CONCEPT NOTE ON PRODUCER ORGANISATION

for

MANUFACTURE OF BROOM STICKS

AT CHAKAI BLOCK,DIST.JAMUI OF BIHAR.

Submitted to:

JEEViKA
Bihar Rural Livelihoods Project (BRLP)

Submitted by:

DIPTI SRIVASTWA CENTRE FOR RURAL DEVELOPMENT

430, CENTRE POINT BUILDING, 21 H.B.SARANI
KOLKATA-700001, (WB)

Concept Note on Producer Organization

For a charcoal rolling project to manufacture incense sticks at Chakai block of Jamui
(Bihar)
1.

Details of Producer Organization:

Type of Producers
: Manufacture of Broom Sticks-Primary Producers.

2.

Profile of the Promoting Organization & its Role:

Brief Organization Profile:

1. Name of the Organization

: DIPTI SRIVASTWA CENTRE FOR RURAL DEVELOPMENT.

2. Address of Reg. office

: Room No.430, 4th Floor, Centre Point Building

21 Hemant Basu Sarani.
City Kolkata. P.O. -700001
State West Bengal(India),
website: www.madeinbihar.org
www.groupkautilya.com
Contact No. 033 40081059/9830051692
E-mail: dipti@organicbihar.com
sales@madeinbihar.org

3. Contact Person

Mrs. Dipti Srivastwa, Trustee.

Mob: 9830051692 / 9204750065

4. Legal Status

Registered in Book-IV

Reg.No. & Date

Under Section 60 and Rule 69 04234, 26-07-2011

CD Volume Number 6,
Page from 6249 to 6267
PAN No.
5. District Office

AAB TD 6174F

Sahana Colony,
Block-Chakai,Village-Nagri,District-.Jamui
P.O.-811303, Bihar
1. Contact Persons:Mr. Niraj Kumar Nagina

Mobile no. +918092552209

2. Contact Persons:-Mr. Niraj KumarYadav
Mobile no. +919832548897
3. Contact Person :-Mr.Shivjee Kumar Sinha
Phone: +918521236103 (PATNA,BIHAR)
Mobile No.+917699319167 ( NORTH BENGAL)
7. Vision

Promotion of Local-Self-Help Groups by organizing the

rural ladies from various area or villages under one head
for overall development of the block through social
humanity making them self independent & confident.

8. Mission

Integrated Rural Development through strengthening

the weaker section, women, distressed and the neglected
Communities of the society.
The overall objective of the organization is the uplift of
Social, moral, economic, educational, cultural and
integrative status of the society based on equality,
liberty, social Justice and democratic way of life.

9. Objectives

10. Operational Area

Entire Bihar with present activities in 10-12 villages of

Chakai block of Jamui District,Bihar.

11. Target Community

Thrust on deprived rural women and handicappedLandless people of the tribal areas of Chakai.

12. Thrust Group

13. Thrust Area

Deprived Community
Women & adolescent girls
Senior citizens
Children and handicapped

Community Organization, Awareness and Participatory

Process for making them learn new skills for
manufacture of cottage industry products.

Among the rural women of the tribal areas.

14. Major issues

Vocational Training and Livelihood.

Making them economically independent
Financially self confident.
Reduction of extremist movement by improving
their financial status and curbing out poverty.

Unorganized community, Marginal farmers, lack of

awareness, ignorance, inertness, Social evils, extreme
backwardness, illiteracy, social tension ,rise of
extremist movement, totally suppressed condition of
rural women of tribal areas, Youth migration, unskilled
youths, unemployment, poor Health, lack of irrigational
sources, drought Stricken area, epidemics, no
developmental schemes, etc

15. Activities
a)

b)

c)

