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Feature: MDGs in Practice Turning the Tide: Enabling Poverty Reduction S. Sathyanand*

amatchi is a rainfed farmer in K village of of district. She is a member of Kaliamman Uzhavar khulu promoted by Rainfed Farming Development Programme of DHAN Foundation in Thirumangalam location for the past five and half years. She has availed various fund support, credit facilities and various programme activities implemented through the group.

Kamatchi and her family

Kamatchi lives along with her husband and two sons who have got married some three to four years ago in Sengapadai. Her husband works as a load man in Madurai. Her eldest leased, in which she had been rainfed agriculture as the major son had recently joined the army, and cultivating for the past 10 years. Out livelihood. Farmers grow a variety her youngest son lives with his of this, around 3.5 acres is typical of rainfed crops in this black soil family and takes care of farming black cotton soil, in which she area. Crops like cotton, black gram, activities apart from renting their cultivates various rainfed crops. In green gram, sorghum, senna, bullock cart. She has two grand- the remaining 2.5 acres of land, she coriander, cowpea, varagu, red daughters and a grand-son. They all cultivates paddy in one acre of land gram, and different kinds of and has planted dryland horticulture live separately. Her daughter got vegetables are grown in mixed in 0.75 acres of land, the irrigation married some five years ago, and cropping pattern; few farmers along source being the farm pond lives with her husband separately in the river bed grow paddy at a small constructed under the project. She the same village. Kamatchi’s scale. Income is also supplemented grows neem and fodder sorghum, husband, who is working as a load- by rearing goats, sheep, and cows. in the remaining plot of land for her man, meagrely contributes to the goats and cattle. She has two Irrigation sources are very family; he doesn’t give money to the draught animals, two calves, and limited or non-existent as there are family and doesn’t involve in farming seven goats with few country fowls. activities. Kamatchi takes care of the no irrigation wells or tanks located farming activities alone with the help Background of project area - in the village. The groundwater here of her younger son. Sengapadai village is saline, making it totally unfit for agriculture. The existing water She is a small farmer who Sengapadai is a typical rainfed harvesting structures (ooranies, cultivates around 6 acres of land, of village situated in Thirumangalam ponds) are all used for domestic which she owns 4.5 acres of land, block of . Most of purposes only and cannot be used and remaining 1.5 acres of land was the villagers are dependent upon for irrigation. Hence, the farmers

*S. Sathyanand, Project Executive, Centre for Development Communication, Madurai. 2

Towards the mission Given the situation, DHAN Foundation, with its mission of enabling the poor communities towards self- reliance and poverty reduction, initiated its Rainfed Farming Development Programme (RFDP) in Sengapadai village. In realising this mission, RFDP programme is working with the shared purpose of making rainfed farming a viable livelihood. In order to achieve the purpose, the programme addresses the various rainfed farming issues with various development components viz., land development component, crop production enhancement component, soil health enhancement component, livestock development component, supplementary income component and risk mitigation component. DHAN Foundation is the project implementation agency (PIA) NWDPRA (National Watershed Development Project for Rainfed Areas) in the project area. Kaliamman Uzhavar khulu The Kaliamman Uzhavar khulu was started on 5th August, 2003. There are 17 members in the group. Out of the 17 members, only three members were land-owners cultivating some 2 to 4 acres of rainfed land. Others were landless, and were cultivating on leased and on savi system (a traditional system where landlords rent the land to landless on yearly basis for an amount of Rs.300 to 500). Most of them have to dependent upon usurious money lenders for their credit needs. There has been significant change among the group members, after joining the group. Every member of the group had availed credit facilities through the group for household expenses, consumption needs, and to purchase goats, sheep, cattle and milch animals. They received interest free loans to purchase land, and to get land on lease. Now, out of the 17 members, seven members have purchased land availing loan amount of Rs.10000 each (out of the 8, 7 were landless); four members are now cultivating land for lease; and seven members are cultivating land on savi system basis.

have to totally depend on rainfall for further pushes the rainfed farmers Prelude agriculture. The North-East into poverty traps. In the last two monsoon that starts in the month of decades, there has been large scale It is rare to find a women farmer September decides the fate of increase in fallow land, selling of taking up farming activities. It is agriculture. once-cultivated rainfed lands, usually the male counterpart who diversifying to other non-farm does most of the farm works, but it Vagaries of monsoon and lack of livelihoods especially among the is not the case with Kamatchi. Her effective coping mechanism among youths like construction work, and husband, doesn’t contribute to the the rainfed farming community migration to nearby cities like family, and doesn’t get involved in makes the rainfed farming loose its Madurai, Tiruppur, etc. Few families any of the farming activities. As lustre as viable livelihood for many. have left agriculture and permanently Kamatchi says, “He never even once Lack of suitable financial services migrated taking up hotel business. stepped on the land for farming.”

