A paper presented by: Prof.Ms.Jayashri V.Kulkarni, NKTT College,Thane,Maharashtra,India

1. ‘Need to interlink SHGs to Organized Retail Sector in India to facilitate alleviation of poverty in the rural and tribal part of the Country with special context to Shahapur Tehesil, Thane District, Maharashtra State.’

2. A paper presented by: Prof.Ms.Jayashri V.Kulkarni, NKTT College,Thane,Maharashtra,India

3. 50% of the poor in world are in South Asia. • India having 410 millions poor people i.e.1/3rd of worlds poor. • 37.25% of it’s population lives Below Poverty Line.--28% of the rural population is poor where as 26%of the urban population is poor. • 75% of the poor are in rural areas. (www.worldbank.org.in/website/external/countries. updated on 13th April 2011). • Maharashtra is at the third rank in poverty after Uttar Pradesh and Bihar. Poverty ratio in Maharashtra is 30.7%. 3.17 Crore population is living Below Poverty Line. (Census2011) Poverty in India--

4. SBLP---Self Help Group Bank linkage programme • IBPs --- i.e. Individual Banking Programme • Grameen Model --- introduced by Dr. Yunus • MFI---Micro Finance Institutions • Bank partnership model--- • Banking Correspondents--- • SHG-Post Office Link Programme— Microfinance models in India

5. Launched in 1992 as a pilot project for 5oo SHGsby Reserve Bank of India through NABARD Highlights of SHG Bank Linkage Programme in India (SBLP) Physical Total number of SHGs savings linked with banks : 69.53 lakh Out of total [of which] exclusive Women SHGs : 53.10 lakh Out of total [of which] – SGSY SHGs : 16.94 lakh Total number of SHGs credit linked during 2009-10 : 15.87 lakh Out of total [of which] exclusive Women SHGs credit linked : 12.94 lakh Out of total [of which]-SGSY SHGs credit linked : 2.67 lakh Total number of SHGs having loans outstanding as on 31 March 2010 : 48.51 lakh Of which exclusive Women SHGs : 38.98 lakh Of which-SGSY SHGs : 12.45 lakh Estimated number of families covered upto 31 March 2010 : 97 million SBLP in India ---the largest network in the Globe

6. Financial • Total savings amount of SHGs with banks as on 31 March 2010 : Rs 6198.71 crore • Out of total savings of exclusive Women SHGs : Rs 4498.66 crore • Out of total savings of SGSY SHGs : Rs 1292.62 crore • Total amount of loans disbursed to SHGs during 2009-10 : Rs 14453.30 crore • Out of total loans disbursed to Women SHGs : Rs 12429.37 crore • Out of total loans disbursed to SGSY SHGs : Rs 2198.00 crore • Total amount of loans outstanding against SHGs as on 31 March 2010 : Rs 28038.28 crore • Out of total loans o/s against Women SHGs : Rs 23030.36 crore • Out of total loans o/s against SGSY SHGs : Rs 6251.08 crore • Average loan amount outstanding per SHG as on March 2010 : Rs 57795 • Average loan amount outstanding per member as on 31 March 2010 : Rs 4128 • (Source—NABARD website annual report for the yr. 2009—10/) • Maharashtra—more than 2,00,000 SHGs SBLP –the widespread network

7. Year2011— • US$ 392.63 billion • 91% of regional sale • 8%p.a. rise • 13.9% Mkt.share MGR is to increase by Source-- (Business Monitor • Year 2014— • US$674.37billion • 92% of regional sale • 15%p.a. rise • 14.3%Mkt.share 154% up to 2014 International Report) Another fast growing sector in India--Organised Retail Sector

8. To suggest need to establish interlink between two fast developing sectors in India i.e. Micro Finance through SHGs and Organised Retail Sector to facilitate growth of both the sectors and alleviation of poverty in rural area in special context with Shahapur, Dist. Thane, Maharashtra Objective of the Study

9. Scope of the study: Tehesil Shahapur, District Thane, State Maharashtra, • Universe: 2000 SHGs in Shahapur • Sample Size: 15 SHGs • Primary Data: • In depth interview of SHG members. • In depth interview of NGOs • In depth interview of Banks.. • Secondary Data: Journals, Periodicals, reports published by World Bank, NABARD, Thane District Collectorate on their websites Research methodology

10. Typically located-- Profile of Shahapur—

11. Distance--65km from Mumbai, 48kmFrom Thane City, 35kms From Kalyan. • Biggest Tehesil In Thane District. • 228 villages, 220 tribal padas. • Total Population- 2,73,305. • Female Population -1,32,750. • Tribal population-89,997. • 32% of it’s population –Tribal. • Consists of 7.5% of District Tribal population. • Families Below Poverty Line- 26,684. Source (Census report 2001,BPL survey 2003—07). Profile—contd…..

12. Main Occupations--- Agriculture, Milk production. Jobs in Urban areas-Mumbai, Thane, Kalyan Three industries around. Conventional traders. Landless labour. Profile—contd…..

