developing a sustainable livelihood for Amrakh Gram Panchayat

Developing a sustainable livelihood for Amrakh Gram Panchayat

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DECLARATION
We certify that
a) The work contained in the thesis is original and has been done by us under the supervision of
our supervisor.

b) The work has not been submitted to any other Institute for any degree or diploma.

c) Whenever we have used materials (data, theoretical analysis, and text) from other sources, we
have given due credit to them by citing them in the report of the thesis and providing their details in
the references.

d) Whenever we have quoted written materials from other sources and due credit is given to the
sources by citing them.

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ACKNOWLEDGEMENT
It is a great pleasure to express our gratitude and indebtedness to our Faculty Guides Prof. Amrita
Dhiman and Prof. (Dr.) Hemnath Rao Hanumankar for their guidance, encouragement, moral
support and affection through the course of our work.
We would like to express our heartfelt gratitude to our project coordinator Mr. Aman Raj for his kind
support and inspiration which has immensely strengthened our confidence during the virtual internship.
We are also grateful to all the staff members of Gram Panchayat, Amrakh for extending their helping
hands and supporting me with all required data and studies successfully within time.
We are also thankful to all the villagers of Amrakh, Bihar for sharing Information with us about the
village and the livelihood opportunities and to all my well-wishers for their inspiration and help.
Our sincere thanks to all of our friends, who have patiently extended all sorts of help and loving supports
during the completion of this work.
Prem.Prakash.
Deepshikha.
Suraj.Gautam.
Ravi Mahato.

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List of Abbreviation




DMI Development Management Institute
PDM Post Graduate Programme in Development Management
MGNERGA Mahatma Gandhi National Rural Employment Guarantee Act
PDS Public distribution system
PHC Primary health centre
ICDS Integrated child development service
SHG Self-help group
GP Gram panchayat

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Executive Summary

This report mainly focusses on the understanding socio-economic phenomenon of Amrakh GP. Report
Follows DFID model to understand village context in better ways the first section of report drive
information and data from baseline data and draw a vivid image of all kind of capital which is available
in a village .this report mainly categorize capital in 5 different part natural capital, physical capital,
social capital , financial capital & human capital.

After doing analysis capital it also considers institution as well as vulnerabilities and jumps to derive
capabilities and capacity of the village, reports also use different graphical representation like radar
chart to draw a conclusion which capital we lack or which money is our strength after all this report
suggests four livelihoods, all livelihoods are inclusive, feasible able to reduce vulnerability, first one is
Goat farming – it is mainly focused on people who are less dependent on agriculture and can increase
their income by goat rearing this project came up with the idea of goat rearing centre were people rear
goat collectively in order to reduce vulnerability, it will start with eight or above member in which each
one contributes initially, and they will share goat equally among the member

Fish farming – this is for people who want to utilize their resource and water sources in this project a
handy portable way of fish technique is mentioned which require very less support and any piece of
land can be converted into pound fish farming require less labour and after setup, it is easier than regular
farming this project will start with 20 members at the initial stage
Lac making this main focus on women to improve their inclusivity and make them financially
independent

FPO it mainly focused on collective farming in order to increase farmer income and resource
The project is completed by one cooperative which will be divided into four groups for product-specific

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Study findings
During our study about the village and talking to the villagers, we found that giving the right
Information can help people to make the right decision. While talking to the villagers over the phone,
we realized that the villagers have the potential and skill to overcome poverty and misery. Still, one of
the most vital things they lack is Information and knowledge about what should be done when and what
is happening around the World. We observed the fact that the distribution of money by government and
Non- government Organizations has degraded the communities' value and generated a feeling of
dependency. We learnt the importance of life skills & functional literacy, which will help them to
operate & manage their enterprise. The households in the villages have very little or no savings which
are not enough for their risk mitigation. The rate of interest charged is 5-10 per cent per month and
repayment period remain longer with the number of self-consumption loans being more taken by the
households.

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Table of Contents
1.0.0. INTRODUCTION ......................................................................................................................................... 12
1.1.0. Objectives of the management internship 1.0 .............................................................................................. 12
1.2.0 Methodology ....................................................................................................................................................... 12
1.3.0. Source of Data ................................................................................................................................................... 12
1.4.0. Sample Design ................................................................................................................................................... 12
1.5.0. Data Analysis..................................................................................................................................................... 13
1.6.0. Scope of the Study ............................................................................................................................................ 13
1.7.0. Limitations of Data Collection ....................................................................................................................... 13
2.0.0. AMRAKH GRAM PANCHAYAT ........................................................................................................... 15
2.1.0. Location of A mrakh GP................................................................................................................................... 15
2.2.0. Demography....................................................................................................................................................... 15
2.3.0. Social structure .................................................................................................................................................. 15
2.4.0. Weather............................................................................................................................................................... 16
2.5.0. Literacy level ..................................................................................................................................................... 16
2.6.0. Weather............................................................................................................................................................... 16
2.7.0. Livelihood .......................................................................................................................................................... 16
2.8.0. Market ................................................................................................................................................................. 19
2.9.0. Infrastructure...................................................................................................................................................... 19
3.0.0.AMRAKH'S LIVELIHOOD PORTFOLIO AND VULNERABILITY …….…….…………… 21
3.0.0.Vulnerability Context ........................................................................................................................................ 21
3.0.1.Environmental Vulnerability............................................................................................................................ 21
3.1.1.Soil fertility and pest attack .............................................................................................................................. 21
3.1.2.Climate change ................................................................................................................................................... 21
3.1.3.Population growth and pressure on natural resources.................................................................................. 21
3.2.0.Economic vulnerability ..................................................................................................................................... 21
3.2.1.Economic value .................................................................................................................................................. 21
3.2.2.Access to market ................................................................................................................................................ 21
3.2.3.Fluctuating market prices.................................................................................................................................. 21
3.3.0.Social vulnerability ............................................................................................................................................ 21
3.3.1.Income inequality............................................................................................................................................... 21
3.4.0.Human capital ..................................................................................................................................................... 22
3.4.1.Education and skills ........................................................................................................................................... 22
3.4.2.labour.................................................................................................................................................................... 23
3.4.3.Migration ............................................................................................................................................................. 24
3.4.4.Health ................................................................................................................................................................... 25
3.4.5.Skills ..................................................................................................................................................................... 25
3.5.0.Financial capital ................................................................................................................................................. 26
3.5.1.Income generation.............................................................................................................................................. 26
3.5.2.Credit and savings .............................................................................................................................................. 27
3.6.0. Social capital...................................................................................................................................................... 27
3.6.1.Participation ........................................................................................................................................................ 28
3.6.2.Influential people of the village ....................................................................................................................... 29
3.7.0.Physical capital ................................................................................................................................................... 30
3.7.1.Roads .................................................................................................................................................................... 30
3.7.2.Storage ................................................................................................................................................................. 30
3.7.3.Social infrastructure........................................................................................................................................... 31
3.7.4.Privately owned assets ...................................................................................................................................... 31
3.8.0.Natural capital..................................................................................................................................................... 32
3.8.1.Land ...................................................................................................................................................................... 32
3.8.2.Water .................................................................................................................................................................... 33
3.9.0.Summary.............................................................................................................................................................. 33
4.0.0 THE ORGANIZATION ................................................................................................................................ 37
4.1.0. Why a cooperative? .......................................................................................................................................... 37
4.2.0. Forming a cooperative...................................................................................................................................... 37
4.2.1. Formation and registration .............................................................................................................................. 37
4.2.2. Steps involved in the registration of cooperative involves the following steps ..................................... 38
4.2.3. Objective of the cooperative ........................................................................................................................... 38

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4.3.0. Organizational structure .................................................................................................................................. 39
4.4.0. How Gram Panchayat can help us…………………………………………………………………..41
5.0.0. GOAT FARMING…………..……..………………………………………………………………42
5.0.0. Introduction ........................................................................................................................................................ 43
5.1.0. Product & its application ................................................................................................................................. 43
5.2.0. Desired qualification of the producer member............................................................................................. 43
5.3.0. Industry lookout and trends ............................................................................................................................. 43
5.4.0. Market potential .............................................................................................................................................. 44
5.5.0. Goat rearing status in amrakh. ..................................................................................................................... 44
5.6.0. The proposed plan............................................................................................................................................. 45
5.7.0. A im of the project ............................................................................................................................................. 45
5.7.1. Product of the cooperative ............................................................................................................................... 45
5.8.0. Cost of the project ............................................................................................................................................. 46
5.8.1. Costs .................................................................................................................................................................... 46
5.8.2. Means of finance ............................................................................................................................................... 47
5.8.3. Breeding.............................................................................................................................................................. 47
5.8.4. Break-even point in units................................................................................................................................. 48
5.8.5. Profit per household.......................................................................................................................................... 49
5.9.0. Market linkage................................................................................................................................................... 50
5.9.1. Backward linkage: ............................................................................................................................................ 50
5.9.2. Forward linkage................................................................................................................................................. 50
5.9.3. Value chain of goat ........................................................................................................................................... 51
5.9.4. Marketing and selling of the goats ................................................................................................................. 51
5.9.5. Branding ............................................................................................................................................................. 51
5.9.6. Marketing mix ................................................................................................................................................... 51
5.9.7. Porters five forces ............................................................................................................................................. 53
5.9.8. The supply chain ............................................................................................................................................... 54
5.10.0. Role of PRI in goat farming .......................................................................................................................... 54
6.0.0. FISH FARMING……………………..……………………………………………………………55
6.0.0. Introduction ........................................................................................................................................................ 56
6.1.0. Fish farming in bihar ........................................................................................................................................ 56
6.2.0. Advantages of fish farming in india............................................................................................................... 56
6.3.0. Fish farming status in amrakh......................................................................................................................... 57
6.3.1. Challenges in of fish farming in amrakh....................................................................................................... 58
6.4.0. Product of the cooperative ............................................................................................................................... 59
6.4.1. Objective of the project.................................................................................................................................... 59
6.4.2. Process ................................................................................................................................................................ 59
6.4.3. The fishes ........................................................................................................................................................... 59
6.5.0. Cost of the project ............................................................................................................................................. 59
6.5.1. Means of finance ............................................................................................................................................... 61
6.5.2. Cash flow statements ....................................................................................Error! Bookmark not defined.
6.5.3. Break- even point .............................................................................................................................................. 62
6.5.4. Break-even point in volume ............................................................................................................................ 62
6.6.0. Market linkages ................................................................................................................................................. 63
6.6.1. The market trend of fish................................................................................................................................... 63
6.6.2. Branding ............................................................................................................................................................. 64
6.6.3. Packaging and marketing of fresh fishes ...................................................................................................... 64
6.6.4. Marketing segmentation................................................................................................................................... 64
6.7.0. Marketing mix ................................................................................................................................................... 64
6.7.1. Pestle analysis.................................................................................................................................................... 66
6.7.2. Porters five forces ............................................................................................................................................. 67
6.7.3. Supply chain....................................................................................................................................................... 69
6.8.0. Role of PRI in fish farming ............................................................................................................................. 69
7.0.0. AGRICULTURE…………..………………………………………………………………………70
7.0.1. Introduction to agriculture ............................................................................................................................... 71
7.1.0. Condition of agriculture in bihar .................................................................................................................... 71
7.2.0. Agriculture status in amrakh ........................................................................................................................... 71
7.2.1. The major cereal crops of the amrakh panchayat are- ................................................................................ 71
7.2.2. Climate of amrakh............................................................................................................................................. 71
7.2.3. Soil....................................................................................................................................................................... 72

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7.3.0. Role of government .......................................................................................................................................... 72
7.4.1. Product ................................................................................................................................................................ 72
7.4.2. Challenges .......................................................................................................................................................... 72
7.4.3. Objectives of the project .................................................................................................................................. 72
7.4.4. Area of operation............................................................................................................................................... 73
7.5.0. Components for intervention........................................................................................................................... 73
7.5.1. Soil testing.......................................................................................................................................................... 73
7.5.2. Farmers training ................................................................................................................................................ 73
7.5.3. Exposure visits................................................................................................................................................... 73
7.5.4. Demonstration of crop...................................................................................................................................... 74
7.5.5. Sprayers .............................................................................................................................................................. 74
7.6.0. Steps of agriculture and services provided at each step. ........................................................................... 74
7.6.1. Crop selection .................................................................................................................................................... 74
7.6.2. Land preparation ............................................................................................................................................... 75
7.6.3. Seed selection .................................................................................................................................................... 75
7.6.4. Seed sowing ....................................................................................................................................................... 75
7.6.5. Irrigation ............................................................................................................................................................. 76
7.6.6. Crop growth ....................................................................................................................................................... 76
7.6.7. Harvesting .......................................................................................................................................................... 77
7.7.0. Post farming services: ...................................................................................................................................... 77
7.7.1. Reefer van........................................................................................................................................................... 77
7.7.2. Jute bags. ............................................................................................................................................................ 77
7.7.3. Warehouse .......................................................................................................................................................... 78
7.8.0. Market linkage ................................................................................................................................................... 78
7.8.1. Marketing mix ................................................................................................................................................... 78
7.8.2. Distribution channel ......................................................................................................................................... 78
7.8.3. Connecting to enam .......................................................................................................................................... 81
7.8.4. Procurement from the doorstep ...................................................................................................................... 81
7.8.5. Swot analysis ..................................................................................................................................................... 82
7.8.6. Future plans........................................................................................................................................................ 82
7.9.0. Finances .............................................................................................................................................................. 83
7.9.1. Assumption: ....................................................................................................................................................... 83
7.9.2. Cost for wheat cultivation................................................................................................................................ 83
7.9.3. Break-even ......................................................................................................................................................... 84
7.9.4. Cost for 200 farmers ......................................................................................................................................... 84
7.9.5. Cost for paddy cultivation ............................................................................................................................... 84
7.9.6. Operational cost................................................................................................................................................. 85
7.9.7. Break-even ......................................................................................................................................................... 85
7.9.8. Cost for 200 members ...................................................................................................................................... 85
7.10.0. Value chain ...................................................................................................................................................... 86
8.0.0. LAC BANGLES……………...…………………………………………………………………….87
8.0.1. Introduction ........................................................................................................................................................ 88
8.1.0. Business structure: ............................................................................................................................................ 88
8.2.0. Organizational structure................................................................................................................................... 89
8.3.0. Product:............................................................................................................................................................... 89
8.4.0. Value chain......................................................................................................................................................... 90
8.5.0. Role of government .......................................................................................................................................... 91
8.5.1 Skill development programme: ........................................................................................................................ 91
8.6.0. Milestones: ......................................................................................................................................................... 91
8.7.0. History of lac bangles in bihar ........................................................................................................................ 92
8.8.0. Demand............................................................................................................................................................... 92
8.9.0. Lac ....................................................................................................................................................................... 92
8.10.0.Procurement of raw materials ........................................................................................................................ 93
8.11.0. Market linkage................................................................................................................................................. 93
8.11.1. Branding ........................................................................................................................................................... 93
8.11.2. Packaging ......................................................................................................................................................... 93
8.11.3. Marketing mix ................................................................................................................................................. 94
8.11.4. Unique selling proposition ............................................................................................................................ 94
8.11.5. Competitive edge ............................................................................................................................................ 94

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8.11.6. Marketing strategy and positioning ............................................................................................................. 94
8.11.7. Promotion strategy.......................................................................................................................................... 94
8.11.8. Sales strategy ................................................................................................................................................... 94
8.11.9. Swot analysis ................................................................................................................................................... 95
8.11.10. Porters five forces ......................................................................................................................................... 96
8.12.0. Finances ............................................................................................................................................................ 98
8.12.1. Cash flows........................................................................................................................................................ 98
8.12.2. Capital............................................................................................................................................................... 98
8.12.3. B.E.P. in year ................................................................................................................................................... 99
8.12.4. B.E.P. in volume ............................................................................................................................................. 99
9.0.0. CONCLUS ION............................................................................................................................................. 102
9.1.0. LEARNING ................................................................................................................................................... 103
10.0.0 REFER ENCES ............................................................................................................................................ 105
11.0.0. ANNEXTURE…………………………………………………………………………………... 108

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1.0.0. INTRODUCTION
As a part of the Management Internship 1.0 of Experiential Learning Segment course of our
Management course, we worked on the Baseline data of the villages under Amrakh Gram Panchayat in
the Muzaffarpur district of Bihar. The organization we were assigned was Development Management
Institute, Patna which is working in the villages of Amrakh Gram Panchayat in district of Muzaffarpur.
We had the opportunity to closely observe the baseline data. Came to know various forms of
interventions taking place within the village through phone calls and tried to understand the impact of
such interventions on the lives of the people residing in those villages
1.1.0. OBJECTIVES OF THE MANAGEMENT INTERNSHIP 1.0

The main Objectives of the Management Internship 1.0 were as follows:
 To get insight into the socio-economic and cultural realities of rural life.
 To understand the various aspects of various village level institutions.
 To understand the various aspects of social structure, infrastructure, resources, and various
interventions that are currently going in the village.
 To understand the various livelihood interventions and their impact on their income generation.
1.2.0 METHODOLOGY
The data we have worked on were collected by the surveying agencies are on demography, social
structure, infrastructure facilities, Agro-climatic resources, village economy, village organizations and
people’s institutions and the issues faced by the people of the village in development. For this report
we have worked on both Quantitative and Qualitative data. The quantitative data were on population,
land holding, literacy rate. The qualitative data were quality of drinking water, quality of the road,
housing pattern, sanitation, food habit which were obtained from the villagers through Telephonic
conversations.
1.3.0. SOURCE OF DATA
The data for the study were collected from both the primary source and secondary sources. Most of the
data is from secondary source due to the COVID-19 Pandemic.
Primary Data
 Telephonic Conversations
Secondary Data
 Base line Data.
 Internet.
1.4.0. SAMPLE DESIGN
For a Telephonic conversation, the resource person was identified by the field guide; efforts were made
to collect different information regarding the social and economic status of the villagers from all
economic groups.

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1.5.0. DATA ANALYSIS
The data analysis is computed by statistical tools such as Tables, Charts (Bar, Pie, Line), etc. these were
used to analyse the data collected from various categories like caste, sex ratio, landholding, etc. and for
the computation of the results, MS EXCEL had been used.
1.6.0. SCOPE OF THE STUDY
Amrakh Gram Panchayat has a total of 13 ward. The scope of our study is limited to these 13 ward only
and subsequently to the people who own a house within the Gram Panchayat. Our purpose is to study
the Amrakh Gram Panchayat as deeply as possible and do a portfolio of their assets, vulnerability and
develop a sustainable livelihood for the Gram panchayat. We have covered unbiased information
because data triangulation is done whenever required.
1.7.0. LIMITATIONS OF DATA COLLECTION
 Due to the COVID-19 pandemic most of the conversation was telephonic.
 Mainly interactions happened only with men.
 People hesitate to tell about the details regarding their income and assets.
 Limited availability of resource person.

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2.0. AMRAKH GRAM PANCHAYAT
2.1. Location of Amrakh GP:




The word Amrakh is derived from the Sanskrit word Aamarash. This place was named Amrakh because,
during the Mughal rule, there was a large number of mango trees available, and mangos were found at
a considerable quantity. This village is about 200 years old, and during this period many changes have
taken place. The village belongs to Tirhut Division, and It is located 14 km towards South from District
head-quarters. The Boundaries of Amrakh village is North- Chainpur, South- Madhual, East- Sita
Rampur, West- Aaganagar.
The Gram Panchayat Amrakh is located in Kurhani Block Muzaffarpur district in the state of Bihar.
There are three villages which come under this GP- Amrakh, Belahiyan and Madhaul. GP is divided
into 13 different wards. The distribution of wards is, from ward no. 1 to 8 comes under Amrakh village,
ward no. 9 comes under Belahiyan and from ward no. 10 to 13 comes under Madhaul village.

