Social Assessment and Social Management Framework for IFPVAP “Gram Samridhi Yojana� Ministry of Food Processing Industries Draft for Disclosure July 2019 List of abbreviations APFPS Andhra Pradesh Food Processing Society CPRs Common Property Resources DIC District Industries Center FUPs Firm-Level Upgradation Plan FPO Farmers Producers Organization FBO Food Business Operator FGD Focused Group Discussion FPI Food Processing Unit FSSAI Food Safety and Standards Authority of India GST Goods and Services Tax GoAP Government of Andhra Pradesh GoI Government of India GoUP Government of Uttar Pradesh GRCs Grievance Redress Cells IIFPT Indian Institute of Food Processing Technology IFPVAP The India Food Processing and Value Addition Program IPR Intellectual Property Rights KVIC Khadi and Village Industries Commission LAP Land Acquisition Plan Micro Enterprises Micro and Small Enterprises MUDRA Micro Units Development & Refinance Agency Ltd MoFPI Ministry of Food Processing Industries MSMEs Ministry of Micro, Small and Medium Enterprises M&E Monitoring and Evaluation NABARD National Bank for Agriculture and Rural Development NIFTEM National Institute of Food Technology Entrepreneurship and Management NMD National Mission Directorate NRLM National Rural Livelihood Mission NTIs National Technical Institutes NPMU Nodal Project Management Unit PAPs Project Affected Persons PIU Project Implementing Unit 1 PPP Public Private Partnership RPF Resettlement Policy Framework The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement RCTLARR SC Schedule Caste ST Schedule Tribe SSI Small Scale Industries SHG Self Help Group SA Social Assessment SIA Social Impact Assessment SMF Social Management Framework SECF Stakeholder Engagement and Consultation Plan SPIU State Program Implementing Unit TDF Tribal Development Framework TSP Technical Service Provider 2 Table of Contents Executive Summary…………………………………………………………………...…………..…6 1. Introduction ……………………………………………………………………………………..….9 2. Regulations and Policy Framework……………………………………..…….……...… 13 3. Socio Economic Assessment………………………………………………………..…….… 37 4. Social Assessment…………………………………………………………………………….… 42 5. Stakeholder Assessment………………………………………………………………….…...59 6. Anticipated Impacts and Mitigation Strategy………………………………………..68 7. Social Management Framework…………………………..……………………………... 72 8. Resettlement Policy Framework………………………………………………………..….77 9. Tribal Development Framework…………………………………………………..……... 83 10. Gender Action Plan……………………………………………….………………….………..92 11. Labour Standard Action Plan………………………………………………………….….99 12. Consultation and Stakeholder Engagement Plan…………………………………106 13. Monitoring, Evaluation and Reporting Plan…………………………….…………110 14. Capacity Building Plan…………………………………………….………………………..113 15. Grievance Redress Mechanism…………………………………………………………...116 16. Budget for SMF………………………………………………………………………………...121 17. Annexures…………………………………………………………………………….……….…122 List of tables Table 1: Socio – economic matrix of the selected districts (compiled through secondary sourced) .................................................................................................................................... 11 Table 2: National Level Regulations and Legislations Relevant to this Project ................... 13 3 Table 3: State Level Regulation and Legislation Relevant to the Project ................................ 16 Table 4: Relevant Acts and Regulations as per Food Safety and Standards applicable to Food Processing Units ............................................................................................................. 24 Table 5: Similar Schemes Applicable to Women and other Social Groups ........................... 27 Table 6: World Bank OP/ BP - Objective and Applicability .................................................... 33 Table 7: Population Distribution across the States – general category (Census Data, 2011) .. 35 Table 8: Population Composition of Vulnerable Section of Society ....................................... 36 Table 9: Literacy Rate amongst the Population .................................................................... 36 Table 10: Unemployment rate for person age 15 years and above ....................................... 37 Table 11: Gender wise segregation of Workforce in Unorganized Manufacturing units ..... 38 Table 12: Spread of Unorganized Manufacturing Units ....................................................... 39 Table 13: Key Challenges Faced by Unit Owners (NSSO Data) ............................................... 39 Table 14: Assistance Received by the Unit Owners (Out of 1000 unit owners) ...................... 41 Table 15: ICT Use by Unit Owners (Out of 1000 unit owners) ................................................ 41 Table 16: Facilities provided at the Facilities (Out of 1000 unit owners) ............................... 41 Table 17: Spread of FSSAI registered units.............................................................................. 43 Table 18: Coverage of units in selected districts ...................................................................... 45 Table 19: Distribution of units with different ownership ........................................................ 45 Table 20: Level of formalization of surveyed units ................................................................. 46 Table 22: State wise micro/small unorganized food processing units segregated by gender and social groups .................................................................................................................... 46 Table 23: Age of the Owners ................................................................................................... 47 Table 24: Literacy and Education Levels of the Owners ......................................................... 48 Table 25: Participation of male and female workers in units across states and sectors ...... 49 Table 26: Participation of full time and part time workers by state and sectors ................. 50 Table 27: Facilities provided for the Workers (Male and Female) by states......................... 50 Table 28: Table showing average monthly wage paid to male and female workers ........... 51 Table 29: Average Monthly Sales by the education level of owners ..................................... 52 Table 30: Government schemes and loans used by unit owners by the education level of owners ..................................................................................................................................... 53 Table 31: Challenges Faced by Unit Owners in Obtaining Loan from the Bank across states .................................................................................................................................................. 53 Table 32: State wise comparison between awareness of scheme and Support Taken from Scheme ..................................................................................................................................... 54 Table 33: State wise challenges Faced by the Unit Owners ................................................... 55 Table 34: State wise Primary Challenges faced by Unit Owners .......................................... 56 Table 35: Sectors with a Women Presence ............................................................................. 58 Table 36: Key action points..................................................................................................... 58 Table 37: Table showing stakeholders at various levels and functions ................................. 63 Table 38: Stakeholder relevance at various levels. ................................................................ 63 Table 39: Details of institutional level consultation ................................................................ 65 Table 40: List of participant for national level stakeholder consultation ............................... 70 Table 41: Likely impacts that can be caused by the project interventions .............................. 73 Table 42: List of State Nodal Department/ Agency shortlisted for implementation of program .................................................................................................................................................. 77 Table 43 – Roles and responsibilities of TSP’s for the implementation for the Social Management Framework ......................................................................................................... 79 4 Table 44: Description of broad outline ARAP ......................................................................... 85 Table 45: Educational profile analysis of the ST population .................................................. 88 Table 46: Coverage of units belonging to tribal population during field survey .................... 88 Table 47: Key activities to be included in TDP project ............................................................ 93 Table 48: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (Overall) (NSSO 67th Round, 2012-13) ............................................................... 98 Table 49: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (OAE) (NSSO 67th Round, 2012-13).................................................................... 98 Table 50: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (Overall) (NSSO 67th Round 2012-13) ................................................................ 99 Table 51: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (OAE) (NSSO 67th Round 2012-13)..................................................................... 99 Table 52: Value of Key Characteristics Per Enterprise for Proprietary and Partnership Enterprises (Overall) (NSSO 67th Round 2012-13) .............................................................. 100 Table 53: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (OAE) (NSSO 67th Round 2012-13)................................................................... 100 Table 54: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (Overall) (NSSO 67th Round 2012-13) .............................................................. 101 Table 55: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (OAE) (NSSO 67th Round 2012-13)................................................................... 101 Table 55: Key risks identified during primary survey associated with Labour and working conditions .............................................................................................................................. 103 Table 56: The Labour Standard Action Plan ......................................................................... 105 Table 57: Key responsibilities at District level ........................................................................ 111 Table 58: Capacity building and training plan .......................................................................118 Table 61: The proposed members for GRC are given in the table below ............................... 122 Executive Summary i. The Food Processing Industry (FPI) is one of the most promising sectors in India and plays an important role in terms of production, growth, consumption, and export of the country. It is one of the largest industries in India and is ranked fifth in terms of production, consumption, and exports. However, India’s food processing industr y is highly fragmented with the unorganized sector still a key contributor. ii. The Ministry of Food Processing Industry and World Bank have proposed the “India Food Processing and Value Addition Program (IFPVAP)� for development of unorganized food processing sector. iii. The programme aims to modernize and enhance the competitiveness of the micro enterprises through their formalization. Micro enterprises under this programme have been defined as units with investment in plant and machinery of less than INR 25 Lakhs, as defined under the MSME Act, and as amended from time to time. iv. The key components of the program are: • Enabling the business environment for the food processing industry • Strengthening capacities of support providers for food processing enterprises • Enhancing Food processing micro enterprises to improve performance and competitiveness • Project Management, Monitoring and Evaluation and Knowledge sharing 5 v. IFPVAP program once launched will cover all States and Union Territories but will be initially rolled out in states which have taken preparatory steps viz. Andhra Pradesh, Maharashtra, Punjab and Uttar Pradesh. vi. A total of 192 units were assessed out of which 8 units were under SHGs and 3 under FPOs. The assessment helped in capturing baseline situation of unorganized food processing sector with respect to gender diversity, food processing sector categories, workers participation, and common issues prevailing at the unit level. The assessment also helped in assessing gender specific issues and issues pertaining to vulnerable section of the society. Some of the key findings of the assessment are mentioned below: • It was observed that education level of entrepreneurs has a direct impact on average sales of the unit. Higher the education level of the owner, more is the sales. For instance, the sales of owners who are graduates is almost double the sales to that of owners who are only high school pass outs. • Educated owners are keen on taking formal loans from banks. However, when it comes to enrolment under government schemes, the lesser or uneducated owners were found to be more active as compared to higher educated owners • Tedious process of loan application and requirement of collaterals were some of the major challenges faced by entrepreneurs while obtaining loans from banks. Non-cooperation from bank staff was also reported as one of the challenge, especially in the states of PB and MH • Around 70% of unit owner’s face challenge w.r.t availability of finance and managing working capital. It is a common challenge across all sectors, but more prominent in dairy and fruits and vegetable sector • More than 50% of the units are manually operated and the usage of machines and technology are limited to only a few units. In the state of PB, around 98% of the unit owners have stated that they are currently using old machines which is hampering their production. • Access to market is one of the common challenge faced by all unit owners across the states. Most of the units being small in size with limited use of technology, it is difficult for them to compete in the market with branded products. Hence, around 60% of them, sell their produce to local community and neighbours • Availability of raw material was observed as a major challenge particularly in fruits and vegetable and grains and oil seed sector due to the seasonal nature of availability of raw materials and limited working capital • Male constitute 70% and female 30% of the total worker population. The female participation in the workforce in the states of UP and PB is less than 12% for the surveyed sample. Further, around 66% of the total workforce are employed as full time and 34% as part time out of the surveyed sampled • Almost all the units surveyed were operating in an informal way without keeping record for production, sales, raw material consumed etc. None of the units covered maintains record for workers employed, their identity proof, record for working hours and wages paid. Only 13% of the units covered had separate toilet facilities for women • It was observed that, female were paid less as compared to male workers as mostly they were employed in low-productive work which are temporary in nature like packaging, cleaning, cutting of vegetables etc. vii. For this program, Social Management Framework has been developed to address the issues identified and also assist in screening, assessment, identification of social risks as per applicable requirements of Government of India regulations and World Bank policies during the subproject design, implementation and operation phases. The framework will assist in ensuring that the program is inclusive in nature so that the marginalized sections of society are not left out. The framework will also ensure that the program is gender inclusive. viii. The framework will provide specific guidance on the policies and procedures to be followed for mitigation of impact along with roles and responsibilities for the implementing agencies. A systematic methodology has been provided in SMF that can be followed along with institutional interventions as required for the sub-project activities to effectively implement 6 social safeguards. SMF document also contains Resettlement Policy Framework (RPF), Tribal Development Framework (TDF), Gender Action Plan, Labour standard action plan and Consultation and stakeholder engagement plan, Capacity building plan, Grievance Redressal Mechanism and Monitoring Evaluation and reporting plan ix. Under this program National Project Management Unit (NPMU) will be responsible for preparation and implementation of sub project along with required safeguards which needs to be undertaken. The SMF presents detail guidelines and formats for carrying out these activities. Based on these and other relevant documents, NPMU along with SNA’s/SPIU will assess the need for further Social assessment or SIA. x. Resettlement Policy Framework (RPF) in the report aims to implement land acquisition process on account of its sub projects in a manner that the project affected people do not suffer from adverse impacts and shall improve or at the minimum retain their previous standard of living, earning capacity and production levels. RPF has been developed to guide detailed resettlement planning to address land acquisition and resettlement impacts. This framework establishes the involuntary resettlement and compensation principles, organizational arrangements to be applied to meet the needs of the people who may be affected by the project activities resulting due to land acquisition, loss of shelter, assets or livelihoods, and/or loss of access to economic resources. xi. The Tribal Development Framework (TDF) serves two objective; one to minimize significant impacts on the tribal community because of implementation of subprojects and second is to implement the program in an inclusive way so that vulnerable communities get maximum benefit from the program. xii. The gender assessment outlines the policy and regulatory environment specific to women involved in the food processing sector. Gender Action Plan has been prepared with reference to the profile of the women involved in the sector with the purpose of bridging the key gender gaps and barriers to facilitate gender mainstreaming in the sector. xiii. Consultation and stakeholder engagement plan has been developed to ensure that the project specific information along with the SMF is effectively communicated to the beneficiaries and the primary stakeholders. There are two key objectives of Stakeholder Engagement and Public Disclosure. First, it is to keep all stakeholders informed of the project activities, the potential beneficial and adverse impacts. Second, it is to ensure that stakeholders actively participate at all levels of the project cycles. xiv. This framework also outlines the disclosure of documents planned under the project. It should be noted that communication on social issues and on SMF needs to be carried out during implementation of subprojects in an inclusive manner with active participation from women representatives, tribal communities and vulnerable social groups. 7 1. Introduction 1.1. Food Processing Industry in India i. The Food Processing Industry (FPI) accounts for 32% of the country’s total food market, is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. The sector constitutes around 8.8 percent and 8.39 percent of GVA in manufacturing and agriculture respectively, 13 percent of India’s exports and 6 percent of total industrial investment1. Major industries constituting the food processing industry are grains, fruits & vegetables, sugar, edible oils, beverages and dairy products. The industry also accounts for approximately 14 percent of manufacturing GDP and approximately 13 percent of manufacturing employment2. 1.1.1. Unorganized nature of the industry ii. According to Ministry of Food Processing Industry (MoFPI), about 42 percent of the output comes from the unorganised sector and most of these units are located in rural areas 3 . Employment intensity of this sector is significantly higher as compared to the organized sector for the same level of investment. The small scale sector dominates the export market for processed food, however, due to financial constraints they fail to add value to the products. iii. According to the latest National Sample Survey data of June 2015-2016, the number of enterprises present in this segment is around 2.38 million, which are mostly involved in primary processing4. Nearly 69 percent of these units are located in rural areas contributing to reducing regional disparities through the creation of employment opportunities in rural areas and mobilizing local resources more readily than large-scale industries5. 1.2. Project Background (IFPVAP – “Gram Samridhi Yojana�) iv. Ministry of Food Processing Industry is proposing to initiate “India Food Processing and Value Addition Program (IFPVAP)� in assistance with World Bank. The aim of IFPVAP is to promote the unorganised food processing sector and improve competitive capabilities of micro enterprises. The programme once launched will cover all States and Union Territories but will be initially rolled out in states which have taken preparatory steps viz. Andhra Pradesh, Maharashtra, Punjab and Uttar Pradesh v. The Project Development Objective (PDO) of IFPVAP is to modernize and enhance the competitiveness of the unorganised segment of food processing industry in India. This objective can be achieved by supporting the creation of more favorable economic, financial, and regulatory frameworks for micro- enterprises to upgrade, grow and compete on domestic and global markets 1.2.1. Components and activities under IFPVAP vi. To fulfill the above mentioned objectives of the Project, four core project components have been developed. These include: • Project Component 1: Enabling the business environment for the food processing industry: This component aims at providing the appropriate business environment for the effective implementation of this project. 1 Retrieved from IBEF Report 2018 – Food processing, Retail and FMCG Industries 2 Retrieved from https://www.ibef.org/archives/detail/b3ZlcnZpZXcmMzcxNTImNDk0 3 Retrieved from http://www.mofpi.nic.in/documents/reports/nsso-reports 4 Note: Primary processing is the conversion of raw materials to food commodities. Milling is an example of primary processing. 5 Retrieved from http://www.mofpi.nic.in/documents/reports/nsso-reports 8 • Project Component 2: Strengthening capacities of support providers for food processing Micro Enterprises • Project Component 3: Enhancing food processing Micro Enterprises performance and competitiveness • Project Component 4: Project management, monitoring and evaluation, and knowledge sharing 1.2.2. Geographical coverage of IFPVAP vii. The programme once launched will cover all States and Union Territories but will be initially rolled out in states which have taken preparatory steps viz. Andhra Pradesh, Maharashtra, Punjab and Uttar Pradesh. 1.3. Social Assessment 1.3.1. Purpose and Objectives viii. The objective of this assignment is to undertake a detailed assessment of the existing and potential social risks and issues that are likely to be faced during design and implementation stage and to assess the preparedness of state’s systems and processes in addressing or mitigating these risks and impacts. The social assessment has been used to develop a Social Management Framework (SMF), Gender Action Plan (GAP), Tribal Development Framework (TDF), and Resettlement Policy Framework (RPF) for mitigating or avoiding adverse social impacts and enhancing social benefits emerging from the project. 1.3.2. Approach and Methodology ix. The following approach and methodology was used to undertake this assessment: 1. Desk review of secondary data and literature: The project started with a desk review of the general landscape of food processing industry in India as well as conditions specific to the four target states. It also included a review of national and state-specific Laws, Acts and Policies applicable to this project and World Bank safeguard policies. 2. Finalizing the categories of food products to be involved in the review: On the basis of secondary research it was observed that the major food categories that can have a large contribution from micro enterprises and unregistered enterprises are: • Dairy products • Processed Fruits and vegetables • Processed grains and oilseeds • Processed meat and poultry • Other prepared foods/ packaged products such as bakery, papad, snacks and savories 3. Consultation with state nodal bodies to finalize the target districts for review: In order to shortlist the target districts for field survey, consultations were held with state nodal representatives on following aspects: • Understanding the prominence of various production clusters and processing clusters based on above five categories in various districts in each state • Understanding the presence of female and tribal entrepreneurs • Consultation to understand the state’s plan for development activities under IFPVAP • On the basis of above consultation, the following districts were identified for field study (the table below highlights the shortlisted districts as well as their general socio-economic characteristics with regards to food processing industries Table 1: Socio – economic matrix of the selected districts (compiled through secondary sourced) 9 State District Rationale • Good presence of Food Processing sectors • Working women is 42.12 percent of the total women population Prakasam • SC population is 23.19 percent of total district population • ST population is 4.45 percent of total district population Andhra • High potential identified for food processing industries as Pradesh per the MSME district profile • Good presence of Food Processing sectors • Working women is 40.46 percent of total women Vizianagaram population • SC population is 10.57 percent of total district population • ST population is 10.05 percent of total district population • Good presence of Food Processing sectors • Working women is 27.21 percent of total women population Pune • Presence of 1000+ small and micro agro based units • SC population is 12.52 percent of total district population Maharashtra • ST population is around 70 percent of the total district population Nandurbar • Working women is around 45 percent of total women population • Good presence of Food processing sectors • 700+ small and micro agro based units Amritsar • Working women is 15.58 percent of total women population • SC population is 30.95 percent of total district population Punjab • Working women is 16.74 percent of total women population • SC population is 42.17 percent of total district population Ferozepur • Maximum number of Enterprises/HBUs (Number of micro and small Agro based units) among the aspirational districts • Presence of high number of food sectors in the district, most of them being unorganized Hathras • Working women is 8.34 percent of total women population • SC population is 35.47 percent of total district population Uttar Pradesh • Presence of around 2200 small and micro agro based units • Working women is 18.64 percent of total women population Fatehpur • SC population is 24.75 percent of total district population 4. Preparation of design and Tools for primary data collection (Household Survey Questionnaire and Community Consultation Checklist) Preparation, training and Field Testing 5. Field visits for primary data collection from institutional and community stakeholders to review the operational practices, key social concerns and business challenges for unregistered food processing units. The survey aimed at targeting at least 25 units for each district, spread across different food segments as described above 10 6. The data collected from secondary sources was complemented by information gathered from field level consultations and survey of food processing units. This was conducted by a multidisciplinary team comprising experienced sustainability professionals guided by social and food processing industry experts. Semi structured interviews were conducted with various institutions such as DIC, FSSAI, Financial institution, NABARD, ATMA, NRLM etc. 7. Post consultation and survey, an analysis of the information obtained has been undertaken, which has led to development of this Social Assessment and Social Management Framework along with the Tribal Development Framework, Gender Action Plan etc. 8. Draft Reports developed on: Social Assessment (SA), Social Management Framework (SMF) and Tribal Development Framework (TDF), Gender Action Plan (GAP), Resettlement Policy Framework (RPF) Preparation 9. Revising Reports prepared based on comments and suggestions received 10. Final Reports (SA, SMF, GAP, TDF and RPF) Submission 1.3.3. Limitation of the study 1) The boundary of the study is limited to the social impacts on food processing units and no forward or backwards linkages such as farm level, storage or retail is explored in this study 2) During the field survey, it was observed that meat processing, poultry product processing and beverage and packaged drinking water segments are not present in units defined under Micro enterprise. Such units are mostly present in small to medium scale industries due to the nature of investment and workforce required in such plant’s operations. Hence the social baseline and further assessment is limited to 4 sectors i.e. dairy product processing, fruits and vegetable processing, grains and oilseeds and packaged foods, in line with the target beneficiary group under IFPVAP 11 2. Regulations and Policy Framework 2.1. Introduction i. The section below describes the acts, rules and regulations which are applicable to the proposed IFPVAP project. Additionally, applicability of World Bank Operational Policies has also been analysed. 