andhra health
DESCRIPTION
andhra healthTRANSCRIPT
WELCOME
TO NATIONAL LEVEL MEETING
OF PROJECT DIRECTORS OF RURAL DEVELOPMENT
ANDHRA PRADESH
PRESENTATION ON
1.Community Managed Health & Life Insurance
2.Total Financial Inclusion
3.Food Security
SANJEEVANI
“Community Managed Health Insurance”
SANJEEVANI
• Sanjeevani is a Community based and Community managed Health Welfare Scheme, promoted by Zilla Samakhya, Vishakhapatnam.
• This is an initiative to make Healthcare Services accessible to rural Self Help groups ( SHGs) and to promote preventive Healthcare.
Good health is a pre-requisite to human productivity and the development process. A healthy community is the
infrastructure upon which an economically viable society can be built.
Need for the Scheme
• Existing schemes are not pro-poor
• Cumbersome Procedure
• Uncertainty of coverage of financial shock from health care expenses
• Expulsion of pre-existing deceases (Rural poor won’t go for regular check-up of deceases
Need for the Scheme
• Uniqueness of existing schemes – Insurer, Insured, TPA and Service Providers are un-happy
• Existing health care facilities from Govt. institutions not accessed adequately
Scope of the Scheme
• Hospitalization Cover for Surgeries and Medical Conditions
• Free Outpatient Consultations.• Fixed discounts on
- Medicines - Investigations• Consultation by a lady doctor on
specified days.
Administration of the Scheme
• The scheme will be implemented and administered by Zilla Samakhya, in coordination with the Mandal Samkhaya, and Village Samakhyas.
The ZS is responsible for the day-to-day operation of the Scheme and will ensure service standards at provider Network for hospitalization and Diagnostics.
The duties will include,
Maintaining member database
Issuing Photo ID cards to the families covered under the scheme
Creating a network of hospitals to facilitate Cashless treatment to the beneficiaries of the scheme
Facilitating the authorization process with the Network Hospitals
Claims Processing and settlement.
The Role of Zilla Samakhaya
Coverage and Premium
Period of operation from 1st May 2007 to 30th April 2008
Maximum amount payable Per Family Rs. 30,000/- for surgeries ( List provided ).
Maximum amount payable is Rs 5000/- for medical conditions other than surgeries under the Family Package 5.
10% of Co-Payment by the patient on the final bill.
Premium payable is Rs. 260 per year for a family of 5.
Age Limit: 0-60
1. Out Patient ConsultationPHC level: consultation with lady doctors once in a week free of cost Network Hospital (NWH): consultation free of cost
2. Diagnostics: Basic diagnostics will be done at PHC free of costDiagnostics at NWH will be done at a fixed discounted rate.
3. Quality MedicineFree of cost at PHC level2. 10% Discount rate at NWH3. Grossly discount at Drug depots of IKP (Sanjeevani Pharmacy)
Features of the Scheme
Features of the Scheme
The scheme covers more than 1500 surgeries, including all categories of complex and common surgeries, such as
1. OBG – includes normal delivery, LSCS and Hysterectomy
2. General Surgery3. Gastroenterology4. Orthopaedics – includes fracture surgeries5. Genito-Urology6. Endocrinology7. ENT
Surgeries Covered
Case Manager – Role and Responsibilities
1. Coordinate the referral system of the patient
2. Regularly visit the Network Hospitals, at least once a week, and ensure that the terms and benefits of the scheme are being properly followed.