13. More than 2300SHGs. Banks— TDCC, Nationalised Banks, Co-operative Banks offer financial assistance. Government’s Participation—MAVIM,SGSY. NGOs working—Karma, Bridge Trust, Yashaswini, Mahalaxmi, Adiwasi sanstha. Training Programme---EDPS—MAVIM, SGSY, Maharashra Bank, Panchayat Sammittee, Financial assistance—TDCC-rs.4.15 crores,2193SHGs (upto Mar.2011) Maharashtra bank- Microfinance in Shahpur

14. Strengths: The members of SHG are honest and hard working. • They posses conventional skills. • They have the knowledge of local resources and local market. • They have sufficient leisure time. • They have talent and capability to learn techniques. • Their high potential /productive abilities are underutilized. • Weaknesses: --They are not well educated. --They lack management and marketing skill. --Many of them do not have entrepreneurial attitude. -- All of the SHGs /members do not run an enterprise --They explore only local market that too seasonally/occasionally Results:SWOT analysis of SHGs working in Shahpur

15. Contd….. Opportunities: • They can explore wide market in near by cities like Kalyan, Thane, Mumbai. • They can explore market at the National even International level if channelized properly. • Some SHGs exhibit their products in the exhibitions, trade fairs held at Thane, Mumbai. • They have good demand for their products when displayed in exhibitions. Threats : • villages located at remote places. • Limited infrastructural facilities. • Practically difficulties ibit and sell their products in nearing cities and towns. • The SHG members undergo Entrepreneurial Development Programmes (EDP) organized by Banks and funding agencies but their progress is not monitored by the Bank/ Institution. • At local level the rich and established traders force the poor people to work for them on small amount of commission. • Non availability of permanent market for their products.

16. SHGs in Shahapur should have a tie up with the Organised Retailer on pilot basis to facilitate both the sectors, and enable them to contribute to the regional infrastructural, market and economic development . Innovative suggestion

17. Benefits available to the SHGs--- The SHG members get permanent ready made market. They get permanent source of income. They have an opportunity to bring complete transformation in their life. Their products will be easily distributed through the chain of retail outlets in national, international market. Benefits available to the Organised Retail Sector ---  They get qualitative products and agricultural produce conveniently. They get the product at comparatively lower prices as are purchased directly from the farm/ factory The peculiarity of particular region can be highlighted, introduced and sold through out the Country even abroad. The retail outlets can introduce varied types of nutritious food items available in the region rather than unhealthy instant food. The surplus agricultural produce can be collected and processed under a separate unit by the Organised Retailer resulting into production of jams , squashes, juices, chips etc. and it will be a great business opportunity for him. The Organised Retailers have a great scope for Brand Building and marketing exclusively the qualitative products.

18. Role of Organised Retail Outlet in Rural area

19. The Government should adopt the policy to allow /insist the Organised Retail industry to open it’s outlets in small towns and Tehesils The Government should put condition that a retail outlet in a particular area should market the products/ fruits/vegetables from the SHGs in that area./Certain products may be reserved for SHGs. The Organised Retailer should take initiative in that respect. The Organised retail outlet should give preference to SHGs in respect of services required by the retail outlet e.g. sweeping, maintenance of building, pest control, transportation etc. The Organised Retailer should take the responsibility of marketing, branding , advertising the products produced by the SHGs. Recommendations--

20. For SHGs: • The SHGs should work professionally. • They should work regularly and consistently. • They should maintain and enhance the quality of the product. Recommendations contd…

21. India at one hand is famous for unlimited market opportunities.Organised Retail Trade is rapidly developing sector In India. However the Villagers and Tribal people in India even though have productive skills and abilities remain poor due to absence of marketing opportunities for their products. Organized Retail Sector has a great scope and important role to play in this context. The tie up between the two will definitely facilitate both the sectors and overall regional development followed by alleviation of rural poverty. Conclusion:

22. ‘Banker for the poor’---Dr.Mohammad Yunus • A book by Beatriz Armndariz,JonathanMorduch—‘The Economics of Micro Finance’ Published by PHI learning Pvt.Ltd., Delhi – 2011 • An article by ShriNiwasRao, Dr.VDSantoshkumar—In leading monthly Journal—Banking Finance—Vol .XXIV Jan .2011 • ‘Bank Quest’ A Journal of Indian Institute of Banking and Finance A special issue on Micro Finance-Vol. 80 –No.03 July—Sept2011 • A book authored by Shri SC Bandopadhyay,’Rural Banking’ published by Indian Institute of Banking and Finance—2010.. • An article by Anuradha PS &Dr.G.ganesan--Indian Journal of Finance—vol.4, Oct 2010.  • An article by SangramPanigrahi--Indian Journal of Finance—vol.4, Oct2010. • An article by SangramPanigrahi--Indian Journal of Finance—vol.4, Oct2010. • The publication ‘Kurukshetra’---2007(56—1 issue) • The publication ‘Yojana’---2007 (special issue on SHG) ‘ • The publication ‘Kurukshetra’---2006 (54--9 issue) • The publication ‘Kurukshetra’---2006(53—3 issue) • A study conducted by RaghavGahia ,University of Rome, ‘Torvergata’and Mani Arul Nandhi, Jesus and Mary College, University Of Delhi; sponsored by Asia Pacific Division of International Fund for agricultural Development,Rome,2005 • An article written byM. Muthu Gopalakrishnan, Benglore and Arun Kumar ,Delhi on Google Scholar website. • www.worldbank.org.in • www.nabard.org • www.toodoc.com/Thane--district--ebook. hotmail • www.tiss.edu/Field-Action-Projects-0607.pdf • www.thane.nic.in • www.businessmonitor .com Bibliography:

23. Thanks . • Jayashri, Thane.