Category: Sustainable Livelihoods

Farmers in Maharashtra face severe challenges, particularly smallholder farmers, who make up 78% of the farming population and own less than two hectares of land (NSS 77th Round). Further, the state is particularly vulnerable to climate change that affects smallholder farmers who have the least capacity to cope (over 36 Mn Ha land was lost due to unseasonal rains in 5 years). Samhita-CGF, supported by the Walmart Foundation, is implementing a comprehensive intervention to address these challenges across 12 Farm Producer Organizations (FPOs), 7 of which are women-led and located in the Marathwada region, while 5 are mixed-gender FPOs based in the Amravati region.

The program’s distinguishing feature is that it strengthens FPO-farmer engagement by addressing the challenges of both these stakeholders in an integrated manner. At the farmer level, support includes blended financing instruments, skills in climate resilient agricultural practices and connections to social security schemes. Farm digitization (using technology to manage land and crop data) also helps farmers adopt data-driven decision-making. At the FPO level, it strengthens organizational capacity through infrastructure, training, IT solutions and market linkages, with a special emphasis on creating sustainable opportunities for women-led FPOs.

As of August 31, 2024, the program has reached 4,694 farmers (2363 are women), including those who have received access to finance (via blended finance instruments) and 2,217 who have undergone training on climate-resilient farming.

Our experience of working with women-only FPOs: Unique challenges and strengths

The journey of the seven women-only FPOs is not without its challenges. While they share common hurdles with mixed-gender FPOs, they also encounter unique obstacles that require focused support.

Navigating unique challenges

One of the foremost challenges women-led FPOs face is the need for capacity building and training. These organizations often emerge from the grassroots efforts of NGOs and Self-Help Groups (SHGs). Encouraging women to join and actively participate in FPOs often takes more time than in mixed-gender groups. Transitioning women from a service mindset to managing a profit-driven business can also be daunting. To address this, CGF offers vital support, equipping women with leadership, governance, and financial management skills to operate independently.

Decision-making in women-led FPOs contrasts with mixed-gender FPOs, where men often dominate leadership. Women-led FPOs promote dialogue and inclusive discussions, creating a more supportive environment for women farmers, addressing challenges like childcare, mobility, and safety.

Market access is another hurdle. Women-led FPOs face mobility restrictions, limited bargaining power, and less exposure to commercial networks, making it harder to compete. Mixed-gender FPOs benefit from established networks which are often led by men, while women-only FPOs need tailored support to connect with large buyers.

Technology integration is also challenging. Women-led FPOs face the digital gender divide, while mixed-gender FPOs benefit from men’s greater tech exposure.

Financial constraints also play a crucial role in the sustainability of women-led FPOs. Membership fees can pose a barrier for women farmers, as they often lack access to the share capital needed to join an FPO. Land ownership further complicates the landscape, as land rights typically reside with male household members.

Celebrating strengths

Despite these challenges, the strengths of women-only FPOs shine brightly.  Once mobilized, women-only FPOs often show stronger social cohesion, driven by confidence and shared commitment to collective goals. Their collaborative structures ensures that the FPO’s business interests and the agri/allied activities of its members are easier to align, creating stronger foundations for income growth.

Women-led FPOs focus on long-term social impact over short-term profits. Their dedication to sustainable agricultural practices and strengthening village groups reflects a commitment to improving the socio-economic landscape of their communities.

Empowerment and agency: The journey of women farmers in Maharashtra

When these women first expressed interest in joining the FPOs, their families were often hesitant, if not outright discouraging. Husbands and in-laws often saw time spent in FPO meetings as lost wages and were wary of women attending without male escorts. In some cases, male family members felt the need to accompany them to meetings.

However, as FPO involvement began yielding tangible results—connecting them with government schemes, credit sources, and valuable training—their social and financial status improved. One woman from the Manjiri Sakhi FPO recalled how her family initially restricted her participation but eventually supported her ventures. She said, “Now, my husband asks me if I have an FPO meeting today and even offers to drop me off. They’ve even started sharing household duties to support my ventures.”

The gradual change in their stories reflects the broader empowerment women have experienced through FPO engagement, linking them to resources like subsidies and crop insurance, and formalizing their roles as entrepreneurs.