Distance from GP to Sadar hospital Muzaffarpur is 14 km, and the railway station is 5km from Silout.
Saginaw, local market, and Bank are 3km, for all these place people have to move to the main road on
the fort or by their own vehicle because no transport facility available from inside to the main road to
the village way only come with the revised or by private vehicle. Post office, Panchayat Bhawan,
temple, School are 1-5 km to 2km in the village from the Centre of the village.

2.2. Demography:

The total number of households is 2270, and the population of the village is 10973, out of which the
total number of males is 5816, and the total number of females is 5157. The sex ratio of the village is
987 females per 1000 males. The total number of populations between the age group 0 to 18 is 4787
(43.6%). The population belonging to the age group of 19 to 60 is 5393 (49.2), and the age group above
60 is 793 (7.2%).

2.3. Social Structure:

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The GP has a large family related to the Hindu religion, and rest belongs to other community. In total
population, 83.7% of the families follow the Hindu religion and the rest 16.7% follow the Muslim faith.
The social group composition of GP Amrakh is divided amongst the Schedule Castes (SC), Other
Backward Caste (OBC), General, Economically Backward Classes (EBC). The total number of
populations belongs SC community is 713 (32.24%), OBC is 855 (38.67%), Minority is 187 is (8.45%),
General is 301 (13.61%), and EBC is 155 (7.01%).
The people of the village celebrate the festival of Nag Panchami with great pomp, on this occasion
(Vishara Mela) fair is organized with great fanfare, and all the people of the village take part in it. Apart
from this festival like Durga Puja and Chath also celebrate in the GP. People live with harmony, caste,
community and religion don't matter much here.

2.4. Weather:

The Muzaffarpur district receives an average rainfall of 1046 mm | 41.2 inches per year. Climate is
classified as warm and temperate. In summer season temperature range is 25 °C to 40 °C and in winter
season temperature range is 4 to 20 °C. The average annual temperature is 25.2 °C.

2.5. Literacy Level:

Out of the total population of the village, 28.5 % are just literate, which means that they are just able to
put their signature, but are not able to read and write. 21.56 % of the total population have studied up
to middle school, only 24.5 % have studied more than secondary and above, there is a large part of the
society, i.e. 25.5 % which is entirely illiterate. It is also seen that the low literacy level has affected the
awareness of the people and also the bargaining power of the people in the village. The literacy rate,
according to the census data 2011, the total literacy rate of the village is 49.9%. The female literacy rate
is just 19.9%.

2.6. Weather:

The Muzaffarpur district receives an average rainfall of 1046 mm | 41.2 inches per year. Climate is
classified as warm and temperate. In summer season temperature range is 25 °C to 40 °C and in winter
season temperature range is 4 to 20 °C. The average annual temperature is 25.2 °C.

2.7. Livelihood:

Most of the people are working in the primary sector. Agriculture, fisheries, bee-keeping, goat rearing,
dairy and lac bangles making are the main occupation in the village. Out of these livelihoods ,
Agriculture which is about 94% population is doing, and hand-craft are the main source of income to
the villagers.

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Govt. Job 52
Ex-employee 21
Private work 160
Labour 269
Farmer 216
Business 145
Animal Husbandry 3
Housewife 499
Unemployed 644
Other 119
Total 2128

Agriculture:

The primary crop of the Amrakh GP is Rice, Wheat, Pulse, Vegetables and Oils-seeds. According to
the Kisaan Salahakr, since there is no problem of water (ground or pond water) for crop irrigation, the
farmer of Amrakh GP is doing well in the agriculture sector. This is one of the significant sources of
income for the villagers. Farmer is selling its products in the local market and also in the entire
Muzaffarpur district. People of GP are benefitting from Govt. scheme like- Fasal Bima Yojana,
Sinchayee Yojana, Krishi Vikash Yojana etc. on time.
(Source: Haidar Ali- Agricultural resource person)

Fisheries:

Apart from agriculture fisheries is the main source of income to the villagers. The available number of
private ponds is 40-50 and Govt. pond is 4. A total area of the pond is about 76 Katha and 12 families
are involving in fisheries. The average income of fisherman is approx.Rs.45,500 in the GP. Some fishes
that are reared in the pond are- Rohu, Naini, Katla, Indian Major Carp, Desi-Mangur, Bata, Singhi etc.
All types of fisherman are involved, small scale or large scale they are doing well in fisheries, but they
need more support to enhance their business.
(Source: Siyaram Sahni- Fisheries resource person)

Lac Bangles Making:

In the whole Gram Panchayat approx. 15 family are involved in Bangles Making. This is not an easy
task, but still, they are doing well in this sector. They procure raw materials from the local market and
with the help of unique tools and technique, they make bangles and sell them in the market. Muzaffarpur
Lac Bangles is very popular in the country, and it provides a right livelihoods opportunity for the people
who are involved in Bangles making.

Goat rearing:
52
21
160
269
216
145
3
499
644
119
0 100 200 300 400 500 600 700
1
Occupation
Other Unemployee Housewife
Animal HusbandaryBusiness Farmer
Labour Private work Ex-employee
Govt. Job

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In Amrakh GP goat rearing is doing at a low scale. According to baseline data, the total number of goats
in the village is 892 out of which 498 goats are reared for the selling purpose. This is a good source
earning to the villagers because at a very effort they are earning more. The price of ready to sell goat is
approx.—2000 to 4000.

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Bee-Keeping:

Bee-Keeping is also involved as a livelihood opportunity for the villagers. Initially, a farmer needs to
invest some capital and purchase some equipment, bees, special boxes, medicines etc. and put them at
a specific location so that bees can go out and collect pollen and nectar as food to produce honey in the
Bee-Box and sell it to the market.

2.8. Market:

Some small shops are available in the village; people can purchase their necessary daily items at a
limited level. They have to go Muzaffarpur primary market for shopping at large scale and costly details
which are about 20km from the village.

2.9. Infrastructure:

 Roads: Most of the way is connected to each other through PCC roads. Apart from that, very
good roads have been constructed to move from the village to the city, due to which people can come
and go very easily.

 Electricity: The entire panchayat has been electrified, and almost all the houses have electricity
facility. The supply of electricity is about 15 to 20 hours on a daily basis.
In Amrakh GP other infrastructures are developing. If we talk about drinking water facility, currently,
its work is going on very fast under Bihar State 7 Nischay Yojana Scheme. The main motive of this
scheme to provide clean and drinking water at every household.
Apart from that, some other infrastructure facilities are available, some of them are- Water drainage,
Public toilet, Cleanliness in Gram Panchayat, Panchayat Bhawan, Public distribution system, Banking
services, Streetlights etc.

 Institutions:
Institutions in Amrakh GP are

1. Anganwadi 2. Police Station
3. APHC 4. PACS
5. Schools 6. Kisaan Salahakar Kendra
7. Post-office 8. Bank
9. Gram Panchayat 10. DMI

20. Page 20 of 125

21. Page 21 of 125

3.0. Vulnerability Context

A livelihood comprises the capabilities, assets and activities required for a means of living. A livelihood
can call sustainable when it can cope with stresses shocks and trends.
In the 'vulnerability context' of DFID Model, there are three factors.

 Shocks,
 Trends &
 Stress.
These have a direct impact on livelihood assets.
3.1 Environmental Vulnerability
3.1.1. Soil fertility and pest attack.
Farmers of Amrakh grows their crops depending heavily on chemical fertilizers and pesticides. The
excessive usage of chemical fertilizers has increased the yields, but in a long-term might damage the
quality of the soil. Once the Land gets accustomed to chemicals, it will need increasingly more to
produce the same amount of output. This problem may likely emerge for the farmers in Amrakh.
3.1.2. Climate Change
Climate plays a vital role in the cultivation of crops. In recent years, changes in climate conditions vary
from year to year, and farmers continually have to develop adaptive capacities to cope up with a short
and long climatic variation. Recently in February 2020 untimely heavy rainfall in Amrakh caused heavy
losses to the crops.
3.1.3. Population growth and pressure on natural resources
According to the census 2011, the population of the village has increased by 33.6% in the last ten years.
In 2001 census total population of Amrakh was 4874, which in 2011 was 6514. The pressure of
population has very severe impacts upon the natural environment of the location, As the population
rises the number of people seeking Land to cultivate for a living increase. Thus, availability. Of fertile
Land is decreasing.
3.2. Economic Vulnerability
3.2.1. Economic value
Majority of the women in Amrakh are working as a housewife since they are Housewife's they are not
paid for the work they do, hence is not counted in the Economic growth of the village. The housewives
can be involved in the on-farm Activities, which would increase the efficiency of the work as well as
would contribute to the village GDP.
3.2.2. Access to Market
Most of the farmers of Amrakh usually sell their product either at the local Market or to local
intermediaries who organize transport to national and international markets.
3.2.3. Fluctuating Market prices
Prices of the produced often fluctuated. This can be mostly seen in the dry and the rainy season of the
year.


3.3. Social Vulnerability
3.3.1. Income Inequality
The Gini coefficient of the village is - 0.43

22. Page 22 of 125

Which is higher than the national average of – 0.39

Thus, there are chances of high inequality; therefore, this creates social impact and elite
capture.




3.4. Human Capital

Human capital is significant for making efficient usage of any of the other capitals available. Human
capital is the quality and quantity of the labour force, which enables people to pursue different types of
livelihood strategies and achieve livelihood objectives. The size can see human capital of the household,
health status, knowledge and Education and skills they possess.


3.4.1 Education and Skills

Access to Education is an essential factor which hugely impacts human capital. The farmers of the
village Amrakh are not much educated, however in the past decade the enrol in the school has increased,
and most people now prioritize Education for the children.
To work as a farmer, people need some necessary skills in Agronomy and farming techniques. The
farmers of the village do not have any certification, but are from farming households and have learned
the practices and procedures from their parents.

0
0.2
0.4
0.6
0.8
1
1.2
0 0.2 0.4 0.6 0.8 1 1.2

23. Page 23 of 125


Source: Baseline Data
The above Histogram shows that out of the total population of the village, 28.5 % are just literate which
means that they are just able to put their signature, but are not able to read and write. 21.56 % of the
total population have studied up to middle school, only 24.5 % have studied more than secondary and
above, there is a large part of the community, i.e. 25.5 % which is entirely illiterate. It is also seen that
the low literacy level has affected the awareness of the people and even the bargaining power of the
people in the village.
The literacy rate, according to the census data 2011, the total literacy rate of the village is 49.9%. The
female literacy rate is just 19.9%.

The Education scenario is not much optimistic compared to the state level figures. Lack of suitable
facilities, lack of teachers, lack of realization of the importance of education etc. have resulted in such
a scenario of the village.

3.4.2 Labour

One of the leading human assets available to a healthy person in working age is his labour force. Amtrak
and the areas surrounding Amrakh are heavily dependent on Agriculture; hence this is where the most
supply is concentrated. Farming practices conducted in Amrakh mainly comprises of traditional labour-
intensive techniques with simple tools.
21.60%
24.50%
25.50%
28.50%
MIDDLE SCHOOL SECONDARY AND
ABOVE
ILLITERATE JUST LITERATE
Literacy

24. Page 24 of 125


From the Data, we can say that most of the population of the village is young and are capable and can
be involved in labour-intensive livelihoods.


Source: Baseline Data

The above Histogram is from the data collected from the village; it is the population data. The bar graph
shows the Distribution of labours in the town. As explained above, the most significant part of the
population is involved in private works, i.e. 644, next to it is Housewife, i.e. 499, 216 people are
farmers, 269 are engaged in, and 36 are drivers whereas a big part of the population, i.e. 378 is not
involved in any livelihood generation activities.

3.4.3 Migration

Landowners are very few in numbers and the majority of the inhabitants of the town are Landless. So
the landless and the marginal farmers in the Age group of 25-40 years migrate to other places like Delhi,
Mumbai in search of work, where they mostly work as daily wage labourers.
52
21
160
269
216
145
3
499
644
119
0 100 200 300 400 500 600 700
1
Occupation
Other Unemployed Housewife Animal Husbandary
Business Farmer Labour Private work
Ex-employee Govt. Job
19.46
57.51
19.59
3.43
25 AND BELOW 26 TO 50 51 TO 70 71 TO 90
Age Distribution

25. Page 25 of 125

The main reason for the Migration from the village is the lack of income sources in the town.

3.4.4. Health

Health is an essential aspect while conducting labour intensive work. The effect of working long hours
with hard physical labour was one of the reasons, other than economic disadvantage that the farmers
didn't want their children to take up agriculture as an occupation.

The health sector is not much promising as seen from the Baseline Data, As 87.7 % of the families in
Amrakh are Dependent on the Jhola-Chap doctors. Only 18.6% of families depend upon the Saddar
hospital, Muzaffarpur, 14 kilometres away, 20.8 % of families depends on ASHA workers. Only about
5.6% of the families consult an MBBS doctor.








Figure 1Source: Baseline Data
3.4.5. Skills

 Apart from the regular occupation, there are around 49 families involved in the manufacturing
of handicrafts.
 Twelve households are involved in Tailoring (silai) work.
 Twelve households involved in Carpentry.
 There are 36 drivers in the village.

13%
15%
4%
61%
7%0%
Sources of medical care available to families
Additional primary health center
ASHA worker
MBBS doctor
Jhola Chhap doctor
Primary health center (block
level)
Other

26. Page 26 of 125



3.5. Financial Capital

Financial capital refers to the financial resources which the people use to achieve their livelihood
objectives.


3.5.1. Income Generation

The significant Economic asset defined in the DFID livelihoods framework is income generation. For
the farmers of Amrakh, the mail cultivated product was paddy, followed by wheat, maize and potato.



From Farm Activities


Crop
No. of
farmers
sowing it
Total
cultivatio
n area
(Katha)

80 kg or
more
kg/Katha
60 to 79
kg/Katha
40 to 59
kg/Katha
20 to 39
kg/Katha
Total yield Market
Rate

Amount
Paddy
774 13387 56760.9 94646.09 367111.70 105047.789
623566.46 30 18706993.
8
0.00
10.00
20.00
30.00
40.00
50.00
skilled semi skilledun skilled workunemployed
17.07
21.00
42.70
19.24
Skill Wise Work
0.0
10.0
20.0
30.0
40.0
50.0
60.0
paddy wheat maize Millet potato
53.7
31.6
7.0
0.0119
7.7
Crop Wise Income

27. Page 27 of 125

Wheat
786 13656 44791.7 77429.52
344069.74
8
145429.572
611720.52 18 11010969.
36
Maize
136 1436 19414.7 20707.12 17272.926 12454.428
69849.194 35 2444721.7
9
Millet 1 5 0.0 0.0 0.0 147.5 147.5 28 4130
Potato
175 1865 101456 14229.95
16894.102
5
1595.5075
134175.56 20 2683511.2

Total

3485032
6.15

The table above shows the various types of crops grown in Amrakh and also the market Rate of the
products. The total revenue collected from the Farming activities comes close to Rs. 34850326.15.

Other Agricultural related activities taken by the farmers in the village included animal rearing at small
scale, mainly goat, buffaloes and cows. Few of the families are also involved in Fisheries, Poultry and
Beekeeping. The findings show that this diversification of Agricultural activity increased the Income
of the farmers and provided livelihood sustainability.

Livestock Families Total Income (Rs.)
Cow and Buffalo 587 16,77,812
Goat rearing 370 5,60,003
Fishery 12 3,64,047
beekeeping 8 5,10,016
poultry 27 87,224
Total 1,004 31,99,102

3.5.2. Credit and Savings

The Farmers in Amrakh produce agricultural products for generating Income. An average farmer in the
village has very less opportunity to save money, after the harvest, the farmer sells the crops cultivated
in the local market, which generates cash. Still, the money is very soon is invested back into the farm
as inputs. Access to reliable and excellent credit facilities is one of the significant constraints in
achieving livelihood outcomes.

 Friends and Relatives: Villagers borrow small amounts from friends, extended family and
Relatives in case of emergency cash requirement.

 Loans from SHGs: For small loans, villagers may look up to the SHGs.

 Local Money lender: For medium to a large amount of money, the villagers go to the money
lenders. The moneylender charges a high rate of interests which is often very large.

 The village also has a Primary Agricultural Credit Society (PACS), which also provides short
time loans to the farmers at the time of their need.

3.6. Social Capital

Social capital is significant, as it creates a safety net and a buffer for the villagers against shocks and
trends. The social capital consists of networks, groups, social connections and family.

There are two major religions in the village the Hindu and Muslim. The majority of the people in the
Hindu community belong to Kushwaha, Paswan, and lohar community, whereas from the Muslim
community, people mostly belong to the Sheikh and Julaha community. The villagers live with peace

28. Page 28 of 125

and Harmony, and there has not been any communal tension between the two religious groups. Durga
puja and chhath puja are the major festivals celebrated in the village. The villagers organize a yearly
fair on the evening of Nag Panchami which everyone attends, irrespective of the religion. The social
capital is high; caste, community and religion don't matter much to the villagers.

3.6.1 Participation

There are 78 SHGs in the village, 58 PACS, one farmer's club and Four Prathmik Sahakari vipanan
Samiti.


SHGs
At present, there are 78 SHGs in the village. The SHGs in the communities are involved in activities
such as:
 Liaisoning with the government: the groups take the initiative such as Mobilization of the
government funds for village roads, setting up stalls etc.

 Private lending: The SHG members take amount.
The SHG groups in the village are:
VO 1 2 3 4 5 6 7
SHGs Himmat Durga Suraj Vishwas Vidhata Kausal Vidha
1 Gayatri Gulab Richa Radha Shital Badal Sagar
2 Madhuban Kamal Puja Kanchan Poonam Durga Mandakni
3 Resham Paarwati Muskan Chand Geeta Sumi Muskaan
4 Chameli Ganga Janki Gangotari Alka Prithvi Jyoti
5 Prema Tulsi Sangam Richa Kiran Jyoti Suraj
6 Akash Saheli Rausani Anuska Mahrani Deep
7 Kadam Suraj
Jeevan
Jyoti Muskaan Paani Pooja
8 Kavita Sakhi Saraswati Badal Suman
9 Gulab Saraswati Laxmi Rani Mala
10 Preeti Laxmi Maala Parwati Suhani
11 Amrit Chand Soni
12 Milan Khusboo Sarda
58
78
1
4
PACS SHGS FARMERS CLUB PRATHAMIK
SAHKAARI VIPANAN
SAMITI

29. Page 29 of 125

13 Sakshi Kisan
14 Chandan Puja
15 Jyoti Rakhi
16 Aarti Sita
17 Ujala Seema
3.6.2. Influential people of the village.
 The most influential and decision making people are of the Panchayati Raj Institutions
members, Mukhiya, sarpanch and ward members have the final say in the village meetings.

 Next to the ward members, Mukhiya and sarpanch it is the village school teachers and
postmasters, who play essential roles in the decision-making of the village.

 Older people of the village.

