Issuu

FROM POVERTY TO PROFITS ANNUAL REPORT 2017 - 2018

CONTENTS 1.

In the Words of the CEO

About Us

Geography and Reach

Our Approach

Water Lifting Devices

Water Application Devices

Sustainable Agriculture

Social Returns on Investment

Financials

10.

Knowledge Partners

11.

Awards & Recognition

IN THE WORDS OF THE CEO One more year of learning from our key stakeholders- the small and marginal farmers. Listening to them led us to initiate some exciting programs that are creating very high impact in their lives. As I write this report, my colleagues continue to share how the program is transforming lives of so many farm families. Updates of increased productivity alongside market and trader engagement keep pouring in! We started IDE- India with one core purpose- to increase the income of small and marginal farmers so that they not only break through the shackles of poverty once, but cross the bar that would keep them from falling back into poverty. Today, I am both- heartened and overwhelmed to receive these updates. This year particularly saw us shift large part of our energies into initiating the crop program, included within the Sustainable Agricultural Products and Practices program component. Identifying crops that have best market value and understanding the market trends, we identified newer varieties (that sell in the markets) and that are high value and low maintenance. Due to sincere efforts of our teams, we have been able to promote these varieties with great results. I have also been told that there are few villages where some of these crops were consumed by farmers but never cultivated. The perseverance of our staff not only motivated these farmers to try cultivating these crops and varieties but also in following the package of practices which generated magnificent results. Many farmers received premium price for their produce. I hope you will enjoy read this annual report as much as we enjoyed toiling to create these results. I would like to close with expressing my deepest gratitude to all our partners in the program. Onwards, Amitabha Sadangi Chief Executive Officer: IDE-India

ABOUT US International Development Enterprises (India), hereafter referred to as IDEIndia, is a not-for-profit company working in India, focusing on enhancing the livelihood of small and marginal farmers in agriculture & allied sectors and enable prosperity. IDE-India is also a member of the ECOSOC (Economic and Social Council) of the United Nations. IDE-India stimulates a sustainable and free market by creating demand for affordable technologies and solutions and ensuring a sustainable supply chain. Working across multiple states in India, IDE-India has reached out to over 1.4 million smallholder farm families. Making small-plot agriculture more remunerative and thereby reducing poverty, hunger, and malnutrition remains IDE-India's guiding philosophy. IDE-India's technology is designed to be one-fifth the cost of its competitors, is scaled down to fit one-tenth hectare plots, and is able to generate sales at unsubsidized market prices. IDE-India's

technologies are low cost, offer a high return on investment for farmers, are simple and inexpensive to maintain, and are manually powered. IDE-India's focus on promoting high value, innovative varieties of crops that are low maintenance will contribute to increasing the productivity and incomes of small and marginal farmers.

IDE (INDIA) VISION

To reduce income poverty, hunger and malnutrition among the rural poor.

IDE (INDIA) MISSION

The organisation works with the mission to improve equitably the social, economic and environmental conditions of families in need with special emphasis on the rural poor, by identifying, developing and marketing affordable, appropriate and environmentally sustainable solutions through market forces.

IDE (INDIA) GOAL

To enable prosperity in the lives of 5 million small and marginal farm families by 2030. 7

WHERE WE WORK We are working with small and marginal farmers across the following states in India: Assam Bihar Madhya Pradesh Odisha Uttar Pradesh We work in the abovementioned states directly with our own team, down till the grassroots level. The team creates awareness, is available to meet with and interact with the interested farmer households and provides hand-holding to each farmer household that adopts IDE- India promoted technologies and services. IDE-India is also working in the states of Tamil Nadu and Maharashtra indirectly. Private sector is taking forward the mission of providing affordable irrigation solutions to the poor farmers. They follow the market-based approach and delivery the solutions. 8

Uttar Pradesh Bihar

Madhya Pradesh

Odisha Maharashtra

Tamil Nadu

Assam

OUR REACH DIRECT BENEFICIARIES

INDIRECT BENEFICIARIES

TREADLE PUMP FARMERS

7,877

37,022

DRIP SYSTEMS FARMERS

1,557

7,318

SUSTAINABLE AGRICULTURAL PRACTICES FARMERS

13,179

61,941

TOTAL

22,613

1,06,281

DIRECT BENEFICIARIES: Include all people who are experiencing a positive difference at the households level, as a result of receiving services, goods and resources directly from IDE-India or through a partner.

