SHGs are small, community-based organizations where individuals from similar socio-economic backgrounds come together to address common goals. These groups aim to improve their economic or social well-being, and their formation is driven by the collective desire for progress. SHGs consist of 10 to 20 members, ensuring a close-knit environment that encourages mutual support and effective collaboration.
The primary objectives of these groups usually revolve around savings, access to credit, income generation activities, and social empowerment. Microfinance is a common practice within SHGs, where members pool their savings and provide loans to each other. This approach fosters financial inclusion within communities and ensures that financial resources are readily available for business development or meeting immediate needs.
SHGs have played a crucial role in providing farmers with enhanced access to credit, which has significantly benefited the agricultural sector. By joining SHGs, farmers have gained the opportunity to secure financial resources necessary to invest in agriculture. These funds have enabled them to purchase high-quality seeds, fertilizers, and equipment, thereby improving their farming practices and adopting modern techniques. Consequently, agricultural productivity has witnessed a substantial boost. Participating in SHGs provides farmers with a united voice and collective bargaining power. Through these groups, farmers can negotiate as a unified entity, demanding fair prices for their produce and reasonable terms in the market. This empowerment allows farmers to secure better prices for their agricultural products, surpassing the exploitation traditionally faced through intermediaries.
SHGs have emerged as a powerful tool in bridging the gap and providing essential financial services to women in rural areas. SHGs enable women to become financially independent by encouraging them to save and access microcredit facilities. This fosters entrepreneurship among women as they engage in income-generating activities such as handicrafts, small-scale businesses, and agriculture.
Government initiatives have played a significant role in supporting Self-Help Groups (SHGs) in India. One such initiative is the National Rural Livelihood Mission (NRLM), which aims to enhance the livelihoods of rural communities through the promotion of SHGs. Additionally, the National Bank for Agriculture and Rural Development (NABARD) provides financial support to these groups, recognizing their crucial contribution to rural development. SHGs are an integral part of an integrated approach to rural development. They act as a connecting link between farmers, particularly women, and broader initiatives aimed at poverty alleviation and sustainable growth.
Read the detailed report on Self Help Groups here A report – Self Help Groups
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Author: Namita Gawde , Volunteer, Save Indian Farmers
Ground Report: Prafulla Sutar, Volunteer, Save Indian Farmers