Stakeholder Analysis
Life and
livelihood
legal financial Have important
knowledge
Those whose
support is
necessary.
Ex. Mukhiya.Mr
Pankaj Kr. Tarun.
Panchayat. SHG Groups. NGOs such as
jeevika.
Elders of the
village.
Tractor Owner. Block. Money Lender. Elderly People. Anganwadi
Mukhiya Mrs.
Chandramani
Devi.
Mukhiya. Bank of India. SHG. Asha workers.
Government.

Venn Diagram

30. Page 30 of 125


The magnitude of the circle shows the importance of the institution and attached circle are the influencer
for the community member. The more critical the institution/influencer greater the ring. The bigger ring
is the institute, and the subrings are the community influencer according to the understanding of
community members.
3.7. Physical Capital

Physical capital includes the private as well as the public-owned resources of the village. These types
of assets can be particularly costly, as in case of infrastructure, because it requires not only the initial
investment but also lasting commitment of financial and human resources to meet the operation and
maintenance cost of the service (DFID 1999).

3.7.1 Roads

Most of the village has concrete roads. RCC roads are there in Amrakh in the majority parts, which are
magnificent and ample, Four-wheeler can easily reach to every household.

3.7.2 Storage

There is a shortage of storage facilities in the village to store their crops. The facility to save the
agricultural products is vital in the agricultural sector, including at household, community, state and

31. Page 31 of 125

village level. If the products such as vegetables and other perishable products are not sold within 3-4
days of collection, the crops will start to rotten and ultimately decrease in value. The provision of
storage would increase the safety of produced vegetables and crops. Losses in plants mainly occur due
to exposure to extreme weather conditions; investment in storage facilities is a dire necessity for the
farmers.

3.7.3. Social Infrastructure

For a right livelihood, it is essential to have good health and education facilities. In recent years the
villagers' awareness towards Education has increased. Private schools have also started in the
surrounding villages due to demand.

Sl.
No.
Name of the School Class Total Enrolments
Boys Girls
1. Ram Raj Public School Nursery-
Std. VIII
100 50
2. Sure, Success Prep Public School Nursery-
Std. VIII
80 40
3. Children Public School Std. I –
Std. VII
90 60
4. Sanskar A Kids Garden Prep. –
Std. V
30 20
5. Riyasati Millat Academy Nursery-
Std. VIII
59 90

The Saddar- hospital is in Muzaffarpur, which is 14 km. Away from the village. Most of the people
depend on the Jhola chap doctor. According to the baseline data, nearly 15% of the families consider
accessibility to medical facilities is complicated and about 2.4 % think it beyond reach. The veterinary
hospital is 4km. from the village.

3.7.4 Privately owned Assets

 Most of the houses in the village are Pukka house. According to the baseline data, 42.6% of the
families in Amrakh has a pukka house, 19.5 % of families live in the kuccha houses, whereas
37.9 % live in half- pucca houses.

 Only 35.2% of families have a toilet in their household, 92.9% of these toilets are in use. The
rest 7.04% are not in use. 7.5% of families still defecate in open regularly even if they have a
bathroom inside their house.

 58.0% of the population in Amrakh has their bank account.

 The most used cooking fuel in the village is wood, which is accounts for at 84.4%. 58.1% of
the families have access to cooking gas in their houses.

Accessibility to health care services

Easy to reach Difficult to reach Very difficult to reach Beyond reach
No. of families 1123 735 359 53
Percentage of
families 49.5 32.4 15.8 2.4

32. Page 32 of 125

 With the implementation of “ Nal Jal Yojna” A right amount of water tap connections have
been made available to the households. Borewells are to the depth of 350 feet and more.
3.8. Natural Capital
Natural assets are of great importance in the rural areas as many of the income-generating activities
depend upon the Natural resources, most notably Land.
Within the sustainable livelihood framework (DFID), the relationship between natural capital and the
vulnerability context is very close. Any shocks that affect the livelihood of poor are themselves natural
processes that destroy the human capital and hard work of the farmer. Natural capital is significant for
those who regulate all practice of their livelihoods from the resource-based activities like- Agriculture,
fisheries etc. Majority of the people in the Amrakh are involved in agriculture.
3.8.1 Land

 pH level -From the soil testing report, we can see that the pH value of Amrakh GP is 8.2, which
is Alkaline. The pH level between 6 to 8 then comes under Neutral and is considered to be the
ideal pH level for plant growth. The soil is suitable for growing crops such as beans, potatoes,
paddy etc.
 EC (Electrical Conductivity)- EC of the soil of Amrakh Panchayat is very safe, which is 0.39.
that means Desirable range for most established plants. Upper range may reduce the growth of
some sensitive plants.
 ORGANIC CARBON (OC) - An increase in or high Soil organic carbon helps to enhanced
overall agricultural productivity. Because of topsoil organic carbon results as the more stable
carbon cycle.
 NITROGEN (N)- Basically, Crop needs Nitrogen in the excellent quantity. Without Nitrogen,
a crop cannot nourish overall. So, this is why when there is nitrogen deficiency in the soil crops
gets stunt, that means they cannot make their sales further, which is not a suitable condition of
agricultural soil.
 ZINC(Zn)- If the pH- increased pH decreases Zinc availability. So, as in the Amrakh GP, the
pH is high. Thus, the Zinc will decrease automatically.
AVAILABLE
FACTORS
RESULT MEASUREMENT CONCLUSION
PH 8.2 6.5-7.5 Alkaline
EC 0.39 Less than 1 Safety
Organic Carbon
(OC)
0.81 0.5-0.75 High
Nitrogen (N) 237 250-500 Low
Phosphate (P) 28 25-50 Medium
Potassium(K) 186 125-300 Medium
Sulphur (S)
…..
More than 10 No Examine
Zinc (Zn) 0.7 More than 0.78 Critical
Boron (B)
…..
More than 0.50 No Examine
Iron (Fe) 10.8 More than 7.00 General
Manganese (Mn) 3.8 More than 3.00 General

33. Page 33 of 125


3.8.2 Water
 the village has a total of six ponds, out of which the government owns 4, and the rest two are
private.

 The average rainfall of Muzaffarpur is 1046 mm.


3.9. Summary

Comparing the capital on a scale of 1-10, 1 being the lowest and ten being the Highest.

Criteria Human
Capital
Financial
Capital
Social
Capital
Physical
Capital
Natural
Capital
Education 6 N/A N/A N/A N/A
Labour 8 N/A N/A N/A N/A
Migration 6 N/A N/A N/A N/A
Skills 6 N/A N/A N/A N/A
Income Generation N/A 7 N/A N/A N/A
Credit and savings N/A 5 N/A N/A N/A
participation N/A N/A 7 N/A N/A
Influential people N/A N/A 6 N/A N/A
Roads N/A N/A N/A 7 N/A
Storage N/A N/A N/A 5 N/A
Social
Infrastructure
N/A N/A N/A 6 N/A
Privately owned
Assets
N/A N/A N/A 7 N/A
Land N/A N/A N/A N/A 7
Water N/A N/A N/A N/A 7
Average 6.5 6 6.5 6.25 7


Based on the score above on the table, we have plotted the Radar chart.

Copper (Cu) 0.65 More than 0.60 General

34. Page 34 of 125



Human Capital

 At present, 63.5% of the students are attending school. The education qualification of the
population over age 25 is very low. But with time the residents of Amrakh are catching up with
Education.

 The village has an untapped labour force. A considerable part of the population is unemployed,
and most of the women are Housewives. These can be part of the workforce with proper training
skill enhancing programmes.

 The rate of Migration, according to the Baseline data, is low.

 The villagers are trained to have skills like tailoring, computer, electrical works etc.

Financial Capital

 The Income from Agriculture and Livestock are good.

 The credit and savings facility in the village is quite good; there are 78 SHGs in the community,
PACS also help farmers financially for Agriculture.

Social Capital

 The social capital of the village is excellent, two major religions are living, but there haven't
been any communal tension s between the communities.


Physical Capital

5.4
5.6
5.8
6
6.2
6.4
6.6
6.8
7
natural capital
physical capital
social capitalfinancial capital
human capital

35. Page 35 of 125

 According to the Baseline data, nearly 79% of families are accessible to Roads.

 Storing the agricultural product is a big issue in the village, and at the moment the villagers
don't have access to any storage facilities.

 The Social infrastructure of the Surrounding is improving. At present, several private schools
are coming up in the surroundings. The availability of hospitals and primary health centre is
still not very good.

 Most of the houses in the village is Pukka house. People are moving towards the usage of
cooking gas from wood as 50.8% of households have access to cooking Gas through Ujjwala
Yojna.


Natural Capital

 The land quality of Amrakh is excellent and is ideal for growing crops such as paddy, wheat,
maize etc.

 The village has six ponds.

36. Page 36 of 125

37. Page 37 of 125

4. The Organization

The organization would be started under the “Bihar Self Supporting Cooperative Societies
(Amendment) Act 2013”
In the development sector, collectives and collective action are seen as a platform for increasing social
accountability and challenging community concerns and issues. collective action has been often viewed
as a force to bring changes in and around women. Collective action is assumed as a construct for
promoting ‘empowerment’.
The organization would be filed under “Bihar Self Supporting Cooperative Societies (Amendment) Act
2013” because of the following reasons.

4.1.0. Why a cooperative?

 Less Taxation: Co-operatives are not taxed on surplus earnings. Members of a cooperative are
only taxed once on their income from the cooperative and not on both the individual and the
cooperative level.

 Funding Opportunities: Depending on the type of cooperative you own or participate in, there
are a variety of government-sponsored grant programs to help you start.

 Reduce Costs and Improve Products and Services: By leveraging their size, cooperatives
can more easily obtain discounts on supplies and other materials and services. Suppliers are
more likely to give better products and services because they are working with a customer of
more substantial size. Consequently, the members of the cooperative can focus on improving
products and services.

 Perpetual Existence: A cooperative structure brings less disruption and more continuity to the
business. Unlike other business structures, members in a cooperative can routinely join or leave
the business without causing dissolution.

 Democratic Organization. Cooperative are Autonomous bodies it is controlled by its members
and all the decisions are taken collectively by the agreement of all the members of the
cooperative. It should not be affected by the political parties.

4.2.0. Forming a Cooperative

First, we should understand the village community. So, by the help of Baseline data and report we get
to know about the village community.
Then should identify potential leaders in the community, who can spread awareness and can influence
the community.

4.2.1. Formation and Registration

In order to ensure the sustainability regarding to the cooperative, cooperative should be registered under
any statute. Expenditure will be such as registration fee, stamp duty, preparation of documents and
facilitation charges etc. that will depend on the legal structure of cooperative.

38. Page 38 of 125


The estimated cost of incorporating a Cooperative is given below: PARTICULARS ITEM OF EXPENDITURE AMOUNT(Rs.)
Application for name of CooperativeFees 500
Signature Fees 2600
Stamp duty
Memorandum of association and articles of
association 1500
Registartion/Filing fees MoA, AoA, Form-1, Form-18, Form- 32 17200
Fees of chartered accountant or
company secretary Consultancy charges 10000
Stamps cancellation _ 300
Affidavit expenses Fee of Notary 500
Share transfer fees and processing._ 5000
Miscellaneous expenses _ 2000

TOTAL


4.2.2. Steps Involved in the Registration of Cooperative involves the following steps:

 Obtain digital Signature of the nominated directors.
 Apply for name Availability (Form-IA).
 After name, necessary documents to be prepared are-
 Memorandum of association (MoA).
 Articles of association (AoA).
 Form no-18 for registered office.
 Form-1.
 Power of attorneys in favor of consultant to authorize him to make necessary changes.
 Form no-32for director’s appointment.
 The following combination of producers can incorporate a producer company:
 10 or more producers
 Two or more producer institutions.
The registrar under 30 days of receipt of all the required documents, after becoming satisfied that the
requirements of this act have been compiled with, issues a certificate.

4.2.3. Objective of the Cooperative:

 Strengthening farmer capacity through agricultural to enhanced productivity- To make the
farmer aware from the agriculture practices.
 Ensuring usage of quality inputs and service for intensive agriculture- By stop using chemical
fertilizers in the fields, and enhance the uses of organic fertilizer. When farmers will use
organic fertilizers as an input then the output can increase.
39600
39600

39. Page 39 of 125

 Time saving- if farmer purchase the fertilizer or seed on individual basis then the rate will be
high. But if farmer will purchase through the Cooperative then some discount can be possible
as for bulk purchasing.
 Providing fair and remunerative markets- By the help of Cooperative middle man would not
be able to play any kind of role in between producer and seller. And by the help of
Cooperative the farmer can facilitate with the fair price and more income than before.
 Transparency in the capital sharing process.
4.3.0. ORGANIZATIONAL STRUCTURE


A divisional organizational structure is comprised of multiple, smaller functional structures (i.e. each
division within a divisional structure can have its own marketing team, its own sales team, and so on).
In this case a product-based divisional structure each division within the organization is dedicated to a
particular product line.

Admin & Finance

the Admin and finance will take care of the overall activities of the organization and will act as a central
facility to the different sectors.

Human Resource

Hiring would be done by the Human Resource team which would come under the Central Admin &
Finance Department. The hiring for each sector would be done by this central facility.

40. Page 40 of 125

Procurement

The procurement team under Admin & Finance will take care of the procurement of raw materials. The
will be formal communications between the different sectors and the Admin & Finance before ordering
and procurement of the Raw material.

Finance

The finance department will take care of the entire finance of the cooperative, though there are finance
department in every sector but the central finance department will take care of the finances of the entire
firm irrespective of the sector.

Communications

The communication department would ensure smooth operations among the different sector. It would
communicate to the external environment as well as to the internal Environment.

Training

The training department would take the responsibility of training the producer members by
organizing:
 Workshops.
 Training programs.
 Exposure Visits.

Legal

The legal team will take care of all the legal matters such as registrations of the organization.


4.4.0 HOW PANCHAYAT CAN HELP

Gram panchayat plays an essential role in any economic development of panchayat it plays a vital role
agitate and given inhabitant of panchayat the general function of gram panchayat to do all acts
necessary for or incidental to the carrying out of the tasks entrusted, assigned or delegated to it and in
particular and without prejudice, for our project gram panchayat can play an important role in many
ways.

By our analysis, we find that under Bihar panchayat act 2006 have a feature of the standing committee
which are responsible for carrying out the various task.
There are six standing committees for or our project standing committee one and standing committee
two will play a vital role.

Standing committee 1
The first committee is Planning, Co-ordination and Finance Committee: for performing general
functions relating to Gram Panchayat including subjects
mentioned in section 22, co-ordination of the work of other
committees and all residuary functions not under the charge of other committees.

this committee do general functions related to section 22; the part include all function which we need
this are the two essential public function which we require to implement our project on GP level, and
gram panchayat can help us in this

1. Agriculture, including Agriculture Extension. —

41. Page 41 of 125


 Promotion and development of agriculture and horticulture;
 Development of wastelands;
 Development and maintenance of grazing lands and preventing their unauthorised alienation
and use.

2. Animal Husbandry, Dairy and Poultry —

 Improvement of the breed of cattle, poultry and other livestock;
 Promotion of dairy farming, poultry and piggery;
 Grassland development.
 Fisheries. — Development of fishing in the village(s).
Standing committee 2, the standing committee 2 is also known as production committee they can also
play a vital role in the implementation of the project
Production Committee - for performing functions relating to
agriculture, animal husbandry, dairy, poultry and fisheries, forestry-related
areas, khadi, village and cottage industries and poverty
alleviation programmes.
This committee work related to agriculture, animal husbandry and fisheries on which we are working
they can give us expertise financial help as well as some support.
So, GP can help as in the following ways:
 By acting as meditator between villagers and as
 Help in community mobilisation
 Can provide financial leverage and institutional support
 Can create an interface between community and us and help to transform and implement our
project on the ground level.

42. Page 42 of 125

43. Page 43 of 125

5.0.0. INTRODUCTION
Rearing goat is a money-making occupation. The goat has been reared since the time age-old. Generally,
goat farming means rearing goats for collecting milk, meat, and fibre. Goat rearing is very popular
because they are a very important and valuable local animal. They are one of the oldest pet animal
species. The farm goat of the present time, first domesticated from the southwest Asian and eastern
European wild goats. Goat is a member of the Bovid family and both goat and sheep are of Caprine
subfamily.
5.1.0. PRODUCT & ITS APPLICATION
Goats are generally raised for their high production size of milk, meat, hair, and skins. The demand for
goat milk, meat, hair, and skins is very high in the world market. Goats also have other uses apart from
the consumption of the meat. The skin of goats is also a good source of leather which can be used to
make many useful leather materials. Goat milk is also very nutritious and good for Consumption. It is
also used in the cosmetic industry to make body creams. Goat offal is also used in the therapeutic
industry.
5.2.0. DESIRED QUALIFICATION OF THE PRODUCER MEMBER
Successful running this project does not require any specific qualification.
5.3.0. INDUSTRY LOOKOUT AND TRENDS
India is the richest country in the world in livestock wealth, both in numbers and germplasm. India has
120.8 million goats in 1997 and has increased to 124.35 million as per census 2003, ranks second
in the world. Goat meat production stands at the level of 0.47 million tonnes. The slaughter rate of
goat is at the level of 39.7 % as compared to 31.8% for sheep and 11% for buffaloes respectively.
Goat also produce 2.55 million tons of milk and 0.1288 million tonnes of skin as per F.A.O. 189
records 2002 report. The trend in consumption of mutton shows increase from 467000MT in 1981
to 696000 MT in 2002 indicating annual compound growth rate of 1.28% during 92-02. Sheep and
goat meat production has reached 700400MT during 2002 in India.
The contribution of agriculture sector to national GDP is around 25% and the share of livestock in
agricultural GDP is 23%, of which small ruminants contribute about 10% to the total value of
livestock sector. At the national level, small ruminants account for 14% of the meat output, 4% of
the milk output and 15% of hides and skin production in the country. But it receives only about
2.5% of the public spending on livestock sector, which is much less than the share of small
ruminants in the value of output of the livestock sector. The growing demand of meat and meat
products in the country and the share of the small ruminants (mainly sheep and goat) within this
holds good potential to develop small ruminant sector in the rural areas with the objective of
increased returns to the rearers communities.
With the rise of middle class and increased urbanization, major populations prefer to go for non-
vegetarian. Today about 3 million farmers and 15 million agrarian farmers are employed in the animal
Husbandry.
Per capita meat consumption in India is relatively low at less than 5 Kg/ years as compared to other
developing countries such as Pakistan (13.7 Kg), China (38.6 Kg) and Brazil (58.6 Kg). Based on
the minimum requirement of 20g animal protein per capita per day sourced from milk (10 g), meat
(4 g), fish (4 g), and eggs (2 g), the estimated demand for meat is 7.7 million metric tonnes as against
the present production of 4.6 million metric tonnes.

44. Page 44 of 125


5.4.0. Market Potential
According to the Ministry of food processing, Today India is the second largest producer of goat
meat in the world with an Annual production of 2.47 million MT. Despite this Achievement,
According to an article from Hindustan times there is a shortage of goat meat in India and experts
predicts the rates of goat meat is likely to be high for the next five years. Owing to the considerable
growth in the goatery sector, equipment, vaccines and medicines, technical and professiona l
guidance can be made available to the farmers. The management practices have improved over the
years and disease and mortality have reduced with the advent of new technologies. If goat rearing
is done with proper technical knowledge and management it has a great market potential. The
Overall environment for goat farming is getting better day by day.
5.5.0. GOAT REARING STATUS IN AMRAKH .
In Amrakh goat rearing is not yet a major profession but a decent population is engaged in goat rearing,
Amrakh has the opportunity in goat rearing as the potential of a huge population is underutilized.