3. Regularly interact with the beneficiaries of the scheme undergoing treatment for feedback.
4. Inform the Implementing Agency (ZS) about any non-conformance, if any, and follow-up on action taken.
5. Collate data and statistics from network hospitals on the scheme every week end and Submit it to the ZS
The Team
Medical Officer – Role and Responsibilities
1. Approval of Preauthorization based on necessity of treatment
2. Liaison with NWH 3. Quality monitoring of service providers
Case Manager – Role and Responsibilities
6. Randomly verify the operated cases for authenticity of the members.
7. Verify the authenticity of every case received for pre-authorization and submit report to ZS.
The Team
Process of Availing Treatment
Beneficiary approaches VO Representative
VO rep explains scheme
Beneficiary goes Network hospital with ID Card, Receipt
Admission for Surgery
Free OPD Consultation
InvestigationSpecial rates CASHLESS
Hospitalization
Medical treatment
Patient pays 10% of the bill
Member signs on the Claim Form
Discharge
Intimation to TPA/ZS by NWH
Pre-Authorization- from TPA/ZS
Claims FlowchartReceipt of claims
From NWH
Communication To Hospital
Communication To Hospital
Claim ID Generation
Document verification
Medical Scrutiny and Claims Processing
Approved Claims
Outward
Submitted To Trust (Weekly)
Letter Of Settlement To he Bank By ZS
Claim pending for supportingDocuments
Collection of DDDispatch o hospital
Complete
Incomplete
1. Total House Holds Covered sofar : 32,840
2. Annual Premium per Family : Rs.260/-
3. No. of Net working Hospitals : 17
4. No. of PHCs & CHCs : 27
5. Claims Received (May to December) : 650
6. Claims Settled (May to November) : 650
7. Claims amount Settled : Rs. 23.50 Lakhs.• Health Cards issued to all families covered
under the scheme• 29 Case Managers trained & Positioned in all
Mandals&KGH• One Medical Officer trained and positioned.
Progress
Free OP : No. of Patients benefited
In Primary Health Centres : 11,325
In Networking Hospitals : 4,460.
Diagnostic Tests
20% discount on diagnostic tests
Amount benefited : Rs.1,51,860
Drugs
10% discount on drugs
Amount benefited : Rs.98,329
Impact
Medical Cases treated
Physical : 373
Amount : Rs. 9,12,465
Surgical Cases treated
Physical : 277
Amount : Rs. 14,37,664
Impact
Medical Cases
Expenditure (From May to December
2007)
Month No. of Cases Amount
May ’07 1 3,000
June ’07 19 30,967
July ’07 58 1,27,800
August ’07 26 1,12,300
September ’07 54 1,05,500
October ’07 74 1,49,272
November ’07 60 1,30,908
December ’07 81 2,52,718
TOTAL 373 9,12,465
Medical Cases Treated
Type of Disease No. of Patients % of total cases
Cerebral Malaria 185 68%
Jaundice 76 28%
Normal Delivery 53 19%
Typhoid 27 10%
Bronchitis & Pneumonia and Others
22 8%
TOTAL 273
Medical Cases Treated
Surgical Cases
Expenditure (From May to December
2007)
Month No. of Cases Amount
May ’07 5 34,231
June ’07 16 1,00,300
July ’07 46 3,33,800
August ’07 28 1,14,986
September ’07 25 1,31,090
October ’07 36 2,27,595
November ’07 67 3,28,050
December ’07 54 1,67,612
TOTAL 277 14,37,664
Surgical Cases Treated
Type of Surgery No. of Patients % of total cases
Hysterectomies 65 24%
Orthopedic 106 38%
Caesarian Section 52 19%
Hernia Hydrosols 34 12%
Tonsillectomies & Others 20 7%
TOTAL 273
Surgical Cases Treated
Community Managed Life Insurance Scheme
Community Based life Insurance Scheme
Objective
Need
Evolution
Implementation
Claim Settlement Process
Impact
DRDA SERP
Scheme seeks to offer a risk mitigation measure for
the rural poor against sudden death & disability .
The CBO - SHG and their federations VO Mandal
Samakhyas and ZS play key role in evolution,
implementation of the scheme
Objective
DRDA SERP
Need
Rural poor household having no access to formal Insurance services to cover risks.
Very limited awareness about insurance related risk mitigation options amongst the poor.
High premium coupled with tedious & time consuming claim settlement process.
Participatory community based insurance delivery mechanism meets the needs of the poor more effectively than the provider managed insurance delivery.
DRDA SERP
Initiated dialogue with community on need for community
based life & General insurance and risks to be covered.