2.2. Country level Laws/Acts/Policies ii. The following table presents various Regulations of Government of India (GoI) relevant to this project. Table 2: National Level Regulations and Legislations Relevant to this Project Name of relevant Relevance to Project Sr. No Objective Act/Policies/Rules Interventions Essential Laws covering employment, social benefits and working conditions The Act requires that all The beneficiary unit must employer is supposed to pay ensure that their workers are The Minimum Wages not less than the prevailing 1 paid at least the prevailing Act, 1948 minimum wages fixed by the legal minimum wages Government as per provisions of the Act. The beneficiary units should The Act mandates the date by ensure that all provisions of which the payment to the the Act are followed and The Payment of 2 workers should be made and payment to the workers are Wages Act, 1936 what deductions can be made done on timely basis as from the wages of the workers prescribed under the Act. The Act ensures that certain The beneficiary units should benefits to employees are The Employees’ State ensure that all provisions of 3 provided in case of sickness, Insurance Act, 1948. the Act are followed maternity and employment injury The Act mandates payment of The beneficiary units should equal wages for work of equal ensure that equal wages are Equal Remuneration nature to male and female paid to both male and female 4 Act, 1979 workers and not for making workers for the similar discrimination against Female nature of work undertaken employees by them The Act provides financial The beneficiary units should protection to workmen and The Workmen’s ensure that all provisions of their dependents in case of 5 Compensation Act, the Act are followed and injury by accident arising out 1923 extended to the workers of and during the course of employment 12 The Act regulates the The beneficiary units, if The contract Labour employment of contract labour hiring contract workers 6 (Regulation and and prevent exploitation of should ensure that all abolition Act, 1970) contract workers by provisions of the Act are contractors followed. Name of relevant Relevance to Project Sr. No Objective Act/Policies/Rules Interventions The Act mandates payment of The beneficiary units should The Payment of bonus to persons employed in 7 ensure that all provisions of Bonus Act, 1965 establishments meeting the the Act are followed. defined criteria. Laws for protection of women and children The Act protects the The beneficiary units should employment of women during ensure that all provisions of The Maternity the time of her maternity and the Act are followed and 8 Benefit (amendment) entitles her the maternity provided to the women Act, 2017 benefit such as leaves, crèche workers during the time of etc. her maternity The Child Labour No child shall be employed or The beneficiary units should (Prohibition & permitted to work in any of the 9 ensure that all provisions of Regulation) Act, occupations set forth in this the Act are followed 1986 Act. The Act provides protection to The Sexual women against sexual Harassment of harassment at workplace, be it Women at in public or private. It also The beneficiary units should 10 Workplace provides means for the ensure that all provisions of (Prevention, prevention and redress of the Act are followed Prohibition and complaints of sexual Redressal) Act, 2013 harassment against any women employee. Under the preview of this Act, all the establishments who carry on any building or other construction work and Building & Other employs 10 or more workers Construction are covered under this Act; the The contractors undertaking workers employer of the establishment the building and 11 (Regulation of is required to provide safety construction work should Employment & measures at the construction ensure that all provisions of Condition of work and other welfare the Act are followed Service) Act, 1996 measures, such as canteens, first-aid facilities, ambulance, housing accommodation for Workers near the workplace, etc.); Regulations governing Schedule Area and Schedule Tribe 13 The Act provide specifying special provisions for Panchayats in Schedule V areas The Panchayats The Fifth Schedule of the Constitution deals with the The beneficiary units should (Extension to the 12 administration and control of ensure that all provisions of Scheduled Area) Act, Scheduled Areas as well as of the Act are followed 1996 Scheduled Tribes residing in any State other than the States of Assam, Meghalaya, Tripura and Mizoram The Scheduled Tribes This Act grants legal and other Traditional The beneficiary units should recognition to the rights of 13 Forest Dwellers ensure that all provisions of traditional forest dwelling (Recognition of the Act are followed communities, partially Name of relevant Relevance to Project Sr. No Objective Act/Policies/Rules Interventions Forest Rights) Act, correcting the injustice caused 2006 by the forest laws. Makes a beginning towards giving communities and the public a voice in forest and wildlife conservation Other key regulations As per the act, every area beginning at the limit of the declared ancient site or the ancient monument, as the case may be, and extending to a distance of one hundred Ancient Monuments meters in all directions shall be the prohibited area in respect It should be ensured that no and Archaeological of such protected area or construction activities are 14 Sites and Remains protected monument being undertaken in the Act, 1958 prohibited area No permission including carrying out any public work or project essential to the public or other constructions, shall be granted in any prohibited area 14 This Act empowers to set a system of right to information to citizens to access information under control of public authorities and to promote transparency and The project will lead to the accountability in working of formulation of National every public authority. It Project Management unit, requires public authorities to SPIUs and other project The Right to disclose of the particulars, implementing agencies for 15 Information Act, relating to the functions, its successful 2005 powers and duties of its implementation and it is officials/ employees, norms, mandatory to implement the rules, regulations, provision of this Act instructions, records etc. It also requires public disclosures of all relevant information and appointment of designated officer in each public authority 15 2.3. Key State level policies relevant to food processing sector Table 3: State Level Regulation and Legislation Relevant to the Project Sr. Responsible What does the policy say about Name of Policy Key objective Highlights No institution Food Processing Industry Andhra Pradesh 16 a) Attract new investments worth INR 5,000 Crores in the sector by 2020 b) Create 50,000 additional employment in the state by 2020 c) Develop commodity-based • Since 2014, the scheme has • The government shall introduce clusters to promote benefited 331 units a set of initiatives that will ease food processing the compliance procedures for industries Andhra Pradesh new and existing food • The policy has generated an AP Food d) Identify and Food Processing processing companies employment opportunity for 74,289 1 Processing Policy, bridge existing Society (APFPS) infrastructure gaps persons 2015 -2020 affecting the food • GoAP will strive to setup processing industry Integrated food parks across all • 5,04740.83 crore of investment has e) Promote districts of Andhra Pradesh been initiated under the scheme innovation, research & development in the industry and ensure continuous technology up gradation f) Undertake capacity building and enhance competitiveness of food processing Sr. Responsible What does the policy say about Name of Policy Key objective Highlights No institution Food Processing Industry industry in both domestic and international markets 17 The policy is not directly linked with Food processing industries but it focusses on promoting any manufacturing industry in general. Salient features are noted below: • GoAP shall create an e-platform single desk clearance, for facilitating all necessary clearances for starting and operating an industry within 21 working days. The key objective of this policy is to provide • Developed over 300 industrial fiscal incentives to the • Spot approvals shall be given in estates categories of case of clearances / approvals State Investment Micro/Small which require only a scrutiny of Industrial • Created over 1 million jobs Promotion basic documents. They include 2 Development Enterprises, Medium Board (SIPB) Registration under Professional Policy 2015-2020 Enterprises and Large • Mobilised investments worth Tax, Registration of Shops and Industries, Schedule Establishments, Registration of over INR 1 lakh Crores Caste/ Schedule Tribe establishments deploying Entrepreneurs and contractual workmen / • Promoted 32 SEZ’s Women Entrepreneurs interstate migrant workmen among others • State will provide capacity building courses to reduce the gap in the skill set required by the industry • Training institutions at divisional level shall be setup through PPP approach to facilitate industry wide Sr. Responsible What does the policy say about Name of Policy Key objective Highlights No institution Food Processing Industry 18 initiatives aimed at enhancing the employability of unskilled/semi-skilled labour Government to provide world class infrastructure, state of art R&D centers and quality human capital to attract FDI inflows into the state Maharashtra • Units under Food Processing Sector will be granted additional The key objectives are: 10% incentives and additional • Development of one year towards eligibility MSMEs and period Maharashtra Strengthening During 2014-18, 119 private IT Maharashtra Industrial industrial • Promote and support grape parks with an investment of INR 3 Industrial Policy, Development infrastructure production and infrastructure 192.6 billion and employment of 5.5 2013-2018 Corporation • Provide incentive for wine parks across the state lakh person have been generated (MIDC) packages for Ultra under this scheme Mega and Mega • Generating employment for Industrial million people persons investment • Attracting investment worth ₹ 5 lakh crore Uttar Pradesh The key objective of • Ensuring fair and remunerative Directorate of this policy is to The U.P Food price of the produce to the Horticulture and promote the growers By 2024, food processing sector is Processing 4 Food Processing development of food expected to employ 9 million people Industry Policy, • Development of Food Processing - Government of processing industries in India 2017 park, mega food park and cold Uttar Pradesh chain facility 19 which will generate new employment Sr. Responsible What does the policy say about Name of Policy Key objective Highlights No institution Food Processing Industry opportunities and also • Easy availability of processed increase the skill level food products to consumers at of the manpower competitive prices • Increase the skill level of the manpower in this sector 20 The GoUP intends to provide various • 33 industrial estates were developed facilities and incentives to promote by the government for setting up of the Agro and Food Processing Sector the industrial units mainly by small under the “Mukhya Mantri Khadya entrepreneurs Prasansakaran Mission Yojana�. • INR 6.98 crore has been incurred Some of the facilities are: towards improvement • Interest free loan to small scale /maintenance of facilities such as food processing units for their roads, streets, water supply and establishment and expansion drainage system in exiting industrial estates located in The key objective of different cities/towns of the state • Development of cold chain, value this policy is to skill from 2007-08 to Dec. 2010 addition and processing the workforce of the infrastructure Industrial state to ensure Investment and employability and Government of empowerment. The • Establishment of primary Employment 5 Uttar Pradesh policy further processing sector and collection Promotion Policy centers in rural areas 2017 facilitates the of Uttar Pradesh 2017 provision of pro-active support to micro, • The uninterrupted power supply small, medium and reimbursement of VAT/ CST/ GST to food processing enterprises units • Creation of infrastructure facilities for degree/ diploma/ certificates courses, food processing skill development programs, etc. • Market development and brand promotion as well as the Sr. Responsible What does the policy say about Name of Policy Key objective Highlights No institution Food Processing Industry 21 encouragement of standardization. • Establishment of mega food parks in state as well as establish Food processing park in all the regions of the state with packaging, exports and research facilities. • Exemption from Mandi fee for all new food processing units on purchase of raw material for 5 years • Annual growth rate of MSME to be increase by 15% • Annual employment to increase by 15% Since 2007-08 till December Government of 2010, a total of 2751 units of UP MSME Export • Facilitate land and The policy is applicable for all the small entrepreneurs 6 Uttar Pradesh Promotion Policy technological sectors covered under MSME /exporters /manufacturers have 2017 requirements for been assisted with INR 2465 new enterprises lakhs under this scheme • Provided technical infrastructure for quality assurance for MSME products Punjab 22 Sr. Responsible What does the policy say about Name of Policy Key objective Highlights No institution Food Processing Industry • Accelerate growth of MSMEs • 100% reimbursement of market Industrial and • It envisages establishment of 10 Department of • Facilitate fee, rural development fee and Business technology centers, 10 common Industries & availability of other state taxes and fees on raw Development facility centers and 10 clusters for 7 Commerce, skilled manpower material for food processing Policy 2017, development in first phase Government of to the Industry industries up to 10 years Amended as on • 14 new industrial parks have been Punjab • Improve the ease • Schemes for fiscal Incentives to 30.07.2018 developed under the scheme of doing business MSMEs in the State Central government 23 • Labour & Employment Department, Government of State should make necessary amendments and declare food processing industry as essential service under State Essential Services Maintenance Act • Under all relevant labour laws, food industry should be treated Ministry of Food as seasonal industry and benefits Aims for overall available to a seasonal industry Draft National Processing growth and suggested to be extended to it This policy is currently under draft 8 Food Processing Industries along development of food stage Policy, 2017 with the State 2017 processing industry • Incentivize industries working on traditional Indian foods and therapeutic foods to help them standardize ingredients and preparation procedure • Assistance will be provided for industry recognized skill certifications from recognized institutions Sr. Responsible What does the policy say about Name of Policy Key objective Highlights No institution Food Processing Industry 24 • Assistance will be provided for meeting the expenditure of obtaining patent and other IPR subsidy including the cost consultant fee, government fee etc. • Provide funds to promote creation and upgradation of new product development including packaging • Assistance to be provided for research work approved by government undertaken by reputed research institutions • Capital subsidy to be provided for technology upgradation/modernisation of existing food processing units • Special assistance to be provided for internationally accepted quality or environmental certification, viz. ISO 14001, ISO 22000, HACCP • To promote the Made in India brand The objectives of • The policy focusses on • Target to develop 71 clusters with Scheme of the scheme is to coverage of 44500 artisans Ministry of promoting any traditional Fund for organize the industries including Agro Based (approx.) in the first phase Micro Small and Regeneration traditional & Food Processing industries 9. Medium of Traditional Enterprises industries and • 71 clusters have been given Industries (MSME) artisans into • To enhance marketability of inprinciple approval by Scheme (SFURTI) products of such clusters Steering Committee (SSC) and 32 25 clusters to make them competitive Sr. Responsible What does the policy say about Name of Policy Key objective Highlights No institution Food Processing Industry and provide DPRs have been given final support for their • Equip traditional artisans of the approval long term associated clusters with the sustainability improved skills, to make • As of now, 30438 artisans have provision for common facilities been benefitted • According to the and improved tools and Budget 2019-20, equipment’s for artisans • Future target for setting up of 800 SFRUTI will aim clusters of Khadi, village industries to set up more • To strengthen the cluster and Coir and to cover around 4 lakh common facility governance systems with the artisans. centers for active participation of the generating stakeholders sustained employment opportunities • To build up innovated and traditional skills, improved • SFURTI also technologies, advanced envisions at processes, market intelligence setting up of 100 and new models of publicprivate new clusters partnerships, so as to gradually during 2019-20 to replicate similar models of enable 50,000 cluster-based regenerated artisans to join the traditional industries economic value chain 26 2.4. Regulations specific to food safety and standards and other relevant legislations iii. Key regulations specific to Food Safety and Standards applicable to Food Processing Operators (FPOs) are managed by Ministry of Health and Family Welfare. iv. The table below explains the relevant acts and regulations as per Food safety and standards applicable to food processing operators. Table 4: Relevant Acts and Regulations as per Food Safety and Standards applicable to Food Processing Units S.N0. Key regulations Provisions under regulations Objective: The regulations are applicable on “Petty Food Manufacturer� defined as any food manufacturer, who (a) manufactures or sells any article of food himself, or (b) such other food businesses including small scale or cottage or such other industries relating to food business or tiny food businesses with an annual turnover not exceeding INR 12 lakhs and/or whose production capacity of food (other than milk and milk products and meat and meat products) does not exceed 100 Kg/ltr per day For dairy petty manufacturers are those whose procurement or handling Food Safety and and collection of milk is up to 500 litres of milk per day and for meat & Standards poultry are those whose slaughtering capacity is 2 large animals or 10 (Licensing and small animals or 50 poultry birds per day or less Governing Registration of requirements: 1 Food Businesses) � Registration of Petty Food Business Every petty Food Business Regulations 2011 Operator shall register themselves with the Registering Authority and subsequent amendments � The petty food manufacturer shall follow the basic hygiene and safety requirements provided in Part I of Schedule 4 of these Regulations and provide a self-attested declaration of adherence to these requirements with the application Exception: A producer of milk who is a registered member of a dairy Cooperative Society registered under Cooperative Societies Act and supplies or sells the entire milk to the Society shall be exempted from this provision for registration 27 Objective: The key objective of this regulation is to provide vertical standards for the various food products and prescribe the limits of the Food Safety and various food additives used across different food groups Standards (Food Products Standards It covers the following food categories: and Food 2 1. Grains and Oilseed Additives) 2. Meat and Marine Regulations, 2011 3. Fruits & Vegetable and subsequent 4. Dairy amendments 5. Salt, spices, condiments and related products 6. Sweetening agents including honey S.N0. Key regulations Provisions under regulations 7. Beverages (Other than dairy and fruits and vegetables based) 8. Other food product and ingredients 9. Proprietary food 10. irradiation of food Objective: The Food Safety and Standards Authority of India has propoto bifurcate the existing Food Safety and Standards (Packaging and Labelling) Regulations, 2011 into the following: • Food Safety and Standards (Packaging) Regulations, 2018 Food Food Safety and Safety and Standards (Labelling and Display) Regulations, 2018 Standards • The Packaging Regulations, 2018 have been enforced since 24th (Packaging and December, 2018 replacing the provisions for packaging under the 3 Labelling) existing 2011 Regulations. Food Business Operators have been Regulation, 2011 directed to comply with the provisions of these Regulations and subsequent within 1st July, 2019 amendments • The Labelling and Display Regulations, 2018 have not yet been notified and thus the 2011 Regulations are still in force and has been amended vide the Food Safety and Standards (Packaging and Labelling) First Amendment Regulations, 2018, effective 24th December, 2018 Food Safety and Standards (Contaminants, Objective: Toxins and The regulation applies to all food business operators. These Regulations 4 Residues) govern the permissible limits for various Contaminants, Toxins and Regulation, 2011 Residues to be adhered to during manufacture of various articles of food and subsequent amendments 28 Food Safety and Standards Objective (Prohibition and The regulation applies to all food business operators. It establishes 5 Restriction on prohibitions and restrictions on the sales of various food products, Sales) Regulation, ingredients and their admixtures 2011 Objective The key objective of this regulation is to ensure the removal of food under recall from all stages of the food chain and ensure follow up action if required. � Under these regulations, it is required that food business Food Safety and operator shall have procedures and systems in place to identify Standards (Food the food businesses to whom they have supplied their food 6 Recall Procedure) � The food business operator shall maintain the food distribution Regulation, 2017 records which include the names and addresses of suppliers and customers, nature of food, date of purchase, date of delivery, lot number, batch code, pack size, brand name, date of manufacture, date of expiry and best before date, and shall maintain such records for a period of one year from best before S.N0. Key regulations Provisions under regulations date or the expiry date, as applicable � All food business operators engaged in the manufacture or importation or wholesale supply of food regulated under the Act must have an up-to-date recall plan Key features of Food Fortification Regulations are as follows: It prescribes the standards of addition of micronutrients for the purpose Food Safety and of food fortification. The manufacturers of the fortified food are required to provide a quality Standards assurance undertaking. 7 (Fortification of Packaging and labelling of the fortified food must state the food Foods) fortificant added, logo and the tagline "Sampoorna Poshan Swasth Regulations, 2018 Jeevan". Also, it should be in compliance to the Food Safety and Standards (Packaging and Labeling) Regulations, 2011 or amendments thereof Objective: These regulations are aimed at establishing fairness in claims and Food Safety and advertisements of food products and make food businesses accountable Standards for such claims /advertisements so as to protect consumer interests. As 8 (Advertising and per these regulations, food business cannot use the words/phrases such Claims) as natural, fresh, original, traditional, authentic, genuine, real etc. on the Regulations, 2018. food labels except under specific conditions detailed therein. Such restrictions are primarily aimed at restricting an open-ended use of these words/phrases by food businesses on frivolous grounds 29 Objective: The regulation is applicable on any person responsible for manufacture, packaging or selling of organic food items, except those dealing with organic food which is marketed through direct sales to the end consumer by the small original producer or producer organization is exempted Food Safety and from the provisions of the certification. Small original producer or producer organization is the one whose annual turnover does not exceed Standards (Organic 9 Rs. 12 Lakhs per annum Foods) Regulations, 2017 The regulation prescribes compliance with applicable provisions of two systems of certification i.e. Participatory Guarantee System (PGS) implemented by the Ministry of Agriculture and Farmers Welfare and National Program for Organic Production (NPOP) implemented by the Ministry of Commerce and Industry. It also provides direction on labeling and traceability 2.5. Key policies and schemes focused on women and other social groups, relevant to project interventions v. One of the sub project of the program is to converge existing similar schemes at national and state level so that larger benefit can be derived by the target group. The table below showcases schemes similar to IFPVAP for women and other social groups. Table 5: Similar Schemes Applicable to Women and other Social Groups 1. The Khadi and Village Industries Commission (KVIC): Institution, its objective and Linkage and relation to IFPVAP’s objective responsibility 30 KVIC is an apex organisation under the Ministry of Micro, Small and KVIC has three main objectives which guide its functioning: Medium Enterprises. It is • The Social Objective - Providing employment in rural areas responsible the • The Economic Objective - Providing saleable articles planning, • The Wider Objective - Creating self-reliance amongst people and building up a promotion, strong rural community spirit organisation Its functions also comprise of: and implementation • Building up of a reserve of raw materials and implements for supply to producers of programs for • Creation of common service facilities for processing of raw materials as the development semifinished goods and provisions of facilities for marketing of KVI products of Khadi and • Training of artisans engaged in these industries and encouragement of other village cooperative efforts amongst them. industries in the • Providing financial assistance to institutions and individuals for development rural areas in and operation of Khadi and village industries coordination with other agencies engaged in rural development Implementation of programs and schemes: The KVIC has broadly re-grouped various village Industries under seven heads for the purpose of implementation of its programs. One of the heads is Agro Based & Food Processing Industry (ABFPI) which consists of: • Pulses & Cereals Processing Industry • Gur & Khandsari Industry • Palmgur Industry • Fruit & Vegetable Processing Industry • Village Oil Industry The process of Implementation of schemes and programs is decided, funded and approved by MSME. KVIC implement its programs either directly - Through its 29 state offices, by directly funding Khadi and Village institutions and co-operatives, or indirectly through 34 Khadi and Village Industries Boards, which are statutory bodies formed by the state governments within India Key policies and schemes Influence on project’s activities relevant to food processing sector 31 Nature of assistance: The maximum cost of the project/unit admissible in manufacturing sector is ₹ 25 lakhs. The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital Eligibility: An individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector Only new projects are considered for sanction under PMEGP. Self Help Groups (including those belonging to BPL provided that they have not Prime availed benefits under any other Scheme), Institutions registered under Societies Ministers Registration Act, 1860; Production Co-operative Societies, and Charitable Trusts Employment are also eligible. 1 Generation Program Financial assistance to women and other social groups: Rural (PMEGP) beneficiaries receive up to a 25% margin compensation in rural areas and 15% in urban areas for the general category and 35% in rural areas and 25% in urban areas for SCs, STs, OBCs, minorities and women among other special categories Under PMEGP, KVIC has also developed and posted sample project profiles for establishing various food processing units. These can be accessed online at the following URL: https://www.kviconline.gov.in/pmegp/pmegpweb/docs/jsp/newprojectReports.jsp 32 2. National Horticulture Board (NHB) Institution, its objective and responsibility Linkage and relation to IFPVAP’s objective The main objectives of the NHB are to improve integrated NHB is registered as a Society development of Horticulture industry and to help in coordinating, under the Societies sustaining the production and processing of fruits and vegetables. Registration Act 1860, with its Amongst all its activities, its function also comprises of development headquarters at Gurugram. of integrated, energy efficient cold chain infrastructure for fresh horticulture produce Key policies and schemes relevant to food Influence on project’s activities processing sector Nature of assistance: Integrated Post Harvest Management Development of projects relating to Pack House, Ripening Chamber, Reefer Van, Commercial Horticulture Retail Outlets, Pre- cooling unit, Primary processing etc. are assisted through Production and under this component. NHB also accepts standalone projects of PHM 1 Post-Harvest in component mode. Management - Integrated Financial assistance to social groups: Credit linked back Post Harvest Management ended subsidy @ 35% of the total project cost limited to Rs 50.75 lakh projects per project in general area and @ 50 % of project cost limited to Rs. 72.50 lakh per project in NE, Hilly and Scheduled areas Nature of assistance: Setting up of cold storage (of capacity above 5000 MT and up to 10000 MT) and their modernization are eligible for assistance under Capital Investment the NHB Scheme of Capital Investment subsidy for construction/ expansion/ modernization of cold storage for Horticulture Products Subsidy Scheme for (a sub scheme under MIDH). It is open ended credit linked scheme Construction/Expansion/ 2 with scale of assistance @ 40% of capital cost of project limited Rs Modernization of Cold 30.00 lakhs per project in general area and 50% limited to Rs 37.50 Storages and Storages for lakhs per project in case of NE, Hilly & Scheduled Areas Horticulture Products Note: due to high investment cost, this scheme does not directly apply to unorganised and micro food processing units, however, it can form a basis for their cluster aggregation and development under IFPVAP 3. Development Commissioner - Ministry of Micro, Small and Medium Enterprises (DC- MSME) Institution, its objective and Linkage and relation to IFPVAP’s objective responsibility 33 The primary responsibility of promotion and development of MSMEs is of the State Governments. However, the Government of India, supplements the efforts of the State Governments through various initiatives. The role of the M/o MSME and its organizations is to assist the States in their efforts to encourage entrepreneurship, employment and livelihood opportunities and enhance the competitiveness of MSMEs in the changed economic scenario. The schemes/ program undertaken by the Ministry and its organizations seek MSME is the Apex to facilitate/provide: body for the i) Adequate flow of credit from financial institutions/banks; ii) formulation and Support for technology upgradation and modernization; administration of iii) Integrated infrastructural facilities; rules, regulations and iv) Modern testing facilities and quality certification; v) laws relating to micro, Access to modern management practices; small and medium vi) Entrepreneurship development and skill upgradation through enterprises in India. appropriate training facilities; vii) Support for product development, design intervention and packaging; viii) Welfare of artisans and workers; ix) Assistance for better access to domestic and export markets and x) Cluster-wise measures to promote capacity-building and empowerment of the units and their collectives. Key schemes which have additional focus on Women or other social groups are described below. Key policies and schemes relevant Influence on project’s activities to food processing sector Technology Upgradation and Quality Certification Nature of assistance: Provided by the Government of India, the subsidy Financial Support for Micro, Small & Medium Enterprises will be 80%, 60% and 50% to MSMEs in respectively. There shall be an additional subsidy of 5% for MSMEs owned by 1 ZED Certification SC/ST/women. Scheme Pattern of Assistance: All manufacturing Micro, Small and Medium enterprises (MSME) having Udyog Aadhaar Memorandum can apply. Entrepreneurship and Skill Development Programme Nature of assistance: 20% of the total targeted of ESDPs (Entrepreneurship Development Programs) are conducted exclusively for Assistance to weaker sections of the society such as the SC/ST communities and women 1 Training with a stipend of Rs.500/- per month per candidate under the Promotional Institutions (ATI) Package for Micro Enterprises. No fee is charged from the candidates under these programs. Pattern of Assistance: These programs are conducted by MSME-DIs of Ministry. Infrastructure Development Program 34 Micro & Small Nature of assistance: Hard interventions such as setting up of Common Facility Centers with maximum eligible project cost of Rs 15.00 cr with GoI Enterprises contribution of 70% (90% for special category States and for clusters with more 1 Cluster than 50% women/micro/village/ SC/ST units). Development Pattern of Assistance: Clusters, Industrial associations/Consortia are (Micro applicable to apply for this scheme. Enterprises-CDP) 4. Pradhan Mantri MUDRA Yojana (PMMY) Objective and its responsibility Linkage and relation to IFPVAP’s objective MUDRA (Micro Units Development & The main interventions under this program are: Refinance Agency Ltd.) 1. Shishu: This covers loans upto INR 50,000 was set up by the Government of India as a 2. Kishor: This covers loans above INR 50,000 and upto INR 5 lakh wholly owned subsidiary 3. Tarun: This covers loans above INR 5 lakh and upto INR 10 lakh of Small Industries Development bank of The program covers food product activities such as papad making, achaar making, jam / jelly making, agricultural produce preservation at rural level, India (SIDBI). This sweet shops, small service food stalls and day to day catering / canteen agency is responsible for services, cold chain vehicles, cold storages, ice making units, ice cream developing and making units, biscuit, bread and bun making, etc. refinancing all The products being offered by MUDRA are designed in such a way that microenterprises sector they meet the requirements of different sectors, business activities as well by supporting the finance as business and entrepreneur segments. institutions which are in The funding support from Mudra is of four types: the business of lending to 1. Micro Credit Scheme micro / small business 2. Refinance Scheme for Banks entities engaged in 3. Women Enterprise Program manufacturing, trading 4. Securitization of Loan Portfolio and service activities. It partners with Banks, All schemes are inclusive of women and other social groups MFIs and other lending however the ‘Women Enterprise Program’ is primarily aimed at institutions at state level / encouraging and uplifting women entrepreneurs. This scheme is regional level to provide described below. micro finance support to the micro enterprise sector in the country Funding support from MUDRA Influence on project’s activities 35 Nature of assistance: In order to uplift women entrepreneurs, the financing banks consider extending additional facilities such as interest reduction on their loan, which also encourages women to undertake Women Enterprise entrepreneurial activities. 