 The percentage of unemployed is huge.
 Women of the village can be employed in goat rearing.



household wise goat distribution
Amount people
1to 3 goat 297
4 t0 7 goats 68
8 to 15 goats 6
0, NO goat 1899


The total number of goats in Amrakh village is 892, out of 892, 498 goats are reared for selling, and
394 is for domestic purpose. In current scenario we can provide the villagers an additional source of
income earning by encouraging them to take up goat rearing as a secondary occupation.

0
50
100
150
200
250
300
350
1to 3 goat 4 t0 7 goats 8 to 15 goats
household wise goat distribution

45. Page 45 of 125

On having a closer look, we can see that majority of the people in amrakh prefer to rearing 1-3 goats,
there are very few families rearing more than 4 goats.

5.6.0. THE PROPOSED PLAN

The aim of the whole intervention would be to develop a centralized goat breeding farm by forming a
cooperative in the village. The plan would appeal to the women of the village who are not involved in
any work other than the daily household hold work. The goat breeding farm would serve the following
purposes.

 Supply kid goats to the producer member after breeding.
 Each producer member would be given 3-4 kid goats to raise.
 Provide medical facilities to the bucks and does.
 To decrease the Fixed cost, as 3-4 goats doesn’t need any shed or any major investment. The
members can raise the goats even in the house.

5.7.0. AIM OF THE PROJECT

 Providing Additional Income to the families.
 To empower women.

5.7.1. Product of the cooperative
 Goat
 Breed: Black Bengal.

46. Page 46 of 125

5.8.0. COST OF THE PROJECT
Sr. No. Particulars ₹ in Lacs
1 land 30000
2 Furniture 2000
3 Cost Of 50 Doe Per 2000 100000
4 Cost Of 3 Buck Per 3000 9000
5 Fodder cultivation 8000
6 Shed construction 10,000
7 other miscellaneous 8000
8
labour, 2000per month
24000
9
cost of feed for 50does /450each
22500
10
cost of feed for 5 buck 450each
2250
11 cost of feed for 80kids for 300 per head 24000
12 vaccine and other charge 50 per 80 goats 4000
Total cost ₹ 243750
5.8.1. COSTS
Expense Amount
land 30000
Furniture 2000
Cost Of 50 Doe Per 2000 100000
Cost Of 3 Buck Per 3000 9000
Fodder cultivation 8000
Shed construction 10,000
Fixed Capital
1,59,000


VARIABLE COST

other miscellaneous 8000
labour, 2000per month 24000
cost of feed for 50does /450each 22500
cost of feed for 5 buck 450each 2250
cost of feed for 80kids for 300 per head 24000
vaccine and other charge 50 per 80 goats 4000
TOTAL VARIABLE 84750

47. Page 47 of 125

5.8.2. MEANS OF FINANCE

The project in the pilot phase would start with 25 producer members. And the producer members
would be asked to contribute Rs. 2500 as shared capital to the organization and in return the
organization would give the producer members 3 kids.

Sr. No. Particulars ₹ in Lacs
1 Members contribution 62,500
2 Funds from government schemes. 181250
Total 243750
The central government is giving 60% while the state government will give 30% for this scheme, the
stockholder will have to bear the remaining 10%. In this way, sheep and goat rearers will have to deposit
Rs. 6600 and pig rearing beneficiaries have to deposit Rs. 2100 in their account opened under the
scheme. The remaining funds of the scheme will be deposited through RTGS in the same account.
Moreover, the department has been allocated a target of 30-30 for sheep, goat and 50 for pig.

Application Process
Those who have goat/sheep/pig rearing can submit their application to the block level veterinary officer
through Pradhan and the beneficiaries will be shortlisted by the district level selection committee.

5.8.3. BREEDING

If breeding is done properly Black Bengal goats are capable of giving birth to twins.
On assuming the does give birth to twins.

year 1
st
2
nd
3rd 4
th
5th 6
th

No. Of doe
purchased
50
No. Of bucks
purchased
5
No. of
kidding/year
1.5 1.5 1.5 1.5 1.5 1.5
No. Of kid
born male
50 50 50 50 50 50
No. Of kid
born female
50 50 50 50 50 50
The mortality
rate of male
10%
10 10 10 10 10 10
The mortality
rate of female
15%
10 10 10 10 10 10
No. Of male
kid available
for sale
the first
year no
sale
40 40 40 40 40
No. Of female
kid available
for sale
40 40 40 40 40
Total 80 80 80 80 80
The total number of kids comes to 80.

48. Page 48 of 125

The total number of producer members 25
Therefore, each producer member gets approximately 3 goats.
On selling the kids.

Total goats Price of unit
goat
Sales
40 Does 3500 140000
40 Buck 4500 180000
Total Sales Does
+bucks
320000

Cashflow
Year 1 2 3 4 5
Fixed Cost ₹ 1,59,000
Variable Cost ₹ 84,750 ₹ 84,750 ₹ 84,750 ₹ 84,750 ₹ 84,750
After adding 2%
inflation
₹ 86,445 ₹ 88,174 ₹ 89,937 ₹ 91,736
Total Cost ₹ 2,43,750 ₹ 86,445 ₹ 88,174 ₹ 89,937 ₹ 91,736
Sales ₹ 0 ₹ 3,20,000 ₹ 3,20,000 ₹ 3,20,000 ₹ 3,20,000
Net Profit ₹ -2,43,750 ₹ 2,33,555 ₹ 2,31,826 ₹ 2,30,063 ₹ 2,28,264

5.8.4. BREAK-EVEN POINT IN UNITS.
Expense Per Goat

Expense price
Medicine 50
Feed 300
Labour 300
Equipment 100
Total 750
Sales Avg. 4000
Profit 3250

Break Even in Volume
Fixed Cost
₹
1,59,000.00

But We Are Not Selling Goat for First Year Hence First Year Variable cost Is Considered as
fixed cost. ₹ 84,750.00

Total FC
₹
2,43,750.00

Per Unit Cost 4000
VC Per Unit 750
Margin 3250
BEP IN VOLUME 75

49. Page 49 of 125

Break even in sales ₹ 3,00,000
The cooperative has to sell 72 goats to reach break-even.




5.8.5. PROFIT PER FAMILY

Per Family Profit
Contribution of Each Members 2500
Goat Each Member Got 3
S.P. of One Goat
4000
Profit
9500


Profit of each family would be Rs. 9500

50. Page 50 of 125

5.9.0. MARKET LINKAGE.


Currently the market of goat works in the above method, there are a lot of intermediators in the
transaction, the cooperative will try to reduce the middle men and reach direct to the buyer. In this
process the cooperative will try to open retail outlets. The cooperative would focus on direct selling of
the goats.

5.9.1. BACKWARD LINKAGE:
 Doe and goat Supplier.
 Feed supplier.
 Medicine supplier.

5.9.2. FORWARD LINKAGE:
 Retail chain of outlets including facilities such as frozen storage/ deep freezers/
refrigerated display cabinets/cold room/ chillers/ packing/ packaging, etc.
 Distribution center associated with the retail chain of outlets with facilities like cold
room/ cold storage/ ripening chamber.

51. Page 51 of 125

5.9.3. VALUE CHAIN OF GOAT
5.9.4. MARKETING AND SELLING OF THE GOATS .
India occupies the first position in terms of goat population and milk production. The demand for goat
meat is increasing faster than the growth in the goat population. Goat plays a very important role in
providing supplementary income and livelihood opportunities to millions of resource-poor farmers and
landless labourers.
Muzaffarpur is the district and main town for major villages within Muzaffarpur district, Muzaffarpur
market has quiet good demand for non – veg product since it has a huge population, the major product
of Muzaffarpur market Agri product and famous for fruit like litchi, hence there is huge potential in the
market.
 The product i.e. the goats can be sold in the Muzaffarpur market to the butcher for the meat.
5.9.5. BRANDING

Hence, The product needs to be differentiated in the market and must sound different from local goat
seller, for this we must choose a unique brand, a brand help to get recognition in the market, it also
helps to create a position within a market, we will sell our goat under the particular brand name.
5.9.6. MARKETING MIX
The marketing mix plays a very important role in determining which marketing strategy is right for
your organization. It is the first step before you even create your business or marketing plan. The reason
is that your marketing mix decisions also have an impact on your positioning, targeting, and
segmentation decisions.

52. Page 52 of 125


























Product- hence selling meat will increase perishability of the product we will sell goat as a whole,
which will save our storage cost and other packaging expenses
Price- price will depend on market ups and down we will take minimum 3500 to 32000 but the price
will increase from it regarding demand or festival like Bakr- Eid.
Place – we will follow the traditional and conventional market either sell in local market direct to the
customer or the butcher
Promotion – since promotion requires money, we will do demand-driven promotion or awareness
regarding the hygiene of our goat and quality product through word of mouth

Product

Commoditized goat.
Promotion

Demand-Driven.
Price

Price is Determined
by the Demand-
Supply Gap.
Place

Conventional
Marketing Channel.
Marketing
Mix

53. Page 53 of 125

5.9.7. PORTERS FIVE FORCES.


We may face various environmental risk in the diagram porter forces we have depicted that
 The threat of entrance- our threat is moderate we need micro-investment as well as skill to
achieve economies of scale.

 The threat of substitute – since in meat market India doesn't have a large variety of meat
product but still, there is a chance of trade-off with chicken and fish.

 Bargaining power of supplier – since the role of the supplier in our business is very low, we
are our self a supplier.

 Bargaining power of supplier – hence in our market price is already fixed because we are
dealing in a perfect market hence bargaining power of supplier is moderate.

 Rivalry – this is a high threat because there are multiple sellers exist in perfect competition
and all want to improve market share and profit.

54. Page 54 of 125

5.9.8. THE SUPPLY CHAIN



5.10.0. ROLE OF PRI IN GOAT FARMING

Goat rearing has been a livelihood source for poor communities within each gram panchayat across
the state. Panchayati Raj representative through facilitating backward and forward linkages of goat
business support can help significant number of poor families. The study envisages following
potential role to be played by PRI, based on their capacity and willingness-

 Development of common grazing lands through participation of goat rearers and promote
a system of fee based grazing and fodder distribution.
Bihar has significant common lands available a panchayat. The ongoing programs like
MGNREGA can be effectively used to make earthen fencing and plantation on these lands.
There has been significant number of such efforts in Rajasthan. Bhartiya Agro Research
Foundation (BAIF) has done work on developing common grazing lands in Bhilwara ,
where community has been involved in its sustainable management and resource utilization
on payment basis.

 Facilitating rural haats for sale of goats and other livestock. Panchayati Raj Institutions are
well placed to organise livestock haats in rural areas. The important factor in such haats
will be good transport linkages and participation of butchers and market players. The haat
should ensure the basic amenities like drinking water, shades for animal and basic services
to traders visiting haats. There has been numerous example of such haats. In Dholpur
district of Rajasthan , PRIs have been playing important role in organizing such haats and
earn revenue out of it.

 Selecting and promoting rural youth led goat farms as training cum demonstration centre in
each panchayat.

 Periodic organization of veterinary camps at village level in association with local
veterinary hospital.

55. Page 55 of 125

56. Page 56 of 125

6.0.0. INTRODUCTION

Bihar is bestowed with vast and varied inland aquatic resources. The paradox of fisheries development
in Bihar is that while it has broad, untapped and underutilized water resources for aquaculture. Despite
being the fourth-highest inland producing state in the country, it has to depend on Andhra Pradesh for
the supply of about 1.5 lakh tons of fish. The annual domestic demand for fish within the state is nearly
5.82 lakh tons, against the present annual production of around 4.32 lakh tons only. The yearly per
capacity fish availability of the is 7.56 KG per head while the national average is 9 K.G. per head. The
average fish production from the available water resources of the state is 2600 KG/ Hectare per year
against the national average of 2900 Kg/ Hectare per year. The underutilization of aquaculture
resources, unscientific management of water bodies and lack of entrepreneurship are some of the most
apparent reasons for the substantial gap between demand and supply.

6.1.0. FISH FARMING IN BIHAR

Fish farming is one of the fastest-growing sectors in Bihar. The economy of Bihar is hugely dependent
on Agriculture, Animal husbandry and fisheries. Fishery plays a vital role in food security and
employment generation as a significant proportion of the population depends upon fishing for their
livelihood. The importance of the fisheries sector has increased for the state after the creation of the
state Jharkhand, as a separate state. The state has two landmasses on either side of the holy river Ganga
and is divided into 38 administrative districts, 21 in North Bihar and 17 in South Bihar, Bihar lying in
the heart of the Gangetic plain, is blessed with fertile land resources through extreme hot and cold
climatic conditions.
The city is one of the best fishing grounds in the country, the spawn of Rohu, Catla and hilsa is collected
from the river Ganges, which is supplied to other parts of Bihar, Jharkhand and West Bengal. The
fishing season begins in October, and the peak months for fishing are December, January and February.
There are large numbers of rivers, streams and ponds in the other districts of the states where water
accumulates in the rainy seasons which have considerable potential for the development of fishery. The
fisheries development Schemes of the region are managed by the district fisheries office located in
Patna under the administrative control of the director of fisheries, Government of Bihar.
The northeast part of Bihar has a long stretch of =flood plains in Gandak and Kosi Basins. A series of
shallow lakes locally known as chaurs exists in these areas to the tune of about 46000 hectors. These
water bodies support rich biodiversity but are biologically sensitive and fragile in Nature. They are also
the repositories of a variety of freshwater food and ornamental fishes.
The state has immense natural aquatic resources in the form of ponds and tanks where the quality fish
seed is required for good fish production.
Aquaculture and culture-based fisheries are one of the best options for enhancing the productivity of
more amenable water such as ponds and the lakes with immediate results. In Bihar, Fish culture is
largely undertaken in water given on lease basis and practised by the fishers who were catching fish
from rivers and lakes. Since more and more Agri-farmers are taking to aquaculture in recent years,
capacity building is critical for the adoption of practices in a scientific manner.


6.2.0. ADVANTAGES OF FISH FARMING IN INDIA

 At least 60% of Indians consume fish as a part of their regular meals.
 The demand for fish is high in the market. Its price is also very high, ensuring good income.
 The subtropical and tropical climate of India is ideal for growth and production of fish.
 Since there are abundant water sources in India like lakes, ponds, rivers, streams, etc. it is not very
difficult to procure fish and grow them on the farm.
 Growing fish in a farm is not a laborious process. Additionally, it can be integrated with other types
of farming, like poultry, vegetables, animals, etc. Integrated aquaculture is very popular among
farmers.

57. Page 57 of 125

 Since fish farming is not as laborious as other types of agriculture, it is easy to handle along with
regular work. It can also be easily managed by other family members of the house like kids and
women.

6.3.0. FISH FARMING STATUS IN AMRAKH

In Amrakh mostly fish farming takes place inward number (10,11,12,13 )current status of the fishery is
not so good the total pound is about 67 Katha, the average earnings from the fishing are stated below.

The total area of ponds 67Katha
No. of farmers involved in fish farming 10
Average pond holding/per farmer 6.7Katha
The average income of the farmer Rs.57,14.28

Only ten families are involved in fishery out of which only seven people do it for commercial purpose
or earning something out of it, the distribution of pound holding in Amrakh is in the below graph.




Following representation showing landholding and earning pattern and earning of 11 farmers the first
3 farmers who hold one Katha make 0 meanwhile the fourth farmer who earns 1 Katha pound earn
Rs.5000, we can see there is no uniform Earning pattern.

Below graph give detail of the total population.

1 1 1 1
2 2 2
10
22
25
0 0 0
50000
10000
20000
70000
20000
70000
120000
-20000
0
20000
40000
60000
80000
100000
120000
140000
0
5
10
15
20
25
30
1 2 3 4 5 6 7 8 9 10
Earning pattern
pound size in katha earning Linear (earning)

58. Page 58 of 125



The average landholding and average earning of Amrakh ( mainly nadol ward 10,11 12,13)farmer is:



The total amount generated by Amrakh farmer through fishery in Amrakh (ward no. 10,11,12,13) by
seven farmers who do it for financial purpose is ₹ 3,64,000.00
There is lots of scope in fishery because average income in the fishing is good and decent and almost
three farmers.

6.3.1. CHALLENGES IN OF FISH FARMING IN AMRAKH
 Most of the farmers are working on a lease for fisheries.

 There is no subsidy provided to the farmers from the fisheries department.

 Some farmers are investing money by borrowing from the moneylenders. As a result, they don’t
make much profit after paying their interest.

farmer involved in
fishary
farmer not involve in
fishary
Farmer involve and
earning in fishary
involved but not earning
NUMBER 10 627 7 3
PERCENT 1.6 98.4 1.1 0.5
10
627
7 31.6 98.4 1.1 0.5
fishery distribution
NUMBER PERCENT
5714.3
51428.6
6.7
0.0 10000.020000.030000.040000.050000.060000.0
EARNING PER KATHA
EARNING PER FARMER
AVERAGE LAND HOLDING PATTERN
earning pattern statics

59. Page 59 of 125


6.4.0. PRODUCT OF THE COOPERATIVE
 Fishes
 Breed: Rohu, Catla,

6.4.1. OBJECTIVE OF THE PROJECT

The objective of the project is to increase per Katha income or to use the untapped capacity of the
pound and increase revenue.

6.4.2. PROCESS

 Convincing people to come up for collective fish farming with a minimum investment of
 We will start collective fish farming with an available pound of the area above 10 to 20 Katha
 The cooperative fish farming will be conducted on common land or by making artificial pound
6.4.3. THE FISHES

Rohu

Rohu is a freshwater bony fish and is very famous in India and South Asia. It has gained popularity
because of its unique taste and demand in the market. It is commonly found in tropical and temperate
zones. In fish farming culture, it is considered as the game fish. It does not breed in the lake ecosystem;
induced spawning is necessary for culture. The fish has a massive demand in Tripura, Bihar, Odisha
etc. Adult Rohu can weight up to 45 kilograms.

Catla

The Catla fish is an economically significant South Asian freshwater fish. It is in the carp family
Cyprinidae. It is known by many different names such as Katla, Katol, Major Indian carp, Chepti,
Baudhekra, Bacha, Karakatla and Tambra. The fish is mainly found in the rivers and lakes in northern
India, Bangladesh, Nepal, Pakistan and Myanmar.
The Catla fish is a freshwater species, and it is rarely found in brackish water. Some typical habitats of
this fish species are boars, beels, canals, ditch, floodplains, horas, lake, ponds and lakes. The fish is
generally marketed in new condition, and it commands a reasonable market price and consumer
demand.
6.5.0. COST OF THE PROJECT

we will form a collective fish farming group of 20 members each will contribute 5000 and
rest finance will be done through funding or loan expected finance will be

60. Page 60 of 125

a. Fixed cost.

FIXED COST
1
Construction of pond including digging, pond
construction and compaction and consolidation on
farmer land (above 20 Katha so we can produce at
least 5000 unit of fish, each of 1 kg) (ploughing is
done by J.C.B. 400rs per hour for 80 hours
=32000+38000 of additional charges of rocks and
plastics
70000

2 Labour 5000
3 Diesel pump set 6000
4 Nets and other implements 2000
5 Other expense 3500
Total “A” 86500






b. (Operational Cost)

1
Drying,
desilting,
ploughing and
watering
2,000
2 Lime 1500
3 Urea 625
4 Poultry Litter 3000

61. Page 61 of 125

5
Fish Seed
3000-unit
grams. weight
Catla () and
Rohu () @Rs
1.25rs
3750
6
Fish Feed
4000kg/15rs
60000
7
Harvesting
charges per
kg
5000
8 Miscellaneous 10000
Variables cost 85,875
Variable Cost + Fixed Cost 1,72,375



6.5.1. MEANS OF FINANCE

Contribution of each member will be 5000, and we will make a small group of 20 members for better
control and profit.