Dialoging with insurance providers by CBO with facilitation
support extended by functionaries.
Finalizing service providers with clear cut MOU between the
insurance providers and Zilla Samakhya.
Evolution
DRDA SERP
A.P. Level Achievement 2007-08
DRDA SERP
Total Members covered : 26,15,540
Premium Amount collected : Rs.26.68 Crores
Premium Amount paid to Insurance Company : Rs.21.71 Crores
No. of Claims Received sofar : 7215
Natural Deaths : 6459Accidental Deaths : 756
Claims settled sofar : 6133
Natural Deaths : 5515Accidental Deaths : 618
Claim amount settled : Rs.15.73 Crores
District-wise Achievement 2007-08
DRDA SERP
District Women covered
Claims received
Claims settled
Claim amount settled
Adilabad 93394 200 124 4675000
Ananthapur 129776 187 137 4025000
Chittor 336163 338 278 9340000
East Godavari 134000 306 236 8080000
West Godavari 153786 322 271 9130000
Kurnool 46319 141 103 3400000
Karimnagar 336946 59 16 320000
Khammam 109326 605 548 17830000
Kadapa 122701 656 600 20690000
Mahaboob Nagar 26028 174 131 3900000
District-wise Achievement 2007-08
DRDA SERP
District Women covered
Claims received
Claims settled
Claim amount settled
Medak 153217 1788 1585 5077250
Nizamabad 122500 318 270 9100000
Prakasam 66419 224 177 6310000
Vizianagaram 171000 648 593 18400000
Visakhapatnam 85632 235 193 7369000
Nellore 109459 209 173 6190000
Srikakulam 138348 299 256 8680000
Warangal 207359 309 274 9220000
Gunturu 73167 197 148 5575000
TOTAL 2615540 7215 6133 1573250
Implementation in Visakhapatnam 2006-07
DRDA SERP
Amount collected by CBO” per member Rs. 105/-
• TATA – AIG life insurance premium Rs. 61/-• New India Assurance premium Rs. 12/-• Corpus available per member at ZS Rs 32/-
Total 1,00,681 Members covered
• Rs. 105.71 Lakhs Amount collected by Zillah Samakhya.• Rs. 61.41 Lakhs Amount paid to TATA-AIG towards life Insurance• Rs. 12.08 Lakhs Amount paid to New India Assurance towards general insurance.• Rs. 32.21 Lakhs with ZS.
Implementation in Visakhapatnam 2007-08
DRDA SERP
Amount collected by CBO” per member Rs. 80/-
• Life Insurance Corporation Rs. 50/-• National Insurance Rs. 18/-• Corpus available per member at ZS Rs 12/-
Members covered so far as against proposed target of 83,266 members.
• Rs. 66.61Lakhs Amount collected by Zillah Samakhya.• Rs. 41.63 Lakhs Amount paid to Life Insurance towards life insurance.• Rs. 14.98 Lakhs Amount paid to National Insurance
towards general insurance.• Rs. 9.99 Lakhs with ZS.
Information from affected family to ‘VO’ from SHG.
Verification and Certification by ‘VO’.
Claim submission to Zilla Samakhya through Mandal Samakhya.
Verification by ‘ZS’ monitoring committee.
Claim submission by ZS to insurance company.
Claim settlement by ZS within ‘7’ days of receipt of the claim by ZS pending release of money by insurance company is ZS.
Claim shall reach ZS within ’90’ days of occurrence of the incident.
Claim settlement process
DRDA SERP
Impact in Visakhapatnam District
DRDA SERP
Affordable premium Immediate claim settlement by Zillah Samakhya. 357 Claims settled so far against 390 claims received. Rs. 89.10 Lakhs Amount distributed towards claim settlement.
2006-2007
193 Claims settled so far against 235 claims received. Rs. 73.69 Lakhs Amount distributed towards claim settlement.
2007-2008
‘Total Financial Inclusion’
General definition of financial inclusion
Accessing to banking services at affordable cost
- Opening of ‘no frills account’
- Issue of ‘General Purpose Credit Card’
Objective
• To address all the financial needs of all households
Should we focus on all or should we focus on
poor ?