Challenges along the path to empowerment

Despite these successes, the women of these FPOs still face significant challenges. A considerable knowledge gap exists in areas such as financial literacy, technology, and market strategy, which limits their ability to fully capitalize on available opportunities. Many women struggle with understanding modern business practices, particularly digital transactions, which hinders the progress of their FPOs.

Social norms also remain a barrier. Women farmers still face scepticism about their ability to manage organizations in the traditionally male-dominated field of agriculture. One member of the Vijaylaxmi Sakhi FPO shared, “When we started, people doubted us. They would say, ‘They’re women… how good can they ever be?’”

Additionally, financial constraints limit their ability to invest in technology, expand production, and reach new markets. Women still face difficulties in accessing larger markets, often relying on middlemen who take a significant share of their profits. As one woman from the Manjiri Sakhi FPO explained, “We grow good-quality produce, but reaching the market is difficult. Without proper transport or connections, we depend on middlemen, and it’s hard to get a fair price for our efforts.”

A case study on Transforming Lives: Sangita Mahanvar’s Journey from Marginal Farming to Empowerment

In the serene village of Dudhodi, Sangita Mahanvar’s life was once confined by traditional expectations. As a marginal farmer, she toiled alongside her husband and son, tending to their crops and caring for their eight cows.

Her turning point came when she participated in farmer training sessions organized by a local NGO(Swayam Shikshan Prayog). It was here she discovered the potential of Farmer Producer Organizations (FPOs) and joined Sarayi Sakhi Producer Company in August 2023. In January 2024, when she learned about the Returnable Grants program of Samhita-CGF funded by the Walmart Foundation, she seized the chance to change her destiny.

With a grant of INR 10,000 and her savings of INR 2,500, Sangita applied for a Khoya-making machine through the PM-FME(Pradhan Mantri Formalisation of Micro Food Processing Enterprises). scheme, which offers a generous 90% subsidy on food processing equipment. With the support of her FPO, she navigated the paperwork and, within a month, proudly purchased the machine valued at INR 1,25,000.

Sangita’s innovation transformed her family’s livelihood. Previously, they sold 50 liters of milk daily at just INR 30 per liter. Now, she crafts 20 kg of Khoya from that milk, selling it for INR 180-200 per kg. This shift has generated an impressive additional monthly income of INR 15,000.

Reflecting on her journey, Sangita shares, “This machine has changed the whole dynamics of my house. I have moved from being an agricultural laborer to running my own business.” Today, she not only takes orders but also purchases milk from her neighbors to meet demand. With her sights set on expansion, Sangita plans to acquire more cows and invest in an additional Khoya-making machine, solidifying her role as a thriving entrepreneur and a role model for aspiring women in her community.

Key lessons from rural women farmers: Shaping our approach to empowerment and growth

Through our extensive work with rural women farmers, several key lessons have emerged, each of which has significantly shaped our approach to empowering these women and strengthening their communities.

Access to resources: Bridging critical gaps

Many women, despite being the primary labor force in agriculture, don’t own the land they cultivate, making access to financial support difficult. We introduced blended finance initiatives such as Returnable Grants (RG) and Credit Guarantees (CG) to provide capital without land ownership.

Balancing multiple roles: Empowering through shared responsibility

Rural women farmers juggle household chores, farm work, and FPO participation. This can overwhelm them and hinder income generation. To address this, we plan gender mainstreaming sessions to educate their male counterparts on shared responsibilities.

Resilience in the face of climate change

Women farmers are not only more vulnerable to the impacts of climate change but also more adaptable. Supported by FPOs, they’ve shown resilience in adopting climate-smart practices. We conduct regular training to equip them with the skills needed to face climate challenges.

Tech access: Empowering decision-making

Technology has transformed decision-making for FPOs. By onboarding our 12 FPOs onto the Doordrishti platform, we’ve provided women farmers with real-time data, enhancing their decision-making and helping them navigate the agricultural market.

Looking forward

These lessons have profoundly informed our approach. Increasing access to credit, co-creating solutions based on traditional knowledge, and building climate resilience are central to ensuring rural women farmers have the tools and support to thrive.