3 Program Pattern of Assistance: At present, MUDRA extends a reduction of 25bps (Basis Points) in its interest rates to the institutions which are providing loans to women. The Agricultural and Processed food Products Export Development 5. Authority (APEDA) Institution, its objective and responsibility Linkage and relation to IFPVAP’s objective Other key objectives of the APEDA are: • Development of industries relating to the Scheduled The primary objective of products for export by way of providing financial APEDA is to undertake the assistance or otherwise for undertaking surveys and development and promotion feasibility studies, participation in the equity capital of export of various through joint ventures and other reliefs and subsidy categories of raw as well as schemes processed food products • Fixing of standards and specifications for the Scheduled included in the First products for the purposes of export. Schedule to the APEDA Act. • carrying out of inspection of meat and meat products in any slaughterhouse, processing, plant, storage premises, conveyances or other places where such products are kept or handled for the purpose of ensuring the quality of such products; Key policies and schemes relevant to food Influence on project’s activities processing sector 36 Nature of assistance: I. Development of Export Infrastructure: Financial assistance to the APEDA registered exporters for setting up of infrastructure such as pack house facilities with packing/grading lines, precooling units with cold storages and refrigerated transportation etc. It also intends to support equipment and technologies of various types of screening sensors to detect external / internal quality of the produce as well. APEDA is currently financing assistance to Pattern of Assistance: Agriculture and processes foods Up to 40% of the total cost subject to a ceiling of Rs. exporters through three 100 lakhs for each of the activities. No specific major schemes: assistance to various social groups, All APEDA registered units can claim assistance based on the 1 1. Export project profile. Infrastructure No specific assistance to women or other social groups Development 2. Quality II. Quality Development: Implementation and Development Certification of quality and Food Safety Management 3. Market Systems for all APEDA scheduled products for development registered manufacturers and exporters only. (Food Safety Management System such as HACCP, India HACCP, ISO22000/FSSC-22000, BRC, ISO-14001, GAP, India GAP, GHP, ISO-9001 etc., in house quality control lab equipment, etc.) Pattern: up to 40% of the total cost subject to a ceiling of Rs. 4 lakh per beneficiary. No specific assistance to women or other social groups 2.6. World Bank Safeguards Table 6: World Bank OP/ BP - Objective and Applicability World Bank Objective & Brief Description Applicability OP/ BP 37 Key objectives of the World Bank’s policy on involuntary land acquisition are to avoid or minimize involuntary resettlement This safeguard where feasible, exploring all viable alternative project designs; may trigger due assist displaced persons in improving their former living to project standards, income earning capacity, and production level, or at interventions: least in restoring them; encourage community participation in The project may planning and implementing resettlement; and provide lead to Involuntary development of assistance to affected people regardless of the legality of land Resettlement common facilities, tenure. The policy covers not only physical relocation, but any OP/BP 4.12 infrastructure or loss of land or other assets resulting in relocation or loss of shelter; loss of assets or access to assets; loss of income sources other activities or means of livelihood whether or not the affected people must where land and move to another location. When the policy is triggered, a property Resettlement Action Plan must be prepared. An abbreviated acquisition may be plan may be developed when less than 200 people are affected involved. by the project. Key objectives of the Indigenous Peoples policy are to: 1. ensure that indigenous people affected by World Bank funded projects have a voice in project design and This safeguard implementation; may trigger due 2. ensure that adverse impacts on indigenous peoples are to project avoided, minimized or mitigated; and interventions Indigenous 3. Ensure that benefits intended for indigenous peoples are The project will Peoples culturally appropriate. propose various OP/BP 4.10 developmental The policy is triggered when there are indigenous peoples in the activities in areas project area and there are likely potential adverse impacts on where indigenous the intended beneficiaries of these groups. When this policy is people may be triggered an Indigenous Peoples Development Plan is to be affected. prepared to mitigate the potential adverse impacts or maximize the positive benefits of the project. The prime objective of the Gender and Development policy is to assist member countries to reduce poverty and enhance This safeguard economic growth, human well-being, and development will get effectiveness by addressing the gender disparities and triggered due to inequalities that are barriers to development, and by assisting project member countries in formulating and implementing their interventions Gender and gender and development goals. In sectors and thematic areas Women will be Development where the Country Assistance Strategy has identified the need involved in the OP 4.20 for gender-responsive interventions, the Bank's assistance to entire process of the country incorporates measures designed to address this project need. development and Projects in these sectors and thematic areas are designed to its adequately take into account the gender implications of the implementation. project. Preparation of a Gender Action Plan and its World Bank Objective & Brief Description Applicability OP/ BP 38 implementation should be ensured by each project undertaken with Bank support. 39 3. Socio Economic Assessment i. The social economic assessment conducted in the targeted community has been based on analysis of primary and secondary data. Analysis of secondary data has been done to understand the socioeconomic background of the targeted states and districts. Statistical information available in public domain has been drawn to outline the demographic profile, education and literacy levels, income and employment, work force participation in the unorganized sector. The data presented has been segregated by gender and social groups (especially SC and ST) to assess the status by social categories and also to understand the vulnerabilities of the population. Specific focus has been drawn on women and tribal as they emerged as a critical vulnerable group for inclusion in the program. 3.1. Population Composition ii. The overall population distribution by project states and districts as per gender and vulnerable populations are detailed in below tables. UP has the largest population of around 19 crore among the select states, followed by MH (11.24 Cr), AP (4.94 Cr) and PB (2.77 Cr). The average household size is also highest in UP (5.97) in comparison to others states. Except for AP, percentage of female population is lower than national average in all others states reflecting a need for more gender focused development in those states. Out of the four states covered, only MH (9.35%) and AP (5.53%) has ST population while the national average is 8.63%. Nandurbar in MH has one of the highest ST population of around 69%. Table 7: Population Distribution across the States – general category (Census Data, 2011) Indicators Total Average HH Total male (%) Total female Population (in size (%) Cr) India 121.01 4.8 51.47% 48.53% Uttar Pradesh 19.98 5.97 52.29% 47.71% Hathras 0.15 5.99 53.43% 46.57% Fatehpur 0.26 5.58 52.60% 47.40% Punjab 2.77 5.03 52.77% 47.23% Amritsar 0.25 5.09 52.93% 47.07% Ferozepur 0.2 5.18 52.81% 47.19% Andhra 4.94 3.89 50.09% 49.91% Pradesh Prakasam 0.34 3.95 50.47% 49.53% Vizianagram 0.23 3.99 49.54% 50.46% Maharashtra 11.24 4.6 51.83% 48.17% Pune 0.94 4.38 50.55% 49.45% Nandurbar 0.16 5.09 52.22% 47.78% 40 iii. Apart from AP, all other states have poor sex ratio compared to national average. Additionally, gender ratio in childhood and early childhood stage is poor than other age groups. This reflects the social preference for male child amongst communities. However, even in the productive age group there is a significant gap in the sex ratio as compared to the national average with Punjab being the worse with a sex ratio of 918 reinforcing the poor status of women in the society. Analysis of population composition of vulnerable section iv. As per Census 2011, in India, around 16% of population are SC and 8.6% are ST. Sex ratio among SC and ST population is slightly better than mainstream population. Among the selected states AP and MH have presence of tribal population of 5.53% and 9.35% respectively. The other states have insignificant tribal population but has presence of SC population (UP – 21.1%, PB - 31.94%). With a tribal population of around 69%, Nandurbar in Maharashtra is one of the highly tribal populated aspirational district of India. Table 8: Population Composition of Vulnerable Section of Society SC Male SC Female ST Male ST Female SC ST Indicators Population Population Population Population population Population (%) (%) (%) (%) India 16.63% 51.41% 48.59% 8.63% 50.26% 49.74% AP 17.10% 49.81% 50.19% 5.53% 49.77% 50.23% MH 10.20% 50.98% 49.02% 9.35% 50.57% 49.43% PB 31.94% 52.37% 47.63% 0.00% 0.00% 0.00% UP 21.10% 52.41% 47.59% 0.10% 51.23% 48.77% Source: Census, 2011 3.2. Education v. Better literacy and educational level positively impacts overall development and productivity of a society/ community. The Government have continually invested in the education of its people, through policy commitment and several programs to promote school and higher education, like the Right to Elementary Education, the National Policy on Education, the District Primary Education Programme, mid-day meal scheme amongst others. Table 9: Literacy Rate amongst the Population States Overall SC ST Total Male Female Total Male Female Total Male Female (%) (%) (%) (%) (%) (%) (%) (%) (%) India 72.98 80.88 64.63 66.07 75.17 56.46 58.96 68.53 49.35 58.35 40.09 AP 67.41 74.83 60.01 62.28 70.23 54.44 49.21 41 64.81 70.66 58.39 PB 67.43 80.4 70.7 0 0 0 60.89 71.77 48.87 55.68 67.08 43.72 UP 67.68 77.28 57.18 79.66 87.18 71.89 65.73 74.27 57.02 MH 82.34 88.38 64.38 Source: Census, 2011 vi. As per 2011 census, literacy rate in India has been reported as 72.98% with a 13% increase to that in 2001, whereas the increase is maximum for rural women at 20% in the last decade, which may be attributed to literacy mission of Government of India. The literacy rate for men is 80.9% and for women it is 64.6%, which means that more than one-fourth of the country’s total population is still illiterate, and nearly one-fifth of males are illiterate compared with more than one-third of females. The gender gap in literacy reflects the prevailing patriarchy and inequality within the social structure and unequal access to basic facilities for male and female members of the society. It also reflects the gap in other development indicators such as economic participation in the economically productive age group. vii. Currently, the overall literacy rate of the country is more than the state average for PB, AP and UP but less than that of MH. It can be seen that the literacy rate among male is better than female in all the select states and districts. A similar trend is noted for SC and ST population also. Further, in all the select states, the literacy rate in the aspirational districts is lower as compared to the other districts. Further, it can be inferred from the above data that the literacy rate among tribal population is even worse as compared to SC population, which in turn is less than the state average. 3.3. Income and Employment viii. Below poverty line (BPL) is an economic benchmark used by Government of India to indicate and identify individuals and household in need of government assistance and aid. As per 2014-15 data released by MoSPI around 22% are BPL and across the selected states UP (29.43%) has the highest BPL population followed by MH (17.35%), AP (9.20%) and PB (8.26%). As per the erstwhile planning commission, around 12% of the tribal population in AP, 23% in MH and 16% in UP are below poverty line. ix. Enhancing income level and livelihood generation of the beneficiaries is one of the objective of the program. Enhancing women’s participation as unit owners as well as in workforce is critical for overall social development. Reducing gender gap in participation in economic activities contributes towards many other benefit of economic prosperity such as improvement in child survival, overall family health, reduction in fertility etc. x. Women constitute roughly half of the economically active population, but their contribution to economic activity is far below the potential. Unlocking this large potential could work as catalyst in achieving goals of the IFPVAP. xi. It was observed that in rural areas, most of the workforce are self-employed and the percentage of regular employment is very less. In rural the self-employment is higher due to engagement in agricultural and related activities. However, in urban area most of the workforce are involved in either regular of self-employed. The percentage of casual worker is less than 15%. 42 xii. Among the selected states, PB and UP has highest unemployment rate for female both in rural and urban area. It can also be correlated with the fact that gender ratio in both the states is lower than national average. xiii. Further, as per the annual employment-unemployment survey 2015-16 by Labour Bureau, only 35% of the tribal population (aged 15 years and above) in AP, 53% in MH and 62% in UP have worked for 12 months. Rest of the tribal population have worked in the range of 6 to 11 months or have not worked at all. xiv. Overall unemployment rate for both male and female is higher in urban areas as compared to rural areas. A foremost reason for the same could be that most of the workforce in rural area is selfemployed, as compared to those in urban milieu. Table 10: Unemployment rate for person age 15 years and above States Rural Urban Total Female Male Total Female Male Total Female Male Total AP 2.9 3.5 3.3 9.1 2.7 4.3 3.7 3.3 3.5 MH 1.1 1.5 1.3 4.9 1.4 1.9 1.7 1.4 1.5 PB 16.7 4 5.7 22.9 3.6 6.2 18.7 3.9 5.8 UP 12.5 4.4 5.6 24.6 4.6 6.5 13.9 4.5 5.8 India 4.7 2.9 3.4 10.9 3 4.4 5.8 3 3.7 Source: Fifth Annual Employment-Unemployment Survey, Labour Bureau, Ministry of Labour & Employment (2015-16). 3.4. Workforce participation xv. Enhancing women and tribal participation in economic activities is critical not only for achieving poverty reduction & economic development but it also crucial for overall social development. Reducing this gap in participation in economic activities contributes towards many other benefit of economic prosperity such as improvement in child survival, overall family health, reduction in fertility etc. xvi. Work force participation rate (WFPR) is the indicators used to measure actual employed workers. As per Census 2011, in India the WFPR for females is 25.51% against 53.26% for males. Rural sector has a better female workforce participation rate of 30.02% compared to urban sector. The WFPR for females in rural area has decreased from 28.9 in 2007-08 to 26.1 in 2009-10 and further reduced to 24.8 in 2011-12. Among the selected states PB and UP has significantly lower female workforce participation rate than national average. Table 11: Gender wise segregation of Workforce in Unorganized Manufacturing units Category Gender Andhra Pradesh Maharashtra Punjab Uttar Pradesh Female 48% 26% 22% 26% Full time Male 52% 74% 78% 74% 43 Female 69% 62% 81% 54% Part time Male 31% 38% 19% 45% Female 49% 29% 23% 28% All Male 51% 71% 77% 72% Source: NSSO report 73rd Round, 2015 – 16 xvii. As per the NSSO 73rd round data, in the unorganized manufacturing units, male constitutes the major population of workforce. In AP, the participation is almost equal, but in the other states like MH, PB and UP, male constitutes more than 70% of the workforce. A similar trend is noted for full time employment also. However, when it comes to part time employment, female constitutes the maximum workforce, in fact in the case of PB it is more than 80%. The women are generally employed as part time helpers or on work which require little or no skills. xviii. Both women and tribal population constitute a significant amount of the economically active population, but their contribution to economic activity is far below the potential. Unlocking this large potential could work as catalyst in achieving goals as set under the program. 3.5. Analysis of Unorganized manufacturing units General characteristics of unorganized food processing units in India xix. NSSO, 73rd round data was analyzed to understand the presence of unorganized units in the targeted states and what percentage of it is constituted by the food processing sector. It can be seen from the table below that the presence of unorganized food processing units out of the total unorganized units in the four targeted states is less than 20% and varies in the range of 14 to 18 %, but it is higher than the national average of 12% which reflects that the selected states has more potential for intervention through IFPVAP. Table 12: Spread of Unorganized Manufacturing Units Unorganized food processing unit as a Overall Unorganized percentage of overall unorganized States units units AP 1020953 14% MH 1243261 18% PB 383688 17% UP 2209519 16% India 19664875 12% Source: NSSO report 73rd Round, 2015 – 16 Prevailing business challenges in unorganized food sector The IFPVAP aims to promote the unorganized food processing units and enhance their growth by bringing about interventions to reduce the challenges faced by the entrepreneurs in managing their 44 business. NSSO 73rd round data was referred to understand the prevailing challenges in the unorganized food processing sector. As per the NSSO data, around 55% of the unit owners does not face any challenge, but the challenges faced by the other unit owners were mostly in the following area: • Shrinking/ fall in demand • Frequent power cuts • Non-availability/high cost of credit Non-recovery of financial dues Table 13: Key Challenges Faced by Unit Owners (NSSO Data) Key challenges AP MH PB UP India No specific problem 71% 56% 62% 41% 56% Shrinking/fall of demand 13% 17% 22% 29% 15% Frequent power cuts 2% 9% 5% 13% 14% non-availability/high cost of credit 3% 6% 1% 14% 9% non-recovery of financial dues 4% 9% 11% 13% 9% Shortage of raw material 2% 2% 1% 5% 3% non-availability of labour as and when 2% 2% 2% 1% 2% needed non-availability of skilled labour as and 1% 1% 2% 1% 1% when needed labour dispute and related problems 0% 0% 0% 0% 0% Others 9% 13% 4% 6% 9% 45 Participation of unorganized food sector in availing government assistance xx. As per NSSO data, more than 97% of units in all selected states have responded that they have not received any assistance in starting or running their business. In comparison with other states, respondents in AP has received more assistance and majority of them were for financial loan Table 14: Assistance Received by the Unit Owners (Out of 1000 unit owners) States Andhra Maharashtra Punjab Uttar Pradesh No assistance 971 998 997 998 Financial loan 24 1 3 2 Subsidy 4 1 0 0 Machinery/equipment 2 1 0 0 Type of assistance Skill development 3 0 0 0 received marketing 0 0 0 0 raw material 0 0 0 0 others 0 0 0 0 Source: NSSO report 73rd Round, 2015 - 16 Adoption of IT/ICT in unorganized food sector xxi. As per NSSO data, only 1-2% of unit owners were using computer and internet. Although in last five years penetration of computer and internet devices have increased significantly but still a significant portion of target beneficiaries may not be using IT or electronic devices. As such for a program like IFPVAP which aspires to engage these entrepreneurs, physical interaction and awareness program should be organized to make entrepreneurs aware of the scheme. Table 15: ICT Use by Unit Owners (Out of 1000 unit owners) States Andhra Maharashtra Punjab Uttar Pradesh Enterprises using computer 8 38 25 9 Enterprises using Internet 5 29 18 5 Source: NSSO report 73rd Round, 2015 - 16 Access to sanitation facilities for the workers xxii. As per NSSO data sanitation facility present across the unorganized manufacturing units were analyzed and it was observed that majority of the units have own and usable toilet facility. However NSSO data does not capture separate toilet facilities available for women and also it does not capture other important and necessary facilities like eating space, drinking water and work shed. Table 16: Facilities provided at the Facilities (Out of 1000 unit owners) No toilet Own & usable Own and not in Public toilet in the State facilities conditions usable condition market place/building Andhra 352 629 13 6 46 Mahara 268 519 25 188 shtra Punjab 299 601 11 88 Uttar 501 469 11 19 Pradesh India 323 615 13 48 Source: NSSO report 73rd Round, 2015 – 16 47 4. Social Assessment i. The section briefly describes the sample covered across the four states and delves deeper into the demographic profile of the beneficiaries covered, education levels, workforce participation, sales, access to government schemes and benefits, and any challenges faced by the units. All of the above indicators have been analysed through the lens of their impact on two key identified target beneficiaries including women and tribal. 4.1. Sampling strategy ii. The primary focus for the survey was to cover small and micro units employing less than 10 workers and with less than 25 lakhs capital investment. Food categories were divided into dairy, fruits & vegetables, packaged foods, grain & oils seeds, meat & poultry and beverages. iii. Food processing unit information were obtained from FSSAI, DIC and state nodal agency under IFPVAP. These data points were analysed to understand the presence and spread of different types of food processing units in these districts. iv. The table below displays the spread of units registered with FSSAI. It does not have units which have obtained license from FSSAI. License is required for units with annual turnover more than 12 lakhs and for petty manufacturers only registration is required. It can be seen from the table that dairy and packaged food are registered in higher number as compared to Fruits and vegetables and Grain and oil seeds. Table 17: Spread of FSSAI registered units Grain and Packaged States Fruits and Vegetables Dairy units Oilseeds foods India 7147 66460 14600 97110 AP 31 944 74 386 Prakasam 0 6 3 4 Vizianagaram 0 34 0 1 MH 1286 12120 1508 16534 Nandurbar 1 12 3 76 Pune 29 196 46 647 PB 89 2845 155 1400 Amritsar 6 24 6 47 Ferozepur 0 393 2 18 UP 305 10492 1139 8319 Fatehpur 6 194 18 95 Hathras 3 417 4 159 v. The section below discusses the spread of units in shortlisted districts of selected states basis information obtained from DIC of respective districts. 48 Spread of units in shortlisted districts of U.P – • Fatehpur- Around 75% small and micro units in DIC database are grain and oil seeds processing units. Dairy, fruits and vegetables and packaged food categories are significantly less compared to grain and oil seeds • Hathras- Hathras is known for production of Asafoetida (Hing). There were many organized and unorganized units manufacturing Hing. Around 40% of the units small and micro units in DIC database were manufacturing spices like Hing, sambhar masala etc. Around 10% of them are into dairy based units and 10% in fruits and vegetables processing. Spread of units in shortlisted districts of Punjab – • Amritsar- Around 30% of the small and micro units DIC database are into grain and oil seed processing. 10% of the units are in fruits and vegetables processing and 10 % in dairy processing. • Ferozepur- Grain and oil seeds processing units and dairy units have are equally registered with DIC, each with 40% of presence in DIC database. Remaining units are of packaged food producing processed or semi-processed food products. Spread of units in shortlisted districts of Maharashtra – • Nandurbar- Grain mills (22%), Spice manufacturing (17%), Papad and other snack food (17%) were the top three types food processing units registered with DIC in Nandurbar. • Pune- As per DIC database around 40% of small and micro units are into bakery and other packaged food items. 20% of them are into manufacturing dairy based products like ghee, butter etc. and 15% of the units are into making pickles and other fruits and vegetables products. Spread of units in shortlisted districts of Andhra Pradesh – DIC database was not complete in itself and hence does not provide complete picture of spread of small and micro food processing units. As per the data shared by them more than 90% of the units are into grain and oil seed processing in both the selected districts Prakasam and Vizianagram. vi. Database of state nodal agencies were also used to understand spread of micro and petty manufacturers. These three different datasets were collated to understand spread of small and micro units. vii. Basis the above information, major food categories which have higher presence of micro and unorganized units were: Dairy product processing • Fruits & vegetable processing • Grains and oilseed processing including spice manufacturing • Packaged food processing (Bakery, Snacks and Savories) No small and micro units were found in meat and poultry and beverages category as all of them were large and organised viii. The survey aimed at targeting at least 25 units for each district, spread across four food categories selected above. This gives a total of 200 units as overall sample size for primary survey ix. Basis this strategy the location of units were mapped and covered under primary survey in shortlisted districts x. Out of the total sample 8 units could not be included for further assessment as they did not meet the eligibility criteria for beneficiary assistance under IFPVAP. Finally a 192 were selected as basis for social 49 assessment. The spread of these 192 units with respect to different food categories, ownerships and level of formalisation is discussed in following section 4.2. Sample coverage xi. Around 40% of the units covered are in packaged food manufacturing which includes bakery, spices, snacks etc. 26% of the units covered were into grain and oil seed processing which mostly includes flour mills and oil mills. Around 20% of the units are into manufacturing pickles, ketchup etc. Remaining 14% are into dairy and dairy based products like ghee, butter, curd etc. Table 18: Coverage of units in selected districts Dairy Fruits and Grains and Oil Packaged Grand Row Labels Products Vegetables Seeds Foods Total AP 1 8 2 30 41 Prakasam 1 3 2 17 23 Vizianagaram 0 5 0 13 18 Maharastra 5 12 19 23 59 Nandurbar 1 3 13 14 31 Pune 4 9 6 9 28 Punjab 13 9 14 8 44 Amritsar 9 8 10 4 31 Ferozepur 4 1 4 4 13 Uttar 8 9 16 15 48 Pradesh Fatehpur 5 5 11 5 26 Hathras 3 4 5 10 22 Grand Total 27 38 51 76 192 xii. Around 87% of these units were proprietorship units, 6% SHGs and FPO, 6% partnership firms and around 1% private limited firm. Following table gives a breakup of nature of units with different types of ownership. Table 19: Distribution of units with different ownership Proprietorshi Partnershi Private SHG/FP Grand Row Labels p p Limited O Total AP 41 0 0 0 41 Prakasam 23 0 0 0 23 Vizianagaram 18 0 0 0 18 Maharastra 50 5 0 4 59 Nandurbar 26 2 0 3 31 50 Pune 24 3 0 1 28 Punjab 40 1 0 3 44 Amritsar 27 1 0 3 31 Ferozepur 13 0 0 0 13 Uttar 37 5 2 4 48 Pradesh Fatehpur 19 4 1 2 26 Hathras 18 1 1 2 22 Grand Total 168 11 2 11 192 xiii. Out of the total 192 units surveyed, 44% of the units were registered under FSSAI, 26% units were having GST registration and 17% were having MSME/SSI registration. Further it was observed that the units with any kind of formalization or registration were having double monthly sales as compared to unregistered units. Table 20: Level of formalization of surveyed units States GST FSSAI MSME/SSI AP 4 7 5 Prakasam 3 7 4 Vizianagaram 1 0 1 MH 19 32 18 Nandurbar 14 16 14 Pune 5 16 4 PB 7 15 9 Amritsar 3 11 6 Ferozepur 4 4 3 UP 21 31 2 Fatehpur 13 20 0 Hathras 8 11 2 Total 51 85 34 51 4.3. Basic profile of unit owners xiv. A total of 192 units were surveyed in the four states of AP, PB, UP and MH which included eight selfhelp groups (SHGs), and three farmer producer organization (FPOs). The analysis of primary data across different variables, SHG and FPO are not included due to their different working structure. These are discussed separately at the end of this analysis. Structured interviews were undertaken with the owners and representative of the units to understand their socio-economic status, economic activities, current management practices and challenges faced in operation and managing the business activities. In addition, workers working in the units were also interviewed to understand their working environment and related issues. xv. The table below reflects the profile of the units covered. Table 21: State wise micro/small unorganized food processing units segregated by gender and social groups Female owner Male owner SC owner ST owner States Units covered (%) (%) (%) (%) AP 41 82.93% 17.07% 2.44% 0.00% Prakasam 23 73.91% 26.09% 4.35% 0.00% Vizianagaram 18 94.44% 5.56% 0.00% 23.53% MH 55 25.45% 74.55% 0.00% 0.00% Nandurbar 28 32.14% 67.86% 0.00% 66.67% Pune 27 18.52% 81.48% 7.41% 0.00% PB 41 4.88% 95.12% 0.00% 0.00% Amritsar 28 7.14% 92.86% 0.00% 0.00% Ferozepur 13 0.00% 100.00% 0.00% 0.00% UP 44 11.36% 88.64% 0.00% 0.00% Fatehpur 24 16.67% 83.33% 4.17% 0.00% Hathras 20 5.00% 95.00% 0.00% 0.00% Total 181 30.39% 69.61% 2.76% 18.18% xvi. Out of the total units covered, 30% of the unit owners were female. The survey covered 18% units owned by STs and 3% owned by members of the SC community. The maximum female owners were found in AP, followed by MH. The presence of female owners in UP and PB was less than 20%. Maximum participation of female owners (60%) were noted in packaged food, followed by fruits & vegetable (20%) sector. ST owners were only found in MH and AP. xvii. Higher participation of women in two out of the four states covered reveals potential for engaging women in other two states. Food categories like fruits and vegetables and packaged food can be started from home easily and will be helpful in increasing women participation. 