Socio-economic status of plain area tribes of Andhra Pradesh and their access to Micro finance

1. Socio-economic status of plain area tribes of Andhra Pradesh and their access to Micro finance E V Murray General Manager, NABARD, Andhra Pradesh RO BB Wadavi AGM (DD) Mandya District, NABARD, Karnataka RO

2. Context 370 million ‘indigenous people’ in the world; constituting 6% of global population 84.3 million in India, constituting 23% of the world’s indigenous people Several laws but ‘seldom to the benefit of tribal population' Sitting on a mountain of resources, but ‘dead capital’ Human Development Index of Tribals is much lower than that of the rest of the population. Their condition is far worse than that of the rest of the population and they have not been able to reach the envisaged level of development, where they could benefit from the new opportunities offered by a fast expanding economy’ (Annual Report 2008-09, Ministry of Tribal Affairs, GoI,) Micro finance - a promising and empowering tool to correct market failure, ensure social-economic-political development, and give tribal communities a voice and help them develop capacity to deal with exploitative forces

3. Theme Paper is based on a study of tribal settlements in the plain area districts of Andhra Pradesh commissioned by the Tribal Welfare Department, Govt. of Andhra Pradesh to NABCONS APRO (PAT Study 2008) Looks at the outreach of micro finance among the plain area tribes and the enabling social-economic-political factors required to make micro finance work for tribal communities ‘Plain area tribes' (PAT) are scheduled tribes living outside the districts covered by scheduled areas The paper suggests approaches for development of tribals in plain areas

4. Plain Area Tribes in AP 5.024 million STs in AP, 45% of them are PAT Four communities, viz, Sugalis (58.8%), Yanadis (19.9%), Yerukula (15.5%), and Chenchu (2%) form 96% of the ST population in the plain areas.

5. Livelihoods of Tribals - Issues Agriculture (Sugalis) Absence of land records / pattas causing problems of ownership, and therefore the inability to access bank finance Small size of landholdings leading to subsistence agriculture Lack of irrigation facilities Absence of extension services Agriculture Labour (Yanadis & Sugalis) Non availability of land Lack of employment opportunities in their habitations Low wages for women Animal Husbandry (Sugalis and Chenchu) Dependence on low milk yielding nondescript animals Lack of veterinary services Inadequate grazing land Lack of knowledge on fodder cultivation and usage Non availability of drinking water for animals

6. Livelihoods of Tribals (contd.) Non Farm Sector (Yerukula) Non Availability of raw materials (such as bamboo) Increasing price of raw materials Increased use of plastics in all walks of life reducing demand for native products like bamboo baskets. Non Timber Forest Produce Dwindling forest resources Restrictions by Forest Department Absence of identity cards for accessing NTFP Dependence on local markets with low returns Lack of awareness about economic opportunities and economic support schemes of tribal welfare department Need for Business Development services

7. Physical, social and economic infrastructure Poor infrastructure ; Crying need for development of Physical infrastructure (roads, irrigation etc.) Social infrastructure (health, education, sanitation) Increased budgetary allocation, creation of assets, ensuring last-mile connectivity are areas of priority for development of tribal economies Ineffective Tribal Sub Plan (TSP) approach for non-ITDA areas Though the States are expected to provide TSP funds in proportion to the percentage of the tribal population to total population of the State, this is rarely the case Many ministries reported difficulty in segregation their TSP component, citing indivisibility of projects One idea is creation of separate development authority for the plain area tribes on the lines of ITDA TSP funds can be transferred to this agency But, scheduled areas also continue to suffer from infrastructure deficiencies inspite of ITDA set up

8. Socio-economic barriers Connectivity Good internal road, but last mile connectivity missing 55.9% of the tribal habitations did not have connectivity to the nearest Black Top road which connects to the major market centers 65.8% of the ST habitations did not have connectivity with their gram panchayat Average distance of the thanda /gudem to the nearest bank branch was 10 – 25 km Drinking Water 12.7% of the tribal habitations in plain areas do not have access to safe drinking water 62.4% of the tribal habitations that had access to drinking water did not get adequate supply. 22.1% tribal habitations reported fluoride contamination and 11.5% tribal habitations had bacterial contamination of water Education and Health The dropout rates in Class I to VII very high (69%) Only 37% of tribal habitations in plain areas had Anganwadi centres Gaping holes in infrastructure and socio-economic indicators has led to demand for separate gram panchayats(GP) for PAT. Feeling that a separate GP would Help preservation of their socio-cultural uniqueness Give control over funds for development of their villages Build leadership in tribal communities and help them in power sharing at the state/central level.