Herbal Mosquito Repellents And Incense

Bamboo Sticks :Organized youths, women and the community in
10-15 villages namely Nagri, Nabadi, Sikatia,
Gahi, Raima, Sikatia,Dogia, Mauharia, Chira,
Chandania, Jamru, Ghatiani, Kushmaha, Tiwardi
under Chakai block of Jamui District,Bihar.
Organization has arranged for full fledged training
of 3 ladies of Chakai block to learn the skills in
manufacture of agrabatti sticks and herbal
mosquito repellent at CSIR-CIMAP,Lucknow so
that they can become self sufficient to teach the
women in their different villages of their area.
Dairy cooperative unit formation:-Organization
of the farmers of Chakai block who own cows
under organized dairy cooperative units for proper
procurement of milk and itsutilization. Reduction
of middle man, exploitation of farmers and it is
also helping in maintenance of quality of the milk.
The milk is supplied for milk processing industries
so that the profit margins of the farmers can be
increased by the sale of processed milk products.
Solar Pump and Wind Pumps:-Water and
electricity is the main problem and major issue in
every tribal area , during summer sometime there

d)

e)

f)

is crisis of drinking water also this is the root

cause of a major national problem today. We are
putting up solar and wind pumps in Chakai block
of Jamui districts.
Solar Pump:-At the request of Honorable
Minister of Fisheries & animal husbandry, Mr
Giriraj Singh, we installed a 1.0 HP Demo Solar
pump to feed water to ponds in Sarairanjan,
Fisheries. The pumps is running successfully and
a great success & benefitted the fish farmers a
lot.The pump has proved that farmers & Economy
of the state can be greatly benefitted and micro
entrepreneurs can be promoted.
Employment generation for Rural youth:Our trust had made arrangements to provide
employment to rural youths by providing jobs as
unskilled labours in spinning and cloth factory so
that their per capita income could be
improved.Success:10 young people joined a
textile factory at Gujrat and their income is now
Rs.6000-7000 per month which is a great news for
the otherwise jobless poor youth of tribal areas.
Along with income generation they are also
learning many skills like spinning,operating
machines etc which would be of use in future
prospects as a source of income generation.
Vocational Training:At Chakai Block of Bihar-70 womens-SHG has
been formed, training conducted and 70 tribal
ladies are now fully skilled in making Herbal
Mosquito Repellents and now they are working
along with us. Another 25 ladies are under training
and soon will be fully skilled at Chakai. Almost
100 women helped in starting earning. Meetings,
Workshop are going on. We want to spread our
work to 300 villages of the Chakai block and train
1000 to 2000 ladies so that they become indepent
and economically stable.
Achievements:-70 women are fully trained and
they are now teaching other ladies and have
started earning.25 tribal women are still under
training.

g)

At Jalpaiguri District of North Bengal-60 to 70

womens SHGs formed and training conducted
and new skills are continuously imparted to the
ladies of villages-Maynaguri,Rajarhat etc.We
have provided them machines like slicer, tables,
tools, stick cutter, wood and other miscellaneous
requirements are fulfilled free of cost.
Acheivements:-600 to 700 rural ladies are fully
trained, organized and started earning.

h) Training in Rabbit Farming:-A group of farmers

and ladies comprised of 20 individuals were sent
to Delta Farm, Chennai, Tamil Nadu once and at
Kolkata for the second round of training at Tona
Biodiverse farming Pvt Ltd. for receiving training
in rabbit farming and rearing so that they can rear
rabbits and set up their own rabbit farms which is
a highly profitable business and a way of ample
rural livelihood generation.
Achievements:-9 bpl families-6 Bpl families in
Sikatia village of Chakai, Bihar and 2 bpl families
in Muzzafarpur,Bihar and 1 family in Nagri
village of Chakai, Bihar were given Chinchila
(broiler breed of rabbits) by us along with cages
and feeding utensils and now they are successfully
breeding and rearing rabbits.1st generation are yet
to breed and once they breed the families will earn
a income of Rs.12000 within six months in first
year and from next year the earning will increase
to Rs.15000 to Rs 17000 per year.
i) Future Plans: We are planning to provide on Computer Literacy
with help of NABARD for rural youth from Chakai
block of Jamui District.
We are trying to find out many ways for generating
livelihood for the rural population by promoting
poultry,labour mobilization to industries,introducing
Credit system and schemes from rural banks etc.

16. Resources:Full time (paid worker) 8 Male+1Female=9 workers

Human Resources

Part time (paid worker) - 3 Female

Volunteers

- 26 Registered members

Subject Specialists

- 1 Agronomist, 2 Senior
Scientists (CSIR-CIMAP),
3 Project Professionals,
3 Trainers,
1000-2000 tribal ladies.
3000-5000 farmers

17. Physical Resources

Rented establishment, Furniture and fixture, Computer

sets, floor mats, slicer machines, water jars, Steel &
Wooden Almira, Chairs, Tables, Motor-cycle etc. worth
over Rupees.???