52 Age of unit owners xviii. During the survey, it was noted that the majority of the unit owners belong to the age group of 30 to 50 years. Presence of younger population (less than 30 years) was found to be around 12%. The unit owners or entrepreneurs were predominantly in the age group of 30 to 50 years, (56% males and 69% females). However, the gender-segregated data revealed that there are more male entrepreneurs below 30 years of age but that is rare amongst female entrepreneurs. This reinforces that the status of women in a family improves with age and more stability after marriage to take up an entrepreneurial initiative. 20% of the SC and ST entrepreneurs fall in the age group of less than 30 years and around 50% of them fall in the age groups of 30-50 years. Table 22: Age of the Owners Male Female No. of Below More No. of Below More 30-50 than 30-50 than States Units 30 Units 30 Years 50 Years 50 Covered Years Years covered Years Years AP 7 43% 29% 29% 34 9% 74% 18% Prakasam 6 33% 33% 33% 17 6% 71% 24% Vizianagara 1 100% 0% 0% 17 12% 76% 12% m MH 41 10% 59% 32% 14 0% 64% 36% Nandurbar 19 5% 68% 26% 9 0% 67% 33% Pune 22 14% 50% 36% 5 0% 60% 40% PB 39 18% 56% 26% 2 0% 0% 100% Amritsar 26 23% 50% 27% 2 0% 0% 100% Ferozepur 13 8% 69% 23% 0 0% 0% 0% UP 39 8% 59% 33% 5 20% 80% 0% Fatehpur 20 10% 65% 25% 4 25% 75% 0% Hathras 19 5% 53% 42% 1 0% 100% 0% Total 126 13% 56% 30% 55 7% 69% 24% Note: Values are calculated on the basis of sample size in respective state and district for male and female entrepreneurs Literacy and Education level of owners xix. In the primary survey it was found that in all states more than 60% of unit owners were not even graduate and in case of female owners this percentage is even lesser, just 13%. Literacy levels of the units surveyed indicate that the average literacy of male population is higher than female literacy levels. As per the sample covered, the education level of the unit owners in UP and PB were better as compared to AP and MH. Further, more than 70% of the vulnerable section (SC/ST) unit owners interviewed were not even matriculate. However states such as MH and UP have a higher trend of educated entrepreneurs, primarily male. The more educated male or females may not be opting for an entrepreneurial initiative in the community. The education level of female owners reinforces the general trend of less education amongst women in all states in the country. 53 xx. It was also observed that education level in aspirational district is lesser than the project district. In Vizianagram, AP, only 11% and in Fatehpur only 20% of entrepreneurs were found to be graduate. xxi. Education level of target beneficiaries is an important parameter for programme design. The educated owners have higher chance of being more aware of government schemes, policies, rules and regulations for the unit functioning. The current level of education of the unit owners reflect higher need for training and hand holding for strengthening the units under the program. Table 23: Literacy and Education Levels of the Owners Male Female Row No. of Below High Graduat No. of Below High Graduat Labels Units 10th Schoo e units 10th Schoo e covere standar l covere standar l d d d d AP 7 57% 14% 29% 34 74% 26% 0% Prakasam 6 67% 17% 17% 17 71% 29% 0% Vizianagara 0% 0% 100% 76% 24% 0% m 1 17 MH 41 41% 17% 41% 14 64% 14% 21% Nandurbar 19 21% 32% 47% 9 56% 22% 22% Pune 22 59% 5% 36% 5 80% 0% 20% PB 39 33% 41% 26% 2 50% 0% 50% Amritsar 26 38% 27% 35% 2 50% 0% 50% Ferozepur 13 23% 69% 8% 0 0% 0% 0% UP 39 18% 41% 41% 5 40% 0% 60% Fatehpur 20 30% 25% 45% 4 25% 0% 75% Hathras 19 5% 58% 37% 1 100% 0% 0% Total 126 32% 32% 36% 55 67% 20% 13% Note: Values are calculated basis sample size in respective state and district for male and female entrepreneurs 4.4. Worker Profile in unorganized food processing units Participation of male and female workers xxii. The detailed analysis of primary data collected during sample surveys indicate that male constitute 70% and female 30% of the total worker population. The female participation in the workforce in the states of UP and PB is less than 12% for the surveyed sampled. On the contrary the female participation is 70% and 61% in the states of AP and MH respectively. In general participation of female workers were noted in packaged food sector (63%) followed by grain and oil seeds (24%) sector and least in dairy sector (6%). The percentage of female working in the packaged food sector is high as most of such units are home based. xxiii. There is scope to increased involvement of labour in packaged food, fruits and vegetable units as they are largely domestic and home based units. Table 24: Participation of male and female workers in units across states and sectors 54 State & Sector Male worker Female worker AP 30% 70% Dairy Products 40% 60% Fruits and Vegetables 33% 67% Grains and Oil Seeds 78% 22% Packaged Foods 24% 76% MH 39% 61% Dairy Products 29% 71% Fruits and Vegetables 44% 56% Grains and Oil Seeds 45% 55% Packaged Foods 36% 64% PB 89% 11% Dairy Products 91% 9% Fruits and Vegetables 92% 8% Grains and Oil Seeds 83% 17% Packaged Foods 86% 14% UP 88% 12% Dairy Products 79% 21% Fruits and Vegetables 97% 3% Grains and Oil Seeds 83% 17% Packaged Foods 90% 10% Total 70% 30% Participation of Full time and Part time workers xxiv. Around 66% of the total workforce are employed as full time and 34% as part time out of the surveyed sampled. In AP, almost 95% of the workforce are employed as fulltime while in UP 43% of the workers are part time workers. Out of the surveyed sample, 47% of the workers employed in grains and oil seed category are part time due to its seasonal nature while other categories have almost 30% of their workers as part time workers. During the survey it was found that majority of female workers are employed as part time workers. Such workers are mainly engaged in activities such as cutting of vegetables and fruits, packaging, cleaning that are attached to lower in the food processing value chain (only restricted in manual operations). Table 25: Participation of full time and part time workers by state and sectors State & Sector Full Time workers Part Time workers AP 95% 5% 55 Dairy Products 60% 40% Fruits and Vegetables 67% 33% Grains and Oil Seeds 100% 0% Packaged Foods 99% 1% MH 71% 29% Dairy Products 100% 0% Fruits and Vegetables 100% 0% Grains and Oil Seeds 96% 4% Packaged Foods 56% 44% PB 63% 37% Dairy Products 79% 21% Fruits and Vegetables 77% 23% Grains and Oil Seeds 33% 67% Packaged Foods 58% 42% UP 57% 43% Dairy Products 56% 44% Fruits and Vegetables 70% 30% Grains and Oil Seeds 36% 64% Packaged Foods 70% 30% Total 66% 34% Facilities provided to the workers xxv. During the survey it was observed that most of the units did not having basic facility and infrastructure to help their workers work comfortably. It is important for these units have provision of basic facilities like toilets and drinking water for its employees. The table below shows presence of basic facilities at the units. Table 26: Facilities provided for the Workers (Male and Female) by states Row Labels Common toilet Separate toilet Separate eating space Drinking water AP 59% 15% 27% 71% Female 65% 15% 26% 65% Male 29% 14% 29% 100% MH 89% 18% 27% 89% Female 93% 14% 29% 86% Male 88% 20% 27% 90% 56 PB 90% 0% 0% 98% Female 50% 0% 0% 100% Male 92% 0% 0% 97% UP 68% 16% 11% 93% Female 80% 0% 20% 100% Male 67% 18% 10% 92% Total 77% 13% 17% 88% • 77% units covered were having basic facilities like common toilets and drinking water however separate toilet for female was not available with 87% of the units, hindering their participation in the sector. • None of the units have provisions for health and safety like fire safety equipment, medical kits etc. • Almost all the units surveyed were operating in a very informal way without keeping record for production, sales, raw material consumed etc. • None of the units covered maintain record for workers employed, their identity proof and record for working hours. • Only 8% of the units covered were having all the above mentioned facilities Wages and Working hours xxvi. During the consultation with unit owners it was observed that most of the workers do not have any fix time of working and mostly they work as per demand. Usual working hours was found to be between 8 to 10 hours which in some cases gets extended upto 13 hours. In many of the home based enterprises women worker work on hourly and piece rate basis which could range from 4 to 8 hours. Generally working hours for female workers are not fixed and can range from 4 to 8 hours, it gives them an opportunity to devote their time on household activities also. xxvii. During the survey, none of the units had formal system of recording working hours and wages paid to the workers. On consultation with the workers it was found that for many of them salary is not fixed and varies with respect to work done. For instance, in the case of pickle manufacturing in the units covered in UP, it was noted that some of the women were involved in cutting the fruits and vegetables and were generally paid on piece rate. Such workers generally work for 4-6 hours per day depending upon the work. During the interaction with both owner and workers it was observed that workers were paid in the range of INR 10 to 20 per kg of cutting work performed by them depending on the fruit or vegetable for e.g. for mango the rate was less as compared to garlic. Such workers reported that on an average they were able to cut 2 to 4 kgs in an hour. xxviii. During the survey, the wages paid to the workers working in the units were captured for the units visited. It was observed that, female were paid less as compared to male workers as mostly they were employed in low-productive work which are temporary in nature like packaging, cleaning, cutting of vegetables etc. During the interaction with female workforce, they shared that they prefer jobs which have flexible working arrangements so that they can manage work along with their household responsibilities. Table 27: Table showing average monthly wage paid to male and female workers Average monthly wage paid to Average monthly wage paid to Sectors male workers female workers Dairy Products 9293 9275 Fruits and Vegetables 8036 6807 57 Grains and Oil Seeds 8287 7333 Packaged Foods 7590 6142 Total 8165 6852 4.5. Business Analysis Average Sales xxix. As per the data collected on sales and income based on the declaration of the owner/ interviewer it was observed that education level of entrepreneurs has a direct impact on average sales of the unit. Higher the education level of the owner, more is the sales. For instance, the sales of owners who are graduates is almost double to that of owners who are only high school pass outs. However, it can be seen that in some cases where in the sales by graduate owner is less than high school owner is mainly because the unit has been recently opened by the graduate owner. xxx. However, the above scenario of education level being directly proportional to sales is not true in the case of female owners, as reflected in the table above. This is mainly because in majority of such units, male members of their family support the females. Also most of such units were registered in the name of the women to take advantage of the prevailing government scheme or subsidiary, implying that women are not forerunning the units. xxxi. For the SC and ST population, only 14% of the unit owners are graduate and their average monthly sales is less than half of average sales in the state. Table 28: Average Monthly Sales by the education level of owners Education level and monthly sales of owners Sales of owners Sales of owners Sales of owners with High States below 10 with graduate Total School standard and above education AP 1.47 1.57 0.29 1.44 Female 1.45 1.08 0.00 1.35 Male 1.58 6.00 0.29 1.84 MH 2.12 1.97 3.84 2.73 Female 2.06 0.60 1.03 1.56 Male 2.15 2.42 4.41 3.11 PB 1.75 5.14 3.79 3.81 Female 0.00 0.00 3.00 3.00 Male 1.75 5.14 3.92 3.85 UP 0.90 1.71 7.15 4.15 Female 0.00 0.00 3.83 3.83 Male 0.90 1.71 7.77 4.18 Total 1.67 2.60 5.05 2.94 58 Note: Values are calculated basis sample size in respective state and education level for male and female entrepreneurs Financial assistance xxxii. The data analysis of primary data collected during sample surveys reveal that educated owners are keen on taking formal loans from banks. However, when it comes to enrolment under government schemes, the lesser or uneducated owners are more active as compared to higher educated owners. xxxiii. Further, maximum instance of both loans from bank and registration under schemes were observed in AP. Maximum number of the loans taken were observed in fruits and vegetables (55%) followed by packaged food (37%) sector. However, for the enrolment under Government schemes, no such sectoral trend was observed, but around 60% of such registrations are done by female owners indicating high prevalence of women centric/ favoring schemes in the food processing sector. xxxiv. Hence, raising awareness amongst women regarding prevailing schemes and benefits for their easy access and participation in the food processing units, will create an enabling environment for their increased participation. Table 29: Government schemes and loans used by unit owners by the education level of owners Access to government schemes by Access to Bank loans by education level education level of unit owners of unit owners States Graduate Graduate Below 10 High Below 10 High and Total and Total standard School standard School above above AP 48% 10% 0% 37% 1% 70% 0% 46% Female 56% 11% 0% 44% 44% 67% 0% 50% Male 0% 0% 0% 0% 25% 100% 0% 29% MH 4% 11% 5% 5% 8% 33% 50% 27% Female 0% 0% 0% 0% 11% 0% 0% 7% Male 6% 14% 6% 7% 6% 43% 59% 34% PB 7% 0% 9% 5% 14% 6% 18% 12% Female 0% 0% 0% 0% 0% 0% 0% 0% Male 8% 0% 10% 5% 15% 6% 20% 13% UP 11% 13% 16% 14% 0% 31% 63% 39% Female 0% 0% 33% 20% 0% 0% 100% 60% Male 14% 13% 13% 13% 0% 31% 56% 36% Total 22% 8% 10% 14% 21% 31% 46% 31% 59 Note: Values are calculated basis sample size in respective state and education level for male and female entrepreneurs xxxv. During the survey, most of the respondents stated that tedious process of loan application and approval responding to the requirement of collaterals was one of the two biggest challenges faced by entrepreneurs while obtaining loans from banks. Non-cooperation from bank staff was also reported as one of the challenge, especially in the states of PB and MH. Table 30: Challenges Faced by Unit Owners in Obtaining Loan from the Bank across states Preparing the Tedious Meeting collateral Repayment Non-cooperation of States proposal process requirements schedule banking staff AP 30% 20% 25% 10% 10% Female 33% 18% 26% 8% 8% Male 24% 24% 24% 14% 14% Maharas 15% 27% 23% 12% 21% htra Female 6% 35% 29% 12% 18% Male 18% 25% 21% 13% 21% Punjab 5% 37% 21% 21% 16% Female 0% 0% 0% 0% 0% Male 5% 37% 21% 21% 16% Uttar 17% 38% 24% 14% 7% Pradesh Female 33% 33% 33% 0% Male 15% 38% 23% 15% 8% Total 19% 28% 24% 13% 14% Note1: Values are calculated basis sample size in respective state for male and female entrepreneurs Note2: Response was taken against a multiple choice question xxxvi. It was observed that there is significant difference in the awareness of scheme and support taken from such schemes to run or start the business. Across the selected states almost 38% of unit owners were aware of the relevant schemes while only 14% have taken support from such scheme. It was observed during the discussion with the respondents that many of the entrepreneurs were aware of the schemes but lack understanding of the process and selection criteria. In states like AP the difference is less which means policies like DWCRA, Srinidhi and Mudra are effectively and transparently communicated to the beneficiaries. Table 31: State wise comparison between awareness of scheme and Support Taken from Scheme States Awareness of the relevant scheme/s Obtained support from the scheme/s AP 54% 37% Female 59% 44% Male 29% 0% Maharashtra 38% 5% Female 29% 0% 60 Male 41% 7% Punjab 32% 5% Female 50% 0% Male 31% 5% Uttar Pradesh 30% 14% Female 80% 20% Male 23% 13% Total 38% 14% Note: Values are calculated basis sample size in respective state for male and female entrepreneurs Prevailing business challenges in unorganized food sector xxxvii. One of the objective of the program is to enable the business environment for these unorganized units to make them more competitive and improve their performance. During the primary survey respondents were asked to choose challenges that they face in running their business. Around 70% of the respondents have said that they face challenge with respect to availability of finance. Around 40% of the respondents in UP have said that they do not face any challenge in running their business. This is primarily because they are not able to realize how they can improve the business further. The table below gives snapshot of challenges faced by unit owners in running the business. Table 32: State wise challenges Faced by the Unit Owners Access Availability Availabilit Availabilit Availability of Availabilit States to of raw y of y of latest y of Market material logistics labour technology finance AP 17% 12% 24% 2% 20% 63% Female 15% 15% 26% 3% 21% 56% Male 29% 0% 14% 0% 14% 100% Mahar 38% 18% 22% 9% 24% 87% ashtra Female 57% 21% 36% 7% 50% 93% Male 32% 17% 17% 10% 15% 85% Punja 12% 5% 0% 85% 98% 90% b Female 50% 50% 0% 50% 100% 50% Male 10% 3% 0% 87% 97% 92% Uttar Prade 23% 16% 11% 2% 7% 36% sh 61 Female 40% 0% 0% 0% 0% 20% Male 21% 18% 13% 3% 8% 38% Total 24% 13% 15% 23% 35% 70% Note: Response was taken against multiple choice question for sample size Note: Values are calculated basis sample size in respective state for male and female entrepreneurs Access to Finance xxxviii. Around 70% of unit owner’s face challenge w.r.t availabil ity of finance. It is a common challenge across all sectors, but more prominent in dairy and fruits and vegetable sector. For instance, some of the pickle manufacturers (especially mango pickle) were highly dependent on raw material availability, ice cream manufacturers have their peak season during summer season and winter is a lean season. xxxix. Issue of availability of finance is because of poor cash flow cycle, longer credit period and seasonal nature of business affects repayment. xl. As the units are small and unorganized, it is difficult for them to arrange collaterals requirement and prepare attractive business plan. In the absence of collaterals as security and detailed business plan it becomes difficult for them to take formal loans and hence are mostly dependent on their own savings. xli. Also significant association was observed with respect education level and access to finance xlii. During the survey, it was observed that female owners faces less challenge in obtaining finance than their male counterparts. However, it was noted that in most of these cases, the unit were registered in the name of women to take the benefits of prevailing government schemes and subsidiaries. In MH and UP, most of these units were managed by the male members of their family. Access to latest technology xliii. Availability of latest technology means automated machine for processing and packaging. Around 55% of the units were manually operated and the usage of machines and technology are limited to only a few units. xliv. In the state of PB, around 98% of the unit owners have stated that they are currently using old machines which is hampering their production. They have expressed their interest in adopting to new technology and machines, but need financial assistance for purchasing. xlv. The problem is more significant in PB in comparison to other states because PB is facing acute shortage of labour and automation is needed to eliminate manual intervention and their dependency on labour. On the other hand in UP, very few of the unit owners have the intent to upgrade themselves to new technology because of easy availability of labour. Access to market xlvi. Access to market is one of the common challenge faced by all unit owners across the states. Most of the units being small in size with limited use of technology, it is difficult for them to compete in the market with branded products. Around 30% of the units sell their produce to local community and neighbors and only 8% of the units covered during the survey, supply their processed goods to brands and 43% of the such units sells their goods with the help of retailers and wholesalers. xlvii. Female owners are facing more challenge for access the market as compared to male except in AP. Female entrepreneurs of AP do not face challenge because they are not restricted to sell their product locally and are tapping market outside the state as well as country. Many of them have engaged with different channels like retail shops, food carts and dealers to sell their product. On the 62 other hand women entrepreneurs in UP and MH were dependent on government fairs or their male counterparts to sell their produce in the market. xlviii. Fluctuating demand or no assurance of future demand is one of the major problem for these small units because of which they are not able to plan their business activities in advance. Also, for some of the units which are small and have limited demand, generally manufacture their products seasonally on the basis the demand received. For instance one batch of the product is manufactured and sent to the market, till the time the next demand is not received, they will not start the manufacturing process. This hampers their growth of the unit significantly. This challenge is more prominent with female entrepreneur. xlix. Peer competition and access to market are the two most common challenges faced by the unit owners to sell their produce. Around 42% of respondents have said that peer competition is the major challenge to sell their produce followed by awareness and access to new market. Quality of the product is also one of the factors which impacts the overall sale of produce. Table 33: State wise Primary Challenges faced by Unit Owners States Logistics Access to market Peer competition Quality of product AP 17% 27% 12% 7% Female 18% 29% 12% 9% Male 14% 14% 14% 0% MH 16% 35% 36% 24% Female 21% 50% 43% 29% Male 15% 29% 34% 22% PB 7% 24% 80% 34% Female 50% 50% 100% 50% Male 5% 23% 79% 33% UP 5% 64% 41% 14% Female 0% 80% 20% 0% Male 5% 62% 44% 15% Total 12% 38% 42% 20% Note: Response was taken against multiple choice question for sample size Note: Values are calculated basis sample size in respective state for male and female entrepreneurs Availability of labour l. Availability of labour was found to be significant problem in PB. During the interview unit owners of PB stated that they are highly dependent on migrant labour from other states as local community are mainly involved in farming. Availability of raw material li. Availability of raw material was observed as a major challenge particularly in fruits and vegetable sector and grains and oil seed sector due to its seasonal nature of availability of raw material. Due to limited 63 availability of finance and working capital such units fails to buy in bulk and store the raw material for future usage. 4.6. Functioning of SHG and FPO run units lii. SHGs are small groups of people who come together for a common cause and provide mutual supports to each other. SHG’s promote small savings among their members and t heir savings are kept with the bank under the common account in the name of the SHG. Such SHG are usually comprises of groups ranging from 10 to 15 members and are generally run by women. From one family, only one person can become a member of an SHG. In most cases, one member takes the overall charge of a particular SHG and the responsibilities are equally divided among all members. The overall profit of the business is equally divided among all the members and a portion of the profit is deposited in the SHG account for managing the unit activities. liii. During the survey, such SHG’s were found in all the states, except for Andhra Pradesh (in AP most of the units were part of SHG’s but were registered as independent units). Such SHG’s were mostly found active in the processing of spices, fruits and vegetables, papad manufacturing, jaggery, grain and oil and dairy. Most of the SHG’s visited during the survey were formed under the guidance of NRLM (National Rural Livelihood Mission) or ATMA (Agriculture Technology Management Agency). Both NRLM and ATMA guide the members in forming SHG’s and how it can benefits them. They also provide basic training on the food processing and also facilitates in taking livelihoods/income- generating activities. NRLM also provides an initial funding for starting and forming the SHG’s. liv. SHG’s is a popular model to eradicate poverty and increase the participation of women in the food processing sector. SHG’s help women to earn an additional income by utilizing their free time and at the same time they are able to manage their household responsibilities too. lv. During survey we consulted with a total of 8 SHG and 3 Farmer Producer Organization (FPOs). Out of these majority were found in packaged food industry, majorly in the area of making papad, pickle and murabba. These category of food processing units are popular with women SHGs because of low investment, simple process and low technical knowledge required of making the product. Table 34: Sectors with a Women Presence Sectors Uttar Punjab Maharashtra Andhra Total Pradesh Pradesh Grains & Oil 0 0 1 (FPO) 0 1 Dairy Products 0 0 0 0 0 Packaged Food 3 0 1 SHG and 1 FPO 0 5 Fruits & Vegetables 1 3 1 (FPO) 0 5 Total 4 3 4 (SHG & FPO) 0 11 lvi. Farmer Producer Organisation (FPO) is an entity formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. An FPO can be a Producer Company, a 64 Cooperative Society or any other legal form which provides for sharing of profits/benefits among the members. lvii. The main aim of an FPO is to ensure better income for the producers through an organization of their own. Small producers do not have large volume individually (both inputs and produce) to get the benefit of scale. Besides the PO also support in bringing transparency by eliminating intermediaries from the long value chain production to selling in the market. lviii. These FPOs are generally supported by NABARD, SFAC, and Government Departments and hence have better access to finance. These agencies provide financial and technical support to the producer organization for promotion and hand holding. Especially in the state of Punjab, during the primary survey it was noted that both ATMA and NABARD are very active in promoting food processing sector. Food mart are also organized by ATMA at a frequency of once or twice a year, during such marts new schemes, machines and technology are explained to all the attendees. Also, the members are provided a food stall to display and sell their products. As per the conversation with the unit owners, more than 50% of their sales are met by such marts which are arranged at different locations within Punjab. During the survey, one instance was noted wherein, NABARD has sponsored a shop for the FPO’s to sell their products. The rent of the shop and salary to the shop caretaker are paid by NABARD to increase the market reach. lix. Forming SHGs and FPOs can be emerge as a stronger alternative for small and unorganized food processing units to increase their bargaining power to procure raw material, sell their produce and avail financial supports from banks and government schemes. 