Share capital OF fishery

amount %
Members 5000
each20member 100000
58
Loan Grant fund 72375 42
total share capital 172375 100



c. (Production Norms)

c.
(Production
Norms)
1 Survival (%) 80 5000
2 Average weight at harvest (grams) 1000 5000

62. Page 62 of 125

3 Total production (Kg) 5000
4 Farmgate price (Rs.) 70
5 Number of Crops per annum 2
6 Income during 1st year 350000
7 For two crops 700000

The assumed survival rate is 80%, and the average harvest is of 1 kg total fish survived is 5000 .
Cash flow statements
Year 1 2 3 4 5
Fixed Cost 86500
Variable cost
(6month for
first year)
42937.5 85,875 85875 85875 85875
After adding
2% inflation
per year
87,593 89344.35 91131.24 109357.484
Total Cost 129437.5 87,593 89,344 91,131 1,09,357
Gross Benefit 350000 700000 700000 700000 700000
Net Benefit 220562.5 6,12,408 6,10,656 6,08,869 5,90,643


6.5.3. BREAK- EVEN POINT


Fixed Cost Rs. 86500
Year Profit (Rs.)
1 B.E.P in first 4 month 220562.5
2 8,32,970
3 14,43,626
4 20,52,494
5 20,52,494
total profit in seven year 20,52,494

6.5.4. BREAK-EVEN POINT
IN VOLUME

UNIT PRICE PER KG
VC 85875

63. Page 63 of 125

TOTAL PRODUCTION KG 5000
COST PER KG 17.175
SP PER KG 70
CONTRIBUTION 52.825





B.E.P. IN VOLUME

FC 86500
SP 70
CP 17.18
Margin 52.83
B.E.P. 1637.4823
1637.7KG




AVERAGE EARNINGS OF PER FARMER
CONTRIBUTION of each
member 5000
Earning 614125
total member 20
Earning for each member 30706.25
net profit of each member 25706.25


In our new project earning per Katha is 30706.25 were as in previous unorganized fish farming earning
per Katha was 5714.

6.6.0. MARKET LINKAGES

6.6.1. THE MARKET TREND OF FISH
As the many marketing reports all over the world, the global fisheries and aquaculture production was
more than 300 million tones by the end of this year. So, by checking the huge demand for fish has
increased the fish farming business all over the world. The global aquaculture industry has created the
waves for profits in these years. The commercial fish farming has been increasing day by day to meet
the demand of the market.
As people are influenced by the nutritional value of seafood, which increased the demand for fishes in
all parts of the world. U.S.A. and China are the largest consumers of fishes. 90% of the fishes consumed
in the U.S.A. are imported from international markets.
Fisheries have a vast market potential nationally and internationally.

64. Page 64 of 125

Muzaffarpur is the district and main town for major villages within Muzaffarpur district, Muzaffarpur
market has quiet good demand for non – veg product since it has a huge population, the major product
of Muzaffarpur market Agri product and famous for fruit like litchi. Hence there is enormous potential
in the market.
6.6.2. BRANDING
The product needs to be differentiated in the market and must sound different from other fish sellers,
for this, we must choose a unique brand, a brand helps to get recognition in the market, it also helps to
create a position within a market, we will sell our fish under the particular brand name.

6.6.3. PACKAGING AND MARKETING OF FRESH FISHES
Fresh fishes can be immediately sold after the harvest. Generally, the 1-kilogram weight of mish can
be sold in the market. Fish can be packed in ice and then made ready for export.

6.6.4. MARKETING SEGMENTATION
The customers or clients are differentiated into different types.
 Individual clients
In this, the members of the cooperative can open a small retail outlet near the farming area in
the early stage to grab the attention of local buyers. This mainly targets the individual buyers,
as by the retail outlet people will be attracted by the fresh and natural fish.

 Super Markets
Once the cooperative is doing well, it should expand its markets by making contracts with
supermarkets and supplying them with fresh fish. The supermarkets are the best source to
market the fishes as by this the producer members can earn a right amount of profits.

 Restaurants and hotels
The members can also supply to the local hotels and restaurants who need fishes regularly
throughout the year. After the supermarkets, the hotels are considered as potential clients.

6.7.0. MARKETING MIX
The marketing mix plays a significant role in determining which marketing strategy is right for your
organization. It is the first step before you even create your business or marketing plan. The reason is
that your marketing mix decisions also have an impact on your positioning, targeting, and segmentation
decisions.
















Product

Commoditized fish.
Promotion

Demand-Driven.
Price
Price is Determined
by the Demand-
Place
Conventional
Marketing Channel.
Marketing
Mix

65. Page 65 of 125















PRODUCT- we will sell whole fish as a commodity since we do not sell finished meat sell because it
increases perishability rate of fish.


PRICE – price of fish is based on Total cost + profit margin, but our profit margin may change regarding
various situation, or because of demand and supply

PLACE - the place will be traditional market like Hatt, Mandi and local outlet in village

PROMOTION- we will only use word of mouth tactics in order to spread awareness among people
regarding our fish quality

66. Page 66 of 125

6.7.1. PESTLE ANALYSIS

PESTLE analysis helps us to look at all factors which can affect our project it is like deep scan by using
pestle we scan almost all environment which can affect our fish farming, goat farming bangle making
and agriculture so we used it so the we can make strategy according to that.




Politics – we need political support from Gram P panchayat to promote ease of doing business as well
as institutional support.

Economy – village economy is small and due to shortage in labour and because of migration labour
cost is high which can affect fish farming. also demand of fish matter.

Legal – it is tricky and complex task we need various legal support to maintain our business like
knowing various government law regarding fish farming, what quality of fish to be allowed fair market
policy. legal aspect may create problem in handling and monitoring.

Technical- it plays major role modern fish farming is highly based on technical aspect maintaining
water PH giving quality feed technical labour. we may incur high cost for technology.

Environment- it plays major role in increasing quality and mortality of fish treating water ph. value
draining water and sewage may create problem.

Social- there is lack of awareness among people in village and social norms and management for water
management is weak.

67. Page 67 of 125

6.7.2. PORTERS FIVE FORCES

Porter's Five Forces model helps us to cope change of day to day analysis it also help us to identify
which force have large impact so the we can make strategy and prepare our self accordingly , in fish
farming by using 5f we came to know that threat of supplier is high by using this analysis we can prepare
our strategy and may find alternative , porter 5f is powerful tools which can help us to cope dynamic
environment
Porter's five forces are:
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products




Porters five forces

Threat of new entrance - it high because sufficient capital required, skill intensive high resource for
pond.

68. Page 68 of 125

Bargaining power of supplier – fish is perishable in nature unlike goat if fish once released from
water it will died, supplier play vital role in this business, hence its power of bargain is very high.

Bargaining power of consumer – since in this market there is low switching cost, and freshness of
fish is main USP the bargaining power of consumer is very high.

Threat to substitute – usual in rural market where fishery is common with different variety of fish
the threat of substitute is high.

Competition – there is a High price-based competition and price leadership create tough competition.

69. Page 69 of 125

6.7.3. SUPPLY CHAIN



Backward linkage
 fingerlings supplier.
 Feed supplier.
 Medicine supplier.
Forward linkages
 Marketing Department of society.
 Retail shops.
 Small rural markets.
6.8.0. ROLE OF PRI IN FISH FARMING

Gram panchayat play important role in development local economic activities fish farming is also an
important economic activities panchayat can develop fishery as a MSME they can give loan, guide
about maintenance of water body

Gram panchayat can take following step
 Help in loan process.
 Provide training to the producer members.
 Will provide institutional sport.
 Will help them to access all central and state government scheme which them to flourish their
business.
 Organize camp to develop entrepreneurship quality.

70. Page 70 of 125

71. Page 71 of 125

7.0.0. INTRODUCTION TO AGRICULTURE

Agriculture is one of the earliest occupations ever done by a human in the growth of human civilization.
It was agriculture which played a significant role because of agriculture civilization grow, and we left
hunting and gathering.
We are heavily dependent on agriculture for our food and day to day to activities India is country whose
maximum people are involved in agriculture, and it major economic in rural India hence increasing
value chain of agriculture will transform millions of lives. In our country as well as Bihar the primary
source for irrigation is rainfall despite vast population engaged in agriculture our technique is still
primitive, and there is high vulnerability, and low profit for the farmer, which result in the high suicide
rate and interest toward farming is decreasing day by day.

7.1.0. CONDITION OF AGRICULTURE IN BIHAR

Bihar situated in the river basin of Ganga and gifted with a river like Koshi, son and another seasonal
river which help Bihar in agriculture. also, Bihar have alluvial soil and regular flooding by village help
soil to become more fertile the major crop for Bihar region is.
 Rice
 Wheat
 Sugarcane
 Maize
 Pulse
 Vegetable
Sugarcane and jute are a significant cash crop for Bihar
it is the largest producer of lychee and the third-largest producer of pineapple. The net sown area in
Bihar is 60% of its geographical area. This percentage is much higher than the all-India average of 42%.
Such a high rate of cultivated land is possible for two reasons.
The total area under vegetable cultivation is currently about 11% of the state's gross sown area and is
increasing. Essential vegetable crops include potato, onion, tomato, cauliflower,
and brinjal. Hajipur in Vaishali is famous for an early variety of cauliflower.

The major limitation of agriculture in Bihar are:
 Primitive technique
 Low market involvement of farmer
 The traditional technology is widely used
 Exploitation by middlemen
 The problem of fair price
Voice of the farmer is neglected, and farmer welfare is only political stunt rather than responsibility.

7.2.0. AGRICULTURE STATUS IN AMRAKH
7.2.1. THE MAJOR CEREAL CROPS OF THE AMRAKH PANCHAYAT ARE -
 Rice,
 Wheat.

7.2.2. CLIMATE OF AMRAKH

Rice- Rice is a Kharif crop. Rice grows well at a temperature range of 20ºC to 35ºC. The warm and
humid environment is the favourable condition of Rice cultivation, and it requires rainfall of 100 cm.

72. Page 72 of 125

Wheat- Wheat is a rabi crop. Wheat grows well at a temperature range of 21ºC to 24ºC. It requires warm
temperature, but it should not be too warm, which can damage the crop and when we talk about rainfall
then it requires 31 to 38 cm of average rainfall. Bright sunshine at the time filling of grains is the primary
requirement to get a good yield of wheat.

7.2.3. SOIL:

Rice- Suitable soil pH for rice cultivation is at pH 6, and the pH level of soil for Amrakh GP is 6.5-7.5,
which is quite suitable for the rice production. It can be grown on any type of land, but Clayey loam
soil is quite favourable for rice cultivation.
Wheat- Soil Ph of 6 to 7 is the best for wheat cultivation. Loamy and clay soil which is in Amrakh
Gram Panchayat is the best for wheat cultivation.
As for Rice, Wheat, the pH level of soil matches the pH level of the land of the Amrakh Gram
Panchayat, and the soil quality is also favourable so farming of Rice & Wheat can boost livelihood and
can strengthen the life of farmers.
The soil mineral content of Amrakh Gram Panchayat supports Rice & Wheat farming; hence it has
potential in Amrakh. Also Muzaffarpur market is near from Amrakh, which would be helpful for the
marketing.

7.3.0. ROLE OF GOVERNMENT

The FPO would seek help from the various schemes of government related to Agriculture.

 Soil Health Card.
 Gramin haats.
 Pradhan Mantri Bima Fasal yojana.
 Pradhan Mantri Kisan Sinchayee yojana.
 Pradhan Mantri kisan samman Nidhi.
 Kisan Credit card.
 E-Nam.

7.4.1. PRODUCT:

 Rice & Wheat.

7.4.2. CHALLENGES:

 Storage facilities.
 Marketing Facilities.
 Insufficient Agro-processing units.
 Production cost.
 Less yield.

7.4.3. OBJECTIVES OF THE PROJECT
 To set an Ideal crop management Project for farmers.
 To implement modern & High-tech technology.
 Provide direct marketing support to the farmers.

73. Page 73 of 125

 Introduce & Implement Global GAP in the target area.

7.4.4. AREA OF OPERATION

 Area: 265 hectares in Amrakh.
 Involvement of Farmers: 200 farmers (Assumption).

7.5.0. COMPONENTS FOR INTERVENTION

7.5.1. SOIL TESTING

As the Production quality is dependent on the type of soil. Proper recommendation of fertilizers &
micronutrients is based on the soil testing reports. It will help to optimize the cost of nutrients.
Benefits:
 Improvement in yield.
 Reduction in cost of nutrients.
 Proper use of micronutrients & fertilizers.
7.5.2. FARMERS TRAINING
Training programs will be provided for all the producer members. The FPO would arrange for training
sessions during the crop season. Experts will be called to consult the growers at the stage of plantation
phase of crop, growth stage, and bud initiation stage. The timetable would be dispatched to the producer
members before a week of the training.
Benefits:
 Better management from start to end.
 Improvement in quality of the crop.
 Growth in production.
 Good Agricultural Practices & post-harvest services.
 Increase in returns.
7.5.3. EXPOSURE VISITS
cereals are major Crops for Amrakh GP, and it needs constant attention for quality production. Good
management practices will help to increase production. Exposure visit is an opportunity to share new
things & clear doubts & queries of farmers.
Benefits:
 Sharing of new ideas & technology.
 The farmers would get to know the difference between Traditional methods & new methods.
 Regular visits help to make a schedule for crop management.

74. Page 74 of 125

7.5.4. DEMONSTRATION OF CROP.
Trying new things helped to arise new ideas & innovations. A demo can show the differences between
traditional methods & new methods.10 Acer plot will be used for the demo of new varieties & inputs
during the season. All expenses on demos will be beard by Company.
Benefits:
 New variety of most productivity was found.
 Helped to management of fertigation & preventions.
 New ideas & research performed on the plot.

7.5.5. SPRAYERS:
Insects and weeds are hugely responsible for crop destruction. In modern horticulture and agriculture,
insecticides/pesticides are an important part of farming. Sprayers are helpful in weed/pest control, liquid
fertilizing and plant leaf polishing. Taiwan & Nap Sack sprayers (12 to16 Litter.) mostly using for crop
season.
Benefits:
 Easy to operate, maintain and handle.
 It facilitates the uniform spread of the chemicals.
 Capable of throwing chemicals wherever needed.
7.6.0. STEPS OF AGRICULTURE AND SERVICES PROVIDED AT EACH STEP .
7.6.1. CROP SELECTION
Farmers usually select crop for agriculture according to their traditional knowledge and experience in
farming and the Amrakh GP, from the baseline data, we get to know that significant crop production is
Rice and Wheat. So, for the FPO formation, we are selecting Rice and Wheat, to boost the livelihood
of the farmers.
The climatic condition of Amrakh GP is quite favourable for the production of Rice and wheat.
Irrigation availability is also there as there have lots of pond in the Amrakh GP.

Services provided

The FPO would make the member aware of the importance of soil testing and connect the farmers to
the soil testing laboratories. Recently with the introduction of mobile soil testing laboratory, the FPO
can also organize soil testing camp in the village, according to the soil quality, the farmers would be
encouraged to choose the crop. This can even increase the farmer's yield. The FPO should also advise
the farmers about:
 Climatic conditions.
 Market demand of the crop.
 Irrigation availability.

75. Page 75 of 125

7.6.2. LAND PREPARATION
Land preparation is essential to make the field ready for planting. A well-prepared area can be helpful
in sound production.

How to prepare the rice field for planting?
Initial land preparation begins after the last harvest period. This is important for making soil nutritional
and wed control.
Generally, it takes 3-4 weeks to prepare the field before planting.
It depends on the type of soil, if the land is dry then at dry field condition, apply glyphosate to kill
weeds and for better field hygiene.
Irrigate the field 2-3 days after glyphosate application.
Maintain standing water at 2-3 cm level for about 3-7 days or until it is suitable enough for planting.
Plough the field to incorporate stubbles and hasten decomposition.

How to prepare the wheat field for planting?
Land preparation starts with the removal of shrubs and stumps. Wheat is usually sown after Kharif
crops like- Paddy, Moong, etc. after harvest of the previous crop, the field should be ploughed enough
with disc or with the help of mouldboard plough.
Pre-sowing irrigation before 7-10 days sowing is necessary to ensure good germination.

Services provided
 Providing a facility for proper soil testing
 Consultancy regarding soil content
 Providing mineral to increase productivity like potassium, zinc, iron etc
 Awareness meeting regarding the latest technique with Krishi salahkar.

7.6.3. SEED SELECTION
Seed selection for Rice Production:
Seed selection is depending on types of land basically:
For upland condition: Pusa 2-21, Prabhat and Dhanlakshmi is suitable for better production.
For medium land: Rajendra Dhan 201, MTU-7029 is suitable for this kind of area.
For low land: B.R.8, T141 is suitable for a small kind of area for better production.
Seed selection for Wheat production:
Sonalika, WH-912, PWB-443 & Surbhi (HPW-89) etc.
Services provided by the FPO.
 Bulk procurement of seed to get discount.
 Providing the right source of seeds.
 Selecting the right seeds with the help of consultancy, so that farmer yield increases.
 Education camp regarding different genetically modified seeds, traditional seeds so that each
farmer know about global trend.
 Providing conventional seeds procurement place to save farmer search cost.

7.6.4. SEED SOWING
Seed sowing (rice production):

76. Page 76 of 125


Time of planting: June to starting July is the optimum time for planting.
Spacing: for a usual sown crop, a spacing of 20-22.5 cm between rows is recommended when sowing
is delayed a closer spacing of 15-19-8 cm should be adopted.
Method of sowing: Broadcasting method.
Sowing depth: the seeding should be transplanted at 2 to 3 cm depth.

Seed sowing (wheat production):

Time of sowing: October to November is the optimum time for planting.
Spacing: a row spacing of 15-22.5 cm is followed, but 22.5cm between the rows is considered to be
the optimum spacing.
Method of sowing: CSISA'S new sowing method.
Sowing depth: sowing at 5cm depth.

Services provided by the FPO.
 Providing expert advice to each farmer about, how to sow, when to plant, how deep we should
sow.
 Education and training camp provided to farmer regarding latest technique.

7.6.5. IRRIGATION
Irrigation (paddy crop):

Paddy crop is strongly influenced by water supply. Water should be on a desirable basis to, kept
standing in the field throughout the growth period. And in Amrakh GP rice crop depends on both
rainfall and irrigation.
Regular irrigation is beneficial in paddy production.

Irrigation (wheat crop):

The high yielding wheat varieties should be given to 5-6 irrigations at their critical growth stage.

Services provided by the FPO.

 Providing irrigation tools like pump and pipe.
 Consultancy regarding irrigation.
 Crop wise irrigation information.

7.6.6. CROP GROWTH
 The number of plants per unit of area. The optimum number of seeds sprouts are planted in a given
area. Farmers must reduce density for better growth of plants.
 Comparison of crop growth rate, leaf size, crop colour etc. with expected growth for given
conditions and input.
 Interventions needed to maintain expected growth.
 Frequency, quantity and method for fertilization.
 Proper time, frequency and method for ploughing.
 Proper time, frequency and method for weeding.