Background

As per the state level data of 2023,1088 farmers tragically ended their lives in eight districts of Marathwada, Maharashtra’s most drought-affected region. This is the region with one of the highest rate of farmer suicide in India. The changing climatic patterns resulting in erratic rains only add to the farmer’s woes.

What’s missing? The answer lies in first educating the farmer about climate change and supporting their transition to climate-resilient agriculture alongside diversifying their sources of income. To address this Samhita-CGF has been committed to supporting and improving farmer’s lives by providing them with returnable grants (RGs) to support farmers with their capital needs. Alongside financial support, farmers are also provided training on climate-resilient agriculture that helps them increase their resilience to climate-related disturbances, such as droughts, floods, heat waves, and erratic rainfall. They are taught various techniques for efficient crop and water management such as drip irrigation, land leveling, crop rotation, cover crops etc. These trainings also offer the farmers insights into sustainable farming practices and alternative livelihoods. This approach not only helps them adapt to the changing climate but also aids in breaking the vicious cycle of debt and poverty.

Findings and Insights

By working closely with grassroots organizations and Farmer Producer Organisations (FPOs), Samhita-CGF has successfully impacted numerous farmers in the region. The positive change is becoming evident, as seen during a recent field visit to Tuljapur, Dharashiv, and Solapur districts, where in-depth interviews and group discussions revealed farmers sharing stories of improved incomes and multiple sources of revenue.

Many farmers who earlier followed the traditional single cash crop system had transitioned to a “one acre farming” model where multiple crop varieties are grown on a single acre for both income and household consumption. This approach allows the farmer to be self-sufficient and sell surplus crops, reducing the risk of loss if one crop underperforms. It also provides the family with a nutritious diet through diverse crop production. These farmers received the Returnable Grant from Samhita-CGF for Rs 10,000 and invested it in either buying cattle or on improving their crop production by diversifying varieties of crops and get more agriculture equipments. This has resulted in the farmers becoming self- sufficient which has significantly reduced their financial stress. Most of the farmers we met from different FPOs across various villages reported such success stories with some incomes reaching as high as Rs 1 lakh per month. These changes are also inspiring neighboring farmers, who are eager to learn new farming techniques and diversify their income streams.

{Case study: One such farmer successfully transitioned from a single cash crop system to a “one-acre farming” model. With a Rs 10,000 Returnable Grant from Samhita-CGF, the farmer purchased a cow to further diversify his income through dairy farming. The cow gave birth to a calf, increasing the herd to two, which provided a valuable additional income. Beyond dairy, the farmer set up a vermicomposting system to produce organic manure and installed a biogas plant for cooking. Both the farmer and his wife manage the farm and non-farm activities, making them fully self-sufficient without relying on outside help. This transition significantly boosted their income and alleviated financial stress, allowing them to lead a more sustainable and independent life. They expressed deep gratitude to Samhita-CGF for the support and training that helped them adopt climate-resilient agriculture and diversify their livelihoods.}

Challenges and way forward

Samhita-CGF’s model of returnable grants and climate-resilience training is proving to be a powerful catalyst for change in Marathwada region. However, a lot of white spaces still exist where farmers need to be supported to be able to sustain their livelihoods. Some of the major challenges that farmers continue to face are getting fair prices for their crops, infrastructure for storage and processing, organic farming certification and establishing market linkages. Some FPOs have managed to receive support from the government for getting organic farming certifications and establishing market linkages but majority of them continue to struggle with everyday operations of running the FPO due to paucity of funds. The farmers showed willingness to receive additional training on organic farming, market linkages, and branding for their product. Hence, more efforts towards capacity building of the FPOs need to be made so that farmers can be benefitted further and have sustainable livelihoods. Given the success of Returnable Grants and training on climate resilience agriculture provided by Samhita, we now plan on supporting the FPOs for market linkages via ONDC.

This blog was authored by Ipsita Gupta.

In the pursuit of comprehensive financial inclusion innovations, Samhita-CGF’s pioneering network alliance is steadfastly working towards addressing the credit gap experienced by underbanked communities and micro-entrepreneurs. To assess our progress in this initiative, we are excited to introduce a revolutionary method for measuring and improving credit impact outcomes for informal sector enterprises by introducing four key indices – the Income Index, Economic Empowerment Index, Women Economic Empowerment Index, and Resilience Index. These indices are intricately crafted to offer in-depth insights into the economic well-being and resilience of communities. Let’s explore the significance of these indices and understand their vital role in evaluating the impact of informal sector enterprises and the households they support.