The ‘Spread’ of Financial Inclusion
Whether urban or rural, the spread is ‘wide’ in non-poor vis-à-vis poor
16.4
83.614.7
85.3
0
50
100
PHY FIN
PHYSICAL & FIN 'SPREAD' in RURAL AREA (sampling)
POOR
NON-POOR
Analysis of financial needs of the poor
The Expenditure Portfolio of the Poor
• House construction / repairs farm activities
• Working capital non-farm activities
major• Health problems
minor school education
• Children education – higher education
• Marriage purposes• Income generation Activities• Long term investment on land
Scale of exp on these items
House repairs/construction-5,000 to 20,000Marriage purpose - 20,000 to 50,000Health needs - 5,000 to 15,000Children higher education - 5000 to 10,000Income Generating Assets – 10,000 to 15,000Working Capital - 5,000 to 10,000Long term investment on land – 30,000 to
50,000
Own funds vis-à-vis debt
Own funds/SHG/Bank linkage
Debt from money lenders/ MFIs
Food House
Working capital Health
Health Marriage
Children education Land-purchase/development
Income generating asset Higher education
Coping mechanism by the rural poor family
Debt
For smaller needs it is from banksFor larger needs it is from money lenders/mfi
Banks
Money lenders/friends & relatives
Which approach is better to reach the poor?
Opening of ‘no frills’ accountIssue of general purpose
credit card
Deepening the credit through SHGsor/and
Why SHG model for Financial Inclusion? The ‘exclusion’ is more wide spread and deeper in
poorer sections and priority is given to the poorest of the poor and the poor. The poor are in SHGs
SHG is proved to be an effective financial intermediary
‘Financial inclusion’ does mean (1)credit disbursement, (2)credit utility and (3)repayment
– possible through SHG model
Financial inclusion of Poor in Andhra Pradesh through
SHG-Bank linkage
Financial inclusion of the poor in Andhra Pradesh through SHG-Bank linkage
In AP, 90-95% of the poor are in SHGs and hence, ‘inclusion’ is wider (number covered) in the poor.
But inclusion is NOT deeper (when compared to financial needs)
Financial inclusion – not deeper - empirical evidence
0
100
200
300
1 2Phy
Fin
Financial inclusion – not deeper - empirical evidence
In CC Palli village the total debt of 201 families was Rs. 29 lakh
Bank share was 11% (mainly for small needs)Money lenders’ share was 87% (mainly for
big needs)Others’ share was 2%
Bank linkage per district (average): 150 crores
Interest amount paid by all SHGs in the district: 230 crores
Loan amount
from money
leners/mfi in each SHG
(average)
Rate of interest
Interest per month
paid by SHG to money
lenders/ mfi
Interest per
annum paid by
SHG
No of SHGs in
the district
(average)
Total interest amount paid by
SHGs per annum in a district to money lenders/
mfi
1,50,000 36 4,800 57,600 40,000230
crores
The Result ….
PLAN OF ACTION
Piloting the model
Take up this model in two villages in each service area of each bank-branch during 2007-08.
Identification of village
Having good track record in SHG-Bank Linkage
Having SHGs which are following best practices
Having good book keeping practices in SHGs Having SHGs with Poorest of the Poor and
SCs and STs Identification shall be done in consultation
with CBRM/Mandal Samakhya
Pre-conditions
Facilitating the SHGs to enable them to be good SHGs - at least THREE months preparatory work has to be done in the village
All the members of each SHG shall be educated on financial inclusion
Book-keeping shall be strengthened Good Monitoring mechanism shall be
positioned
Pre-conditions- intervention by IKP
CRP team consisting of four members-IB, TFI, BK and Activist, will be positioned
The team will work for 3 months in each village with 6 to 7 SHGs The team will develop best practices in those SHGs
-weekly meetings, -weekly savings-weekly internal lending of small debts, -weekly recovery of small debts, -book keeping – for every 4 SHGs, ONE book keeper-need based lending, -awareness among all members, -self-preparation of MCP by the SHG
Positioning of ‘anchor’ person for the branch
Assessing the needs of each member of SHG
MCP shall be SHG-driven The MCP includes the following: Outstanding debt of the member to money lender
or to mfi (the outstanding loan to Bank will be added at the end)
Income Generationo Requirement for investment in income generating asseto Working capital for agricultural purposes and for existing
economic activities.