INDIRECT BENEFICIARIES: Includes all individuals who are not directly involved in project activities not receive direct services, good or resources from IDE-India but are still impacted in some way through our intervention. 9

APPROACH “When the poor at the bottom of the pyramid (BOP) are treated as consumers, they can reap the benefits of respect, choice, and self-esteem and have an opportunity to climb out of poverty trap.” Proff. C. K. Prahlad, The fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits.

distributors, retailers and installers to make available technologies/ services at affordable yet fair price to small and marginal farmers. Following this approach, IDE- India strives to make the technologies and services accessible to even the poorest farmer by address the following factors:

Poverty: Technologies/ solutions must be designed with the target market in mind- poor farmers with little capital who require a quick Return on Investment (ROI).

Product: Technologies are field tested with small and marginal farmers and adapted to local conditions to ensure appropriateness, effectiveness and return on land and labor plus additional profit.

Price: price is critical and therefore, all effort is made to produce products with low price points. Presence of multiple supply chain helps in increasing competition in free market, which ensures increase in quality and reduction of prices.

Promotion: effective promotion strategy is central to creating a groundswell of demand leading to a force multiplier and wild fire impact.

Place: It is important to consider the accessibility of the marketplace where small and marginal farmers can learn about and purchase the technologies and services. Therefore IDE- India focusses on village markets that are close to where the farmers live.

Packaging: All technologies must be packaged to meet small and marginal farmer requirements. Typically, technology and other farm inputs come in large packs that may not be suitable for use by the target group.

It should be noted that IDE-India only facilitates the supply chain. IDE-India establishes a supply chain on the one hand by carefully selecting partners that invest their own resources 10

IDE-India's approach Market Based Approach or the Free Market Led Poverty Reduction and Rural Development Approach is to put income generating solutions (technologies/ services) into the hands of the small and marginal farmers. To facilitate this, IDE-India as facilitator stimulates local private sector comprising of manufacturers,

(financially and others) and on the other hand generates awareness amongst the target group about the technology and services. The money spent on awareness creation is

subsidized through donor grants. IDEIndia does not buy or sell any product nor does it make any financial investment or profit in the markets.

1. WATER LIFTING DEVICES: IDE-India promotes water lifting devices called the Treadle Pump which are driven by human energy with a combination of lifting and pumping device. It is used in regions with high water table, up to about 28 feet. These are reliable and low on maintenance and lasts for 10 years.

Bamboo and the Surface Treadle Pump, Rope and Washer Pump and Concrete Pump. Different variants of the pump are promoted in different geographies but all work where water table is within 9 meters.

KB BAMBOO TREADLE PUMP

KB SURFACE TREADLE PUMP

KB ROPE & WASHER PUMP

Foot operated reciprocating type positive displacement pump to draw water with open channel water delivery system from shallow tube wells.

A foot operated reciprocating type positive displacement pump to draw water with open channel water delivery system from surface water source like dug well, ponds, canal etc.

A human powered hand operated pump used to lift water from open water source with applied human power in between 40-100 watt.

7,877

farm families were facilitated to adopt water lifting devices.

Use of water lifting devices replaces the use of diesel pumps thereby saving fuel and reducing carbon emission. Typically, it discharges about 3,5004,000 litres/ hour water (depending on body weight) and irrigates up to one acre of vegetable farm. There are three types of water lifting devices-

This includes those promoted under the state government- Government of Odisha's subsidy scheme in which 90 % subsidy is offered on the purchase of the treadle pump for small and marginal farmers.