The significance of indices

Indices are vital tools for tracking progress and measuring the change in various aspects of communities. For instance, the Reserve Bank of India’s Consumer Confidence Index reveals that consumer sentiment rebounded significantly in the last quarter, reaching an index value of 118.8, indicating a growing confidence in the economy. This data points to the importance of understanding the sentiments and perspectives of consumers for effective economic policies. An index is thus “a single, unique numerical value tracked over a given period as a time-series”. Some of the other common indices measured in India are MoSPI’s consumer price index (CPI), BSE Sensex, air quality index (AQI), RBI’s financial inclusion index, etc.

In 1990, the United Nations Development Program (UNDP) transformed the landscape of development theory, measurement, and policy with the publication of its first annual Human Development Report (HDR) and the introduction of the Human Development Index (HDI). The HDI, born from Amartya Sen’s revolutionary “capabilities approach,” emphasized the importance of human well-being beyond income. This pioneering index inspired the creation of other impactful measures, with the latest HDR published in 2022.

More recently in July 2023, NITI Aayog came out with the progress report on multidimensional poverty index, which derives its methodology from the Global Multidimensional Poverty Index (MPI) published by Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Programme (UNDP). 

The choice of the indices by Samhita-CGF

In an increasingly interconnected world, the need for robust indices cannot be overstated. Traditional economic indicators often fall short in capturing the nuanced challenges faced by different segments of the population. The Income Index, Economic Empowerment Index, Women Economic Empowerment Index, and Resilience Index are tailored to bridge this gap. Below is a snapshot of the same.

According to a recent UNDP report, the global Gender Development Index (GDI) shows progress, but it also highlights the persistent gender disparities in education and income in various regions. This underscores the importance of specialized indices like the Women Economic Empowerment Index to address these specific challenges. Similarly, the Resilience Index aims to measure the ability of the proprietor’s household to withstand any exogenous or endogenous shock, given the sustainability offered by the growth of the enterprises through capital and other intervention support provided by Samhita-CGF.

Indices as a means to track our commitment to the vision for supporting the informal sector

Through the REVIVE Alliance, Samhita- CGF envisions to empower communities through data-driven insights and targeted interventions. Our recent impact assessment shows that through this alliance, we have catalysed the advancement of livelihoods for over 5,50,000 informal workers and entrepreneurs in just three years. This includes more than 4,40,000 women who have benefited from multiple interventions under the alliance, showcasing the potential for transformative change. We believe that by accurately measuring and understanding economic empowerment and resilience, we can implement interventions that have a lasting impact on the lives of individuals and families.

The resounding success of REVIVE looks at the next phase where we aim to irreversibly increase incomes and improve the livelihoods of 2 million participants over the next 3 years, and 10 million workers and MSMEs in 5 years (with at least 50% being women) through multi-year, multi-intervention support of participants. We aim to not only facilitate the graduation of small businesses into the formal economy, but also provide evidence to demonstrate the creditworthiness of these segments as a whole and create a new market for formal lending for banks, NBFCs, and other FIs. Our co-created pre credit score (PCS) will be used as a proxy for a formal credit rating and be required as a scheme prerequisite. (We elaborated more on PCS here.)

In a world where change is the only constant, it is imperative that we have the tools to adapt and grow. The Income Index, Economic Empowerment Index, Women Economic Empowerment Index, and Resilience Index are the embodiment of our commitment to creating a brighter, more prosperous future for all. (We deep dive into one of the indices, Women Economic Empowerment Index, here.) With these indices as the basis of measurement of impact on each beneficiary’s life, we can assess not only the number of beneficiaries but the degree to which the impact was created in the life of each individual. These indices would give a deeper insight into the impact REVIVE is creating and will aid the alliance to dive deeper into the challenges and opportunities to support and impact many more lives. 

 

This article was authored by Abhishek Gupta, Ipsita Gupta, and Varnika Jain