77. Page 77 of 125

Services provided by the FPO
 Procurement of fertilizer for farmers.
 Providing sprayers and pest control.
 Tools for ploughing.

7.6.7. HARVESTING
Harvesting of paddy crop:
Paddy crop should be harvested when the grain becomes hard and have about 20% moisture in them
through the plant still remain green.
Harvesting is done in two ways, manually or machinery means.
In manual harvesting, the essential tool is sickle.
Once harvesting finished then threshing gets to start, for manual threshing, we can use threshing table,
i.e., ancient technique. Now a day's tractor threshing is in use because of time and labour saving.

Harvesting of wheat crops:
Wheat should be harvested when their leaves and stems turn yellow and become dry. To avoid loss in
yield, the crop should be harvested before it is fully ripe.
The right stage for the harvesting of wheat is when the moisture content in the grain is 25-30%.
Harvesting is usually done manually with the help of serrate edge sickles. After harvesting the crop, it
is dried up to 3-4 days on the threshing floor and after that threshing is done by the thresher.

Services provided by the FPO

 Providing harvester.
 Providing gunny bags and storage point.
 Market linkage.
 Improving bargain power.

7.7.0. POST FARMING SERVICES:
7.7.1. REEFER VAN
Reefer van is necessary for the farmer members of the cooperative to get the service on a suitable price.
Benefits:
 Save the cost.
 Helps to avoid damage because of the environment.

7.7.2. JUTE BAGS.
The quality of any goods depends on handling & transportation. For the maintenance of cereals, we will
use a jute bag for their packaging to maintained quality after harvesting cereals.
Benefits:

78. Page 78 of 125

 Easy transportation without damage to goods.
 Simple to place graded cereals.
 Accessible to packing & help to send other state's markets.
7.7.3. WAREHOUSE.
The warehouse is essential for the storage of grains and physical protection of goods. Warehouses
help in price stabilization of agricultural commodities.
During the storage period, proper aeration of grains, regular inspection of cereals stock and cleaning
of the store needs to be performed. Cereal grains are stored to preserve the product for the long term.
Benefits:
 For the safety of cereals.
 Protection and preservation of goods.
 Continuity in production.
 Easy to handle.
 Reduce the risk of loss.

7.8.0. MARKET LINKAGE

7.8.1. MARKETING MIX


PRICE

PLACE

 FPO will provide Rice at the price
of Rs. 1800 per quintal to the
consumer.
 FPO will provide at the price of
Rs.2400 per quintal to the
consumer.
 Intermediaries is a bane to FPO. so.
first, we will see direct to customer
and after that peer to peer.


PROMOTION /SALES

PRODUCT

 Door to Door promotions through
FPO's farmers.
 Free sampling.
 Awareness programme.
 We will sell High quality Rice, which
will add value to our product.

7.8.2. DISTRIBUTION CHANNEL:
Distribution channel is an integral part of the marketing channel or FPO for the better functioning of
the whole process. It contains intermediaries which can be less or more, and it will depend on the FPO
that how the member of FPO want to deliver that product to the consumer.

79. Page 79 of 125

So, In the introduction stage of FPO in Amrakh Gram Panchayat, there will be less finance and to-do
list will be significant. In the market, no one knows about the product of our FPO. However, we are
providing high-quality Cereals (Rice & Wheat) so, we have to choose 0-level distribution channel in
which will sell our product to consumers without any intermediaries involved in the nearby local market
of Amrakh.
As the business will start functioning well and Rice & Wheat demand increases and buzz created in the
market for our product, then we have to include intermediaries like Retailer because after expanding
business we have to sell our product in large quantity and only option left will to choose 1-level
distribution channel in which we will sell it to Retailer. Through Retailer, our product will reach to the
consumer of Amrakh Gram Panchayat.
After further expansion of business, we have to choose 2-level of distribution channel in which we will
sell our product to a wholesaler. Then it reaches to Retailer, and lastly, it reaches it, the consumer.
Lastly, our plan is to choose non-traditional distribution channel for profit maximization and cost
minimization and for this we will select app-based selling on which member consumer can buy product
on one click of phone and non-member customer will have to register before buying because at that
time our bargaining power will be high because of demand of our product(Rice & Wheat).

0-Level 1-Level 2-Level













Producer
Consumer
Producer
Retailer
Consumer
Producer
Wholesaler or
Distributor
Consumer
Retailer

80. Page 80 of 125

 Cereal (Rice & Wheat) farmers have to travel several hours every day to reach Mandi for sale
of their produce. It becomes especially tricky because they have to do picking also after
returning from Mandi.
 Steep price gets drop during peak season. Sometimes the price get drops to such low levels that
it becomes difficult to recover even the picking and transportation costs.
 These were results of the typical marketing channel being followed by farmers which is mainly
dependent on intermediaries for the realization of sale and price as depicted in the figure below.

Presently, there are a lot of middlemen in the distribution channel; these should be eliminated for the
farmers to get better profits. This can be done by direct retailing of the goods to the consumers.
 To overcome these challenges, Farmers should be able to hold the product and be able to do
value addition.
 Farmer Company needs to create an alternative marketing channel to avoid the peak production
fall that results from massive produce arrival in Mandi.
 It requires infrastructure for procurement and storage of products in large quantities.
 It requires a proper and robust information system to maintain transparency in a transaction
with such a large number of farmers and to create a database of farmers along with their land
and crop information.

81. Page 81 of 125

 It requires a channel of two-way communication with farmers to address any grievance.















7.8.3. CONNECTING TO ENAM

The FPO can be linked to eNAM.
eNAM was proposed after the severe problem of corruption in Mandis. eNAM facilitates a platform for
online auctioning of agriculture, so it reduces the importance of middle man which was corrupt in most
cases. Now it is easy for any person from any state can purchase that product through online auctioning.
But major challenge raised was How a person would know the quality of the product while
auctioning. So many buyers didn't use eNAM to purchase. This problem can be easily solved using the
artificial intelligence which will provide a variety of the product if we have massive data about that
particular product.
Another problem was it was not much use for perishable items as we don't have a high-speed mode of
transportation. Lastly, in the end, they are forced to sell in the nearby market at a low price.
eNAM has potential in the near future; the FPO should be prepared for such technology in future.
7.8.4. PROCUREMENT FROM THE DOORSTEP
The Company will procure the cereals directly from the grower's house. For the purpose, the FPO will
establish procurement centres in a different part of the villages for better and efficient collection.

82. Page 82 of 125


7.8.5. SWOT ANALYSIS

The SWOT gives analysis of both external and internal advantage as well as weakness. The strengthen
and weakness is for internal evaluation. Opportunity and threats are for external evaluation. By using
SWOT analysis, we can evaluate our project in a systemic way which will be very much useful. SWOT
analysis gives a clear snapshot of the current situation of the project.

Internal Factors
Strengths Weaknesses
 High productivity in comparison to the other cereals.
 wide variety of seeds suitable for different climate.
 products in high demand
 Huge opportunities.
 New technology.
 Agriculture land

 Production require huge water.
 Disease and pest attack.
 Poor local market infrastructure.
 cost of production high.
External Factors
Opportunities Threats
 Good export facility available.
 Growing demand with the growing population.
 Increasing Demand.
 Government support in policy program for agriculture.

 Weather challenges like- monsoon rainfall have
great effect on production.
 Distress sale due to disaster
 Harsh weather
 Inadequate storage and warehousing
 storage and warehousing facilities.


7.8.6. FUTURE PLANS
The cooperative will try to obtain the mandi license for selling various agricultural produce from its
wholesale counter at the Muzaffarpur Mandi, Bihar. The cooperative with this counter will be able to
sell products directly to the bulk buyers from other districts who visit this mandi. In addition to cereals,
the cooperative plans to procure Vegetables and other commodities in next harvests.

83. Page 83 of 125

7.9.0. FINANCES
7.9.1. ASSUMPTION:

A group of 200 farmers decided to come together & form an FPO.
All the members have to contribute Rs 1000.00 each as share capital
7.9.2. COST FOR WHEAT CULTIVATION
Assumption of 1 Hectare:
RS.
Warehouse charges of 20sq feet 15000
Pump set 3000
Electricity 1500
Land maintenance 5000
Machinery and Agri tools 5000

Fixed capital 29500
Ploughing 5000
Seeds 77kg /100 Rs 7700
Fertilisers 40bag/200 Rs 8000
Pesticides 3liter/200rs 600
Seasonal labour for sowing and
weeding (200a day for 15 days) 3000
Harvesting charges 2000
Transportation 5000

Operational cost 31300

Total cost 60800

Rs.
Total cost occurs in wheat per hectare 60800

Total yield in quintal per hectare 40

Operational cost on 40 quintals 31300
Operational cost on one quintal
(variable cost) 782.5

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7.9.3. BREAK-EVEN
Selling Price per quintal 1840
Contribution per quintal (Sales price-
Variable cost) 1057.5

Total fixed capital required 29500

B.E.P IN VOLUME =
FC/CONTRIBUTION (quintal) 27.9

B.E.P IN SALES ₹ 51,328.61

7.9.4. COST FOR 200 FARMERS
For 265 hectares
Total yield for 265 hectares in quintal 10600
B.E.P IN VOLUME FOR 265
HECTARE (quintal) 7392.434988
B.E.P IN SALES for 265 hectares ₹ 1,36,02,080.38

7.9.5. COST FOR PADDY CULTIVATION
RS.
Warehouse charges of 20 sq. feet 15000
Pump set 3000
Electricity 1500
Land maintenance 5000
Machinery and Agri tools 5000

Fixed capital 29500
Ploughing 5000
Seeds 77kg /100 Rs 7700
Fertilizers 100 bag/200 Rs 20000
Pesticides 5liter/200rs 1000
Seasonal labour for sowing and
weeding (250a day for 20 days) 4000
Harvesting charges 5000
Transportation 5000

Operational cost 47700

Total cost 77200

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7.9.6. OPERATIONAL COST
RS.
Total cost occurs in Rice per hectare 77200

Total yield in quintal per hectare 53

Operational cost on 53 quintals 47700
Operational cost on one quintal
(variable cost) 900

7.9.7. BREAK-EVEN
Selling price per quintal 2400
Contribution per quintal (Sales price-
Variable cost) 1500.0

Total fixed capital required 29500

B.E.P IN VOLUME =
FC/CONTRIBUTION 19.7

B.E.P IN SALES 47200

7.9.8. COST FOR 200 MEMBERS
For 265 hectares
Total yield for 265 hectares in quintal 14045
B.E.P IN VOLUME FOR 265
HECTARE (quintal) 5211.67
B.E.P IN SALES for 265 hectares ₹ 1,25,08,000.00

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7.10.0. VALUE CHAIN

87. Page 87 of 125

88. Page 88 of 125

8.0.0. INTRODUCTION
Bangles is the traditional ornaments in India which are worn by women for covering their wrist and for
looking beautiful. It is created in different unusual varieties and decorated with lovely and precious
stones, metals and different unique colours. Lac bangles making is one of the foremost craft practising
and one of the best opportunities for the livelihood at a low budget. There is a high demand for lac
bangles mostly during festivals and occasions, and at the same time, its application remains constant
throughout the year.

8.1.0. BUSINESS STRUCTURE:
The organization will be started under “Limited Liability Partnership (L.L.P.)" under the Limited
Liability Partnership Act 2008 ('The Act') with limited liability and perpetual succession. We are
choosing this Structure because not a huge population of Amrakh is involved in Bangle Making; only
a few families know the art.
 The L.L.P. is a body corporate and a legal entity separate from its partners. Any two or more
persons, associated for carrying on a lawful business with a view to profit, may by subscribing
their names to an incorporation document and filing the same with the Registrar, form a Limited
Liability Partnership. The L.L.P. has perpetual succession;
 The mutual rights and duties of partners of an L.L.P. inter and those of the L.L.P. and its
partners shall be governed by an agreement between partners or between the L.L.P. and the
partners subject to the provisions of the proposed legislation. There would be flexibility to
devise the contract as per their choice. In the absence of any such agreement, the mutual rights
and duties shall be governed by the provisions of the proposed legislation;
 An L.L.P. is a separate legal entity, liable to the full extent of its assets, with the liability of the
partners being limited to their agreed contribution in the L.L.P. which may be tangible or
intangible in nature or both tangible and intangible. No partner would be liable on account of
the independent or un-authorized acts of other partners or their misconduct;
 Every L.L.P. shall have at least two partners and shall also have at least two individuals as
Designated Partners, of whom at least one shall be resident in India;
 An L.L.P. shall maintain annual accounts reflecting an accurate and fair view of its state of
affairs. A statement of accounts and solvency shall be filed by every L.L.P. with the Registrar
every year. The accounts of L.L.P.s shall also be audited, subject to any class of L.L.P.s being
exempted from this requirement by the Central Government.

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8.2.0. ORGANIZATIONAL STRUCTURE







8.3.0. PRODUCT:
High-Quality Customized Lac Bangles

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8.4.0. VALUE CHAIN

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8.5.0. ROLE OF GOVERNMENT
There are handicraft departments of both state and central governments. The major part of their work
is business and export promotion through exhibitions and other ways of putting buyers and sellers in
touch with each other, but they could be contacted for discussions on how to promote child labour free
commitments through their initiatives.
Recently, there has been an initiative of the Textile Ministry of the Government of India for e-commerce
firms to provide direct marketing platforms for handicraft clusters.

This will help small firms reach a
broader market.
Handicraft department is supported by The Rural Non-Farm Development Agency (RUDA), through
organizing artisans and carrying out training and supporting technological development. The project in
this area is implemented by United Nations Population Fund (UNFPA), United Nations Development
Programme (UNDP), United Nations Industrial Development Organization (UNIDO), the World Bank
and the Indian Khadi and Village Industries Commission (KVIC).
The Department of Small-Scale Industries of the Government of India also promotes exports of
gemstones and jewellery. There are Hallmark certification Centre and gem testing laboratories. Funding
for small units can be provided through the Small Industries Development Bank of India (SIDBI) and
the agricultural, rural development bank (National Bank for Agriculture and Rural Development,
NABARD), the latter only for activities in non-urban areas.
The most crucial government agency is the Handicrafts Export Promotion Council (HEPC)
under the central government’s Ministry of Textiles. It organizes significant exhibitions and facilitates
contacts between buyers and sellers. At the state level, the Department of Industries has a 'Handmade
in Rajasthan' initiative to promote handicrafts. The Rajasthan Department of Industries also organizes
some exhibitions, but the major ones are those hosted by the Central Government.
These government agencies, both central and state, do not deal with child labour issues, which is the
responsibility of the Women and Child Welfare Department and the police. They could be invited to
identify ways that their initiatives could support the prevention of child labour. But drawing them into
such efforts will require decisions from higher government levels. Coordination across government
departments can only come about when the cabinet decides to require departments under various
ministries to work together.
8.5.1 SKILL DEVELOPMENT PROGRAMME:
The artists of the villages can be made to attend the Skill development programs offered by the MSME.
The Design Clinic Scheme was one such scheme. The Ministry of Micro, Small and Medium Scale
Enterprises (MSME) and India's premier Design institute namely National Institute of Design taken the
initiative for The Design Clinic Scheme (D.C.S.), launched under the National Manufacturing
Competitiveness Programme (NMCP) on February 17th, 2010 in New Delhi, the unique and ambitious
design intervention scheme proposes to benefit 200 industry clusters to create a dynamic platform to
provide expert solutions to real-time Design problems, and in that add value to existing products.
8.6.0. MILESTONES:
 Business plan completion.
 Set up a workshop.
 Set up First distribution channel.

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8.7.0. HISTORY OF LAC BANGLES IN BIHAR :

Bangles were an integral part of Indian apparel since the time of Harappan civilization; they were
considered auspicious in Indian tradition and came in all shapes and sizes. If someone travels to
Charminar in Hyderabad, it will be impossible to miss Lad Bazar. The Lad Bazar market is more than
400 years old, this market for glass and lac bangles is considered to be the best and is very famous all
over the country. Lac bangles work, and its small-scale industry is recognized worldwide.

Lac crafts of Bihar are predominant for centuries and this state bear a rich tradition of lacquerware,
hugely practised by the people of the state. Due to the availability of the raw material from the nearby
forest and the easy accessibility of the adept artisans, Lac crafts of Bihar have reached to its distinct
position.
In Bihar, Lac is used to making various ornaments and is considered an important part. The tribal people
use it as jewellery in the state, and the trend among them is very famous. North Bihar is the centre
where the material for the core of Lac is available.
The lac bangles have an inner-core which is covered by a thin layer of better-quality coloured Lac.
White clay is used to strengthen the core. The dry ingredients are heated, mixed, kneaded and pounded
with a hammer. This process is repeated until the mass forms a similar type of dough-like substance.
When the heating and shaping are done, the Lac is expanded, and the diameter is given a bangle like
thickness. The shapes of the bangles are made by pressing the lac length into coloured grooves on each
side of a wooden forming block or mould. The married women of the aboriginal tribal people of Bihar
including Bhumij, Mo, Munda, Oraon and Santal tribes wear several decorated lac bangles as a part of
their attire.
The lac crafts of Bihar also include customer choice, bangles on demand and unique bridal bangle
making, which is predominantly the cottage industry of the Muzaffarpur area. Most of the houses are
engrossed in making this imaginative craft with their vivid imagination and inherent artistry. Artisans
make different colours like pink, bright orange, glittering, vermilion, colourful purple colour bangles
etc. to decorate and drench the bride's wrists. Wearing lac bangles in Bihar, especially at the time of
marriage, is considered very auspicious. It is suitably embellished with turmeric coloured, painted
stripes, shiny mirrors, shiny pearls and various types of luminous materials.

The lac sets of Bihar have a unique quality that the artists do their work with very simplicity. There is
a lot of fitting, and various compositions are given, the structures and tradition can be visible in this lac
bangle.

8.8.0. DEMAND

Several factors played an essential role in the surge in demand for bangles. At the same time, seasonal
increases were seen during marriages and festivals; the increase in the influx of tourists and the increase
in popularity of traditional markets around Charminar also contributed to more sales. Bangles are
popular in both the national and international market. A country such as the U.S., U.K., Singapore,
Malaysia and the Middle-east is trendy and demanding too. The owners of local shops, who had
participated in the exhibitions held abroad, were buoyed by the response they had received.

8.9.0. LAC

Lac is a resinous pigment which is the secretion of insect hosting on a tree. Lac is a complex organic
substance which is then modified in many ways to be used to make pieces of jewellery. Lac has some
properties like malleability, ductility, plasticity (can be adjusted to any shape on the application of slight
heat), it's not fired hence cannot break. Like ceramic, reusable in every state, and easy application of
colours. These properties make it easy to use and accessible material for various crafts. Lac is modified
and used to create a variety of products, ranging from jewellery to household vessels and stationery
items.

93. Page 93 of 125

Lac is considered very auspicious in Indian culture. Religious scriptures like Mahabharata and shiv
Purana have referenced to the lac insects and the usefulness of the material. In India, lac bangles stand
as a symbol of a 'Shuhaagan'. Lac is considered as a craft practised in many parts of the country. It
includes states such as Bihar, Rajasthan, Hyderabad and Uttar Pradesh.

