• Replacing manual scales to digital scales
• Scaling up sales of pre-packaged
products
Cost efficiency
translates into
savings for
consumers
B
A Improve Store Management & Operations • Training on business analysis and
finance management
• Modernising store layout & facade
• Incorporate modern retail practices
Market
Target
FMCG
Suppliers
MSMEs
SHGs FPOs
664 Mandals
50,000 Kirana Stores
… Products
Establishment of
Mandal Nodul Stores
(MNS)
200,000* rural population
34.7 million rural beneficiaries
*Source : *National Family Health Survey-3 - (Andhra Pradesh household size is 4)
MACS - Mutually Aided Cooperative Societies Acts, 1996, FPO – Farmer Producer Organisation
1 2
Rural Retail Chains
Partnership with PEMANDU
•1100 Products •Apparel •Home Decor •Accessories •Toys
•4 Websites •Flipkart •Snapdeal •GoCoop •Tisser
•2 Registered Sellers •150 Artisans Dependent •Pipeline
•Amazon •Craftsvilla •Indian Roots •Jaypore
•Target- 1 Cr. Sales in 1 Year •Build Out Back End •Lean Supply Chain
E -Commerce
Skills Programme Component Number
DDU-GKY Private Partnership Model 28800
EWRC 5050 Sub-Total 33850
LIFE
Skilling for wages (DDU-GKY) 5000
Skilling for Self Employment (RSETIs) 11023
Livelihood Upgradation 6362 Sub-Total 22385
RSETIs RSETIs (General Programme) 11,250
ISDS Textile Ministry 10,450
SFURTI (Artisanal Clusters) MSME 5,000
Direct Placement 15,000 MKSP CMSA 86,600
Grand Total 1,84,535
Wage Linked Self Employment Linked
Livelihoods Upgradation Linked Support Structure to Producer Owned Collectives
Human Development
• HD Plan Approach
• Universal Wash & BCC – Tie up with Swacch Bharat
• Innovations – Akshaya Patra Model- Tata Trusts
– Enterprise Linked Approaches- Sanitary Napkins, Nutrition &Hygiene Products- HLFPPT
– Social Action Committees & AHT Work
– Inclusion of PwDs
Vulnerability Support
• Pensions – Transparent, Efficient & Convenient
– Community Driven, Aadhar Authenticated, Transparent
– JAM Ready, Interoperability; Anytime Anywhere
– 43.75 Lakhs; Rs. 6000 Cr. Annually
• Insurance & Insurance Plus – Cyclical Nature of Poverty- Addressing Shocks
– Financial Support Combined with Empathy
• Access to Entitlements – VLEs/OSS Approach
Key Initiatives • JAM Ready
– 91% Bank Accounts; 99% Aadhaar; 67% Mobile Numbers
• SHG Members as BCs – 86 Centres Functional; 700 under Discussion; Potential Collaboration
with BMGF
• Learning Progression & Digital Literacy – Partnerships with NOS, Intel, Airtel & Local Colleges
– Over 4 Lakh members trained in Mobile Based Operations
• Other Initiatives – MS Machine Learning
– Big Data Based Financial Inclusion- CDFI/MS
– Poverty Indexing- Grameen Foundation- PPI
– Nuanced Understanding of SECC Data
Systemic Innovations
• MS Machine Learning
• Big Data Based Financial Inclusion- CDFI/MS
• Poverty Indexing- Grameen Foundation- PPI
• Nuanced Understanding of SECC Data