The Hindu Business Line : World Bank study advocates integration of SHG centres

Hyderabad, April 30 After making a mark in foodgrain procurement, women self-help groups (SHGs) should now look at integration of the centres using information technology, a World Bank study has suggested.

The study, titled ‘Making markets work for the poor’, made a detailed analysis on the evolution of procurement by the SHGs under the aegis of the Society for Elimination of Rural Poor (SERP).

Called Velugu during the Telugu Desam rule, and now rechristened Indira Kranti Patham (IKP), the SERP is aimed at encouraging grouping of women into SHGs to take up independent ventures. Besides, the 1,200 milk procurement centres registered a turnover of Rs 136 crore.

“More than 20 lakh SHG members are involved in this activity. It is likely to go up to 50 lakh by 2010,” it said.

While allowing the farmers to bypass the fleecing traders, the activity helped SHGs earn additional income. “Because of the proximity of these centres, farmers have gained up to 200 per cent in commodities such as neem and lac,” it said.

Corroborating this, Mr Ponnam Prabhakar, Chairman of AP Markfed, the apex agency for procurement of certain commodities, said the federation procured Rs 70 crore worth maize last year through SHGs.

“Noticing our presence with higher price, the traders were forced to increase the price in the open market. This has helped farmers gain additional income,” he told Business Line.

Though it is still interested to procure maize at minimum support pricelevels this year also, Markfed expects not much change with the prices in the open market ruling very high. “We don’t mind as farmers are getting good price,” he said.

Integration

Now that they attained a critical mass, the procurement centres run by SHGs across the State should be networked using IT solutions. This would help them link up with commodity exchanges and allow them to engage in real-time transactions, the World Bank study felt.

It also called for integration of farmer field schools with procurement centres to organise agriculture extension services.

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