8.10.0. PROCUREMENT OF RAW MATERIALS

Raw Lac is producing at large quantities in the forest of Bihar. Three kinds of raw material, Kusum,
Palash and Barry, are available. Out of these three Kusum is considered to be the best Lac. Lac is
planting in Chandan village Banka district and also available in some other areas of Bihar. Apart from
that, the raw materials (Lac) are supplied mainly from Rajasthan and Jharkhand and purchasing it from
the local market of Muzaffarpur and Darbhanga.
Artist in Amrakh GP is procuring raw materials like- Lac, Ghea Patthar Powder, Metal Ring, Design
Glass, Beads etc. from the near local market of Muzaffarpur and producing bangles.

8.11.0. MARKET LINKAGE

The cleaver merchants show their sample to the individual craftsmen and try to bargain the Price, the
craftsmen without knowing the actual price of the product makes a deal with the merchant for the
production. The craftsmen do not communicate with each other in the village, and they work secretly,
which leads them to hamper their business and to exploit their work as well.
The craftsperson's sell their products in the local market, without any brand name, these products are
not only of good quality, but it also sells well in the market. The local merchants they repack these
products using the fake brand tags like Jaipuriya etc. which makes the craftsmen hidden and the
merchant makes a good profit, who in retune does not give any benefit to the poor bangle makers.
 With the help of rural development agencies, the artisans can get direct contact with the market,
and they can earn better profit and market feedback for further product development.
 The superior finish can help them in capturing the niche markets for the same product range.
8.11.1. BRANDING

Branding is an important step to make an identity in the market it helps the product to get customer
recognition branding to consist of brand name and brand symbol.
 We will choose a brand name like – “Amrakh Lahti" with tag line APAN BIHAR KE
LAHTHI, it may increase belongingness to the customer with product, and most of our
consumer may come from Bihar, our brand name help it build a unique relationship between
customer and product and put a heavy impression on the consumer mind.
8.11.2. PACKAGING

 We will pack our item in traditional leave packaging it also minimizes cost as well as it will be
eco friendly
 Packaging with leaves will give the customer a unique experience by they can smell the
fragrance rural India and help to create emotional impact.

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8.11.3. MARKETING MIX

 Product – traditional handmade bangle the core feature of the product is that it's homemade
and beautify women appearance when she wears it, Main features are – comfortable. durable,
eco-friendly, shiny and well-crafted bangle.
 Price- we will use Price = cost + margin, the margin will vary to the geographical area in rural
area margin will be low in the transitional area it will be moderate and in an urban area, it would
be high so that we can increase the bottom base.
 Place- we will use a traditional channel like street hawker or personal selling home to home in
an urban house hole to minimize cost.
 Promotion- for the development we will rely on word of mouth or cheap guerilla marketing.
8.11.4. UNIQUE SELLING PROPOSITION

The enterprise will offer customized bangles to the customers according to their needs. The enterprise
will demonstrate their extensive knowledge in Lac, design jewellery colour combinations and current
fashion design trends. The enterprise in the later phase will offer advice on how to dress for specific
occasions and which bangles go best with which clothing.

8.11.5. COMPETITIVE EDGE

The competitive edge of the enterprise would be that we are primarily concentrating on the selling of
bangles made from Lac, while other competitors also focus on glass and metal bangles. The services of
the enterprise will also include creating custom pieces for our customers according to their design needs.

8.11.6. MARKETING STRATEGY AND POSITIONING

 Positioning statement: Tailored and customized bangles for each customer.
 Pricing Strategy: The Enterprise will use a dynamic pricing model. All jewellery will be
marked with prices. However, the pricing policy will allow for some flexibility. To increase
sales revenues, our sales representatives will be authorized to offer a maximum predetermined
discount to extend to their customers. This incentive will provide the customer with the
perception of extra value and a bargain purchase.
8.11.7. PROMOTION STRATEGY
 Website: The enterprise will develop a website after the first six to twelve months, which
will be an informational site and will not list our products. The website will have our
location, fashion related articles and announcements of new products.
 Social Networking Sites: The products would be promoted on social media sites such as
Instagram and Facebook.

8.11.8. SALES STRATEGY
Being it a new business, the enterprise understands that they will have to prove their Company’s worth
to customers to earn their business. As equally important, they need to sell both the Company and
products.
They will have approach sales from a salesperson-customer relationship basis. All sales representatives
will be trained and encouraged to assist customers in a personal and engaging manner. By gathering
vital customer information and seeking design feedback on our products will help us in the following
ways:

95. Page 95 of 125

 Targeting our marketing efforts more effectively.
 The developing product offers that will increase sales.
 Training and developing sales representatives to effectively service the customer.
 Developing future sales opportunities that allow for the continued growth of the business

8.11.9. SWOT ANALYSIS

The SWOT gives analysis of both external and internal advantage as well as weakness. The strengthen
and weakness is for internal evaluation. Opportunity and threats are for external evaluation. By using
SWOT analysis, we can evaluate our project in a systemic way which will be very much useful. SWOT
analysis gives a clear snapshot of the current situation of the project.

STRENGTH
 Lac is considered auspicious in Hindu Culture. As mentioned earlier, it has been mentioned in
various manuscripts. Hence the bangles have a demand in the market, always.
 Lac doesn't irritate skin during summers, like metal. Therefore, it's preferred in areas
experiencing higher temperatures.
WEAKNESS
 Lac bangles break easily. During summers or exposure to high temperature makes them warp
and lose their form
OPPORTUNITIES
 Contemporary designs can be introduced using the simple techniques of ornamentation like
leheriya, feathering, etc. The pastel shades are much appreciated abroad and have there can be a
massive scope of export
THREATS
 The cold lac process has taken over the current market, and many consumers are not able to
figure out the difference between cold and hot Lac. Cold Lac has many advantages over the hot
Lac and has proved more profitable to the sellers.

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8.11.10. PORTERS FIVE FORCES


Porter's Five Forces model helps us to cope change of day to day analysis it also help us to identify
which force have large impact so the we can make strategy and prepare our self accordingly , in fish
farming by using 5f we came to know that threat of supplier is high by using this analysis we can prepare
our strategy and may find alternative , porter 5f is powerful tools which can help us to cope dynamic
environment
Porter's five forces are:
1. Competition in the industry
2. Potential of new entrants into the industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products

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The threat of new Entrants: - Entrants Since bangle making is skill intensive and require cultural
capital and talent more than finance due to this threat to the new entrance is low mainly traditional
community engage in this business.

Bargaining Power of Buyers: - Cost of switching cost is low, and the buyer can get other stuff easily
also bangle is not differentiated product; thus, the threat of customer is high.

The Threat of Substitute Products: - Because of globalization and industrialization traditional bangle
can easily replace by factory-made stuff; hence the threat of substitute is very high.

Bargaining Power of Suppliers: - Bangle is durable and portable and can be stored for ages, even a
street hawker can carry and sell it, inside colony the threat of supplier is low.

Rivalry among existing firms: - Threat of competition is high because by globalization and cheap
Chinese bangle.

98. Page 98 of 125


8.12.0. FINANCES

8.12.1. CASH FLOWS

Expense

Amount
Bhatti 200
Silli 500
Hatta 500
Sel 500
Sigadi 300
Cutter 150
Stove 700
Chimti 150
Khadhi 600
Cutter 150
Website 8000
Fixed Cost 11750

Bejar Resin 200 / kg, Amount 5 1000
White Soft Stone Powered 10/ kg 100
Color Metal Powder 2000/ kg, 1kg 2000
Glass 500
Dye 100/kg 100
Coal 1000
Metal Brass 200
Variable Cost 4900
Total Cost 16650

Produce 500 Packet
Price Rs.40
Sales 20,000



8.12.2. CAPITAL

Share Capital Bangle
(%)

99. Page 99 of 125

Members 1000 Each 8
Member 10000 60.06006
Loan 6650 39.93994
Total Share Capital 16650 100

8.12.3. B.E.P. IN YEAR

Year 1 2 3 4 5
Fixed Cost 11750
Variable 4900 4900 4900 4900 4900
Total Cost 16650 4600 4600 4600 4600
Gross Profit 20,000 20,000 20,000 20,000 20,000
Net Profit 3350 15400 15400 15400 15400

Fixed Cost

11750
Year 1 2 3 4 5
Income Per
Year 3350 18750 34150 49550 64950
BREAK-EVEN POINT = Approx. 1 Year and 5-Months

8.12.4. B. E.P. IN VOLUME
Unit Cost of Bangle Per Packet

Resin 2
White Powder 0.2
Metal 4
Glass 1
Dye 0.2
Coal 2
Brass 0.4
Total Cost 9.8
Selling Price 40
Contribution 30.2







B.E.P. in volume

Fixed cost 11750
cost 9.8
selling price 40
contribution 30.2
B.E.P. in Volume 389.07

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389 packets need to be sold

101. Page 101 of 125

102. Page 102 of 125

9.0.0. CONCLUSION

As we already know, the village is the soul of India. The development of village economy is the top
priority of the government. In order to develop the local economy, we must map the various capital
available in the GP, and it is essential to categorize different capitals like social, physical, natural,
human and social. Looking capital through this category give holistic view.by analysis of capital and
vulnerability, we can make a livelihood plan.
This assignment explained and worked on generating livelihood for Gram Panchayat Amrakh we have
drawn our idea from DFID model by providing full details on it. This project also emphasizes on main
concepts related to livelihoods like goat farming, fish farming, bangle making and FPO.
For any prosperous livelihood collective mobilization, external intervention and proper human resource
are needed. This the reason this report put emphasis on a group rather than an individual.
In order to promote economic growth at a provincial level, we must encourage a variety of financial
and economic activities focusing only on traditional agriculture and manual labour is not enough we
must teach them semi-skilled work like goat farming. Fish farming and women-centric work like bangle
making to make inclusive economic development. We also put emphasis on collective work handling
and village level entrepreneurship.
The whole credit goes to our project mentor and group members for making this project enjoyable.
Thank you.

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9.1.0. LEARNINGS

We got a fantastic chance of doing this project under excellent mentorship we learn a lot while doing
as well as by this project. We got vast learning from this project; we realised the importance of
teamwork, time management, group cohesiveness and communication to complete any group task.
We also learned the importance of various capital in livelihood promotion as well as structural change
affect livelihood. We learned how beneficial role data play and the success of any livelihood plan
depends on a collective step in which community mobilisation and different technical analysis play a
key role.
We got to know about the holistic view of factors which affect livelihoods like capital, institution, social
structure, market and individual and how intervention and structured framework like DFID play a
significant role in developing the development should start from the individual level we also got unique
learning by working in pandemic like situation, the considerable knowledge was that how to cope
connectivity issue and group coordination we use the internet in order to coordinate but we realise the
importance of
Group norm, group role, group co Ordinator in order to complete any work or report, not only learn
about our group role because of this project. We also realise how to collaborate with local people
through the internet in order to collect data as well as the importance of reporting and handling internet
and techniques in order to interpret from data to draw a broad conclusion. It also teaches about
individual responsibility toward the group and group responsibility toward the individuals and how to
manage and handle group conflict and phenomenon like groupthink by regular collaboration and
brainstorm.
This entire learning help as to become one per cent better it also helps to improve our self-further, and
we will keep this learning and will aim for something big.

Our overall learning is vast, and we are very fortunate to learn all this through this project.

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105. Page 105 of 125

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
 Wheat Cultivation Income, Profit, Yield, Proejct Report ....
https://www.agrifarming.in/wheat-cultivation-income-profit-yield-proejct-report

 Irrigation water management in paddy | agropedia.
http://agropedia.iitk.ac.in/content/irrigation-water-management-paddy

 Zhang, Jinshui, et al. “Estimating Plant Distance in Maize Using Unmanned Aerial Vehicle
(UAV).” PLoS One, vol. 13, no. 4, Public Library of Science, Apr. 2018, p. e0195223.

 Money Manager in Excel - Apps on Google Play.
https://play.google.com/store/apps/details?id=com.moneyfix&hl=en

 Agriculture of Bihar - Wikipedia | WordDisk.
https://worddisk.com/wiki/Agriculture%20of%20Bihar/

107. Page 107 of 125

108. Page 108 of 125

11.0.0. ANNEXTURE

11.0.1. THE PROCESS OF GOAT FARMING


























Contruction of shed.
Selection of goats.
Immuization of the goats.
Feeding the goats.
Breeding of the goats.
Keepingthe Goats Healthy.
Selling the goat.

109. Page 109 of 125




Preparation of Shed for goats:

Resource for construction shed

Locally available materials can be used for shedding the goats, as it's a cooperative there would be a
shortage of funds. The best way is to use the local resource available.

Material Utility
Wood Use as pillars.
Jute sacks To cover the shed in winters.
CGI iron sheet Use for roofing.

Shed Management

 During the Day time, the goats must get appropriate sunlight in the Sheds as it is hygienic for
the goats to get sun rays but the shed in winters should be protected with jute sacks to protect
the goats from cold.

 The shed should be cleaned regularly and should be free from filth, as it adversely affects the
health, growth and reproduction ability of the goats. The death rate of the kid goats may rise
with the exposure to dirt and filth in the shed.

 The sheds should be sanitized at least twice every week with lime to control the external
parasites for goats.

 There should be a proper fence around the shed for the security of livestock.

Selection of Goats

The goat-farmers need to select good quality goats as it plays a very vital role in Reproduction and
bodily development of the goats. The production cost of the goats can be lowered by choosing the goats
intelligently.
The best quality buck and does should be selected for reproduction. Picking decent buck and does for
reproduction will give decent quality kids and good quality kids will get the farmer better prices in the
market. The effect of selection, therefore, remains for a long time, so one must choose the quality of
the goats wisely.

Goat selection is done for:
 For improving the reproduction ability.
 For improving the growth and meat production.

Method of selection

While selecting the goats one must be very careful and select goats with straight legs with a wide body.

Method of observing physique of the goat:

 The goat would have a wide chest.

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 The goad should have a shining and striking body, there should be a good growth of
reproductive organs of the goat.

Method of weight estimation through measurement:

 While determining the goat, the goat should be at standing still position with all the four legs
on an evenly levelled surface. The measurements should be in inches and weight should be in
kilograms.


The weight of the goat can be estimated by:

Weight (Kg) =
Length ∗ breadth ∗ circumference
660


Where,
Length (inches) = Length between shoulder to butt-bone.
Circumference (inches) = Circumference of the chest.


Selection of goats for breeding

The following points should be considered while purchasing a goat for breeding:

 How many times the goat give birth in one year.
 How many kids at parturition?
 The record of miscarriage and live birth.
 How many kids are successfully weaned?


Points to be considered while making the purchase of goats for breeding.

The following points should be considered before purchasing the goats:

 The goats should be not be procured from within the community as it increases the chances of
interbreeding.

 The genetic information of buck and does should be considered while procuring them.


Controlling the parasites and vaccination for infectious disease

Parasites

 Parasites feed on nutrition from goats.
 Internal Parasites lives inside the body of the goat.
 Parasites attack the healthy goats and if the attract is severe may lead to the death of the goat.

Lungworm

Cause:

Lungworm is developed in goats when the goats eat grass with the eggs of lungworm in it.

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Symptom:

 Mass loss of the goat.
 Loss of hunger.
 Dull skin.
 Swollen Mouth of the goat.

Tapeworm

Cause:

In goat’s faeces of infected with tapeworm, eggs and small pieces of worms drops on the ground; such
particles may be swallowed with grazing grasses by cattle, and enter to stomach and intestines and such
tapeworms are developed.

Symptoms:

 Anaemia.
 Weight-loss.
 Constipation in defecation.
 Seen tapeworm in the goat faeces.
Treatment and control:
 Praziquantel: 5mg/kg feed goat as per body weight.
Immunization of the goats.
Proper immunization is very important for the goats as it would directly help in having good health of
the livestock.
Vaccine Schedule for goats.
PPR

Cause:

 The disease is caused to the goats by viruses.

Symptoms:
 The goats have a fever.
 Eyes of the goats are red.
 Difficulty in the breathing of the goat.
 Faeces of the goat gets watery and sometimes mixed with blood and mucus.

Treatment and control
 There is no effective treatment of PPR, therefore it is better to be preventive.
SN. Name of the disease Time for vaccine Interval for vaccine
1. PPR After 3 months of age Once in every three years.
2. Foot and mouth disease (FMD) After 4 months of age Once in every year.

112. Page 112 of 125

 Sick goats should be isolated.

Foot and Mouth Disease (FMD


Cause:
 Food and mouth disease is caused by a viral infection in goats. It is comparatively less in
compared to a cow, buffalo and pig.

Symptoms:

 Fever.
 Lost appetite.
 Munching Mouth.
 Swollen tongue and abscess.
Treatment and control:
 Isolate the sick goat from the heard.
 Cleanse the wounds in the legs and apply ointment.
 Cleanse sore of mouth with a salty solution.
Feeding the Goats
Nourishing the livestock appropriately is one of the main obligations for the proper development of the
livestock. The best fodder for the livestock is green grass. Grasses obtained from grasslands, edges of
farmlands and fodder plants are considered best for goats. The availability of grasses should be ensured
throughout the year for evading shortage.
Basic feed for a goat
 Water: A healthy goad must Drink at least 5 litres of water.
 Forage and fodder: Forage and fodder can be fed to goats depending on their weight. The
table below indicates the fodder required according to the weight of the goat.
Goat Fodder and forage
10-15 kg 2-3 kg/day
20 kg 4kg/day
25 kg 5kg/day
30kg 6kg/day
Required forage and fodder according to its weight
 Balanced feed: A balanced feed is very obligatory especially to the sick, recovering and
growing goats.

Raw materials Raw protein in percentage
Maize 10
Wheat 10
Rice Bran 12
Wheat Bran 14
Millet 11
Bi-product of oilseeds 27

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Soybean or bi-product of Soya 41
The raw material used for making balanced feed

Natural feed

Napier Grass

This grass is produced largely among soil grasses. Napier has various kinds of species which can be
grown in different climates. Dry or wet, in small land or commercial farming; Napier grass is an
evergreen, a strong grass, has roots in knobs and with small hairs. From its knobs, strong roots are
developed and are 2-3 meters tall.

The geographical requirement for Napier Grass

Napier is a perennial non-leguminous grass which is grown up to 2000 meters elevation. Its growth is
good at 25-40 ̊ Celsius and needs 1500 ml. rainfall. But, in winter up to 15 ̊Celsius, its growth delays
and dies in the snow. Napier does not grow in swamps and best grows in risen land. It does not bear
with dews.

Cultivation Time
Appropriate time of cultivation for Napier grass is May/June and June/July, but in the irrigated land, it
can be cultivated from September/October to February/March.
Cultivation Method

It can be planted with 3 nodes cane of Napier in slanting position at 45 ̊ and spacing at 15cm. plant to
plant distances. While cultivating, put 2 nodes covered by soil, and 1 node in top of the ground surface.
There should be a row to row distance of 90-100 cm in plain land; whereas, there should be plant to
plant distance of 50 cm. and row to row distance of 60 cm. while planting at the edge of a farm in sloppy
land.

Harvesting
After 75-80 days (around 3 months) of cultivation, the first harvest can be done. Thereafter, harvest can
be done in every 15-45 days interval (in summer). 6-12 inches from the surface level, grasses need to
be cut while harvesting grass. It yields 4-5 Tons of green grasses from a Ropani land which is enough
for 24 goats on average.
The goats will be taken to graze in the land on a rotation basis.