Social needs like health, education, food security, house repairs/construction, marriage purpose etc.,
Micro Credit Plan under TFI
Name of the SHG Bank Account no. Bank-branch name:
VO Name Village Name: Mandal Name:
Sl no
Name of the memb
er
Social
Staus (SC/ST/BC/OC)
Eco Status
(POP/Poor/NP)
To liquidate high cost debts IGA Social needs
Grand Total
Money Lender
sMFI
Others
Total
UnitInvestme
ntTotal
Need
Required
amount
Total
TOTAL
TFI Plan total: Signatures of SHG reps:
Outstanding bank-linkage: 1
Grand Total: 2
Repayment by members to SHG
The installment shall comprise both principal and interest
It shall be monthly installment It shall not be short term repayment – minimum 60
months The members’ repayment is as per their
capacity to re-pay The members’ repayment schedule may vary-below
60 months-may be 40 to 48 months There shall be surplus in SHG in every month
Repayment
Irrespective of income of the poor Correlated with income of the poor
Principal Ins amou
nt
Number of Ins
1000 23 50
5000 115 50
10000 230 50
Principal Ins amount
Number of Ins
1000 23 50
5000 23 150
10000 23 500
Principal Income Ins amou
nt
Number of Ins
1000 1200 40 30
5000 1000 100 55
10000 2500 350 38
Sl no Mem Loan Sources INCOME Repayment No of inst
monthly crop Total Monthly Crop(prin)Principal int Tot
1 X1 30000 dairy 2000 0 24000 750 450 1200 0 40
2 X2 45000 Ag land, 3000 7000 43000 1320 280 1600 5000 35
3 X3 28000
4 X4 54000
5 X5 47000
6 X6 15000
7 X7 25000
8 X8 40000
9 X9 36000
10 X10 45000
TOTAL 365000 320000 65000 385000 10350 3650 14000 30000REPAYMENT
TO BANK
6000 3650 60
SURPLUS IN SHG 4350 30000
Repayment Plan of Members to SHG &
Repayment Plan of SHG to Bank
Why surplus in SHG?
Loan amount from Money
Lenders
Year-wise distribution of loan (taken from
money lenders)
Average corpus needed in SHG to avoid money lenders/ mfi
Year-wise TOTAL
150,000 < one year 60,000 1st yr 60,000
One year to two years 60,000
2nd year45,000
> two years 30,000 3rd year 30,000
4th year 15,000
150,000
How to pay on monthly basis by the member ?
High Cost ‘i’ paid to money lender is enough…to liquidate bank loan
Loan from Money Lender
Loan from Bank
difference between ML/mfi and bank
EMI of the bank per month (principal)
No of instalments
Rate of reimbursement of PAVALA VADDI
Amount of PAVALA VADDI for every SIX months
No of SIX monthly spells
Total amount of PAVALA VADDI/per member
Loan from money lender or MFI
Rate of interest
Interest per month
Loan from bank
Rate of interest
Interest per month
10000 36 300 10000 9 73 227 230 44 6 287 7 2083
Stabilising the monthly income Multiple livelihoods Access to Employment
Guarantee Scheme
Monthly payments…..
If a big loan is again required …….
Increase in the corpus of SHG
Surplus in SHG every month-the difference between members’ repayment to SHG and SHG’s repayment to bankIncrease in savings by the member in SHG
Increase in the corpus of VO
• Increase in savings by the SHG to VO• Introduction of ‘APADA NIDHI’-Rs.10
per each member with VO• Converting the CIF into ‘emergency
fund’
Financial Inclusion and other products
To membersTo Village Organisation
Other Products to members of SHG
savings product – RD for their childreninsurance product-covering life, health,
and assets educational loan product through SHGs
Cash Credit Limit to VO
Food Security initiative Milk collection centers Marketing activities
The limit may be provided to the VO as per the guidelines approved by SLBC.