A SIMPLE TECHNOLOGY HERALDS A NEW BEGINNING

“About a couple of years ago, my land was dotted with fallow strips. Watering the low yielding agricultural land with the swing basket was a tedious task and hiring a diesel pump from large landowners added to the woes. Today I am doing wonders with my smallholding growing varied crops, only because of the treadle pump, insuring my family against hunger,” says Rabi Majhi. Only a couple of years ago, Rabi was earning less than INR 70 a day by farming staple crops. Often, when the rains failed, Rabi would be forced to sell his family's assets to buy grain for food – they had to sell their valuable oxen two years ago during a dry spell. The farmer paid INR 60 per hour to hire a diesel pump to irrigate around an acre of land and the recurring cost was increasingly becoming a burden for the family. He often worked as a farm laborer to support his family. But soon his daughter's illness forced him to return to his small plot of land, it was at this point that he was introduced to the world of treadle pump. One day while attending to his dry patch of land, he heard a campaign announcing a video show in the neighbourhood. The villagers thronged in large numbers to watch the show and Rabi was quite amazed to see a simple technology change the lives of people. When he met the local dealer, Rabi had little technical knowledge, not enough capital, nor any idea how to get started; only a willingness to

invest what little money he had to support his family. Rabi decided to purchase the pump and started saving money to invest in the technology. After over a month, he bought the surface treadle pump. Currently growing a multiple vegetables – potato, mustard, tomato, eggplant, garlic, chillies, radish – Rabi has changed his crop pattern. His income jumped from INR 7,000 to INR 25,000 in a season. He is successfully producing vegetables year round. Rabi says that this investment has an impact on his income within a few months and subsequently presented new opportunities for his family: they started to eat better and more... three meals a day. In addition, he was able to send his son and daughter to attend coaching classes paying INR 300 per month. He has reconstructed his house and has invested in a Life Insurance Policy paying a premium of INR 1,380 per year for 25 years insuring a sum of INR 34,500. He was able to purchase three cows. Rabi recently sold one of his cows at INR 8,000 and used some of the profits to rebuild his house. He has also started selling milk in the local market at INR 12-15 per litre. Rabi, a progressive farmer, has convinced other village households to purchase treadle pump and begin or expand vegetable production for the commercial market.

2. WATER APPLICATION DEVICES: These include range of devices including drip irrigation and sprinkler systems. The technologies are significantly low in cost when

compared with commercially available systems, which removes the entry barriers for their adoption. They operate at very low pressure and

require 60-70 percent less water when compared with traditional irrigation system.

DRUM KIT

BUCKET KIT

INCOME MAXIMISER

A pre-assembled, pre-packaged drip irrigation kit to grow multinutritional vegetables for home consumption

A pre-assembled, pre-packaged drip irrigation kit to grow multi-nutritional vegetables for home consumption

Is a variant of the bucket kit, replacing the bucket with a low cost 20 Ltr double layered plastic bag.

CUSTOMISED SYSTEMS

MICRO SPRINKLER

IMPACT SPRINKLER

Low-cost drip irrigation system using thin walled lay flat tubes as laterals

A pre-assembled, pre-packaged drip irrigation kit for crop cultivation (mainly vegetables) for family consumption & earning

A low-cost, low-energy impact sprinkler specially designed to operate at low pressures

1,557

farm families were facilitated to adopt water application devices.

NOTHING IS MORE EXPENSIVE THAN A BEGINNING

Nothing in this world is permanent and change is good. Sometimes a small change can make a big difference in your life.

Rajaram; he was not making good business and was unable to repay the loan. Finally, caught in debt he was in a situation to sell his shop as well.

Rajaram, from Kamachipuram village, Theni district owns three acres of land. He resides with his wife and a five year old son. Unlike any other farmer Rajaram had the same ground water issue which was holding him back in agriculture. Habitually, he cultivated less profitable crops due to scarce resources. After so much of loss he incurred in agriculture, Rajaram gave up and wanted to start a small plumbing accessory shop in his village. He scrutinized money by mortgaging his agriculture land with a local money lender and invested to begin a shop. This time also luck did not favor

A few months before disposing his shop, Rajaram visited one of his friends in the next village. As he walked through the village to be with his friend, he came across a lush green field. Reluctantly, Rajaram approached the owner farmers and asked about the secret of his green field. There he learnt about the low cost drip irrigation system. Rajaram went and met some other farmers who were already using similar drip systems. Talking with them gave him first-hand information about the product and he could clarify all his

doubts. He thought this system would help him to save the available water and irrigate the land wisely but with too many debts already Rajaram was hesitant. Rajaram's friend helped him with money to install low cost drip system. This time Rajaram did not want to invest in big or less profitable crops so he irrigated the land and cultivated native vegetables that bring good rates from the market. In his first harvest he made INR 10,000. With the profit he met his wife's delivery expense. Rajaram is increasing the field under drip irrigation and with it also increasing the prosperity in his life.