Feeding Methods.
 For easy nourishing of the goats, fodder always is given in stall-fed, and if stall-fed remains
empty, it shows the insufficiency of forage and fodder to the goat.

 Twice in a day, goats should be nourished in the morning and evening; and changing of water
and feeding time table should be continued at the same time.

 Unnecessarily, feed should be avoided. Overfeeding may cause bloat out the stomach and
sometimes which lead to death.

114. Page 114 of 125

Breeding of the goats.
The oestrous rotation for a doe is around 21 days; in 21 days doe gets in heat, and searches buck for
mating. After mating, doe gets pregnancy for 5 months or 150 ±5 days. Breeding of doe is not fixed
on season/time. The crossbreed of Boer and Khari, it gives birth to a single kid in its first parturition,
and second time onward, it can give birth to two kids. Well-fed, well-nourished does
have an oestrous cycle in the winter and summer too. Accessibility of satisfactory forage and fodder;
and in location moderate with temperate, in between July and August to October and November more
cases of does are found in heat. In high hill and Mountainous belts, always does do get heat in hot
months.
Things to be considered while Breeding.
 Age should be 7month or above.
 Avoid inbreeding.
 To avoid uncontrolled pregnancy Parent doe and buck should not be kept mixed in the same
space,
 Maintain a ratio of in average 25-30 does for breeding by one buck.
 Buck for breeding should not be raised to heavy or too skinny.
 Buck’s age must be touched 8-month-old and can be in reproduction service for 5 years.
 Breeding management should be maintained in such a way that there should be no parturition,
in the winter season- November and January and heavy rainy season July/August. It means
there shall not be mating in July, August and September. If parturition in these months
happens, kid’s mortality rate will be high or becomes difficult of rearing kids.
Keeping the Goats Healthy.
 Feed adequately and quality feeds along with clean water.
 Know major diseases and vaccinated against those diseases Control of internal and external
parasites
 Keep ailing goat/s separately and do not mix with healthy goat/s Thoroughly screen at the
time of bringing new livestock/goat
 Construct good shed to protect from the unsuitable climate

115. Page 115 of 125

THE PROCESS OF FISH FARMING.






Selection of site for fish farming
construction of Ponds
filling the pond with water
getting the machinery Ready
feed management
disease in fishes
Catching the fishes

116. Page 116 of 125

Construction of Ponds















Fish farming is a very old method of farming which has increases its markets in recent years. Fishes
are a great source of vitamins and proteins, though commercial fish farming a person can grow a
different variety of fishes for human consumption.
Building a fish farming pond is a tough task, but running a fish farming business is very rewarding if
properly done one may get very good returns in the long run.

Selection of site for fish Farming
The success of a fish farm depends on the selection of the right place. The site chosen must have a
good water supply all year round and the soil must have a good water retention capacity. Site
selection factors can be divided into 3 categories as:
 Biological
 Ecological
 Social

Biological Factors
Biological factors are concerned with fish species chosen for culture purposes. Seed source, variety,
culture type, species, etc. must be considered at the time of establishing a fish farm.

Ecological Factors

Climate, soil, water and topography are the primary factors that must be considered when constructing
fish farming ponds. These can be enumerated as below:
 Primarily the soil must be able to hold water in a pond. That is it must have good water retention
capacity.
 Take a handful of soil in wet hand and squeeze it. If the soil retains the shape after opening the
palms, the soil is suitable for establishing a pond.
 Rocky, limestone, sandy soil must be avoided since they cannot retain water.
 Loamy soil, clayey soil, silt etc. are best suited for pond construction.
 Gravel if present must not be more than 10%.
 Water must have a neutral pH. In the case of acidic or alkaline water, suitable corrections must be
done.
 The pond must be constructed near natural water bodies like ponds or rivers. However, it should
be away from flooding area.
 Water salinity is another factor that must be considered as not all fish can tolerate saline water.

117. Page 117 of 125

 Land topography is essential for engineering the pond construction. Areas like industrial zone,
flood-prone areas, areas with poor rainfall, electricity poles and densely rooted vegetation must be
avoided.

Things to be considered before digging:
 Ensure that no electric line, the gas line is buried below the ground.

 If ponds are being dug near big trees please ensure that the root system of the trees should be
taken care of and stopped to be growing in the pond.

Lining the fish pond
Once the fish pond is dug, line the pond with a rubber liner or a tarp. The tarp used in fish pond
should be suitable for fish ponds so it doesn't harm the fishes. Before laying the trap at the bottom
first make a thin layer of sand across the surface area of the hole to reduce the tears.
And to protect this liner or trap one can also use geotextile fabric that protects runner liner from
getting damaged. The main reason for using a trap is it protects the water from seeping out into the
surrounding lands. If trap not used water should be supplied constantly into the pond to maintain the
water level in the fish pond.
Ponds can be sealed without rubber liners or traps; these are also many other best and feasible
solution available other than liner and traps. But the process depends on the soil type where farming is
being done. Based on the clay content of the soil one can also use sodium bentonite as a pond sealer.
Many sustainable and cheap pond liners can be used. One can also use polyethene with ethanol-based
plastics which is better than fossil-fuel-based plastic liners.

Filling the pond with water

 Once the pond is fitted with liner and trap then place a big stone at the centre of the pond, this
protects liner and traps from floating when the water level falls.

 Filling up the pond depends on the size of the pond. Water should be filled from the side so
that it will help to trap to confirm slowly to the weight of the water. And place stones at the
outer edge liners or traps from falling as the number of water increases
 If one is not using a pumping system, then fill the pond with fish. Fish need oxygenated water
to live and stay healthy. Place the running hose in water to generate oxygen in water, water
should be oxygenated 2- 3 times in a week and time duration should be 15 to 30 minutes.
Machinery

Water filtration systems

Water filtration systems are very important and it shows a great impact on the ponds environment.
Filtration ensures removal of waste products from the pond water. There are several types of filtration
system which can be used depending upon the requirement.

Predator Control

Proper equipment must be fitted to the pond for keeping the fishes safe. Proper fencing can be
installed.


Introducing fish into the pond

118. Page 118 of 125

while introducing fish into the pond, make water to settle completely, so that dirt gets settled
completely. Now mix fishes slowly in the fish pond water in a bucket full of water first for 10- 15
minutes which will help the fish to acclimate to the new water pH levels.
Now slowly tip the fish into the fish ponds. Minimizing the stress levels in the fish will increase the
rate of survival and make to adjust to the new environment quickly.
Don't make mistake by adding all the fishes at once, add in small amounts and check to wait for 2-3
weeks. If the maximum number of fishes is alive, then add remaining fishes.
If there appear to be dead fishes in the pond, check the cause, before adding the remaining fishes. The
pH level of the soil can cause the death of fishes, some fishes require a set pH level to survive.

Feeding the fishes

Feeding the fishes is one of the main parts of the fish farming business. Fish needs good and
nutritious feed for proper growth and survival. Feed management plays a very important role in fish
farming. The feel which is fed to the fishes should be well balanced and includes protein,
carbohydrate, fat, vitamins, minerals and water. Mosses are aquatic insects are considered as a natural
feed to the fishes but are not sufficient. Along with natural feed, the fishes need to have a
supplementary feed, as supplementary feed ensures fast growth of the fishes.

Natural fish feed

The natural fish feed consists of the feed which is already present in the ponds. It can be in the form
of aquatic insects and mosses. Below is the list of natural feeds which is available in the pond.
 Tiny aquatic insects.
 Varieties of gases like para and Napier.
 Plankton.
 Rotten part of animal and parts.
 Basal organic elements.

Supplementary fish feed ( it can available in free )

Along with natural fish feed, it is very important to provide supplementary foods to the fishes for the
healthy growth of the fishes. As when the fishes grow bigger it may not be sufficient for the fishes to
survive on natural feed. The supplementary feed can be prepared at home and also can be bought from
the market. Supplementary fishes include.
 Rice bran
 Fish meal (fish powder)
 Crop grain
 Green leaves of various vegetables
 Kitchen leftovers
 Dried molasses etc.




Storing the Fish feed

 Low moisture fish feed and dry pellet feeds are stored only for 2-3 months and these should
be stores in a dark cool and dry place.

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 High moisture feed and moist pellet feed can be stored for one week, store them in a freezer,
if that facility is not available, use them as soon as you buy the feed.

 The powdery fish feed will pollute water if left in the water for a long time. They should be
cleaned regularly.

Diseases in Fishes

Fungal Disease.

This disease causes extensive losses. It occurs to the fishes at the post-spawning time. It appears as
white spots on the fish skin. White mats appear initially on the skin, which spread gradually to the
deeper tissues and eventually causes death. Eggs are attacked in all the stages.

Control

Malachite green zinc-free grade, potassium permanganate, copper sulphate salt are common
therapeutics for effective use. Copper sulphate may also be used for pond treatment.

Bacterial Gill Disease

The myxobacterial complex has been found in the affected gills. Fingerlings cause retarded growth
and poor survival.

Control

Short baths in 3% common salt solution is found to be more effective than antibiotics. Two
subsequent treatments with a gap of one week cure the disease.


Artificial cheap pound can be made from local equipment which can breed

Feature of this pound

 Compatible
 Cheap
 Utilize any barren land or open land and convert it into pound
The cost of constructing this kind of pound is very cheap we only need open barren land and some
solid material to act as a boundaries of fish pound almost all material is easily available and can be
available in free .

Deliverable we need
 Plastic waterproof more than 900sq ft
 Rock or solid object for boundaries easily available
 JCB on rent
 Pump
Only this equipment we need to prepare such pound
JCB is easily available for digging it take charge of 300rs hour to 400 Rs if we take 80 hour it will
enough to dig pound which can contain 5000 fish , by this method we can convert any barren land and
convert it into pound we can even use small tool for making small pound , we can utilise any kind
space by this process

120. Page 120 of 125













This kind of cheap pound can be prepared in any space

121. Page 121 of 125

PROCESS OF LAC BANGLE MAKING


PREPARATION OF MATERIAL

Variety of materials bought in raw, natural form are first processed to suit the process of making
bangles. This predominantly needs enough plasticity to form coils when heated and then set itself to
become permanent in the given form, when cooled down.

Preparation of Base Mixture
The artisan first puts, Chapadi (Burnt umber) in a Kadhai along with Berja (Burnt umber/ochre
depending on the requirement), in the proportion of 1:1. The mixture is heated until it turns into an
ochre yellow liquid and is stirred all the while. The Kadhai is installed on a stove and the domestic
purpose LPG gasoline cylinder is used as the fuel. The artisan then adds an equal amount of Ghea
Patthar powder in the mixture, which changes the colour of mixture to dark brown. The mixture is
stirred well and water is added to it to make it easy to stir. Pieces of lac bangles are also added which
come out during the making process. The mixture is then allowed to cool down and spread on the floor.
The artisan kneads the still-hot mixture with his hands and a piece of stone. The dough prepared is then
rolled into thick coils and Haiti (A wooden rod) is attached to one end of it.
The amount of lac used every day depends on the production of a particular artisan. With four family
members working for 6-7 hours every day, working continuously, around 25 kg of lac is used up.

Preparation of colour block
The colour of bangles is separately applied on top of the base. The colour is available in the market in
the form of solid chunks which can be easily crushed. Particular colours are added to the mixture of the
base itself and heated along. For the rest of the colours, the artisan uses a thin Haiti (A wooden stick)
and heats it slightly. He then places Chapadi (Burnt umber or ochre depending on the colour block
which is being made) and colour in powder form or solid chunks, on Silli (the metal plate) above the
coal. Since Haiti and the Chapada are warm enough, they stick. The artisan keeps placing Chapadi over
another Chapadi and they all stick because of the heat. All the while he heats the lump of lac over the
coal in front of the table. If the colour is in the form of solid chunks, he places the lump of lac over the
pieces of colour placed on the table and the colour sticks to the lump because of heat. If the colour is in
powder form, he flattens the lump of lac and puts the powder over it. With the help of a large piece of
stone, he starts kneading the lump of lac and colour together, while still attached to Haiti, to evenly mix
the lac and colour. This is given the form of a cube and used.

PROCESS OF MAKING OF THE PRODUCT

The dough of lac which is attached to Hati is placed on the Bhatti. The artisan picks up a colour block
attached to its stick and places it over the coal to heat the colour. The colour is applied over the lac
evenly and the colour block is kept aside.
Due to the heat, the lac gets softer and with the help of Hatta, the lac is pulled into a thin coil (Around
1 cm diameter). The coil is cut using Patti to a length which is the circumference of the bangle. Hence,
length depends on the size of the bangle required. This coil of lac is then placed inside Khali. The artisan
presses the coil with the help of Hatta. The coil takes the form of the cavity from below and is flattened
on the top because of pressing.
The coil is taken out and placed over the coal to warm the ends. The two ends are placed on Khali, and
taking its support they are joined. The ends are easily joined because of the heat.
The deformed circular bangle obtained is put over Sel (cylindrical wooden rod, which is the as thick as
the required size of the bangle). The bangle becomes into a perfect circle and using a ragged cloth, the
artisan continuously rubs the bangle for about 2 to 3 mins to obtain a shiny surface. The bangles are
dipped in water and rubbed again. Spit is used at times for more glossiness. The bangle is then ready
and placed in water to cool down.

122. Page 122 of 125


ORNAMENTATION & FINISHING

Ornamentation can be again categorized under two broad categories;

• Ornamentation rendered through the making of the bangle itself, where it is part of the structure; such
as Lehariya (play of two to three pastel colours, wave-like patterns of diagonal lines).

• Ornamentation after the main structure or form of the object or bangle is ready. In this case,
ornamentation can be done any time later; for example, bangles are studded with bright coloured stones,
glass pieces or beads. Also, patterns on bangles are created using lac like Chandra Bai ka Chuda
(designs created on bangles using a thin piece of lac)
Ornamentation is rendered through a variety of processes and materials
The most sought out method of ornamenting the lac objects is by introducing semi-precious or precious
stones or mirrors to the surface. They vary in different size, shape, colour, and cost. A metal plate is
placed over Sagadi on which the coloured stones are kept. With the help of a Chimti each piece of stone
is carefully picked and place on the bangle according to the pattern required. As the stone is hot, the lac
melts slightly, creating a cavity. It fits in perfectly and does not come off when the bangle is cooled.
Similarly, the artisan inserts the mirror pieces on bangles.

The Process of Making Bangles:



The other process of ornamentation includes – Leheriya

Leheriya is a term given to a typical spiral of two colours on the bangles. These bangles are extensively
made and worn during the rainy season. The process of making Lehariya is as follows:
The dough of lac which is attached to Hati is placed on the Bhatti. The artisan picks up a colour block,
for example, red, attached to its stick and places it over the coal to heat the colour. The colour is applied

123. Page 123 of 125

over the lac evenly and the colour block is kept aside. He then picks up another dough of lac attached
to another Hati, and repeats the process, using a different colour, for example, golden yellow.
Due to the heat, the lac gets softer and with the help of Hatta, the golden yellow coloured lac is pulled
into a thin coil (Around 0.5 cm diameter). The coil is cut using a cutter to a length of about 1.5 inches.
This is the process when a single bangle of Lehariya is being manufactured, hence the length depends
on the number of bangles made at a time.
The golden yellow coil of lac is then placed on the red dough of lac (as described in the image). The
red coloured dough of lac is reheated and placed on Silli. The artisan then presses the dough of lac and
simultaneously rolls the Hati, pulling out coil (1.5 cm diameter).

ADULTERATION IN RAW MATERIAL

Adulteration is common in every craft but it has a possibility of greater damages in this specific. Lac
bangles tend to wrap and break easily, adulteration weakness it further. To the horror of consumers, the
bangles break on slight shock.
Since the making of lac bangles is no more a limited craft, it is practised all over the country and by
many people. Many people from lower economic background have started working with this craft in
Jaipur. The demand for bangles has also increased with the increase in popularity. Tourists from
different parts of the country and the world, come to this place to especially buy bangles. Hence, to
meet these business requirements, the labours have found a way to save money and produce more
bangles.
Adulteration was observed to be practised in some workshops in the city. The craftsperson does not add
Chapadi and rather adds Berja in more amount and ground powder of broken bangles. The lac, even
though is recyclable, is not done on this scale. This adulteration leads to the fabrication of weaker
bangles.

INTRODUCTION OF COLD LAC

Cold lac, as mentioned before, is a newly introduced method in the market. This section plains that
despite being called a lac, these bangles have no traces of natural lac in them.
Unlike the pastel shades of hat lac bangles, these bangles are completely covered with semi-precious
and precious stones. With the introduction of cold lac process in the market was observed that the
traditional craft of lac bangles is losing its market. Customers are unaware of the fact that cold lac
process doesn't involve lac. To take advantage of this, the so-called lac is being sold in the place of hot
lac bangles. Cold lac practices have also disturbed the Socio-economic balance by bringing in child
labour at a mass scale.

PROCESS OF MAKING

Cold Lac in prepared by mixing marble dust with epoxy resin. The Cold Lac processes use the marble
dust which Chemically different from Lac. The mixture is stirred well in a metal container. When it has
to be used, colour pigments and hardener are separately added. The mixture is kneaded using marble
dust again and can be used clay.
The crafty person takes some amount of coloured dough and makes coils. He then picks up metal
bangles (Width around 15 inches) on which the coil is wrapped around and pressed so that it evenly
covers the outside surface of the bangle. The bangles passed on to the next person wheel inserts gems,
starting from the centre.
The bangle is completely covered with gems. The layer of lac beneath acts as a background for the
overall design. In the end, the craftsperson pours sparkle powder all over the bangle to make it shine.
When the lac hardens, it’s strong enough to bear the physical shock. The Bangles made from cold lac
are strong and do not warp in the presence of heat.
The bangles are stacked together and placed on a piece of paper (yellow thick sheet of paper). The paper
rolled around the bangles, only to expose the half of the bangles, over it, a sheet of transparent plastic

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is placed and the bangles are completely secured inside it. Bangles are made in stand similar width
bangles are kept together.

DIFFERENCE BETWEEN COLD LAC AND HOT LAC PROCESS
Cold Lac
 This process does not use heat.
 The materials used in cold lac can't be reused.
 The bangles made of cold lac process are more durable. The bangles are not affected
by climatic conditions
 The patterns and lines have extreme finishing
 The complete process, from the preparation of materials to ornamentation has to be
done with a specific period
 The size of bangles made by cold lac process is fixed. This is because the bangles have
a metal base on which the resin is applied which is studded with coloured stones.
 The raw materials are cheaper than the raw materials used in lac bangles
 Storage of bangles is not an issue as the bangles don't break/warp in any condition
 The craftsperson does not need a lot of skill to master the process of cold lac Hence, it
takes around 6 months to pick up the process and start working on it.
Hot Lac
 The whole process is done with heat.
 Pure lac used in the hot lac process can be reused many times
 Not durable for long-term use. Lac tends to warp in the presence of heat. Hence,
especially during summers, the bangles have to be taken care of.
 Bangles like Leheriya don't have clear lines and patterns. This is a speciality of bangles
 The process is not time-bound. The lac dough can be heated any time to make bangles.
The ornamentation can be done any time after making the bangles
 The size of lac bangles is not fixed and can be changed any time with the application
of heat
 The raw materials are more expensive as they are naturally available materials
 Once the bangle is made it needs a lot of care while storing it. Bangles are always placed
vertically one on top of another
 A lot of skill and endurance to high temperature has to be learnt before a craftsperson
can master this craft. It takes around 2 to 3 years to properly learn the craft.

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