Profitability and Value Addition by SHGs in Jute Diversified Products (JDPs) in North 24 Parganas district of West Bengal
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Date
2022
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Publisher
DRPCAU, PUSA
Abstract
The present study deals with the socio- economic aspects, basic information
related to manufacturing of selected JDPs by SHGs, profitability analysis of the
selected JDPs (Jute jewellery, Handbags, Handicrafts/ Gift items/Showpieces,
Decorative fabrics, Conference/ Seminar files), the value addition done on these
products as well as the various constraints faced while making them. The study was
conducted in N. 24 Parganas district of West Bengal. It was based on primary data
collected from 9 SHGs and 120 SHG member respondents.
Age wise classification indicated that 58.33% of the members belonged to the
age group of 30-40 years. Most of them (45%) belonged to Scheduled caste category.
Around 45.83 % of the member respondents were educated up to higher secondary
level. Larger proportion of the members were housewives before joining SHG
(79.17%). Majority of them were married. About 58.33% of the member respondents
were having nuclear family, while 60.83% of them had 3-5 members in their family.
As much as 56.67% of the sample members lived in semi- pucca type of houses.
About 43.33% of the women cited financial problems as the reason for joining SHG.
On an average, it takes 1.94 hours to finish one piece of Jute jewellery by one
member of an SHG. It takes 1.11 hours to make a Hand bags. For Handicrafts/ Gift
items/ Show pieces one member takes on an average 2.56 hours and it takes 20 hours
of hard work to finish one Decorative fabric. Similarly, for Conference/ Seminar files,
the time taken to finish one piece is 1.83 hrs. Also, the average number of working
hours of a member was found to be 4.56 hours in a day. The average number of days
required by the SHG members to finish the given number of JDPs pointed out that it
varies from product to product. It was 38.57 days for Jute jewellery. It took 25.03
days to complete the production of Hand and Shopping Bags, whereas it took 64.37
days to make the Handicrafts/ Gift Items/ Show pieces. Decorative fabrics took 43.53
days for completion and for Conference/ Seminar files it took 19.9 days to finish
making the products. It took total 191.4 days to complete all the products. The
making charge received by one member for making Jute jewellery was found to be
₹36.54. The making charge for one Handbag was ₹59.21. Similarly, for making
Handicrafts/ Gift Items/ Show pieces, it was ₹79.18. In case of Decorative fabrics and
Conference/ Seminar files the making charges were ₹206.54 and ₹34.92. The total
wages of the members for making Jute jewellery was ₹47,790.93. The wages for
making Hand and Shopping Bags was ₹83,823.47. Similarly, for making Handicrafts/
Gift Items/ Show pieces, the wages of the members were ₹1,32,160.62. The total
wages of the members for making Decorative fabrics and Conference/ Seminar files
were ₹31,091.30 and ₹24,717.79.
The cost incurred in asset creation for manufacturing JDPs was ₹47.916.56.
Rent of the building was the most important item which accounted for 42.63 percent
of the total fixed cost. The total fixed cost incurred in the process of production of all
JDPs under study was estimated to be ₹24,542.34. The total variable cost incurred in
production of Jute jewellery, Hand bags, Handicrafts/ Gift items/ Show pieces,
Decorative fabric and Conference/ Seminar files were ₹64870.64, ₹1,78,872.74,
₹2,05,665.79, ₹51.047.82 and ₹57313.47 respectively. The analysis of profitability
for the selected JDPs were giving positive returns. The B:C was found to be 2.92:1
for Jute jewellery, 2.02:1 for Hand bags and 2.91:1 for Handicrafts/ Gift items/ Show
pieces. It was 3.34:1 for Decorative fabrics while for Conference/ Seminar files, it
was 2.54:1.
The actors involved in the value chain of JDPs in channel I & II were- Input
supplier, SHG, Retailer and Consumer and Input supplier, SHG and Consumer. Most
of the value addition activities such as cutting, pattern making, designing, including
packaging in case of JDPs were done by SHGs. Hence, in these channels, it is the
SHG who added maximum value by transforming the raw materials into a product.
Input suppliers were the first actor in this chain. They were the shopkeepers
present in Barabazar. They sold the raw materials such as Jute yarn and various other
accessories such as beads, tassels, jewellery making wires, boards, glue etc. These
raw materials were purchased by the SHGs. Next in the chain were SHGs. They were
the main actor that transformed the raw materials such as Jute yarn and various other
accessories into different kind of JDPs. The entire task of processing such as cutting,
pattern making, designing, including packaging was done by them. These SHGs got
training from various government agencies and institutes such as DRDC, NINFET,
NJB etc. on making JDPs. These institutes and agencies also provided information
about different melas, exhibitions etc. that were conducted across the district, state
and country. The next in the chain were retailers who were generally the shopkeepers.
They buy the JDPs from SHGs to sell it to the consumers in the market. Consumers
were the last actor in this chain, who purchased the JDPs from the retailers.
In channel I, the value addition made by SHGs in case of Jute jewellery (33
nos.) was 69.26% (₹4564.99), for Handbags (3 nos.) was 74.72% (₹539.69) and for
Handicrafts/ Gift items/ Showpieces (50 nos.) was 60.77% (₹16918.56). Meanwhile it
was 67.72% (₹841.49) for Decorative fabrics (1 no.) and 65.05% (₹599.84) for
Conference/ Seminar files (4 nos.) and in channel II, the value addition done by SHGs
in case of Jute jewellery (33 nos.) was 96.52% (₹5351.05), for Handbags (3 nos.) was
90.57% (₹614.12) and for Handicrafts/ Gift items/ Showpieces (50 nos.) was 96.17%
(₹18142.56). Meanwhile it was 94.95% (₹1052.12) for Decorative fabrics (1 no.) and
91.99% (₹762.48) for Conference/ Seminar files (4 nos.) in the channel.
Irregular orders of JDPs and unavailability of coloured yarn were some of the
major problems faced during production process. In case of marketing, lack of
exposure to international markets was the major constraint, while other major
problem was loss of livelihood due to Covid-19.