Interventions in ‘key activities’ by the project
• Identification of those ‘key’ activities, where huge investments are made by the members
• Providing backward and forward linkages to increase production and marketing access
Monitoring
Self-monitoring by SHG and VO
• ‘Vetting’ of the plan by the SHG itself and later by the VO
• Disbursement of loan to the members as per MCP
• Utilization of loan by the member in the presence of the SHG or it’s committee
• Submission of UC by the SHG to the bank and to the VO
• Verification of assets purchased by SHG in a periodical manner by SHG itself and by VO
Monitoring – intervention by IKP …
Community Based Recovery Mechanism (CBRM)
Participation of Branch Manager/Field Officer in VO’s scheduled meeting
Computerisation of transactionsOne Anchor Person for each bank-
branch
Community Based Recovery Mechanism (CBRM)
Two members from each VO All the rep from all VOs in a service area will form
into CBRM They will meet once in a month on a fixed date in the
premisis of the branch Each VO committee will maintain DCB of the linkage
for that VO and bring it to the meeting The OD & NPA will be discussed and corrective
action will be taken by the committee before the next meeting and ensures 100% recovery
The utility of the loans will also be monitored by the committee and discussed in the meeting
Bank – Linkage amount taken under T.F.Iin Maharajpeta (V) Consisting of Maharajpet, Gopuralam & Dontanapalli Hamplets of Rangareddy
Dist
56.77 Lakhs
12.86 Lakhs
98.15 Lakhs
28.52 Lakhs
0
20
40
60
80
100
120
For Debt Swapping For income generationactivities
For Social needs Total
Loan Amount Taken Under TFI in Gopularam H/o Maharajpet (V) of Rangareddy District
22.06 Lakhs
7.99 Lakhs
44.41 Lakhs
14.5 Lakhs
0
5
10
15
20
25
30
35
40
45
50
For Debt Swapping For income generationactivities
For Social needs Total
Relief in interest burden per annumin Gopularam H/o Maharajpet(V) of Rangareddy District
1.33 Lakhs
5.33 Lakhs
0
1
2
3
4
5
6
7
Interest amount paid by poor families in the village as onTFI
After TFI
Building up of Assets of the poor in T.F.I. Village : Gopularam
35
0 04
42.7
9
96
6 5
21
52.5
22.5
0
20
40
60
80
100
120
Milch Animals Auto Rickshaws Bore wells for irrigation Small Business Land holding(in acres) Land taken on lease
Before T.F.I
After T.F.I
Increase in Annual Income of the poorin Gopularam H/o Maharajpet (V) of Rangareddy District
75.48 Lakhs
16.75 Lakhs
28.51 %
58.73 Lakhs
0
10
20
30
40
50
60
70
80
Before TFI After TFI Difference % of change
EFFECTIVE IMPACT OF TOTAL FINANCIAL INCLUSION ON THE POOR IN GOPULARAM h/o MAHARAJ PET (V)
16.83
44.41
5.331.33
58.73
75.48
9.08
1.76
0
10
20
30
40
50
60
70
80
Rs. in Lakhs
Money Lenders 16.83 5.33 58.73 9.08
Bankers 44.41 1.33 75.48 1.76
Debt Interest amount Annual Incomeas % of annual
income
After TFI
Before TFI
1500
0
500010000 10000
0
50000
34524
0
10000
20000
30000
40000
50000
1stlinkage
2ndlinkage
3rdlinkage
4thlinkage
TFI
The impact of TFI vis-a-vis SHG-Bank LinkageName : Mrs. Krishnaveni, VSP dist.
Additional income
Bank Linkage
10003000
30008000 45008000
95000
40000
70000
010000200003000040000500006000070000
1stlinkage
2ndlinkage
3rdlinkage
4thlinkage
TFI
The impact of TFI vis-a-vis SHG-Bank LinkageName : Mrs.Ananthamma,Medak dist.