Rainfed agriculture plays an important role in Indian economy. In 58.53 percent of total net sown area (141.4m.ha) comes under rainfed lands spreading over more than 177 districts. Nearly fifty percent of the total rural workforce and sixty percent of cattle heads of the country is located in the dry districts. In , out of 7m.ha of cultivable area 2.46m.ha is occupied by rainfed agriculture (NRAA Publication 2008). Ramasamy et al (2001) has classified thirteen districts of Tamil Nadu as dry districts. In Tamil Nadu about ninety percent of the coarse cereals, ninety percent of pulses, eighty one percent of oilseeds and sixty nine percent of cotton are grown under rainfed conditions. Besides the above mentioned facts related to economic importance, rainfed farming is important for the nation in terms of bio diversity and nutrition. In spite of the various benefits the rainfed farming is on the decline over years. 3

Also, the land is in the name of Kamatchi that she inherited from her father. Her husband belongs to the nearby village, and he had settled in Segapadai, his wife’s native village. He doesn’t give any money to run the family, and wastes the money on drinking. The family is solely run by Kamatchi and the income she earns from the farm and from the income that she earns as agricultural coolie.

Due to the lack of support from her husband, Kamatchi has to take care of both her family and farming activities all alone. She educated her She says, “… one has to walk with a bit of hope in her heart. She first son up to 12th standard in four to five times to their house (the joined this group promoted by Thirumangalam, and her younger well-offs and moneylenders) to get RFDP-DHAN Foundation on son studied up to 10th standard; her a loan for urgent needs. They didn’t 5th August, 2003. The group has daughter didn’t attend high school trust us for we are from Kallar helped her meet various consumption for she supported her mother to do community, and even if one could needs and livelihood investment household chores. While her eldest get a loan it was at the rate of 5 to needs by supporting her with timely son studied in Thirumangalam, her 10%.” She was also unable to invest credit facilities and watershed funds. younger son used to help her in in her livelihood activities so as to farming activities, after returning increase her farm income. Uzhavar Initially, the group members, from the local school, to cultivate khulu turned out to be the helping including Kamatchi, saved fifty the land and to irrigate the paddy hand for her. rupees per month. Slowly and field, which he continues to do till steadily, the group started to grow, now. She was unable to enterprise In the 2.5 acres of land, in which so did the members of the group. herself due to lack of support, she constructed farm pond, she It is to be noted that, from financial and emotional, by formal cultivated paddy in some half an acre August, 2008 onwards, they started or non-formal means. of land in which she was only able to take some ten to twelve bags of saving Rs.100, so did Kamatchi. Due paddy. She could store only one foot to the sudden demise of the treasurer of water in a natural depression in of the group, she also took up the her land, and has to irrigate the field leadership role as the treasurer of the manually using traditional uzhavar khulu from May, 2008 mechanism. In another one acre of onwards. The uzhavar khulu gave land, she cultivated neem and the much needed support that she sorghum, while the remaining one so long yearned for. It provided her acre was left fallow in most of the with credit facilities and various years. From 2002-05, there was livelihood supports. The group drought in the village, making the proved to be a safe platform to save, rainfed farming even worse. to access timely credit services, and to be supported by various livelihood A Ray of Hope interventions.

It is during this period that An Array of Achievements Kamatchi joined the Kaliamman Uzhavar khulu (uzhavar khulu As of today, she has a total denotes rainfed farmers’ groups) savings of Rs.5600 in the group, and 4

had availed a total loan amount of Rs.70,191 from her group, with a loan outstanding of Rs.21,360. As part of NWDPRA project, an amount of Rs.54,146 was invested in her land from the watershed fund. It would not have been possible without the presence of DHAN.