SUSTAINABLE AGRICULTURE IDE-India recognizes that technology driven agriculture is just one of the ingredients needed to achieve sustainable rural livelihoods. Higher crop yields, reduced soil erosion, effective use of integrated fertilizer and pest management, for example by themselves are not enough. In order to identify different aspects IDEIndia has conducted a constraint analysis.

The key constraints that emerged are illustrated and explained as below: Constraints may occur at one of three levels in the commodity chains within which smallholders operate: The input market - the enterprises and organizations that provide the goods, services, and information required for agricultural production.

Information - timely and accurate market information to aid in decision making including crop prices, market opportunities, product standards, regulations, etc.

The output market - the enterprises and organizations that provide the goods, services, and information required to move the small farm production from field to consumers at economically rewarding prices. Technology - the technologies required to increase smallholder productivity, deliver the necessary inputs, and move outputs to markets.

Infrastructure - the physical and institutional infrastructure that facilitates market access and communication.

Policy - the policy environment within which smallholders and small enterprises operate, and

The on farm - the household production unit that consumes inputs to cultivate crops for self-consumption and for sale to output markets.

Constraints faced by smallholders

Finance - micro credit needs of smallholders and capital needs of enterprises that serve the smallholder market.

Capacity - The knowledge, skills and expertise of smallholders and the enterprises that serve them.

A thorough analysis of constraints at each market level and in each constraint category will normally result in a long and daunting list of market constraints. In order to limit and focus the potential areas of intervention, constraints are prioritized to identify the “key logs in the logjam” that can unleash growth potential for large

numbers of smallholders. Such leverage points may be found by identifying nodes in the value chain where a small number of firms act as intermediaries for large numbers of smallholders, or by taking advantage of geographic clustering of similar enterprises or production systems, or by identifying policy levers that will

remove constraints for many market actors at once. Constraints are ranked and prioritized based on the potential impact on smallholder income and the number of smallholders affected. Based on the understanding of the constraints, IDEIndia proposed to implement the model basis the following illustration:

IDE-India has adopted the model of training local farmers and establishing a cadre of trained young people and

women for delivery of this program. This will help build sustainability in the program. During the year, 53 new CWE

were established. They have in turn reached out about 13, 179 farmers.

A SWEET BITTER GOURD! Walking around a house construction site, it's tough to find the farmer Mr. Kumar Patel. But soon one person welcomes with a beaming smile and he is Mr. Patel. Unable to hide his overwhelming joy, Mr. Patel quickly shared, “See I am able to make a pucca (concrete) house because of the income I generated with the bitter gourd cultivation. I always stayed away from this vegetable because of the pest problem. Most of the farmers struggled to keep the plant (of this crop) straight and free from the pests. But following the tips provided by the IDE-India team helped me to harvest a bumper crop. I cannot thank them enough,” says Kumar. Kumar Patel and his fourmember family hails from Khariar block of Nuapada districts of Odisha. Owning about 1.60 acres of fragmented land was never a blessing and however hard he struggled he could never make his ends meet. His situation was exacerbated by sudden medical expenses and education related expenses for children. He was cultivating paddy on the major chunk of his land and few vegetables like eggplant, chilli and cowpea on the upland. Vegetables were cultivated for self-consumption only. Since he was not able to make enough money from crop cultivation, Kumar would often migrate out to generate additional income for better life

