SHG Revolution - A Paradigm Shift: A Case Study of Jay Hanuman Krushak Kalyan Sangh

This paper argues that self help groups (SHGs) have been effective in poverty alleviation in India and are fast developing into commercially viable business propositions.

The paper attempts to prove its point through the case of Jay Hanuman Krushak Kalyan Sangh (JHKKS). It highlights:

The state of the village:

• Livelihood was totally dependent on agriculture;
• Paddy was the single crop;
• Land was rain-fed;
• Most of the crop land was lying barren due to lack of irrigation;
• Villagers were migrating to towns for wage labor.

The features of the SHG:

• The group:
  • Was assisted by the Gramin Vikas Trust (GVT);
  • Had 15 male members, who were farmers with marginal to small land holdings; all were married and belonged to the same caste;
  • Had high literacy among the members.
• The rules:
  • Each member to save Rs. 20 per month;
  • Defaulters to be fined Re.1;
  • Monthly interest over the loan from the group fund to be Rs.5 per Rs.100.
• The activities:
  • It began trading in sabai grass, earning a profit of Rs.7000 in the year 2003;
  • With the assistance of GVT, it made ropes with the grass and sold them in a nearby village, generating an annual income of Rs.5000 per month;
  • It opened an account with the Bank of India;
  • It started bamboo and palm plantation.

The paper concludes by stating that the group members also began goatery, poultry and live-stock enterprises, and that the interest and growth of JHKKS was appreciable.