18. Funding Sources

Till now our trust has been self-funded.

19. Project Fundings for 2011-12:-

Funding Agency
Self Funded

Self Funded

Self Funded

Year

Amount

Programme

2010 -11

Rs.5.75
Lacs

Herbal Mosquito Repellent

manufacture and training cost.

2011 -12

Rs.1.50
Lacs

Agarbatti stick manufacture.

2011-12

Rs.0.75
lacs

Rabbit Farm set up and training cost.

20. Organizational Structure:-

Role of the Promoting Organization: As the target producers have been hitherto not
organized in any groups, the role of the supporting /
promoting organization has to provide motivational and
technical support to the formation, nurturing a Producer
Organization mostly in the form of hand holding and
guiding the building blocks of the primary producers.
3.

Additional Benefits

: Scope for earning livelihood is meager in the drought

prone regions of Eastern Bihar comprising the belt
falling under Chota Nagpur Plateau. In such areas even
agriculture which is the back bone of the rural economy
fails to provide a stable ample income to the rural
households due to unfertile land and water scarcity. In
such a situation promotion of cottage industries can
provide additional income to the otherwise jobless

women who can do this work by staying near to their

household so they can manage both ends. Stable
monthly income, learning new skills, becoming self
sufficient and turning to be a standby support for their
family are the key benefits of our proposal. Moreover,
giving a direction to the work culture of the SHGs and
organizing them under one head was most important to
save them from middlemen exploitation. Another
important benefit which we have visualized and are yet
to see the profound effect in future is the decrease of
rural youth joining the extremist groups and becoming
extremists for easy cash. But the word of awareness has
spread to the rural families and slowly they are
declining from such anti social activities. If we
strengthen their economy then automatically these
problems diminishes. Availability of hassle free credit is
such a big issue and especially in virgin areas like a
producer organization that most of the business plans do
not take off at all. Further, Linking small producers to
markets and skill enhancements are important issues.
Rural ladies can get all the technical supports (like
training on various aspects, broom binding, cutting and
finishing process, packaging facilities etc.) under one
umbrella. There is a need for aggregation in order to
benefit from economies of scale. They also create
opportunities for producers to get more involved in
value adding activities such as input supply, credit,
processing, marketing and distribution. On the other
hand,
they
lower
transaction
costs
for
processing/marketing agencies working with the SHGs
under contracts. Collective action through producer
organization is important not only to be able to buy and
sell at a better price but also to help rural women adapt
to new patterns and much greater levels of competition.
The new and potential role of Producer organization in
the new economic regime includes provision of inputs,
economies of scale, fine-tuning of produce to the
market, facilitating more competition in primary
markets, and capturing surplus in adjoining stages of the
value chain. The role of a Producer Organization is to
create an interface between the rural workers and global
market, provide access to permanent risk bearing capital
for the deprived tribal ladies, manage risk for them
through diversification, set standards in the market,

provide more competitive market conditions and market

access to them, and to promote economic democracy at
the grass root level.

4.

Details of project management of Producer Organization & Implementing Agency:

: The trust has been working in the field of cottage
industry sector from last one year with 70 Self Help
Groups of Chakai Block and 60-70 SHGs of Jalpaiguri
district.We are already into the manufacture of dry stick
used inside incense sticks and Herbal Mosquito
Repellent. Now we want to manufacture another
important and essential cottage industry product that is
broom sticks. Organization has requisite experience in
cottage industry and related activities and we have
many experienced professionals and trainers from our
own trust and several NGOs and trusts are in hand with
us; who will help us in expanding our project on larger
scale so that 300 to 400 ladies get benefitted at Chakai
block.
Now the organization wants to enter into manufacture
of broom sticks and add value to our products to
increase profit margins. For this we need help from
organization like Nabard and Jeevika. At first we will
form their cluster, train them and then link with them on
a technical platform and market.

5.