Additional income
Bank Linkage
10000 2000 0 4000 8000
46000
120000
0
20000
40000
60000
80000
100000
120000
1stlinkage
2ndlinkage
3rdlinkage
4thlinkage
TFI
The impact of TFI vis-a-vis SHG-Bank LinkageName : Mrs.Satyavathi, Khammam.
Additional income
Bank Linkage
20000
15000
0
10000
0
5800060000
0
10000
20000
30000
40000
50000
60000
1stlinkage
2ndlinkage
3rdlinkage
4thlinkage
TFI
The impact of TFI vis-a-vis SHG-Bank LinkageName : Mrs.N.Jyothi, W.G.Dt
Additional income
Bank Linkage
Achievement done sofar
2006-07
Total Villages covered : 320
Total SHGs covered : 5218
Total Financial Assistance extended : Rs.173.43 Crores
2007-08
Total Villages covered : 1356
Total SHGs covered : 24456
Total Financial Assistance extended: Rs.717.48 Crores
FOOD SECURITY
The reason
• The availability of rice under PDS is on an average 15 kg/month per family
• The requirement of rice for an average size family in rural area is 50 kg/month
• The gap is on average 35 kg/month• The 35 kg/month is used to be procured
from open market• 2/3rd of the food security of the poor
becomes vulnerable and subject to market fluctuations
The coping mechanism
• The stream of income of the poor is not regular-it is fluctuating on day basis
• The expenditure for food for each day is more or less the same
• The negative gap is being met by the poor either through borrowing or obtaining the food grains on credit basis or adjusted with low intake
• The sufferers in the family are women and children
Objectives
• To attempt to minimise the “Food Gap” in POP and the Poor
• To facilitate for the emergence of ‘Total Food Security’ to the target poor at household level
• To minimize the rate of exploitation in consumption expenditure made by the poor.
• To provide access to good quality and accurate quantity of rice by the target poor through cheaper rates
• TO correlate the nutritional improvement in the pregnant women and children with food security initiative
Rice Credit Line-Reduction in Food Gap
• Identifying the gap between the actual requirement of rice per month for each house-hold and the rice availability from FP shop
• Consolidating the requirement at VO level
• Provision of funds from the CIF @ 90 % of the required funds – 10% being the beneficiary contribution
The Cyclical Process in Rice Credit Line
• Procurement of required rice on monthly basis by the VO from open market
• Distribute it to SHG members through SHGs
• Recovery of money through 3 or 4 installments by the VO from SHGs in the same month with little profit margin
The Process
• Sitting with the members of each SHG
• Analyse the consumption pattern
• Arriving at the rate of losses in respect of purchase of each commodity
• Find out of the requirement of each member
• Implementation in few VOs in each Mandal.
The facilitation support
• Training the VO Executive Committee
• Training the CC and Activists in pilot villages
• Facilitating the emergence of purchase committee, monitoring committee and recovering committee in each VO.
• Introduction of Books of Accounts.
Implementation process-the collection of indent
• Initially, requirement of each member in each SHG will be collected.
• Requirements of the VO will be arrived.
• Proposal will be sanctioned and the VO will be SPIA.
• The purchase committee procures the rice by conducting market survey in respect of quality and the price of the commodity.
• The distribution committee will distribute to SHG leaders.
• The SHG leaders will distribute to each member on the same day.
• At every stage of distribution, the acknowledgements will be collected.
Implementation process-the distribution
Time line
• First of every month SHG requirement is collected,
• 2nd to 4th of every month VO level requirement is collected,
• 5th to 10th of every month, distribution of rice from the mill to the VO, VO to SHG, SHG to members.
Time line (contd..)
• 10th every month, last date for distribution to the last member and collection of 1st installment.
• 17th- 2nd installment,
• 24th , 3rd installment ,
• 30th / 31st final installment.