A. Watershed activity

Two farm ponds were constructed in her land to harvest the rainwater. An amount of Rs.52,646 was invested to construct Benefits of the work the two farm ponds; Rs.34,250 for guava, sappota, amla, tamarind with Jatropha as live fence. the first pond, and Rs.18,396 for the Before the farm ponds were second pond were invested over a The table no.1 shows the kind dug, the 2.5 acres of land was not period of two years. She says, “For of watershed activities done in productive enough. She cultivated so long, I used to think of Kamatchi’s land, the year and date paddy in half an acre of land, constructing farm pond for storing of work, and the total investment which she irrigated manually. In for each work along with her water to cultivate paddy; but it never another one acre of land, she contribution. A total of Rs.54,146 planted neem, and did sorghum got materialised. Only now it was was invested, for which she cultivation; the remaining plot was done.” In 2007-08, an additional contributed a total amount of left fallow. In 2002-05, there was Rs.1,500 was invested to plant Rs.11,750 both in money and drought in this region, and she was dryland horticulture crops like labour. unable to take an assured crop. As Table No.1 Activites in Kamatchi’s land mentioned before, she was able to store only one foot of water, and could take only some five to six bags of paddy. But things started changing, once she constructed the farm pond and store water.

With the first farm pond constructed in 2006, she was able to harvest 14.4 lakhs litres of rainwater, which was otherwise not possible. The second farm pond was constructed recently, and she is yet to realise the benefit. With this she could irrigate another half-an-acre of land.

In the first farm pond, she carried out fish rearing activity both years. But due to the overflow, the fish escaped through the outlet. She wants to continue fish rearing this year also, and hopes to get a good harvest. 5

Table 2. Impact of the watershed activities

B. Loan portfolio Percentage distribution of the loans availed by Through her group, she availed Kamatchi from different sources various institutional credit facilities viz. from banks (State Bank of India, Sengapadai), SGSY loan (Swarnajayanthi Gram Swarozgar Yojana), KDFS (Kalanjiam Development Financial Services, Madurai), RFCC fund (Rainfed Farming Coordination Committee, Thirumangalam), WA-RF Sengapadai Watershed Association Revolving fund, and from the internal Source: Cash book of Kaliamman Uzhavar khulu and group fund. Member pass-book of Mrs.Kamatchi The figure 1 shows the Fig. No: 1 percentage distribution of the loans 6

availed by Kamatchi from different sources. Loan from the bank and KDFS were received at an interest rate of 24% p.a., while RFCC fund and watershed revolving funds were received as interest-free loans for livelihood activities. The SGSY loan was also availed at 24% p.a. with 25% subsidy component.

“In earlier days, none of the banks cared us of our credit needs. Now, the bankers they themselves invite us to take loan from their bank, for they know our group’s credibility and discipline, and trust us,” says Kamatchi. And these loans were used for variety of purposes. yet to be completed. Apart from this goats with the help of loan she has taken a variety of loans for availed. This, in turn, The figure.2 shows the various consumption needs like helped her to face percentage distribution of the uncertainities, absorb different kinds of purposes for medical expenses, marriage shocks, and able to pay which Kamatchi had taken the loan. expenses, outside debt redemption off her debts by selling It shows a mix of needs for both and household expenses. goats. Kamatchi said she consumption purposes and for Benefits of the loan facilities availed was able to recover from income-generating activities. the shock; thanks to the 1. With Rs.26,910, Kamatchi It is to be noted the nearly 65.4% group, she again purchased goat and milch (Rs.45910) of loan is used for purchased goats from the animal. livelihood activities: loan availed from the group. 1. 38.3% (Rs.26,910) for a. She purchased goats and livestock development to started maintaining a b. She also bought a cow for purchase goats and a milch regular stock of 15 to 20 milching purpose. She animal, Percentage distribution different kinds of purposes for which 2. 21.4% (Rs.15,000) to purchase Kamatchi availed loan an acre of rainfed land and to purchase oil engine, creating farm assets, and

3. The rest 5.7% (Rs.4,000) for various farm working capital requirements like FYM (farm yard manure) application, and seeding and weeding expenses.

Recently, she has taken Rs.12,000 to construct farm house in her land. She has already bought Fig. No: 2 construction materials; the work is 7

kept it for one year, and b. She also purchased oil capital requirement of her farm sold it. Some one year engine with the help of the activities. before, she bought two group loan adding another 4. Construction of the farm house cattle with her own valuable asset to her farm. is in progress. money. The time of purchase was Livelihood outcome significant, in the same 2. With the help of group loan, year when the farm pond In the past five and half-years, a. She was able to purchase was dug. So, she was able Kamatchi found that little spark that one acre of rainfed land, to use the water harvested had major changes in her life and in which she cultivated in the successive season. livelihood. The various in