4.7. Recommendations to address identified business challenges Table 35: Key action points Parameters Key action points Responsible agency Unit owners to be made more aware on Under Sub-component 3.2 Availability the requirements, processes and Dedicated Financial Facility (DFF) will of finance benefits of obtaining loan from banks provide financial support with the 65 Communication between bank and help of additional funding from Partner beneficiary should be made more clear Financial Institutions (PFIs) and easy for the beneficiary to understand issues if any and take required measures Institutions like NABARD, Gramin Bank and other financial institutions should be made partner to support financial assistance for this program Existing financing schemes like Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) can be linked with the program for having collateral free financing Unit owners should be made aware of benefits of latest technology and modern machines and their costs Under component 4 Subsidies can be provided to avail Project Management Unit (PMU) is modern machines and technology to be formed for making contractual Availability Local machine manufacturers needs to agreements with key implementing of be identified to provide technical partners. technology support to the unit owners State Nodal Technical Institutions to Institutes like NIFTM, IIFPT and provide technical support through ICAR can be made partners in Technical Service Provider (TSP) training technology development and penetration Soft loan or subsidy can be provided in Under Sub-component 3.2 bulk purchase of raw material Dedicated Financial Facility (DFF) Availability Common facility center can be will provide financial support for of raw developed where unit owners can store upgradation plans to Micro material their raw material. This will ensure Enterprises/Clusters. availability of raw material throughout the year. Common marketing centers for home based entrepreneurs can be developed to sell their product Government canteens can provide Under sub-component 2.1 contract to these unorganized units Nodal Technical Institutions (NTIs) Access to Unit owners can be made aware of new Will provide management/strategic advice Market market opportunities and how to build on enterprise development to Micro their brand Enterprises. CSR activities of corporates can be used to develop market linkages and find new market avenues 66 4.8. Summary of social economic assessment and social assessment lx. To summarize the two chapters presented above, the secondary data has been used primarily to reflect upon the overall socio-economic context of selected states and districts, while data from the primary surveys has been used to deepen the understanding – for both socio-economic characters of the populace as well as their relation with the food processing industry. • As per NSSO 2015-16, around 55% of the workforce in rural areas are self-employed and the percentage of regular employment is very less. This could be attributed to the high nature of agricultural activities in rural areas. However, in urban area around 60% of the workforce are involved in either regular of self-employed. The percentage of casual worker is less than 15%. Further, women constitute roughly half of the economically active population, but their contribution to economic activity is far below the potential. Among the selected states, PB and UP has highest unemployment rate for female both in rural and urban area. It can also be correlated with the fact that gender ratio in both the states is lower than national average. • This was corroborated through primary survey, where out of the total units covered, most of the unit owners were male (68%), with less than 30% representation from female owners (29%). Further, similar to the national statistics, the presence of female owners in UP and PB was less than 20%. Further, gender-segregated data revealed that there are more male entrepreneurs below 30 years of age but that is rare amongst female. This reinforces that the status of women in a family improves with age and more stability after marriage to take up an entrepreneurial initiative. In comparison, participation of women in AP and MH is comparatively higher. Higher participation of women in two out of the four states covered reveals potential for engaging women in the sector in more home-based food processing value chains such as packaged foods, fruits and vegetables. • Further, work force participation in the food processing industry reveals similar trends as that of the national average as well as unit ownership observed during primary survey. The detailed analysis of primary data collected during sample surveys indicate that male constitute 70% and female 30% of the total worker population. The female participation in the workforce in the states of UP and PB is less than 12% for the surveyed sampled. On the contrary the female participation is more than 60% in the states of AP and MH. In general participation of female workers were noted in packaged food sector (63%) followed by grain and oil seeds (24%) sector and least in dairy sector (6%). The percentage of female working in the packaged food sector is high as most of such units are home based. • In addition, around 66% of the total workforce are employed as full time and 34% as part time out of the surveyed sampled. In AP, almost 95% of the workforce are employed as fulltime while in UP the percentage of full time and part time are almost similar. During the survey it was found that majority of female workers are employed as part time workers. Such workers are mainly engaged in activities such as ng of vegetables and fruits, packaging, cleaning that are attached to lower in the food processing value chain (only restricted in manual operations). lxi. The overall, low participation of workforce in the sector can be attributed to reasons summarized below: 67 • Analysis of education reveals that literacy rate for men is 80.9% and for women it is 64.6%, which means that more than one-fourth of the country’s total population is still illiterate, and nearly onefifth of males are illiterate compared with more than one-third of females. It was observed that the literacy rate among male is better than female in all the select states and districts. A similar trend is noted for SC and ST population also. Through the primary survey it was found that in all states more than 60% of unit owners were not even graduate and in case of female owners this percentage is even lesser, just 13%. As per the sample covered, the education level of the unit owners in UP and PB were better as compared to AP and MH. Further, more than 70% of the vulnerable section (SC/ST) unit owners interviewed were not even matriculate. • Education levels also have a strong correlation with average sales of the unit and access to financial assistance. • Higher the education level of the owner, more is the sales. However, this was only seen to hold true for male owners, during the course of the survey. For the SC and ST population, only 14% of the unit owners are graduate and their average monthly sales is less than half of average sales of average sales in the state. • The data analysis of primary data collected during sample surveys shows that educated owners are keen on taking formal loans from banks. However, when it comes to enrolment under government schemes, the lesser or uneducated owners are more active as compared to higher educated owners. Consequently, for the enrolment under Government schemes, around 60% of registrations are done by female owners indicating high prevalence of women centric/ favoring schemes in the food processing sector. Leveraging existence of such schemes and raising awareness amongst women can create an enabling environment for their increased participation in the sector. • Further, providing non formal education and vocational education to unit owners and workers, can support them to improve their participation in the sector, as well as have positive indirect impacts like increase in sales and ownership amongst women and vulnerable, access to financial assistance. During the survey, most of the respondents stated that tedious process of loan application and approval responding to the requirement of collaterals was one of the two biggest challenges faced by entrepreneurs while obtaining loans from banks. To overcome limited access to financial assistance, unit owners should be made more aware on the requirements, processes and benefits of obtaining loan from banks. Further, institutions like NABARD, Gramin Bank and other financial institutions should be made partner to support financial assistance for this program. Alternatively, existing financing schemes like Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) can be linked with the program for having collateral free financing. • Low wages and uncertain working hours further add woes to the participation of workforce in the sector. Working hours may get extended to 13 hours for men and upto 8 hours for women. Unit owners, in discussion revealed that there was no formal mechanism of recording working hours and wages for workers due to unorganized nature of work. On interacting with workers, it was found that for many of them salary is not fixed and varies with respect to work done. For instance, in the case of pickle manufacturing in the units covered in UP, it was noted that some of the women were involved in cutting the fruits and vegetables and were generally paid on piece rate. During the survey, the wages paid to the workers working in the units were captured for the units visited. It was observed that, female were paid less as compared to male workers as mostly they 68 were employed in low-productive work which are temporary in nature like packaging, cleaning, cutting of vegetables etc. • Access to latest technology was also recognized as a major hindrance for owners to compete with the formal food processing industry. Around 55% of the units were manually operated and the usage of machines and technology are limited to only a few units. In the state of PB, around 98% of the unit owners have stated that they are currently using old machines which is hampering their production. They have expressed their interest in adopting to new technology and machines, but need financial assistance for purchasing. To mitigate this concern, a key action can be to make institutes like NIFTM, IIFPT and ICAR, partners in technology development and penetration. Alongside, adequate capacity building programs should be implemented to train entrepreneurs and workers on new technologies. • Limited market linkages is one of the common challenge faced by all unit owners across the states. Most of the units being small in size with limited use of technology, it is difficult for them to compete in the market with branded products. Around 30% of the units sell their produce to local community and neighbors and only 8% of the units covered during the survey, supply their processed goods to brands and 43% of the such units sells their goods with the help of retailers and wholesalers. The concern is higher amongst women entrepreneurs. To improve market linkages, government canteens can provide contract to these unorganized units, unit owners can be made aware of new market opportunities and how to build their brand, and CSR activities of corporates can be used to develop market linkages and find new market avenues. • Limited information was available on access to basic facilities for the workers, as NSSO captures limited information on the same. However, during the survey it was observed that only 8% of units covered had basic facility and infrastructure to help their workers work comfortably. It was recognized that it is essential for all units to have provision of basic facilities like toilets and drinking water for its employees. • In addition to regular units operating across states, SHGs and FPOs were also witnessed. SHG’s were found in all the states, except for Andhra Pradesh (in AP most of the units were part of SHG’s but were registered as independently units). Most SHGs visited were formed under the guidance for NRLM and/or ATMA. During survey we consulted with a total of 8 SHG were visited. Out of these majority were found in packaged food industry, majorly in the area of making papad, pickle and murabba. These category of food processing units are popular with women SHGs because of low investment, simple process and low technical knowledge required of making the product. SHGs could be leveraged as a popular model to eradicate poverty and increase the participation of women in the food processing sector. • In addition to SHGs, 3 FPOs were also visited during the survey. These FPOs are generally supported by NABARD, SFAC, and Government Departments and hence have better access to finance. These agencies provide financial and technical support to the producer organization for promotion and hand holding. Especially in the state of Punjab, during the primary survey it was noted that both ATMA and NABARD are very active in promoting food processing sector. • Forming SHGs and FPOs can be emerge as a stronger alternative for small and unorganized food processing units to increase their bargaining power to procure raw material, sell their produce and avail financial supports from banks and government schemes. 69 5. Stakeholder assessment i. IFPVAP or Gram Samridhi Yojna is a multi-stakeholder program which will require support from various institutions and bodies for its effective implementation. To achieve the key objectives of the program it is important that important stakeholder should be identified and prepared in advance to effectively implement the program. 5.1. Stakeholder Mapping ii. Stakeholders form national, state and regional level needs to collaborate at various points in the overall duration of the program. We have tried to map stakeholders as per their role and presence to better understand their importance in effective implementation of the program. The table below gives indicative list of stakeholders important with respect to the program. Table 36: Table showing stakeholders at various levels and functions Policy Training Marketing Outreach and Regulatory Financial formulations institutes Institutions mobilisation body institutions and regulatory reforms National MoFPI, MSME, NPMU, NPMU, Khadi Print, FSSAI, MoTA, MoRD IIFPT, Udyog Electronic and NIFTM, social media ICAR • NABARD, • SIDBI State State nodal State PIUs, State PIUs, State level agencies State bodies and • Gramin cooperatives departments of Bank, concerned • SBI and ministries other scheduled banks Regional District DIC, FSSAI, NGOs, District District nodal FSSAI, DIC, Administration Regional nodal agencies agencies, Labour food centres NGOs, District department Administration 5.2. Stakeholder relevance iii. On the basis of stakeholder mapping importance of stakeholder for the project has been identified. Relevance of some of the key stakeholders which should be participated during the implementation 70 of the program has been discussed. Further for effective implementation of the program and its social safeguards these stakeholders needs to be trained and exposed to social management plans and SMF. Table 37: Stakeholder relevance at various levels. S.No Stakeholder Level Relevance 1 Key government National The ministries runs various schemes of state and central department government to promote rural development, women and • Ministry of tribal development. Synergies with these ministries will help Rural in bringing convergence of various schemes and effective Development, implementation of the program. Key person of the these ministries needs to have fair • Ministry of understanding of social issues, social management plans Tribal Affairs, and social management frameworks • Ministry of Women and Child Welfare • MSME 2 IIFPT, NIFTEM National These institute are of national repute in providing technical and managerial trainings to the entrepreneurs in the field of food processing. The institutes are equipped with modern laboratories and hi-tech instruments to assist in research and development work. These institutes can be important resource for providing trainings to the PIUs and TSPs. 3 State nodal State State nodal agencies for food processing industry will be agencies critical in implementation of the program. State nodal agencies will be the facilitating agency for state PIUs to help in coordination with state level institutions and effective implementation of the program 4 State government State Various state level ministries and institutions working for bodies women, tribal and rural development can be important stakeholder with respect to social inclusion of the program. 5 District District District administration will play key role in identification of Administration sites for developing facility centers for the food processing units. Moreover District administration will also help in better outreach and communication of the program to target beneficiaries District administration will assist in implementation of RAP and RPF is required. 6 District Industries District DIC has access to comprehensive information on all matters Centres (DIC) including policies/schemes of Central/State Governments, Banks/Financial Institutions/ Incentives from State / Central Governments and Regulatory framework of Industries and Service Providers 71 7 Financial All levels FIs has been associated with various government schemes Institutions (FIs) and is involved in providing financial assistance to SHGs and NGOs working for rural development. FIs can give an understanding of challenges faced by unorganized food sectors run by SHGs or individual in general to get finance through banks. 8 NGOs All levels NGOs working in the field for women, tribal and rural development will be critical in identifying target beneficiaries and communicating the benefits of the program to target beneficiaries. They will also be critical in reporting any issues pertaining to gender, tribal and economically and socially weaker section of the society. 9 Regulatory bodies- All levels Regulatory bodies will play an important role first in raising FSSAI, PCB, awareness among the entrepreneurs regarding laws and Department of regulations and also ensuring that target beneficiaries Industries should work as per laid laws and regulations. These bodies will ensure that adequate social safeguards should be taken for workers working in the food processing units as well as workers required for construction and development activities 5.3. Stakeholder Consultations iv. IFPVAP recognizes that for successful implementation of the project and meeting the planned interventions the state nodal agencies, DIC’s, training institutions, NGO’s, financial institutions are all important stakeholders of the project. Hence, the project would ensure that these stakeholders are duly consulted on issues and they participate in all the sub-project activities including planning and implementation of the project. Below are the summary of the discussion with the key stakeholders at state level Table 38: Details of institutional level consultation Agency Consultation with district official nominated under IFPVAP 72 • The Nodal agencies were aware about the IFPVAP scheme, however the roles and responsibilities are yet to be planned and decided. • Majorly the food based units in informal sector (micro enterprises) are dominated by spice processing, Pickles, Bakery and Dairy industry and other small level prepared foods like Papad, Wadi etc. In addition, there is a lack of awareness regarding the presence of numbers or clusters for unorganized units at the district level. • Meat processing and poultry industry is predominantly found either at small and medium enterprise level and are mostly under the organized setup with an investment of more than 25 lakhs. In addition, unorganized Nodal agency of setups are not allowed to operate slaughter house and meat processing in the Ministry of some states. Food Processing Industry • Some of the key challenges faced by the unorganized food processing sector are lack of financial support and difficulties in selling their products, mainly because of low branding and advertisement opportunities. • Unorganized FBO are not adequately equipped to avail benefits of various government schemes. • One of the key role and responsibility of the officers at the district level is to provide training on food preservation and food processing, the category would vary from state to state. • In the past, the nodal officers have had experience of providing assistance to many units in scaling up, applying for FSSAI license and also spreading awareness about applicable government schemes. 73 • The nodal officers do not have any technical expertise or background with regards to the challenges related to food safety. • There is no dedicated E&S cell at the state or nodal level and less familiarity of working with various safeguard instruments such as those of World Bank or ADB. Few pointers related to specific states /districts: Lucknow/Fatehpur: • The horticulture and food processing dept. has engaged Deendayal Upadhyaya State Institute of Rural Development to undertake a diagnostic study to map the existing food processing units in each districts in UP. • The Department works closely with MSME department in assisting establishment of Food Processing units. Also, they have recently worked on Diversified Agricultural Support Project (DASP), funded by World Bank, to increase agricultural productivity, promote private sector development, and improve rural infrastructure. • Inadequate number of workforce is one of the major challenge that their department is facing. Almost, 50% of the positions are vacant in the department at district and divisional level. Maharashtra: Below noted were some of the challenges faced by the food processing units: High taxes on machines is acting as a deterrent for starting an enterprise. • Difficult to get formal finance due to lack of collateral. • Lack of technology upgradation, most of the units are using old machines. • Lack of market linkages for small enterprises. Structure of the Institution 74 Food Safety and Standards The institute has 1 NABL Accredited State Lab in SAS Nagar in Punjab, No State Authority of Lab in Andhra Pradesh, 2 NABL Accredited State Lab in Maharashtra and No India (FSSAI) NABL Accredited State Lab in Uttar Pradesh (current source of this information is obtained through FSSAI website and can be cross verified) Some other details for these states is listed below: S.No State Designated Food Safety Food Officers Officers Analyst 1 Punjab Full Time: 22 Part Full Time: 30 1 Time: 22 Part Time: 30 2 Andhra Full Time: 14 Full Time: 32 3 Pradesh 3 Maharashtra 62 FDA: 265 13 Local Bodies: 27 4 Uttar Pradesh 72 Full Time: 604 16 75 • As per ground information, major FBO in unorganized food processing sector are likely to be of Fruits & Vegetables Processing, Bakery, Dairy based, Flour Milling categories. • FSSAI has set up online registration process for applying for FSSAI and they have setup community centers where people can get assistance in filling forms. • The department runs awareness programs as well to make people aware of FSSAI requirement and motivate them to get register for FSSAI registration, but focus is less on informal sector. • Some of the challenges which were discussed during the interactions were: • Hygiene and food safety would be biggest challenge if such program (IFPVAP) is implemented to scale up the informal sector • Accessibility of testing labs is a major hindrance. For example, there is no testing lab in Fatehpur, because of which samples are sent to Gorakhpur or Lucknow for testing which delays the process. • Only few of the unorganized food processing units have taken FSSAI registration/license. Most of the units avoid taking license, until visited by them. Identifying and mapping units running without FSSAI registration/license is also a challenge. • There is a lack of awareness among enterprises on the benefits which they can prevail after obtaining FSSAI registration/ license. They also conduct sessions to promote awareness on FSSAI registration/license and benefits. • There is an acute shortage of licensing and enforcement officers (Designated Officers and Food Safety Officers) in the states severely affecting food safety measures in the states. • The department does not have any database on the presence of unorganized food processing units in their respective districts. The only data they maintain is for the registered or license FSSAI units. Identifying and mapping units running without FSSAI registration/license is also a challenge. 76 DIC is the main focus agency for promotion of small scale, village and cottage industries. Some of the key tasks performed by them are registration of MSME’s, infrastructure assistance to entrepreneurs, implementation of incentives schemes and employment generation programs, grievance redressal etc. •Rice mills are generally large and mostly will have a factory license. Prevailing units in unorganized food processing sector are likely to be flour District milling/grain processing, dairy based processing units, bakery, sweets, Industries Centre packaged food items and fruits and vegetables ripening or processing units (DIC) for pickle, jams etc. • Mudra Loan, Credit Guarantee Fund Trust for Micro and small enterprises (CGTMSE) are the current schemes running for micro and small enterprises. • Most of the small and micro units does not come under the preview of any regulation and hence such units are hardly monitored. • The biggest challenge to promote IFPVAP could be its communication and awareness to the beneficiaries and also to analyse the willingness of the owners to convert from unorganized to organized units. Structure of the Institution NRLM target is to cover 7 Crore rural poor households, across 600 districts, 6000 blocks, 2.5 lakh Gram Panchayats and 6 lakh villages in the country through selfmanaged Self Help Groups (SHGs) and federated institutions and support them for livelihoods collectives in a period of 8-10 years. The support structure, for the program are as noted below: • National level – Empowered Committee (EC) & National Rural Livelihoods Promotional Society (NRLPs) • State level – State Rural Livelihoods Missions (SRLMs) & State Mission National Rural Management Units (SMMUs) Livelihood • District level – District Mission Management Units (DMMUs) Mission (NRLM) • Block level – Block Mission Management Units (BMMUs) S.No State State team District team Block team 1 Punjab 17 14 86 Andhra 2 147 654 3672 Pradesh 3 Maharashtra 37 225 1953 4 Uttar Pradesh 36 359 1006 77 • Major schemes for rural development in the target district are NRLM, PMSKY, Kaushal Vikas Yojna. However no schemes is being run especially for unorganized food processing sector. • There are 5200 SHGs registered under Aligarh NRLM and out of them more than 1500 were from scheduled caste category. • Nationalised banks have extended their support to SHGs because of their high repayment rate (More than 95%). • SHGs into food processing are facing challenge with respect to market linkages and sustaining their business. Most of the SHG are not able to sustain themselves due to lack of product demand. For instance, In Fatehpur, SHGs were formed for spice processing but currently no work has been done by them. All the SHGs members are working on other work as there is no demand for the spices produced by them. The situation in Punjab is even worst, number of SHGs were formed but none are functional at the moment. • Most of the SHGs members are uneducated, lack technical ability, skills which acts as a constraint to improve their efficiency. • Prevalence of many exclusions (caste/religious/class groups) which intersect in complex ways creating barriers in creating comprehensive groups of members from different community. ATMA is a society of key stakeholders involved in agricultural activities for sustainable agricultural development in the district. Agriculture • It is responsible for all the technology dissemination activities at the Technology district level. Management • They assists small scale entrepreneurs of the sector by providing them Agency (ATMA) training, assistance in promoting and selling their products by providing stalls in the trade fair, financial and infrastructural assistance, spreading awareness about latest policies and schemes etc. IIFPT is a pioneer research and educational Institute under the Ministry of Food Indian Institute of Processing Industries and is engaged in the R&D of food grain processing, value Food Processing addition, by-product utilization through bio-processing, process and product development. 78 Technology (IIFPT) • It has six departments namely department of food engineering, department of food packaging and system development, department of food product development, department of Food biotechnology, department of primary, processing, storage and handling, and department of technology dissemination • The headquarters is located headquarters are located in Thanjavur, Tamil Nadu and has two liaison office at Guwahati and Bathinda. Currently, it offers B.Tech, M.Tech. & Ph.D. programs in Food Processing Engineering. Further, they have collaborations with many universities and corporates. • In the past they have provided training to entrepreneurs and currently involved in projects such as setting up of livelihood business incubation centre ate district levels. • They are well equipped to develop the content and impart trainings for capacity building. NIFTEM assists in setting up of food standards, business incubation and also National Institute knowledge sharing in the field of food processing and technology. The institute of Food offers B.Tech, M. Tech & Ph.D in food technology, food safety and quality Technology management, food processing etc. Entrepreneurship • NIFTEM is located in Sonipat and has tie up with other institutes. and Management (NIFTEM) • They are currently working with KVK and also on the village adoption program, wherein they provide training to the entrepreneurs. • They are running a Dairy Entrepreneur Development Scheme which aims National Bank for to provide assistance in setting up dairy farms however, the response Agriculture and received till date is limited. Rural • One of the key challenge which the unorganized food processing industry is Development facing is that the enterprises lacks the willingness to get organized because (NABARD) of the fear of increased regulations. Financial • Even for applying bank loan under government schemes, the unit needs to Institutions provide collateral or guarantor. Further, it is difficult to provide loans to (Aryavart) home run units because of the viability of the project. • Risk of NPA is high in the sector. Mahila Arthik MAVIM has taken up the cause of overall development of Women, further to Vikas initiate, expand and establish the self-help group movement in Maharashtra. They Mahamandal current run many women empowerment programs. The assist women in (MAVIM) overcoming the challenges faced by them in starting an enterprise. Note: Consultations with financial institutions who are envisaged to play prominent role in IFPVAP program will strengthen the development of SMF. Since the PIP is under development so consultations will be undertaken before the final appraisal of the project and outcomes will be amended in this report. 79 5.4. Key outcome of National level stakeholder consultation v. A national level consultation was organized by the Ministry on 30 th May 2019 at Shri Ram Hall, PHD House, 4/2 Siri Institutional Area, August Kranti Marg, New Delhi. The agenda of the consultation was to invite comments/suggestions from various stakeholders on Draft Social Management Framework prepared for IFPVAP- Gram Samridhi Yojana. vi. A total of 12 Ministries and Departments attended the proceedings. A list of the participants are mentioned below: Table 39: List of participant for national level stakeholder consultation S.No Ministry/ Departments Representatives Dr. Rakesh Sarwal, Additional Secretary Ministry of Food Processing Industries 1 Mr. Rakesh Sharma, Deputy Secretary (MoFPI) Representatives Mr. Gajendra Bhujabal, Senior Consultant FSSAI Ms. Pritha Ghosh, Deputy Director 2 Mr. Prabhat Kumar Mishra, Asst. Director Department of Food Processing, Punjab Mr. Rajmukh Singh, Sr. Assistant Ms. 3 Manjit Kaur, Research Fellow 4 Ministry of Rural Development Mr. H.R. Meena, DS (RL) 5 NABARD Ms. Bonani Roychoudhury, AGM Ministry of Woman and Child 6 Dr. J. H. Panwal, Joint Technical Advisor Development Dr. S. Gunahari, Regional Labour Commissioner 7 Ministry of Labour & Empowerment (C) 8 TRIFED Mr. Surinder Sharma, Dy. General Manager Mr. Nadeem Ahmad, Under Secretary K. 9 Ministry of Tribal Affairs Chandra Sekar, Under Secretary Horticulture and Food Processing 10 Mr. Vijay Bahadur Yadav, Dy. Director Department, Uttar Pradesh Dr. S. N. Jha, Asst. Director General 11 ICAR Ms. Anamika Thakur, Scientist Mr. J. N. Singh, Consultant Ms. 12 PHD Chamber Mallika Verma vii. Key discussion points of the meeting are noted below: FSSAI • FSSAI stated that they are under process of developing sector specific FSMS management plan (guideline) which will differentiate the requirements based on the unit’s size i.e. small and micro scale food processing units. Once it is developed it will be shared with all the stakeholders. At present, under schedule 4 of FSSAI registration there is provision for small / micro scale sector and the stipulated conditions can be fulfilled as the norms require only basic compliance conditions. 