9. Access to institutional finance Result of a quick study in the banjara embroidery (Malkapur thanda) and tribal jewellery (Ausala thanda) clusters in the plain areas of Nizamabad district of Andhra Pradesh

10. Micro finance for PAT Andhra Pradesh is considered the ‘mecca of microfinance’ and claims to have achieved ‘universal coverage’, but; Only 64% of the STs in PAD organized under SHGs as against overall coverage of 92% of PoP and Poor households and 72% in respect of agency districts. The number of ST SHGs credit linked during the year 2009-10 in PADs formed 30% of the estimated potential ST SHGs eligible for SHG-Bank Linkage. 2000 dormant ST SHGs in the PADs forming 8% of total SHGs.

11. Micro credit to PAT SBLP mainly met: the financial needs of social, economic emergencies and seasonal income gaps working capital needs of animal husbandry, agriculture and service activities Investment needs were largely unmet Educated unemployed youth were looking for loans for buying transport vehicles, opening of service units (shops, agriculture input centres, repair units) but were found to be unable to obtain loan from banks

12. Prioritisation of needs(Based on PRA with Community)

13. APPROACH TO TRIBAL DEVELOPMENT

14. Livelihood interventions... Agriculture (Sugalis) Ensuring land titles Intensification of crop production through providing irrigation, input supply Agriculture labour (Yanadi and Sugali) Awareness creation on livelihood avenues, i.e. NREGA, dairy etc. Skill up gradation to serve the construction industry, viz, masons, plumbers, electricians etc Animal Husbandry (Sugalis and Chenchu) Intensification of existing animal production system, viz, new breeds, stall feeding of goats etc. Extension support

15. Livelihood Interventions Non Farm Sector (Yerukula) Skill development Design development for broadening the markets and moving up the value chain Vocational training in micro enterprises. Non Timber Forest Produce (Chenchu and Yanadi) Issue of identity cards by Forest department Value addition to forest collections Promoting home herbal gardens, honey bee keeping.

16. Need for separate Community-based financial institutions (CBFI) “Poverty is not the result of rapacious financiers exploiting the poor, but the result of lack of access to efficient credit networks” Niall Ferguson, The Ascent of Money: Financial History of the World NSTFDC and TRICOR have not been able to reach DTWO has little time in focusing on economic development schemes Existing framework unable to meet the requirements RRBs moving away from targetted clientele NSTFDC could be converted into a CBFI by incorporating private equity and providing operational freedom and a ground level institutional structure. Such an institution could meet the varied and diverse livelihood needs of tribals Model of SHORE Bank Business Development Services along with credit is important

17. Tribal cadre of Officers “We should try to train and build up a team of their own people to do work of administration and development. Some technical personnel from outside will, no doubt, be needed, especially in the beginning. But we should avoid introducing too many outsiders into tribal territory”. Jawaharlal Nehru (foreword to Verrier Elwin’s book ‘Philosophy for NEFA (Arunachal Pradesh)) Involvement of tribal educated youth in implementing the tribal development plans by providing them appropriate training in institutions like SERP The SHGs and SHG federations of tribals can function as delivery channels for implementing the various developmental programmes in tribal areas

18. Finally.. Tribal folk are not ‘specimens’ or ‘cases’; they are people; they are human beings exactly like ourselves in all fundamental ways. We are part of them and they are part of us; there is no difference. They live under special conditions; they have developed along certain special lines; they have their own outlook and ways of doing things. But the ultimate human needs, aspirations, loves and fears are exactly the same as ours. Verrier Elwin, 29 August 1958

19. Many thanks to Members of the Study Team, especially: K C Badatya P K Jena Ms. Dayamrutha for providing critical inputs for the paper and to the Tribal Welfare Department, Govt. of AP for permitting use of the study findings