Brief details of proposed business plan:

The rural ladies of the Chakai block of Jamui district of
Bihar have the enthusiasm as well as potential to learn
new skills. The rural women who are from the tribal
areas of Chakai are extremely hard working hence
teaching them new skills for enabling them to earn a
stable livelihood only requires an organized awareness
program and proper training. Already they have
undergone thorough training and have the skills in
manufacture of cottage industry products like bamboo
sticks used inside incense sticks, herbal mosquito
repellent and rabbit rearing. We are already into the
venture for manufacturing and processing of bamboo
sticks used inside incense sticks. Now we want to
manufacture another important and essential cottage

industry product that is broom sticks. Organization has

requisite experience in cottage industry and related
activities and we have many experienced professionals
and trainers from our own trust; several NGOs and
trusts are also in hand with us; who will help us in
expanding our project on larger scale so that 300 to 400
ladies get benefitted at Chakai block.
We have to create awareness among the rural
households and encourage more ladies to join us and
those ladies who are working already under various
individual SHGs in this venture has to be involved. Our
prime focus is organizing them under one centralized
unit or head. The proposal on its success will add value
to the products and increase the profit margin
incredibly,the benefits of the business will be utilized
for the development of the tribal women and the block
as a whole.

Operational Structure:
Organization of Rural Ladies

: First step involves encouraging more women to join us

and spread them the word of awareness that this project
is for their benefit and the added advantage of this
proposal for their financial emancipation. Organizing
the ladies comprising the different SHGs under one
head.

Training and Demonstration

: Trust along with the technical support from other

trusts and NGO group will arrange for demonstration
sessions along with giving training in co-ordination
with our staff for the tribal ladies at Chakai block.

Credit Servicing Structure

: We have a need to provide credit on various

components like: inputs (raw materials and fixed assets
etc.) for training, rent payment, manufacturing, raw
material purchase, manufacturing process, packet
designing, packaging, storage etc.

Staff Structure

: Without good governance we cant hope for its

successful outcome. Desired structure for operation is
given below:

Project Coordinator

Administration

Account Officer
Technical Head

Marketing
Asst. Account Officer

Technical Trainer
Computer Operator

Inside
One Facilitator of each
10 villages

Outside
For storage unit
Sales Officer
For Sorting Process

For packaging unit

For quality check

Technical expert for

online marketing

Retail Market

Note: Organization needs the marketing unit after 6 months of successfully completion of the
project
Proposed Revenue Sharing Structure:
: Revenue sharing will be the 60% of the share holders,
30% of the administrative expenses and 10% for
Producer Organization for future betterment.
Capacity Building:

Awareness

: The Organization has to propagate the concept of

Producer organization among the rural ladies along with
the propagation of the need to join this venture, benefits
of cottage industry market strategies, quality
maintenance etc.

Training

: On every initiative there is a need to organize a

training program. Some of the initiatives are described
below
Manufacturing and Handling: It involves in various
aspects like the behavior in clusters, Repayment of loan,
technical aspects of manufacture and a continuous
training program for post manufacturing processes like
material handling and storage.
Post Manufacturing activities: It involves in various
aspects like the quality control of production, about the
sticks manufacturing, sorting of material, counting of
sticks, packaging unit, transportation of products and
marketing strategies.

Exposure to latest Technology

: Time to time the rural ladies have to taken to training

sites or manufacturing units which are already in
progress and in this business to make them updated to
learn the latest processes required for their motivation
and to develop positive attitudes.

Marketing:
Quality Control

: Its a major part of the program. Marketing strategy

will base on Quality control. Organization will get
support from the other trusts and NGOs in this regard.

Sorting & Binding

: Needs a separate unit of ladies for sorting the broom

sticks according to size, thickness, counting per kg,
binding it properly and branding them. Quality control
also depends upon it.

Packaging

:Packaging needs also a separate unit. It is the first

appearance of Marketing to consumers.

Truthfully Labeling

:It takes an important role for marketing. Customer

faith is depends on truthfully labeled product.

Storage Facility

:Proper storage of finished product is another aspect

which has to be taken care of so that moisture or fungus

does not attack and spoil the quality of the product. It

helps to increases sustainability of Marketing.

6.
7.
8.

Brief details of financial requirements for executing the business plan: Enclosed
Last 3 years audited financial statements (Balance sheet & P/L statement) of the
Implementing Agency with notes on accounts & annexure:
Enclosed
Details of security/collaterals to be offered.