however the results were disappointing. Kumar learnt about bitter gourd cultivation through a farmer meeting where he learnt about advantages of cultivating bitter gourd. He was thrilled to hear that the crop had a good market value. IDE-India team's updated knowledge about local markets and price trends gave him immense confidence that even a small farmer like him could cultivate bitter gourd. He was encouraged to cultivate it on quarter acre only and selected VNR-22 variety as that sold well in the market. Kumar being a quick learner grasped the critical logjams for successful cultivation and learnt the importance of following the practices correctly. Although he was laughed at by other farmers, but he confidently raised a nursery for bitter gourd against the traditional practice of direct seed sowing, in late November. In the meanwhile, he made raised beds. In less than a month the saplings were ready to be transplanted. IDE-India team guided him to transplant them at a proper spacing and in a specific pattern. Seemingly a lot of space was wasted, however Kumar patiently followed what he was told. He understood that this would help in intercultural operations and will reduce labor requirement. As the

plants started to grow, so did Kumar's confidence. The introduction of and meticulous setting up of trellis was a landmark milestone. As the plants continued to grow and twine around the trellis, Kumar started to feel happy inside. He knew only good will come his way. The periodic use of vermiwash along with sustainable agricultural products protected the plants from pests. Following all the cultivation practices, Kumar generated net profit of INR 34, 760 from quarter acre of land. As Kumar generated income from this bumper harvest, he was very motivated to cultivate vegetables on his other land for selling in the market. He increased vegetable cultivation to include tomato, beans, cauliflower, cabbage, ridge gourd and cucumber. He generated INR 34, 000 net profit by selling surplus vegetables. His increased income is helping him manage household expenses and educational expenses of children better. He started the construction of a four-room concrete house and saved some money in local bank also. A happy Kumar and his family are determined to continue to change their fortunes and lead better lives!

NOTE: under each of the above-mentioned program, farmer outreach/ adoption is mentioned. Each of the numbers of farmer house hold are mutually exclusive. To exemplify, farmers who adopt treadle pump or drip irrigation system do cultivate vegetable crops and so do farmers who fall under the Sustainable Agriculture program, however each of the numbers mentioned are exclusive of each other.

Nursery raised by Kumar

Kumar with the harvest

Trellis installed at Kumar's field

Kumar’s harvest

Kumar with his wife plucking the ripe fruit 23

SOCIAL RETURNS ON INVESTMENT The start-up's receiving investments from social investors measure returns on investment along three parameters- primarily along Social Returns on Investment, followed by Environment Returns on Investment, followed by Financial Returns on Investment. This has been the trend for

more than one decade. Now even the Indian stock market comes with Environment Returns on Investment which meets triple calculation. We emphasise that neither we nor our donor community gets any financial returns, but the stakeholders namely,

associated micro, small and medium enterprises get financial returns on investment directly or indirectly through employment generation, increased productivity and income. We monetize all the impact and present it below for better clarity.

Critical SROI that IDEI measures are as follows:

Employment

655 Million litres

Diesel Savings

817 Million kWh

Electricity Savings

622 Million

31.1 Billion

person days

On Farm

1.14 Million

8 Million

6.17 Billion litres

person days

Installation

Water Savings

Installation

0.63 Million

63.8 Million

2.46 Million tCO2 Eq.

person days

Manufacturing

Carbon Emission reduction

Manufacturing

INR 144.8 Billion

0.02 Million

15 Million

person days

Retailer

Farmer Income Generated

*SROI is calculated cumulatively. 24

Income

Retailer

FINANCIAL EXCERPTS

KNOWLEDGE PARTNERS

AWARDS AND ACCOLADES

Templeton Freedom Prize for Social Entrepreneurship – 2005

Skoll Award – 2005

Ashoka Changemaker- 2006

Ashden Award for Sustainable Energy – 2006

Clinton Global Initiative – 2008

Ashden Outstanding Achievement Award – 2009

2000 Outstanding Intellectuals of The 21st Century

Who's Who Historical Society-2004

The Tech Awards - 2004, 2010 & 2016

Ranked 75th on the World’s Top Best 100 NGOs

The World Technology Awards

IPE CSR Corporate Governance Awards – 2012

Plasticon Award – 2012

Best Contribution to Society

Zayed Future Energy Prize 2010

Best Industrial Innovation

Accolades: Proff. M. S. Swaminathan

Accolades: Bill Gates

International Development Enterprises (India) Plot No.10, Local Shopping Centre, Adjacent Bal Bhavan International School Sector-12, Dwarka, New Delhi - 110078