80 • FSSAI offers food safety training and certification programs. There are 5 courses at level 1 (for micro enterprises) and there are around 160 training partners in FSSAI ecosystem to conduct such training. FSSAI offers training in 11 regional languages as well. • In Ratnagiri District FSSAI had conducted a consolidated training program covering upgradation of quality standard, labelling - packaging, marketing strategy etc. ICAR • Food processers are scared of regulatory framework like FSSAI, hence if they are told to comply regulatory norms at the beginning of the program will lead to less motivation. To encourage them, it will be better to allow them to establish the unit and regulatory requirement can be fulfilled on later stages. • ICAR can offer technological training during the process of project implementation. They have developed good technology for managing dust and storage of seasonal raw materials. • Proposed project has a capping limit of INR 25 Lacs (total investment in units) maximum. But in various cases, where SHGs are involved or units manufacture multiple commodities, the capping limit should be extended up to INR 40 Lacs at least. NABARD • Financial institutions should not be made part of environmental-social assessment/screening/review process for decision making since they have to follow RBI guidelines. The assessment, which will be done by district and state level implementing bodies should be enough for decision making. • Various microfinance entities should be engaged in the project • CGTMSE scheme may be considered as a model for this project, the scheme is quite flexible about collateral mortgage Ministry of Woman and Child Development Representative • All concerned line of ministry should be intimated about the project implementation and coordinated. • There are about 14 lacs SHG Anganwadi centres operating in food business. They could be made part of the project • Project should not exclude forest produce since project targets tribal communities as well. Department of Food Processing, Punjab Representatives In Punjab the food processors are lacking basic level of training. A preliminary training on food safety, hygiene, environmental management, branding, marketing etc. will be helpful for the targeted groups of the project. Horticulture and Food Processing Department, Uttar Pradesh • Sector specific guideline may be developed by FSSAI focusing targeted small scale entrepreneurs. 81 • Bank decision should be communicated to applicant (entrepreneur) in time bound manner whether they are agreeing to lend or not. MoFPI Central body will allocate fund to the states. Nodal agencies of respective states will actually be responsible to implement the project. State specific implementation strategy considering its relevancy could be developed by the Nodal Bodies of the states. 6. Anticipated impacts and mitigation strategy i. The IFPAVP aims to strengthen the food processing of Micro Enterprises in all states but initially will focus on states which have taken preparatory steps viz. Andhra Pradesh, Maharashtra, Punjab and Uttar Pradesh ii. .Through literature reviews, primary surveys and field level consultations the Social Assessment has identified certain likely impacts that can be caused by the project interventions, as shown in the table below 82 Table 40: Likely impacts that can be caused by the project interventions S. Proposed mitigation No Component Anticipated social impact Anticipated social risk strategy • Careful selection of sample population with • This component will function as a base The studies fail to cover adequate focus on knowledge repository. The studies should sufficient population of coverage of women and also emphasize on documenting best Women owned Micro tribal while conducting practices which may be practiced Enterprises or tribal owned or diagnostic studies. traditionally and are indigenous to a operated Micro Enterprises to certain population, which may be understand their current replicated in other districts. situation and challenges. • The agencies hired for undertaking diagnostic • As MoFPI and other SNAs have very little studies need to be Studies fail to gather documentation of knowledge and briefed and trained on information of local schemes practices of units in informal sector, the the social development and programs in food Enabling the IFPVAP has the potential to further carry objective and SMF processing and allied sectors business out studies on these and act as a document. such as agro processing, environment for reference point for researchers and add to village industries promotion, 1 the food academia. upcoming district plans and processing agenda’s such as “One district • The State specific industry One product�. Such failure strategic upgradation • These studies have an ability to propagate would dilute the objective of plan needs to clearly indigenous innovations and further lead ensuring a convergence of incorporate elements to increase in livelihoods using these existing schemes and benefits from Gender action innovations. plan and tribal The outreach methods fail to development provide gender emphasis framework • Development of a centralized knowledge • Training will be database and online portal will ensure Web based portal will be provided to consistency in awareness generation and difficult to use for many entrepreneurs in using capacity building efforts across Micro web based portal Enterprises in different states and women and tribal entrepreneurs • Portal will be developed districts in English as well as vernacular languages 83 Lack of interest in the project due to lack of proper capacity building of the institutions leading to lack of community trust on the government Capacity building Technical capacity enhancement of department / TSP for effective efforts need to ensure National Institutions will ensure credible Strengthening the service delivery. that SMF and service delivery. capacity of associated plans are support systems Selection of TSP and integrated as part of the TSP are required to be trained in training. 2 for food corresponding last-mile lowcarbon/ energy efficient as well as processing micro agents without focus on gender sensitive technologies, leading to a enterprises diversity (gender, regional, The hiring of TSP and higher rate of adoption in informal sector other field agents needs cultural). This may lead to to emphasis on promotion of a certain diversity aspect section/ gender/ caste involved in Food processing based on the bias of TSP/ last mile agent. The project will build the skills and Non participation of women Ensuing the Gender capacities of these support services and and or tribal as part of target Action Plan and labour involve them directly in implementing beneficiaries standard action plan is activities to upgrade firms and clusters. closely implemented Project tend to benefits and monitored. The project will strengthen local Micro established units with Enterprises and increase their sufficient resources and skills The M&E indicators Enhancing food participation in the food supply chain, and leads to a barrier for need to be designed in a processing Micro with quantifiable benefits. access to first time way to maintain a Enterprises entrepreneurs strong check and 3 Development of standardized risk balance on the performance and competitiveness assessment templates for food processing The project fails to promote onground performance micro enterprises and online platforms to both women owned Micro of TSP. scale up use of innovative risk assessment Enterprises and women systems across the informal sector, which workforce participation In case the can be scaled up to national level implementation of The environmental and social project fails to achieve Help improve food safety and quality compliance conditions are the social development standards benefitting consumers objective in the first year, a relook at the 84 ignored during implementation. Promote business practices that are Conflict between the different implementation conducive for women to enter, remain, TSP teams in same districts strategy is required at and progress in the workforce, and and agencies over jurisdiction the NPMU level supporting increased investments in especially in terms of women-operated and women-owned attracting target project food-processing enterprises beneficiaries Expand the space for private sector activity through a policy and regulatory environment supporting the growth of food processing Micro Enterprises; 85 NPMU to ensure effective training and capacity building for staffs under SPIU, Formation of a project advisory external consultants, committee involving different ministries TSP, any other representation. PAC will provide policy volunteer for effective guidance, advice on strategic directions execution of project and supporting activities, and drive periodically quarterly Inadequate capacity of convergence with other relevant NPMU/ SPIU for execution of or half yearly. government schemes. project Convergence with clear Project Lack of effective roles and Effective implementation of the project Management, leading to achieving Sustainable communication of NPMU with responsibilities of each Monitoring and Development Goals; particularly around SPIU and TSP line departments, or evaluation and project interventions focused on climate Lack of focus of district organization, training knowledge change/resilience, female participation committee to ensure effective and workshop from sharing and financial inclusion. M&E for social development NPMU/ SPIU and TSP 4 objectives and PAC Formation of review committee where necessary 86 7. Social Management Framework 7.1. Rationale and Objective i. Based on the assessment of baseline and identified social impacts and risks through field visits and stakeholder consultations, a social management framework (SMF) has been prepared to help in preparation of plans and strategies to mitigate identified social risks for the proposed project interventions. 7.2. Purpose ii. The purpose of the SMF is to: • Develop a framework in line with provisions of relevant Acts and Rules and other projects being implemented through funding from other international donor agencies • Bring together and build upon previous experiences, stakeholder interactions and good practices • Enhance institutional capacity at State, Districts, Clusters and community level to ensure effective implementation of the SMF • Establish mechanisms and processes for grievance redressal and monitoring and evaluation 7.2.1. Principles iii. The broad principles that form the basis of the SMF are: • Understanding the current management practices with the food processing Micro Enterprises segment in all the four states and avoid any compulsory acquisition of private land by exploring all viable project designs and by adopting a screening approach • Share information, consult and engage key stakeholders and project beneficiaries in identifying social issues likely to arise during project implementation • Take due precautions to minimize disturbance to sensitive locations or locations having cultural significance • Ascertain broad community support based on free, prior and informed consultation with all communities, particularly all vulnerable communities including women and tribal etc. • Ensure that the project does not involve any kind of activities involving child labor • Ensure equal opportunities and wage to women workers as per applicable acts 7.3. Institutional arrangement for SMF iv. The nodal Ministry of food processing industries and the corresponding departments at the state level with the help of State Nodal Agencies (SNAs) would implement GSY. Professionally run Project Management Units at the National and State levels will be set up. In order to implement and monitor the programme at the cluster level, Technical Support Providers (TSPs) will provide 87 last mile services to the micro enterprises. In order to ensure results, TSPs will be paid based on their performance in terms of achievement of milestones for the target enterprises. v. GSY will be monitored by an inter-ministerial empowered committee under the chairmanship of Secretary, MoFPI, a State Level Empowered Committee (SLEC) chaired by the Chief Secretary and a District Level Committee under the District Collector. The progress and outcomes of GSY will be tracked by a Management Information System integrated with the National Portal. A third party evaluation and midterm review mechanism is also built in the programme. vi. Below listed are the State Nodal Department/ Agency which has been shortlisted for the implementation of the program: Table 41: List of State Nodal Department/ Agency shortlisted for implementation of program State nodal State department/agency Description Established by the Government of Andhra Pradesh under the Andhra Pradesh Societies Act in 2012, APFPS Andhra Andhra Pradesh Food is the nodal agency for development of the food Pradesh Processing Society (APFPS) processing sector in the state. It has implemented several investment promotion and enterprise support initiatives. Department of Agriculture, Maharashtra is the nodal Department of Agriculture department for implementation and monitoring Maharashtra (DoA) schemes related to food processing in the state. PAIC is a corporation promoted by the Punjab Government in 1966 with shareholding by both the state Punjab Agro Industries and central governments. It is the lead body for Punjab Corporation (PAIC) promoting agro-based industries in the state and implements several investment promotion and enterprise support programs. This department is responsible for implementation and Department of Horticulture monitoring central and state government schemes Uttar Pradesh and Food Processing related to food processing. Within the department, the (DoHFP) Directorate on Food Processing is the agency responsible for food processing in the state. vii. During preparation, the World Bank and MoFPI will undertake consultations and reviews of implementation arrangements in selected states and strategies to enhance implementation capacity at the state level will be worked out. viii. During Initial phases of the project, the World Bank will work with MoFPI in strengthening coordination mechanisms with states and in strengthening exchange of implementation and best practice experience between states. 88 Figure 1: Institutional arrangement for SMF 7.4. Proposed implementation arrangements for SMF ix. The figure below describes the proposed hierarchy for the implementation of the Social Management Framework (SMF). The Ministry of Food Processing Industries (MoFPI) will be the apex body for implementation of IFPVAP all across the country. The State Nodal Agency or a Department identified by MoFPI would be implementing the project in their respective states. The State Nodal Agency (SNA) will identify the district level entity/ TSP who will help them in implementing the project at a ground level. The following figure provides a glimpse of key responsibilities for project appraisal and extending credit to the project beneficiary: x. The proposed SMF implementation framework needs to take into account the above project appraisal structure. 89 Figure 2: Proposed implementation arrangement for SMF Note: SMF structure will be similar for each state, however concerned bodies at each level may change depending upon stakeholder consent 7.4.1. Roles and responsibilities of TSPs xi. At Base Level, the TSP’s will ensure effective implementation of SMF and compliance to the Social and labour norms of the respective industrial unit. The role of TSP’s includes but not limited to: Table 42 – Roles and responsibilities of TSP’s for the implementation for the Social Management Framework S No Responsibility Recommended actions 90 • Supervise implementation of SMF throughout project implementation period • Ensure handholding for understanding and implementation of labour laws Implementation of 1 • Regular review of monitoring reports from respective units/ SMF common facilities to ensure compliance • Ensure basic amenities are provided at the units and common facilities (as applicable) by regular visits and inspection S No Responsibility Recommended actions • Coordinate with Financial Institutions (at district/local level) regarding compliance of industrial units prior to disbursement of fund • Coordination with respective counterparts of regulatory bodies Coordination with 2 like Labour department, Shops and Establishment and Food other stakeholder Safety and Standards Authority of India (FSSAI) • Coordination with State training institute • Ensure active participation from marginalized and economically weak section of society 7.4.2. Roles and responsibilities at State Level xii. At State Level, the role of Social Management Cells of respective State Nodal Agencies will include ensuring compliance of pertaining laws, policies, regulation for project in their respective states, coordination and liaising with government stakeholders as well as the World Bank with respect to various Social and labour, Health-Safety, Food safety issues. Role of this cell will also include preparation of half-yearly progress reports on the implementation of the SMF throughout the project period and submission to NPMU. xiii. As a part of this assessment, the State implementation agency will coordinate with the lending bank for disbursement of fund/assistance to the target units operating at food processing sector providing confidence that any activity highlighted in the negative list is not being undertaken. 7.4.3. Roles and responsibilities at National Level xiv. MoFPI, through the dedicated NPMU, will be responsible for SMF at the central level. The safeguards specialist at the NPMU will have overall responsibility to ensure compliance of laws, policies, regulation pertaining to the project, implementation of project in a sustainable way, coordination with national level regulatory agencies as well as World Bank, allocation of fund for institutional capacity development etc. Role of this cell will also include preparation of yearly progress reports on the implementation of the SMF throughout the project period and submission to Mission Director and World Bank. 91 xv. The Social Management Framework comprises of the following plans and framework which are discussed in detail in the subsequent chapters. • Gender Action Plan • Labour Standard Action Plan Tribal Development framework • Resettlement Policy Framework • Consultation and Stakeholder engagement plan • Monitoring, evaluation and reporting system • Grievance Redressal Mechanism 8. Resettlement Policy Framework i. IFPVAP project will not support any operations that would result in: (i) compulsory land acquisition and (ii) physical and/or economic displacement of people (loss of structures, livelihoods and access to common resources). H ence, the World Bank’s Policy on Involuntary Resettlement, as such, is not triggered. ii. Based on the Project appraisal document, it can be seen that few project interventions (such as building of common facilities or labs etc.) may require additional land, however such a requirement would be minimal. However, to guide this requirement, RPF has been developed to address land acquisition and resettlement impacts (if any). The RPF establishes the involuntary resettlement and compensation principles, as well as the organizational arrangements to be applied to meet the needs of the people who may be affected by the project activities due to land acquisition, loss of shelter, assets or livelihoods, and/or loss of access to economic resources, if any. The RPF adheres to national regulations as well as the safeguard policy guidelines of the World Bank. iii. The IFPVAP has four components: (1) Enabling the business environment for the food processing industry; (2) Strengthening the capacity of institutions to deliver services for food processing Micro Enterprises; (3) Enhancing food processing Micro Enterprises’ performance and competitiveness and (4) Management and implementation, oversight and orientation, and execution of project activities. iv. Out of the four components listed above, only the activities in component two (2) may require additional land. (these include activities which aims to strengthen the capacity of selected technical and business support institutions (both public and private) to raise the quality of their existing services and deliver last-mile services that are relevant to current needs of food processing Micro Enterprises) v. These activities will support in developing demonstration centers in areas where Micro Enterprises are concentrated (including incubation facilities and packaging design and branding services) and hence land may be required for construction of such demonstration centers, offices, incubation facilities etc. 8.1. Resettlement policy framework i. This Resettlement Policy Framework (RPF) and its Entitlement Matrix are based on Government of India’s The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation 92 and Resettlement Act, (RFCTLARR Act) 2013 and World Bank’s social safeguard polic y that consists of OP 4.12 – Involuntary Resettlement and OP 4.10 – Indigenous Peoples. ii. The following are the principles on which the Resettlement Action Plan for IFPVAP, if required, needs to be developed: • Involuntary resettlement should be avoided wherever feasible, or minimized, exploring all viable alternative project designs • Where it is not feasible to avoid resettlement, resettlement activities should be conceived and executed as sustainable development programs. • Displaced persons should be assisted in their efforts to improve their livelihoods and standards of living or at least to restore them, in real terms, to pre-displacement levels or to levels prevailing prior to the beginning of project implementation, whichever is higher • Relocation and resettlement of the affected persons/households should be close to the current place of residence until and otherwise he/she willingly prefer to relocate him/herself • Inclusive programs for the enhancement of socio economic development of disadvantageous groups such as, tribal groups and single women etc. should be developed • Compensation support should be provided for the built properties including resettlement and rehabilitation benefits for persons/households who do not have land or legal right for the currently operated land iii. The RPF sets out a social safeguard screening process that would help to determine whether or not Bank’s social safeguard policy either on Involuntary Resettlement or Indigenous Peoples will be triggered. iv. The social safeguard screening process is described below: • The National Project Management Unit (NPMU) will undertake Social Safeguard Screening (SSS) for land required for provided for expansion of existing facilities and also the new site for setting up of a new facilities. • NPMU will supervise the SSS with adequate assistance from SPIU. • The screening activity will identify potential adverse social, economic and cultural impacts likely to be caused in order to determine whether or not the OP 4.12 on Involuntary Resettlement and/or OP 4.10 on Indigenous Peoples are applicable. • Based on the current understanding of IFPVAP project components, in case of land requirement leading to triggering of OP4.12 or OP 4.10, the SSS will be followed by the preparation of an abbreviated Resettlement Action Plan (ARAP) and/or Indigenous Peoples Development Plan. Abbreviated RAP/ IPP is usually developed for less than 400 impacted project affected families or less than 200 project affected families in tribal area. v. The RPF covers the following adverse impacts: (i) Loss of land; (ii) loss of structures, both residential and commercial; (iii) Loss of sources of income or means of livelihood; (iv) loss of public infrastructure and 93 (v) Loss of access to common resources/properties. The RPF establishes the following eligibility of Project Affected Persons/ Families: • Project Affected Person is the one who stands to lose all or part of their physical and non-physical assets such as productive land, commercial/business structure, access to common properties and sources/means of livelihood and income • Titleholder is a person who has legal title/Patta/document to support his/her claim/right towards ownership of land and all assets on the land – residential, commercial/business, crops, trees etc. • Squatter, a non-title holder, is a person who has settled on Government/public land without permission and has built residential and/or commercial structure, or has illegally occupied Government/public structures prior to the Cut-Off-Date • Encroacher is a person who has trespassed into Government/public land adjacent to his/her own land and using it for residential, rental, commercial and business purposes and deriving income prior to the Cut-Off-Date; • Cut-Off-Date is the date on which notification for acquisition of private land is issued under The Right to Fair Compensation and Transparency in Land Acquisition, Resettlement and Rehabilitation Act (RFCTLARR) Act, 2013 for acquisition of private titled land. For those without title, the Cut-Off Date shall be the date on which census socio-economic survey is being undertaken. 8.2. Mitigating adverse impacts due to involuntary resettlement vi. Depending on extent of land requirement for sub-project, the nature of land acquisition process should be limited to the following mechanisms: I. Transfer of Government land II. Acquisition through negotiation I. Transfer of Government land vii. This mode of land acquisition should be given priority. Correct procedure for inter departmental transfer of land should be followed through the concerned departments. The land alienation proposal will be initiated by the Deputy Commissioner based on the land requisition. A certificate from the circle officer of the concerned revenue circle with details of the land (patta no., dag no etc.) should be obtained along with the proposal for all the sub-projects submitted under IFPVAP. viii. Subsequently, the NPMU and SPIU needs to undertake a SSS exercise to ascertain presence of any squatter or encroacher in the required land area for each sub-project site The process of obtaining government land shall be as follows: • Screening of the land ownership status: The SPIU shall undertake a screening exercise to confirm the land ownership and utilisation status • Certification of Land ownership documents from the office of the respective divisional Subregistrar of lands and Map of the land • Confirmation of encumbrance free status of the land as part of the check list • In case of involuntary displacement due to the project, the census survey of affected households/ persons shall be carried out. 94 • In case of any involuntary resettlement due to the proposed project, assistance shall be provided as per the entitlement matrix II. Acquisition of Land through Negotiations ix. The land acquisition through negotiation i.e. ‘willing to buy -willing to sell’ is always the preferred process for land acquisition. However, certain checks and balances needs to be maintained while following the process. x. The acquisition of land through negotiations should be based on the following criteria: • Preparation of Land Acquisition Plan (LAP) for the Project: The project layout should be superimposed on cadastral map to identify the affected plots and its corresponding area. The details of other assets should also be identified during this process • The LAP should be officially verified and ownership details of affected land parcels should be identified by land survey - land revenue department • The land acquisition through negotiation should be done in transparent manner and without any pressure/threat on asset owner. The documents pertaining to transfer of land, consents from owners should be properly documented and published in public domain • The land owners should be consulted by the state nodal agencies to explain the project proposal and acquisition of land through direct negotiation process • The value of land and other assets should be decided through negotiation between the land owner and the revenue department, with the negotiation process adequately documented. The value of land and assets should be at least as per the prevailing market price • Additional mechanisms must be adopted to avoid any significant discrepancy in the valuation/pricing of land and other assets xi. The payment of compensation for all acquired land, structures, and both residential and commercial, and other assets will be paid at replacement costs to title holders in accordance with the provisions of RFCTLARR Act. In addition to compensation, they will also be paid resettlement assistance for income generating activities and assistance for relocation where necessary. xii. As far as those without title (non-title holders) to the land/property they are occupying are concerned, they are not entitled for compensation for the land they illegally occupy but eligible for the structures they have built and grown on the land in addition to resettlement assistance. CutOff Date for non-title holders to become eligible for resettlement assistance will be the date on which the census socio-economic survey is done. Any non-title holders who illegally occupy the public land/property after the Cut-Off-Date will not be eligible for any resettlement assistance. Non-title holders are considered as “squatters� and also include “encroachers.� Payment of compensation and resettlement assistance to all project affected persons irrespective of their legal status will be on the basis of entitlements as set out in the Entitlement Matrix. xiii. The RPF advises on the following mitigation principles: 1. In the event that a sub-project requires acquisition of land or asset leading to involuntary resettlement, necessary measure should be taken to ensure that the affected persons are: • Informed about their options and rights pertaining to resettlement • Consulted on, offered choices among, and provided with technically and economically feasible resettlement alternatives 95 • Provided prompt and effective compensation at full replacement cost for losses of assets attributable directly to the project 2. If the impacts include physical relocation, the resettlement plan includes measures to ensure that the displaced persons are: • Provided assistance (such as moving allowances) during relocation; and • Provided with residential housing, or housing sites, or, as required, agricultural sites for which a combination of productive potential, locational advantages, and other factors is at least equivalent to the advantages of the old site 3. Where necessary to achieve the objectives of the policy, the resettlement plan also include measures to ensure that displaced persons are: • Offered support after displacement, for a transition period, based on a reasonable estimate of the time likely to be needed to restore their livelihood and standards of living • Provided with development assistance in addition to compensation measures such as land preparation, credit facilities, training, or job opportunities 8.3. Guidelines for Preparing Abbreviated Resettlement Action Plan xiv. The abbreviated resettlement action plan needs to be developed by the social safeguard specialist appointed by the SPIU. The safeguard specialist at each state level would submit the ARAP for approval to the Social Safeguard specialist at NPMU level. xv. A broad outline of ARAP is described below: Table 43: Description of broad outline ARAP S. No Section Details to be captured Details/categories of land handed over for expansion or Type of land – private land or Government/public land 1 establishment of new Centre under different tenure systems in hectares Residential or Residential-cum-commercial or Land providing Agricultural and other sources of Details of patterns of use of the income/livelihood or Land providing access to common 2 land properties/natural resources for firewood, fodder, sources of income/livelihood, cultural properties etc. Details of total persons/ families affected; Details/number of affected 3 Details of vulnerable groups of persons from among such persons affected Census socio-economic survey of all project affected persons irrespective of their legal status; 4 Other details Details of prior, informed and transparent process of consultation 96 List of PAPs to be paid compensation and resettlement assistance in accordance with the Entitlement Matrix; List of vulnerable group of PAPs requiring targeted 5 Resettlement Action Plan special assistance Budget Time-frame Institutional arrangement for RAP implementation 8.4. Entitlement Policy Matrix xvi. This Entitlement Matrix is developed giving various entitlements for all categories of PAFs, based on The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (RTFCTLARR) 2013. This Matrix is described in Annexure A.4. xvii. This Matrix can be used as a guide for designing Abbreviated Resettlement Action Plans for subprojects. The exact value of compensation and replacement cost will be different for each subproject activity at different project locations and should be based on an economic and social survey of the area of the activity and of affected persons. xviii. For tribal population, the following provisions will be adhered. • Families settled outside the district shall be entitled to an additional 25% R&R benefits; Each Project Affected Family of ST category shall be given preference in allotment of land. • Tribal PAFs will be re-settled close to their natural habitat in a compact block so that they can retain their ethnic/linguistic and cultural identity • Free land for community and social gatherings; • In case of displacement, a Development Plan is to be prepared. • Continuation of reservation and other Schedule V and Schedule VI area benefits from displaced area to resettlement area. • The Tribal Land alienated in violation of the laws and regulations in force on the subject would be treated as null and void and-the R&R benefits would be available only to the original tribal land owner. 