The basic model-rice centered
• Only rice will be included
• Recycling will be for every month or for every six months
• One month-procurement from open market or by procuring the paddy
• Six months- procurement of paddy, mill it in local rice mill and distribute to SHGs for every six months
The Comprehensive model
• The commodity basket includes five commodities- rice, red gram, tamarind, edible oil and red chillies
• It will be either one month model or three month model or six month model
• In chenchu and other tribal areas the Food Security Basket will comprise 25-30 commodities-all house hold requirements
Procurement• If rice or paddy, it is at VO level• In respect of red gram,
tamarind, edible oil and red chillies it will be at VO level or at MS level or at Area level
• At VO level and MS level procurement committees are positioned out of the VO-EC or MS-EC as the case may be
• At AREA level the procurement committee is constituted with two members from each MS within that MS
Recovery
• If it is monthly recycling, the recovery will be completed from the members within 3 weeks
• If it is 3 month/6 month model, recovery will be completed within 5 months
• In monthly model, the instalments will be on weekly basis
• In 6 monthly model the instalments will be on monthly basis
Funds
• The corpus of the SHG
• The CIF from the VO/MS
• The cash credit limit by the bank to the VO
Inclusive approach• Within the SHG, the food
security plan is prepared by the SHG taking each member’s requirement , particularly the POP- both quality and quantity and the nature of food grains
• The repayment instalments will be fixed as per the convenience of the members
• The small loan provision is available in the SHG to the member in case she is not able to repay that instalment
• A poor women in Dondapadu Village of Thulluru Mandal Cooking Rice
The progress
• Total no of VOs – 27,000
• No of VOs covered – 6827
• No of SHGs covered –1,83,241
• No. of house-holds covered – 19,67,437
• Quantity of rice – 68,860 MT/month
-- 816,323 MT/year
• Total turnover per year -- 898 crores
• Total cost of the project – Rs.68 crores
ANALYSIS OF "FOOD GAP" IN POOREST OF THE POOR AND THE POOR HOUSE-HOLDS
Sl. No.
Name of the House Hold
Family members per
dayrequireme
nt
Monthly
requiremen
t
Consumption
Adults
Children
Before RCL Deficit(in
Kgs)
% of defic
it
After RCL Deficit(in
Kgs)
% of deficitper
day
per mont
h
per day
per month
.(1) .(2) .(3a) .(3b) .(4) .(5) .(6a) .(6b) .(7) .(8) .(9a) .(9b) .(10) .(11)
1Kalva China Mariamma 3 3 2 60 1.6 48 12 20 1.8 54 6 10
2Kalva Peda Mariamma 3 2 1.8 54 1.5 45 9
16.7
1.7 51 3 5.6
3Kukkamudi Jyothi 3 3 2 60 1.6 48 12 20 1.8 56 6 10
4Macherla China Venkaiah
4 4 3 90 2.6 78 1213.3
2.8 84 6 6.7
5Kalva Seshamma 3 3 2 60 1.6 48 12 20 1.8 54 6 10
6Dasari Masthanamma 4 3 3 90 2.6 78 12
13.3
2.8 84 6 6.7
Source of Supply of Rice to the Poorest of the Poor & the Poor
Sl. No.
Name of the House Hold
Source of Supply
Before RCL After RCL
FP shop
s
Kirana Shops
Paddy Milling
TotalFP
shopsKirana Shops
Paddy Milling
RCL Total
.(1) .(2) .(3a) .(3b) .(3c) .(3d) (4a) .(4b) .(4c) .(4d) (4e)
1Kalva China Mariamma 20 28 0 48 20 0 0 34 54
2Kalva Peda Mariamma 16 29 0 45 16 0 0 35 51
3 Kukkamudi Jyothi 25 23 0 48 25 0 0 31 56
4Macherla China Venkaiah 30 48 0 78 30 0 0 54 84
5 Kalva Seshamma 26 21 0 47 26 0 0 28 54
6Dasari Masthanamma 27 51 0 78 27 0 0 57 84
The Impact• Reduction in “Food Gap”
and increase in food intake by the poor
• Reduction in price• Increase in real income• Increase in quality• Ensuring “Total Food
Security”• Caring for the aged,
destitute and pregnant women
• Capital formation in VOs and MSs
