Creating Decent Livelihood Opportunities in Rural Areas
A Non Traditional Approach
Dr. Ramesh Chandra Srivastava
Former Vice Chancellor, Dr RP Central Agriculture University,
Pusa, Samastipur, Bihar
The question of providing decent livelihood opportunity has
occupied a centre stage in development policy debate in India and across the
globe in recent years. In the Indian context, improving the quality of
employment, in terms of rising wages and access to social security, was
considered an important concern of state policy. Despite such concerns, the
progress on the front of employment generation has been mixed one. There exist
significant inter-regional and intra-regional differences in employment
outcomes in India particularly witnessed along with a consistently high rate of
economic growth. Besides quantity, the quality of employment is a major
challenge, which is critical in achieving economic and social development
across different regions of the country. Migration of unskilled and semiskilled
persons in search of casual employment from rural areas to urban areas has
become a huge problem both social problem in rural areas as well as increasing
load on urban infrastructure. The lack of decent livelihood opportunities in
rural area has led to higher poverty, about 25% more than that in urban areas.
The difference in different economic regions is more stark in eastern U.P. and
Bundelkhand region. Thus it is essential that decent livelihood opportunities
are created in rural areas itself. A major
challenge of creating decent livelihood opportunities in rural areas is low
level of skills in rural workforce if we
depend upon traditional manufacturing sector to create large scale livelihood
opportunities. Thus to foster growth with a focus on employment, there
is need to focus on non traditional non-farm employment opportunities,
and encourage entrepreneurship.
With this in view, a model was conceptualized by Dr. Rajendra
Prasad Central Agricultural University, Pusa, Samastipur, Bihar under
leadership of then Vice Chancellor Dr R.C. Srivastava. Originally this concept
was visualized to provide LPG gas refill to Ujjawala program beneficiaries in
particular and villagers in particular in lieu of them providing 20 kg of
cowdung daily. A cattle is an integral part of any farm household in India and
thus cowdung was an input available with almost every household. This concept
materialized in Sukhet village of District Madhubani (Bihar) with collection of
cowdung and household waste everyday at farmers’ doorstep, collection of waste
vegetation from village viz., water hyacinth etc, converting this waste in
vermicompost at compost yard, sell of vermicompost to local farmers, and
finally utilizing the sale proceeds to provide LPG refill to households who
contributed 20 kg cowdung daily. A distinct characteristics was no cash
transfer but a barter with refill of LPG gas. The concept is explained in
following figure:
While implementing this model it was found that this model fulfils four objectives
instead of only one which was initially thought of. (i) Providing LPG refill
every 2nd month to contributing household; (ii) ensuring sanitation
in rural areas as collection of cowdung at doorstep of family also collected
organic household waste; (iii) Providing organic manure at doorstep of farmers
practising organic farming ; and (iv) providing employment to FOUR unskilled
youth and one educated youth. This model got traction in both local and
national media. It also got attention of Hon’ble PM who mentioned it in his Man
Ki Bat in 80th episode on 29th August, 2021. Few links:
http://www.outlookinida.com/outlook-spotlight/monetization
-of-cow-dung-a-novel-initiative-of-rpcau-news-390483 ; What is the 'Sukhet Model' of Madhubani praised by PM Modi
during Mann Ki Baat? Find out here! (youtube.com)
Hon’ble Prime Minister had suggested that each panchayat
should adopt this model. Let us examine its potential with reference to U.P.
which has about 2.38 Cr farm families, out of which about 2 Cr farm families
have registered for Kisan Samman Nidhi. With cattle population being 8.33 Cr,
average number of cattle per family is four, which is much more than one
required for this model. To keep operation easy, it has been proposed that
there should be one unit for 100 farm families. Thus the state will require
about 2 lakhs units to cover whole state. If implemented in whole state, this
will generate 8 lakhs unskilled jobs and about 40000 skilled job assuming that
skilled man required for accounting and sale will cover 5 units. The estimated
capital cost for putting up one unit consisting of Vermicompost yard, Garbage
yard, few small machineries for chaffing, sieving, hand cart etc will be about
15 lakhs per unit and annual operating expenditure will be about 14 lakhs which
include salary bill of 7.7 lakhs (Rs 15000/- p.m. for four unskilled staff and
1/5th share of skilled staff @20000/- p.m.), 6.0 lakhs towards cost
of six LPG cylinders @Rs 1000/- per cylinder (without any subsidy) annually for
100 farm families and rest as contingent expenditure. The annual return will be
250 t of vermicompost which can be sold at rate ranging from Rs 6000/- to Rs
8000/- per tonne (retail rate of vermicompost varies from Rs 12 for 30 kg bag to 15 per kg for 10 kg bag).
Thus expected revenue will be between 15 lakhs to 20 lakhs per unit per annum.
Thus this enterprise will be economically viable. The way for upscaling this
concept on national level is presented below:
Roadmap
for implementation of this plan
If implemented in whole state, this will require a capital
investment of Rs 30000 Cr and provision of 28000 Cr of operating expenditure
for first year at least. The capital
expenditure can be spread over 3 or 5 years to cover whole state. This
investment can come from two routes: Pooling budget from MANREGA, Swachh Bharat
Mission and Organic farming Project. About 70% funds for capital expenditure
can be sourced to MANREGA as about 60% is allowed on material cost and rest as
labour cost. 20% of it mainly on handcarts, dustbins, and other small
implements can be sourced to Swachh Bharat Mission and rest 10% mainly
expenditure on earthworms and other petting contingent items can be sourced to
Organic farming mission/ Paramparagat Krishi Vikas Yojna/ Rashtriya Krishi
Vikas Yojna. The operating expenditure can come from low cost debt from NABARD with 2 year moratorium
and the interest being paid by state
government during first two years. The subsidy presently given to LPG cylinder
can be used for subsidizing price of vermicompost for at least 3-5 years which
will make sale attractive.
The other route to supplement MANREGA route can be through
MSME, where every unit will be given 25% subsidy on capital cost and other 25%
will be owner contribution and rest 50% soft loan. The operating cost for first
two years will be low cost lending from NABARD secured by government with two
year moratorium during which interest will be paid by government. This money
can be paid from savings on subsidy for LPG cylinders or subsidy on organic
farming.
Quality
control
The maintenance of quality parameters will be key for success
of this program. This can be achieved by random sample collection and its
testing at district level. Two options can be used for this: i) Strengthening
district level soil testing labs to do this OR/AND ii) establishing/
strengthening existing soil testing facility at district KVK. The lab should
have a vehicle at its disposal through which samples will be collected at
random and tested vigorously so that users have faith in product. The expenditure
on it can be met from regular budget of department of Agriculture
Administrative
Setup
The whole system can be managed in a corporate
fashion by creating a corporation at district level. Following is line diagram
of administrative set up for implementation of program.
It is
evident from above that the system is economically viable, has huge employment
potential with just diversion of a part of funds from existing schemes.