8.5. Implementation Arrangement 1. The Social Safeguard specialist at National PMU level is responsible for the integrating the RPF within project design and implementation components. 2. The Safeguard specialist at NPMU will assign a Social Safeguard Screening exercise to SPIU to determine whether or not this program will trigger social safeguard policies – Involuntary Resettlement and Indigenous People. 3. SPIU will supervise the consultations and direct interactions with the Project Affected Persons (PAPs). These would comprise consultations towards relocation of the PAPs, relocation of cultural properties and addressing the impacts on common property resources (CPRs) such as places of religious importance, community buildings, trees, etc. 97 4. These consultations need to be carried out in line with the principles described in this RPF. 5. The safeguard specialist at SPIU level will prepare an Abbreviated Resettlement Action Plan; or an abbreviated Indigenous Peoples Development Plan, as indicated by Social Safeguard Screening. 6. With the implementation of the R&R provisions in progress, consultations and information dissemination should be undertaken to ensure that affected persons are informed of the progress. All grievances related to R&R aspects, relocation of common property etc. will be addressed by the grievance redress mechanisms which will be formed under the project. 7. Regular monitoring of land requirement and adverse impact on social or involuntary resettlement will be undertaken by the SPIU. 8. The SPIU will submit a half yearly M & E Report to NPMU 9. Tribal Development Framework 9.1. Background and context i. The objective of social assessment of tribal community is to understand the expected impact of the project on the local tribal population and to design the project implementation strategy as per the safeguard policies, ensuring appropriate inclusion of tribal population. The project is expected to produce exclusive strategic focus for greater inclusion and representation of tribal in scheduled areas and their active association in project interventions. The major objectives for the tribal framework is to: • Promote employment and increase the earnings of the tribal entrepreneurs and workers engaged in food processing sector • Improve availability and access to the credit of the tribal community. • Increase availability of off-farm jobs and better job opportunities for the groups. • Enhance availability of safer, higher quality and more affordable processed food products for consumer. • Reduce post-harvest wastage and increase value addition in agro-produce. ii. The Scheduled Tribe (ST) population in India is 104.2 million, which is 8.6 percent of the total population (Census 2011). Madhya Pradesh, Maharashtra, Orissa, Gujarat, Rajasthan, Jharkhand, Chhattisgarh, Andhra Pradesh, West Bengal, and Karnataka are the states having a large number of ST populations. iii. The socio-demographic figures clearly reveal the disadvantaged position of the STs compared to other category of population. The literacy rate among the STs in India is 59 per cent (Census, 2011), which is lower than the national literacy rate i.e. 72.8 % (Census, 2011). The dropout rate among the STs is 70.5 which is much higher than the dropout rate of all categories i.e. 49.15 percent. iv. The work force participation rate (WFPR) indicates that majority of the ST population are engaged in unorganized sector without any job security. The demographic figures reveal that the tribal population is the most disadvantaged, exploited and the neglected population in India. Despite certain constitutional provisions, they are backward compared to the general population, even their situation is worse than the Schedule Caste (SC) and Other Backward Class (OBC) population (Xaxa, 98 2012). Majority of the tribes used to reside in the remote forest areas, remain isolated, untouched by civilization and unaffected by the development processes 6. v. IFPVAP project is being implemented initially in the states of Punjab, Uttar Pradesh, Maharashtra and Andhra Pradesh. Out of these four states, Maharashtra and Andhra Pradesh have relatively higher population of Tribal. Hence for the purpose of baseline assessment, the education and livelihood profile in these two states has been analysed. Education Profile: vi. An analysis of the social data available particularly for Maharashtra and Andhra Pradesh (due to the higher concentration of the tribal population in these states) over Gross Enrolment Ratio (GER) and the dropout rates for the particular age groups are taken into account for analyzing the educational profile of the two states, is undertaken. vii. GER indicator shows the overall coverage of an educational system in relation to the population eligible for participation in the system. viii. The GER of Class I-VIII for both the states are observed to be lower than the national GER for the S.T. population, which leads to the conclusion that both Andhra Pradesh and Maharashtra have lower enrolment with respect to the eligible population of the age group present in the state compared to national GER. However, the dropout rates in Andhra Pradesh is quite alarming with 62.5% with respect to the national average of 55% for the S.T. population. However, the scenario for the state of Maharashtra is better compared to national statistics. Table 44: Educational profile analysis of the ST population Gross Enrolment Ratio (GER) for Class Dropout rates: Class I-VIII Sr. No. States/U.T I-VIII (6-13 years) Boys Girls Total Boys Girls Total 1 India 120.5 118.7 119.7 54.7 55.4 55 Andhra 2 111.6 112.5 112 60.5 64.5 62.5 Pradesh 3 Maharashtra 115.9 112.7 114.4 42.3 46.8 44.4 Livelihood Profile: ix. The workforce participation of tribal is 50.6% for Maharashtra and 54.2% for AP7.The livelihood analysis reflects that in Maharashtra mostly the tribal population is involved in agriculture, engaged as agriculture laborers and are cultivators. In Andhra Pradesh, in addition to agriculture the tribal population is engaged in collection of non-timber forest produce, shifting and settled cultivation, manufacture agricultural implements and supply them to other tribal of the village and receive in kind for their services, hunting, fishing, basket making, mat weaving, oil extraction, selling bangles, beads and trinkets, sell earthen pots. 6 TRIBAL POPULATION IN INDIA: REGIONAL DIMENSIONS & IMPERATIVES Tattwamasi Paltasingh1 and Gayatri Paliwal, Journal of Regional Development and Planning, Vol. 3, No.2, 2014 7 Census, 2011 99 Assessment of data obtained during social survey x. During the field study, out of the four states selected for the implementation of IFPVAP, only 2 states Maharashtra and Andhra Pradesh had higher concentration of tribal population in the project districts. In Maharashtra independent food processing units run by members of tribal community were covered. In Andhra Pradesh community based program is being run with the help of NGOs and Integrated Tribal Development Agency (ITDA). The assessment tool was administered on 11 tribal owned units in Maharashtra and 2 community based tribal organizations in Andhra Pradesh. Table 45: Coverage of units belonging to tribal population during field survey States Units covered SC owner (%) ST owner (%) AP 41 2.44% 0.00% Prakasam 23 4.35% 0.00% Vizianagaram 18 0.00% 23.53% MH 55 0.00% 0.00% Nandurbar 28 0.00% 66.67% Pune 27 7.41% 0.00% Below is a summary of key findings from primary research of tribal owned and managed units across the two states: Maharashtra: xi. According to 2011 census, Nandurbar district in Maharashtra has 69.78% rural population whereas 45.57% of the population is from the ST category. The district had the presence of tribal communities namely, Pawara, Wadwi, Mauvschi, Hindubhil, Kokani, Banjara, Dhangar, Bhilla and Mauchi. Motivation for tribal to enter the food processing industry: xii. In recent years, the district has witnessed increased outward migration to urban areas in search of better standard of living and employment opportunities. Despite the trend, majority of the community members still reside in their own villages, with seasonal migration to cities during layoff periods or unseasonal. The outward push is mostly due to increasing cost of living, which makes it very difficult for the local community to sustain their life with agriculture related activities. xiii. This is also the motivation for most emerging entrepreneurs in the district to begin food-processing units, such that they can supplement their income from agriculture. The motivation to improve their quality of life emerged to be the key motivating factor for the entrepreneurs interviewed. There were also cases where women entrepreneurs from the tribal community were projected as a pseudo owner but the unit was managed by the male member of the family. The two emerging models cover single ownership unit and group ownership unit. The cases also highlights the support network explored to make these units functional. 100 xiv. Hence, while the tribal communities of the area are mostly engaged in agriculture, a fair percentage of population are also entrepreneurs. The entrepreneurial journey of the individuals also increases job opportunity for the tribal population of the region in different aspects of the value chain. Challenges faced by tribal: xv. The challenges faced by tribal are mostly due to limited access they have to raw materials, infrastructure, finances, market place etc. These are largely driven by existing social norms and beliefs that restrict their participation in wider social spaces. A few of the specific challenges cited by tribal visited in the district include: • Limited access to the market place as the units are operating in remote locations • Lack of easily available financial assistance is a challenge for these enterprises to grow • Limited understanding amongst tribal on welfare schemes and subsidies for ease in business operations including access to finance, access to infrastructure, access to raw materials, and access to market place amongst others. Mostly based out of remote villages these communities find it challenging to gather knowledge about the government schemes and benefit entitled for them. • Also with low educational backgrounds it gets difficult for them to approach government departments or grasp information from them. • Limited skills amongst tribal restricts their involvement across all components of the value chain • The competition posed by the established state/national level brands always is a concern for the micro level enterprises Enabling factors for tribal community: xvi. In addition to the motivation for tribal to start their own units, there are a few enabling factors that emerged during discussions with them: • Support of local NGOs and ITDA in the region • The tribal are confident of the quality of their products and believe that it is of a good competition among the similar existing products in the local market. • Special schemes for women tribal entrepreneurs has brought them to the fore of enterprise management. While such enterprises capitalize on the women’s ownership they don’t directly empower women but have indirect impacts on the women’s confidence, status and decision making authority. Opportunities for tribal: xvii. All tribal unit entrepreneurs visited had identity proofs but had never tried to access government schemes or benefits. Creating awareness amongst tribal could enhance their participation in the sector. Awareness can be generated on: • Knowledge about the schemes and policy from the government • Financial support and subsidiary amount (including for working capital and installation of machines) • Marketing techniques • Access to media is a recent phenomenon for community members. According to the data it has been observed that Facebook and WhatsApp access is now common in the community. These can be leveraged to form virtual platforms for coordination, accessing market place etc. 101 • Skill training to tribal to be involved in various aspects of the value chain A case study from the site visit has been appended in the Annexure A.7. Ongoing tribal development initiatives in the state of Maharashtra: Tribal Research and Training Institute8: xviii. This is an autonomous organization of the Government of Maharashtra, which was established under the centrally sponsored scheme in 1962. The institution fulfils the mandate to conduct research on various aspects of tribal subjects. Amongst several mandates of the institution implementing the entrepreneurship and Skill Development Policy (ESDP-2015), and pre-service training program. This institution can be leveraged to provide skill training to tribal in food processing value chain across the state and integration of them in mainstream organized markets. Basic Training and Related Instruction Centres 910: xix. At present Basic Training and Related Instruction Centres are attached to the Government ITI’s and Technical High School Centres. The BTRI’s will be leveraged to conduct apprenticeship training programme under the Apprentices Act, 1961 enacted by the Parliament Government of India. Training facilities in Industrial establishments and manufacturing processes will be utilized for the purpose of training of candidates in the skilled and semi-skilled area. This institution can be leveraged to provide skill enhancement to tribal particularly in primary food processing value chain. Andhra Pradesh xx. Andhra Pradesh has various tribal groups, but the team has interacted with Jatapu tribe Konda, Savara and Gadaba tribe during site visit to Vizianagaram district. Motivation for tribal to enter the food processing industry: xxi. Due to extreme remoteness of the district, very few people migrate to other places for work because they feel they are safe and comfortable at their own secured villages. Most tribal are mostly involved in farm and non-farm based activities and there were very few opportunities for work. xxii. Support from NGOs and ITDA provided the opportunity to the tribal people to work beyond farm activities. Tribal took this opportunity as additional income based activity and have actively engaged themselves across the value chain striving for a better standard of living. Challenges faced by tribal: xxiii. The challenges faced by tribal are mostly due to the area being isolated from the mainstream market with limited access to information, infrastructure and skills to operate the unit. These are largely driven by existing social norms and beliefs that restrict their participation in wider social spaces. A few of the specific challenges cited by tribal visited in the district include: • Limited access to the market place as the units are operating in remote locations 8 Retrieved from https://trti.maharashtra.gov.in/index.php/en/about-us/about-the-institution 9 Retreived from https://tribal.maharashtra.gov.in/Site/Upload/Pdf/Annual%20Tribal%20Component%20Schemes- 10 -19.pdf?MenuID=1126 102 • Lack of easily available financial assistance is a challenge for these enterprises to grow • Limited understanding amongst tribal on welfare schemes and subsidies for ease in business operations including access to finance, access to infrastructure, access to raw materials, and access to market place amongst others. Mostly based out of remote villages these communities find it challenging to gather knowledge about the government schemes and benefit entitled for them. • Also with low educational backgrounds it gets difficult for them to approach government departments or grasp information from them • Limited skills amongst tribal restricts their involvement across all components of the value chain • Tribal entrepreneurs have limited direct communication with customer. Only around 10-15% of their produce is being sold to local community. They are not trained to connect with customers and increase their customer base. • Tribal entrepreneurs’ ability to meet the demand in the market with the existing infrastructure Enabling factors for tribal: xxiv. In addition to the motivation for tribal to start their own units, there are a few enabling factors that emerged during discussions with them: • Support of local NGOs and ITDA in the region • The tribal entrepreneurs are confident about their productivity and quality given the available infrastructure • Pro-active involvement of women in different aspects of the food processing value chain Opportunities for tribal: • All tribal unit entrepreneurs visited had identity proofs but had never tried to access government schemes or benefits. Creating awareness amongst tribal could enhance their participation in the sector. Awareness can be generated on: o Knowledge about the schemes and policy from the government o Financial support and subsidiary amount (including for working capital and installation of machines) o Marketing techniques • Requirement of land for scaling up, access to transportation, capacity building, and better access to market is the basic need for them to scale up. • Formation of SHGs with women tribal entrepreneurs to increase their involvement in the sector • Skill training to tribal to be involved in various aspects of the value chain A case study from the field visit has been appended in the Annexure A.7. Ongoing tribal development initiatives in state of Andhra Pradesh are highlighted below: The Tribal Cultural Research & Training Institute 11: xxv. The institute was established in the year 1963. The TCR&TI is part and parcel of Tribal Welfare Department, Government of Andhra Pradesh. Out of the multiple mandates of the institution, some key functions include organization of employment oriented training programmes to educated youth belonging to STs, organization of employment oriented training programmes to educated youth belonging to STs, and impart various types of orientation trainings to officials and non-officials 11 Retrieved from http://www.aptribes.gov.in/tcrti/Abouttcrti.html 103 engaged in tribal development. The institution is also mandated to assess the impact of plan programmes in order to know their functional efficacy, implementation process and suggest midcourse corrections or changes in policy and approaches, and ensure implementation of constitutionals safeguards for STs in the state amongst other functions. The institution can not only safeguard the rights of vulnerable groups but also support in providing training to them for uplifting their skills across sectors. Society for elimination of rural poverty12: xxvi. The Society for Elimination of Rural Poverty (SERP) was established by the Government of Andhra Pradesh (GOAP) as a sensitive support structure to facilitate poverty reduction through social mobilization and improvement of Livelihoods of rural poor in Andhra Pradesh. SERP works on a comprehensive multi-dimensional poverty alleviation strategy by focusing equally on the Livelihoods Value Chain and Human Development Indicators. The fundamental unit of development at SERP is the rural poor households and all interventions of SERP strive to achieve essentially two out comes - sustainable per capita household incomes of Rs.1,00,000/- per annum from multiple sources and improved Human Development Indicators. The institution can act as a financial intermediary for vulnerable groups for entrepreneurial ventures, as well as provide skill enhancement training to them. 9.2. Tribal Development Framework xxvii. The project execution strategy clearly denotes the positive effect on the tribal people provided a special attention is ensured to facilitate inclusion and equity within IFPVAP. Responding to the World Bank’s O.P. 4.10 (Indigenous People), the project has prepared a tribal development framework encompassing key inclusion strategies to be undertaken under each project components. The plan has been developed in consultation with different tribal communities across the states of Andhra Pradesh and Maharashtra. The proposed Tribal Development Framework aims at facilitating development of Tribal Development Plans to enable environment to ensure higher participation of the vulnerable communities in the program. xxviii. TDF is developed with reference to the key development issues for the tribal communities in the select regions and to provide culturally compatible resolutions that ensure focused and exclusive attention towards tribal/ indigenous community. xxix. The objectives of the TDF are to ensure that the tribal populations are: (i) Adequately and fully consulted; (ii) Enabled to participate in the project and derive full benefits; and (iii) That the project’s institutional and implementation arrangements align with the existing governance structure in the tribal areas as specified under the Constitution of India and relevant legal provisions. 9.2.1. Components of a Tribal Development Plan The TDP for the project should include the following activities: Table 46: Key activities to be included in TDP project 12 Retrieved from http://www.serp.ap.gov.in/SHGAP/FrontServlet?requestType=LoginCheckRH&page=home 104 Responsibility of S. TDP Implementation/ integration Description No Components with Project components and timelines Objective: • Identification of scheduled areas and tribal clusters to priorities targeting of dispersed indigenous communities in the non-tribal areas as well as for clear targeting of tribal population in the schedule V areas Proposed Action • Undertake a socio-economic baseline of all tribal clusters in the project area to measure Generating impacts and inclusion of IPs socio-economic during planning and baseline for implementation at different project stages of the project (mid and 1 SNA’s, SPIU’s, district nodal agencies beneficiaries end term) - disaggregated by belonging to gender and economic categories. tribal • in addition to the baseline survey, population qualitative study covering main tribal dominated districts for a clear picture on basic socioeconomic and cultural aspects of the various tribal groups, vulnerability assessment, indigenous livelihoods & skills, health, education, consumption needs, land and other asset ownership, basic entitlements, financial services including remittance, etc. Proposed Action Identify • Identify schemes that promote convergence social and economic with other empowerment of tribal 2 relevant tribal communities with which project SNA’s, SPIU’s, district nodal agencies development activities can be converged. schemes and • Hold consultations with state programs based institutions mandated to work on tribal development or 105 managing schemes providing concessional finance, marketing, capacity/ skill building or institution support to vulnerable communities Proposed Action • Undertake consultations with tribal households, including tribal women and traditional leaders, to elicit their views during sub- Community project planning. consultation and • Project information will be made need assessment available in the tribal villages and of project SNA’s, SPIU’s, TSP’s, district nodal 3 to tribal families in a culturally beneficiaries sensitive manner agencies belonging to • Local Tribal leadership to be tribal involved right from the time of population initial mobilization for clearly communicating project • Evaluate the project’s potential positive and adverse impacts on indigenous people. Objective: • To generate awareness about the project and assess the interest and demand of tribal communities for proposed project interventions Proposed Action • Development of culturally Community appropriate materials for mobilization SNA’s, SPIU’s, TSP’s, district nodal 4 dissemination in the project areas and awareness with ST population regarding agencies generation project details, eligibility, benefits, access to finance and grievance redress mechanism. • Identification and Deployment of local (tribal) Community Facilitators/ NGOs etc. to support awareness generation and mobilisation in tribal areas 106 Proposed Actions • Selection of tribal members as project beneficiaries, in proportion to the tribal Inclusion and population of an area SNA’s, SPIU’s, TSP’s, district nodal 5 representation agencies • Participation to be ensured in any training, exposure visits, consultations, awareness programs etc. Capacity Proposed Actions 6 building of Capacity building of key department NIFTEM, IIFPT, CFTRI project staff officials of SNA/ SPIU and TSP, especially field staff and Community Facilitators recruited by the project on issues related to tribal development and related safeguards. Staff working in villages with significant tribal population to receive sensitization trainings Proposed Actions • Implementation of the TDP shall be undertaken in accordance with the overall project implementation schedule. • As per the overall proposed institutional arrangements, the Social Development and Safeguards Specialist in the State Project Implementation Unit (SPIU) will be responsible for the Implementation 7 preparation and implementation SPIU’s, district nodal agencies arrangement of the district specific TDP. • SPIU would be supported by an identified TSP�s focal point in the respective districts, who in turn would be supported by the Community Facilitators/ TSP’s staff at the ground level in each district level. • Community Facilitators would be trained and involved in the TDP preparation, its implementation 9.3. Monitoring of TDP 107 xxx. The responsibility of the monitoring the compliance to the Tribal Action Framework will be undertaken at the national level by MOFPI and at the state level the social safeguards specialists in the SPIU. Monitoring would be consistent with the overall M&E proposed under IFPVAP. xxxi. The overall responsibility for monitoring the implementation would lie with the PIU at the State Level. Oversight of its implementation will also be done through regular field visits by the Social Development and Safeguards specialist at SPIU. Progress will be periodically tracked against the baseline data collected during preparation of the TDP. Constraints and challenges identified by TSP’s during TDP implementation will be escalated to SPIU and NPMU (if found necessary) during the project implementation phase 10. Gender Action Plan i. Women entrepreneurs make a significant contribution to the Indian economy. There are nearly three million micro, small, and medium enterprises with full or partial female ownership, mostly present in the informal sector. The World Development Report 2012 identifies unequal access to economic opportunities by women as one of the persistent gender gaps. Women are more likely than men to work as unpaid family laborers or in the informal sector. Women entrepreneurs operate in smaller firms and are typically concentrated in less profitable sectors. As a result, women everywhere tend to earn less than ii. It has been observed that 8.05 million out of the total 58.5 million establishments were run by women entrepreneurs in India which is around 13.76 % of the total number of establishments. Total workers engaged in women owned & run establishments were 13.48 million persons, which is 10.24% of the total number of workers engaged in India under different economic activities. iii. Collectively, these women-owned enterprises contribute 3.09 percent of industrial output and employ over 8 million people. Approximately, 78 percent of women enterprises belong to the services sector, which is followed by manufacturing. Women entrepreneurship is largely skewed towards smaller sized firms, as almost 98 percent of women-owned businesses are microenterprises. iv. While many of the barriers to entrepreneurship are common to both genders (access to capital and business networks, adequate training and facilities) female entrepreneurs face gender biases stemming from socio-economic factors or specific biases in laws such as inheritance laws. v. Women traditionally participate in value chain nodes with lower economic return than men. Women’s participation in the production of a specific crop is oftentimes related to the crop’s assumed value and is thereby usually limited to local consumption and the local market. Men are more likely to participate in export commodities, or in markets where there is a greater economic return. vi. At the national level, 20% of enterprises in the unorganized food processing sector are owned by women with significant inter-state variations. Further, stark differences are visible by types of enterprises; specifically, between female own-account enterprises (OAEs) and female establishments. For instance, 22% of OAEs at the national level are women-owned vis-à-vis 5% of ‘establishments’ are women-owned. Even in middle-income states such as Andhra Pradesh and Maharashtra, female OAEs account for about 9% of the enterprises in food processing as compared with 2.7% and 1.4% of ‘female-owned establishments’ respectively. Clearly, the specific gender gap in the context of the project components is limited scalability prospects experienced by WOEs despite their significant presence in the informal food processing sector. vii. The labor force participation rates for women vary vastly across the select states supported under the project. Interestingly, even within states there is a clear rural-urban divide. Given existing social 108 norms, Andhra Pradesh and Maharashtra perform relatively better compared to Uttar Pradesh and Punjab. The FLPR for rural Andhra is 44.6% and for urban Andhra Pradesh is 19.1%. Figures for Maharashtra are comparable; 42.5% for rural areas and 16.8% for urban areas. In Punjab and Uttar Pradesh, the FLFP overall stands at 13.91% and 16.75% respectively, way below the national average. FLFP (urban) for Punjab is at 13.2% while for UP it stands at 11.3%. 10.1. Barriers faced by women entrepreneurs in scaling up: Gender gaps relevant in the context of the project 10.1.1. Access to finance viii. Ninety-four percent of micro, small, and medium enterprises in India operate without formal licenses or registration. Approximately 29 percent belong to the manufacturing sector. MSMEs in the services sector, comprising of the remaining 71 percent and mostly operate in conventional transaction-based industries. There is also a need to address some of the more obvious barriers that prevent women entrepreneurs from ix. Approaching financial institutions, such as a lack of women relationship managers and the need for support from a male family member to access credit. Finally, financial institutions should consider options such as advisory desks at selected bank branches to offer information on products and services tailored to women-owned enterprises. Providing non-financial services (NFS) and training, along with access to financial products, will offer holistic growth opportunities to women entrepreneurs. Although the financing needs for women-owned enterprises are not radically different from the needs of male-owned enterprises, the level of financial exclusion is higher due to a combination of factors. Also, the social status of women and prevalent social norms in India influence perceptions of financial institutions and the ability of women entrepreneurs to access finance. 10.1.2. Intra-house-hold dynamics x. Female entrepreneurship in poor countries can be a critical pathway to development. However, across the world, women are less likely than men to succeed as micro-entrepreneurs: They invest less in their businesses and earn less profit. While research has revealed that this is because of intrahousehold dynamics, especially relationships with spouses, less is known on how exactly this happens. 10.1.3. Access to business-development skills (BDS) xi. A number of constraints specific to women-owned businesses and business growth, such as their use of informal networks for lack of access to formal channels and the limitations of such networks in increasing production and market opportunities, are cited in the microenterprise literature. xii. The main constraints women entrepreneurs face to their business growth continue to be limitations on their access to the public sphere, markets, information, and networks, and their concentration in lower value-added sectors such as food production and sewing. These constraints are linked to the policy, market, and cultural environment in which women micro entrepreneurs navigate rather than some inherent characteristic of women. 109 10.1.4. Policy interventions that impact women entrepreneurs xiii. For long-term positive results in changing existing horizontal and vertical segregations in the market, there should be more focus on how to change gendered assumptions about divisions of labor within the programs’ design. This is important especially for strategies that will developed by state nodal agencies. While it holds true for all women entrepreneurs, it is especially so in the context of women entrepreneurs from tribal areas – those who face intersectionality of barriers and are unable to access avenues that will help them scale up. 110 10.2. Women in food processing: Snapshot of states State profile: Andhra Pradesh Table 47: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (Overall) (NSSO 67th Round, 2012-13) Value per Enterprise Average No. of Workers Fixed Assets (in Rs.) NSSO Outstanding Total Segments Total Non- Net Loan (in Operating GVA Male Female All Hired Owned Hired Receipts Hired Addition Rs.) Expenses Manufacture of Food 1.8 0.3 2.0 0.4 1.7 173,482 37,118 4,262 5,797 344,729 271,493 72,829 Products Manufacture 1.8 0.5 2.3 0.4 1.9 272,518 13,868 20,144 2,788 99,397 46,366 53,031 of Beverages Table 48: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (OAE) (NSSO 67th Round, 2012-13) NSSO Value per Enterprise Segments Average No. of Workers Fixed Assets (in Rs.) Outstanding Total Total GVA Male Female All Hired Non- Owned Hired Net Loan (in Receipts Operating Hired Addition Rs.) Expenses Manufacture 1.4 0.3 1.7 0.0 1.7 114,084 23,702 3,043 1,057 145,205 97,563 47,642 of Food Products Manufacture 1.3 0.6 1.9 0.0 1.9 79,468 0 22,599 0 73,680 38,610 35,070 of Beverages As depicted in the table above, there are no significant variations between participation of women workers in enterprises and own-account establishments. Recent initiatives by the state government such as a 300% rise in the pay provided to ASHA workers (from 3000 INR to 10, 000 INR) points towards a clear focus on improving women’s participation in the labor force. There is a clear case to i dentify women-owned enterprises and provide specific support mechanisms to them especially in the space of finance and business development services. 111 State profile: Maharashtra Table 49: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (Overall) (NSSO 67th Round 2012-13) NSSO Value per Enterprise Segments Average No. of Workers Fixed Assets (in Rs.) Outstanding Total Total GVA Male Female All Hired Non- Owned Hired Net Loan (in Receipts Operating Hired Addition Rs.) Expenses Manufacture - - - - - - - - - - - - of Food Products Manufacture 1.9 0.0 1.9 0.5 1.4 224,012 73,880 2,406 3,494 404,315 305,976 97,348 of Beverages Table 50: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (OAE) (NSSO 67th Round 2012-13) Value per Enterprise NSSO Average No. of Workers Fixed Assets (in Rs.) Outstanding Total Segments Total Non- Net Loan (in Operating GVA Male Female All Hired Owned Hired Receipts Hired Addition Rs.) Expenses Manufacture of Food - - - - - - - - - - - - Products Manufacture 1.4 0.0 1.4 0.0 1.4 145,278 52,116 2,297 2,947 175,847 118,932 56,915 of Beverages No significant variation is noticeable. 112 State profile: Uttar Pradesh Table 51: Value of Key Characteristics Per Enterprise for Proprietary and Partnership Enterprises (Overall) (NSSO 67th Round 2012-13) Value per Enterprise NSSO Average No. of Workers Fixed Assets (in Rs.) Outstanding Total Segments Total Non- Net Loan (in Operating GVA Male Female All Hired Owned Hired Rs.) Receipts Expenses Hired Addition Manufacture of Food 1.6 0.1 1.7 0.0 1.7 171,039 116,310 601 1,637 322,589 211,684 110,906 Products Manufacture No Sample Data of Beverages Table 52: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (OAE) (NSSO 67th Round 2012-13) Value per Enterprise NSSO Average No. of Workers Fixed Assets (in Rs.) Total Outstandin Total Segments NonHire Net Operatin Mal Femal Al Hire g Loan (in Receipt GVA d Owned Hired Additio g e e l d Rs.) s n Expenses Manufactur 146,47 e of Food 2.0 0.1 2.1 0.5 1.6 376,905 205,025 4,859 8,584 550,298 401,394 6 Products Manufactur 1,050,91 2,649,68 512,73 e of 3.4 0.0 3.4 2.4 1.0 44,382 11,691 1,307,457 729,388 7 4 0 Beverages At the country level, West Bengal had the highest share of female workers (16.35%) followed by Tamil Nadu (12.14%) and Uttar Pradesh (10.27%). In States like West Bengal, Telangana, Gujarat, Odisha, Jharkhand, Bihar and Chhattisgarh, more than 80% of the female workers were from OAEs. 113 Since, Uttar Pradesh clearly features amongst the top states, the SNA can have clear strategies for women workers in the unorganized food processing sector of the state. State profile: Punjab Table 53: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (Overall) (NSSO 67th Round 2012-13) Value per Enterprise NSSO Average No. of Workers Fixed Assets (in Rs.) Outstanding Total Segments Total Non- Net Loan (in Operating GVA Male Female All Hired Owned Hired Rs.) Receipts Expenses Hired Addition Manufacture of Food - - - - - - - - - - - - Products Manufacture 2.0 0.4 2.4 1.1 1.3 104,213 9,555 451 1,439 373,164 274,821 98,312 of Beverages Table 54: Value of Key Characteristics per Enterprise for Proprietary and Partnership Enterprises (OAE) (NSSO 67th Round 2012-13) Value per Enterprise NSSO Average No. of Workers Fixed Assets (in Rs.) Outstanding Total Segments Total Non- Net Loan (in Operating GVA Male Female All Hired Owned Hired Receipts Hired Addition Rs.) Expenses Manufacture of Food - - - - - - - - - - - - Products Manufacture 1.3 0.1 1.4 0.0 1.4 67,532 5,370 566 168 323,589 245,429 78,127 of Beverages No significant presence of women workers or entrepreneurs. 114 10.3. Recommendations 10.3.1. Improving access to finance by women entrepreneurs in informal food processing: i. There is significant empirical evidence that women tend to be better borrowers and customers, thus providing “value� to their partner financial institutions. ii. Better quality credit: Women-owned MSMEs have a better repayment track record according to the experience of banks in developed economies. Gender disaggregated data from banks indicates that non-performing loans are 30 to 50 percent lower in women-owned businesses when compared with those owned by men. Women tend to be more loyal in the long term to a chosen financial institution and they are better depositors into bank savings accounts as well. iii. Banks in some emerging economies have had success with similar women-centric programs. In contrast to programs in developed economy, however, the focus is on creating products and services to help women-owned MSMEs overcome the challenges of lack of collateral and start-up capital, and to support them in meeting non-credit needs such as cash management and insurance, and non-financial services such as training, mentoring, and networking. Customized financial products such as loans and savings for women entrepreneurs. For instance, since collateral requirements are a major obstacle for Ugandan women as they have difficulty accessing property, DFCU created a “land loan� specifically for women. With this, women can take a loan to purchase property that they can later use as collateral for business loans. To promote partnerships among clients, there are examples of banks having created an investment club, a savings scheme where women entrepreneurs raise funds together to make future business investments. Investment club members can also use the amount saved as collateral. Another example is that of SME Bank, Malaysia that has created several packages for the women entrepreneurs, depending on size and development stage. 10.3.2. Improved access to business development skills by women entrepreneurs: Demand Driven: Services must respond to client demand rather than demand by donors, NGOs or others who supply the services. Women clientele’s demands can be different from men clientele’s demands based on their gender-specific constraints to business growth (transport, marketing, information) Relevant: Services must be relevant and address women entrepreneurs’ immediate needs for business growth in the specific context of the state. Participatory: Suppliers of the services must get to know their clientele and base their analysis on needs and subsequent product design on the realities of their clients’ businesses. Cost Recoverable: Programs should charge fees for their services. If they have been properly designed, clients will be willing to pay some fees. 115 11. Labour Standard Action Plan i. Poverty and unemployment are one of the leading problem in India and also significant portion of the population is below the poverty line. For instance, as per 2014-15 data released by MoSPI around 22% are BPL and across the selected states UP (29.43%) has the highest BPL population followed by MH (17.35%), AP (9.20%) and PB (8.26%). Further, as per the erstwhile planning commission, around 12% of the tribal population in AP, 23% in MH and 16% in UP are below poverty line. ii. Women constitute roughly half of the economically active population, but their contribution to economic activity is far below the potential. As per census 2011, the Work Force Participation Rate (WFPR) for females is 25.51% against 53.26% for males. Also, as per the NSSO 73 rd round data, in the unorganized manufacturing units, male constitutes the major population of workforce. In AP, the participation of female is almost equal, but in other states male constitutes more than 70% of the workforce. iii. The primary survey revealed that around 66% of the total workforce are employed as full time and 34% as part time out of the surveyed sampled. Further, it was noted that majority of female workers were employed as part time workers. iv. For all the activities, wherein labors are involved, the project will be compliant with all the relevant Labour Acts and Policies (State and National level). Refer annexure for the specific regulations on labour and working condition. 11.1. Assessment of labour related issues and concerns v. During the primary survey, the following key risks associated with Labour and working conditions were identified: Table 55: Key risks identified during primary survey associated with Labour and working conditions Key Risk or Challenge S. associated with Labour and Description No Working conditions • More than 90% of workers employed by the surveyed unorganized food processing industry are paid in the range of INR 3000 -4000, which was less than the prevailing minimum wage rate in the respective states. Payment of minimum wages as 1 • Majority of the workers were also being paid by the per prevailing legislations prevalent per piece rate, in such a scenario and in absence of any working hours. Wage payment accounting, it is a challenge to ensure that such workers have received the legal minimum wage. 116 • It was observed that in most of the units there are no There is lack of recording of formal system to record working hours. working hours and monitoring • During the interactions with the unit owners and 2 of overtime hours/ accounting workers working in the unit, they stated that their for a weekly rest working hours were flexible and varies depending upon the work load. Workers were found working minimum 4 hours per day to a maximum of 13 hours. There is no payment of overtime of mandatory weekly rest which is practiced by these units. None of the units practice contribution to Provident 3 Provision of social benefits fund, payment of bonus or even contribution to gratuity for their workforce. There is no accidental insurance of the workers of Lack of adequate accidental surveyed food processing units. 4 insurance or workman None of the units had subscribed to Workman compensation policy Compensation policy or had enrolled their workers as part of ESIC hospital network. Most of the units were operating as an informal setup lacking formal process of recruitment. There is lack of document verification regarding age proof documents of workers at the time of recruitment. In the absence of formal recruitment process, there is potential that child labour may be recruited. Following instances related to potential young workers/ child labour cases which were observed during the survey. The exact age could not be verified Weak recruitment practices in the absence of valid age proof document o Two 5 leading to potential instances of young worker were observed in bakery employment of child labour unit at Fatehpur. The workers were involved in packing of bread and bun. o One instance of young worker was observed at a dairy unit in Fatehpur. The worker was involved in cleaning of equipment and floor o One instance where three young worker was found to be working in packaging of processed rice in a rice mill at Fatehpur. Lack of a formal grievance mechanism exists in these units. The only channel available with the workers to voice Lack of adequate grievance their concern is to speak to the owners of the unit to 6 mechanism for workers resolve their issues. Further, none of the female workers were aware about any sexual harassment committee or help line numbers for grievance. 117 Most of the units do not provide basic amenities to Lack of basic sanitation their workers such as adequate toilets and washing 7 facilities inside/ nearby the areas, separate toilet for female workers, designated units eating area, drinking water facility, first aid kit etc. Based on the project PIP and PAD documents, it is noted that IFPVAP project does not require large scale Potential risk due to labour 8 construction activities. Hence we do not foresee any influx requirement of specialized migratory labours leading to labour influx. 11.2. Labour Standard Action Plan vi. The Labour Standard Action Plan includes the assessment and recommendations on measures to mitigate the health and safety issues of the workforce and community involved in food processing units. The plan includes steps for ensuring compliance with the National and State labour laws, prevention of child labour and also adherence with World Banks EHS guidelines. Table 56: The Labour Standard Action Plan Sl. Implementation Activities Target Groups Responsibility No Strategy 118 • Training modules to be developed in local language on labour and working conditions, occupational health & safety including workplace safety, sanitation, health and hygiene and • Identified institutions at impacts on National level (NIFTEM, community. IIFPT or CFTRI) should • These modules develop specialized Developing should take into training modules and training account key health, impart trainings to state 1. TSP ( TSP are module for hygiene and safety institutions who in turn required to further raising aspects as will train the TSPs impart training on awareness on This activity can be ground level) recommended by • health, safety, FSSAI under undertaken as part of 1 hygiene, 2. Entrepreneurs various industry component 2, which will be labour and /workers employed specific undertaken in the first year working by micro enterprises publications of the project conditions at in their units the workplace (FSMS). (strengthening the capacity and for • These modules of support systems for food community should also include processing micro requirements which enterprises) the micro enterprises needs to follow as per the applicable labour and working hours laws • These training modules should also describe pictorially, Personal Protective equipment and their usage and disposal practice, which are required across different Food processing sectors 119 Training modules should also contain a section on HIV/AIDS prevention and sexual health awareness A one page document needs to be developed highlighting key applicable regulations and Identified institutions at how to meet the State level (UP – State Food requirements Processing Industrial directed towards Institution, Lucknow; AP – the micro College of Food Processing enterprises. These should Technology; PB – cover : Agriculture University Developing a Department of Food list of key Entrepreneurs / o Prevention workers employed of child Processing Technology etc.) regulatory by micro labour should develop one page 2 requirements enterprises in their o Payment of document highlighting the as applicable units minimum key applicable regulations on micro enterprises wages This activity can be o Payment of undertaken as part of benefits component 2, which will be including undertaken in the first year bonus of the project (strengthening o Shops and the capacity of institutions to Establishme nt deliver services for Micro requirement o Enterprises) Employee State and Provident fund Acts and Rules As part of project Identified institutions at Training activities, TSP’s State level (UP – State Food TSP’s on are responsible Processing Industrial above Health for providing Institution, Lucknow; AP – 3 and Safety TSP’s handholding College of Food Processing modules and support to the Technology; PB – regulatory micro enterprises Agriculture University requirements for a period of 12 Department of Food months post Processing Technology etc.) 120 issuance of should develop specialized subsidy During training modules and impart handholding trainings to TSPs This TSP need to activity can be undertaken raise awareness as part of component 2, on Health and which will be undertaken in safety, labour the first year of the project and working (strengthening the capacity hours and other of institutions to deliver regulatory services for Micro requirements Enterprises) Organize health camps at cluster level every six month during the implementation of the project and ensure that Entrepreneurs Entrepreneurs / TSPs to organize health and their workers employed camps at cluster levels every workers are Health checkup by micro 4 motivated to six months during the of workers enterprises in their participate in implementation of the units such camps project Medical checkup and fitness tests of food handlers and other workers need to be conducted in line with the recommendation s of FSSAI Entrepreneurs / Facilitating The units need to be TSP’s needs to facilitate the workers employed knowledge facilitated with the by micro same during handholding 5 and access specifications and enterprises in their the micro enterprises (for a to relevant availability of units period of 12 months) PPE’s recommended PPE’s 121 Monitor the implementation of TSP’s to monitor the the labour standard implementation of labour action plan on standard action plan at unit All project regular basis level and share a quarterly activities Evaluate the data in 6 M&E report with State PIU’s State involving labour midterm of the engagement PIU’s to monitor the project and suggest progress report submitted corrective measures by TSP’s and share annual based on the reports with National level findings PMU National level PMU to monitor the progress report on annual basis vii. The TSP’s will undertake the initial screening of the Micro Enterprises in the initial step. During this step, it will be mandatory for the micro enterprises to ensure the basic regulatory requirements are fulfilled. Once the micro enterprises are selected, during the handholding stage TSP’s will guide and ensure that the occupational health, hygiene workplace safety, labour regulations related to minimum wages, working hours and etc. are being followed by the enterprises. In addition, regular monitoring will be performed by the project monitoring and evaluation department and the CEG M&E to ensure that the required compliance to all the relevant laws are being followed by the selected enterprises. viii. In case, non-compliance are identified, then an initial warning will be given to the concerned enterprise with a timeline to take the appropriate corrective action. Post the corrective action taken by the enterprise, it will be reviewed by the M&E department. In case the non-compliance is still prevalent then the future assistance under the program will be put on hold till the time all corrective measures are taken by the enterprise and an approval is provided from the M&E department. Post the approval from the M&E department the assistance planned under the program will be resumed. 122 12. Consultation and stakeholder engagement plan i. The objective of developing a consultation and stakeholder engagement framework is to the guide the long term communication strategy which the project may implement to consult and disseminate information with all the key stakeholders. Effective communication and ongoing consultation with all stakeholder groups is required for adherence to the social development principles of inclusiveness, participation, accountability and transparency. ii. The principles for consultation and stakeholder engagement are outlined below: • Identification of stakeholders representing wide range of area (cluster) and diversity (sectors) • Working closely with all categories of beneficiaries and other stakeholders by committing to a participatory approach • Integrating verbal, electronic and written consultation mechanisms for effective outreach • Ensuring gender friendly approach • Maximizing transparency The consultation and stakeholder engagement plan for IFPVAP involves the following elements: I. Identification of targets groups to aid the communication planning efforts, as and when required. • The stakeholders need to be identified at an early stage of the project implementation. • Stakeholder identification and analysis shall continue throughout the project cycle and shall remain dynamic. • The identification of the target groups of stakeholders for communication efforts, shall include Micro Enterprises(Entrepreneurs in the unorganized food processing sector/ target project beneficiaries), producer groups and other value chain participants (including provision of transport, storage, warehousing, branding and marketing, food quality inspection service providers), key decision makers like District Collectors, Sarpanch etc., people likely to be adversely affected directly or indirectly by the project intervention, poor, women, tribal and any other vulnerable groups of the society, local social development NGO’s, professionals/academicians and institutions contributing in research/ project training needs development and other relevant community based organizations. The identification of target groups is possible at the first level of the project during the baseline survey and public consultations (diagnostic study). This mapping exercise will include the assessment of existing Micro Enterprises as per the below parameters: • District wise mapping of active Micro Enterprises, including number of Micro Enterprises, products, size, location etc. • Identification of FPI clusters or enterprise agglomerations in each district. It will also include mapping of the SHGs, co-operatives and FPOs functioning in the district • Profiling of existing Micro Enterprises as per location, turnover, market segments, types of products, years in operation and also mapping the value chain of each food segment 123 • Understanding the existing barriers to growth and undertaking gap analysis with respect to finance, technology, skills, manufacturing practices etc. II. Appointment of social safeguard expert at NPMU and SPIU levels to assist in the overall communication with stakeholders III. Developing content for various modes (verbal, non-verbal) of communication with different types of stakeholders. • Before the start of project the communication specialist at National PMU needs to ensure that information pertaining to project objectives, expected outcomes, procedure for application, minimum criteria, grant application/ proposals, benefits, trainings and skill development aspects, grievance redressal mechanism etc. is developed in a concise format. • This information needs to be shared with the social safeguard expert at each SPIU. • The communication specialist at NPMU and safeguards specialist need to communicate periodically to exchange updated information and contents • The communication specialist at SPIU needs to develop communication material in the form of documents, brochure, pamphlets, internet based modules etc. with regards to the each stakeholder group. Care must be taken to develop relevant content in a language easily understood by the stakeholders. IV. Develop mechanisms for project information dissemination • Information dissemination is required for all stakeholders’ right from the start of the project and subsequently at periodic intervals. The SPIU will decide on the mechanism and the formats for information dissemination, based on the needs and category of different stakeholders (whether through print media, internet, radio or others). • The information dissemination mechanism will also develop a timeline of activities, closely linked to the timelines for project phases, including sharing of any revision or updated information. • The communication specialist at SPIU will also develop an action plan for organizing various activities at the State, District and Cluster level to raise awareness on the IFPVAP and issues related to it. This plan needs to be updated annually. V. Training of TSP’s on consultation and stakeholder engagement plan • TSP are an important link for on ground project activities and delivery of last mile services. • The State Nodal Institutions would train the TSP’s on the consultation and stakeholder engagement plan, before commencement of project activities. State Nodal Institutions needs to build TSP’s capacity, prior to the start of the project, in order to adequately disseminate information on ground to project beneficiaries and other relevant stakeholders. • Once the project is functional, the SPIU and TSP’s will periodically share updated information with target stakeholders on ongoing basis. VI. Developing mechanism to receive feedback from stakeholders and review the progress through IFPVAP beneficiary’s satisfaction surveys on annual basis. • The project needs to develop a dynamic and ongoing feedback mechanism. • The NPMU needs to develop a feedback mechanism and also link the feedback for communication and consultation with the grievance redress mechanism. This is required so that any grievance related to lack in communication and outreach is adequately recorded and actioned upon. 124 • The NPMU would design feedback mechanism through surveys and other strategies for every level of IFPVAP • This review of annual survey’s needs to be undertaken by NP MU, to identify and address gaps for each project district. Key responsibilities at National Level (NPMU) iii. The communication specialist at NPMU will take lead in formulating the consultation and stakeholder engagement plan in consultation with the SNA’s for all states and ensure that they are consistent in nature. They are responsible for collating and updating the key project information. They should also guide a communications strategy which expresses the objectives, expected outcomes and methods of IFPVAP outreach activities. This would be directed towards the stakeholders identified during baseline surveys. iv. This would serve as a guide for any media and public relations activities for all levels under IFPVAP. v. The communication specialist will also be responsible for designing a feedback mechanism in the form of beneficiaries’ satisfaction surveys to receive inputs from various stakeholders. This would enable them to analyse gaps and identify ways and means to better improve communication strategies and to document the shortcomings of the project. The data received would be categorized and sent to the various concerned departments. Key responsibilities at the State level (SNA/ SPIU) vi. The SNA’s/SPIU’s would be responsible for the dissemination of information formulated by the communication specialist at NPMU to all key stakeholders including food processing Micro Enterprises segment. The expert at this level would segregate information received from the NPMU according to different stakeholders and will disseminate the same as per the developed mechanisms and plan. Key responsibilities at State, District level and block level Table 57: Key responsibilities at District level Activity Method/Tools Outcome 125 Awareness campaign for • Distribution/display/organization entrepreneurs in of handouts, posters, organizing unorganized sectors and awareness camps • Awareness about the project value chain participants’ at • Use of electronic media and social initiative. each level to disseminate media for awareness campaigns. • Target groups are encouraged information about IFPVAP • Collaboration with NGOs and to participate. (Coverage, benefits, other institution working in the compliance requirements, sector for increasing the proposed activities) communication efforts. • FGDs, Small Group Meetings, interactive workshops and public consultation meetings • Increased awareness about the Consultation with potential • Use of social media/internet for project initiative, beneficiaries and other effective planning for • Issues and suggestions stakeholder on the consultation meetings and obtained provisions of IFPVAP workshops. • Target groups are encouraged scheme. • Provision of women officials in to participate the consultation team for ensuring women participation. • Uploading of list in MoFPI, State Assistance in disclosure of Nodal Agencies web portal selected list of beneficiaries • Transparency ensured • Display of list of production and and stakeholders for various • Opportunity given for any enterprise clusters in vernacular services/benefits of the grievance on selection. language GP, Block, Circle, project SubDivision and DC’s offices. Consultation with selected beneficiaries and stakeholders for disclosure of provision of Social Audit, Selected beneficiaries and Citizen Feedback System FGDs, Small Group Meetings, stakeholders become aware (CFS), Gender Action Plan interactive workshops and public about the mechanism to ensure (GAP), Tribal Action Plan consultation meetings social development. (TAP) and Grievance Redressal Mechanism (GRM) Community consultations • Better financial decisions and FGDs, Small Group Meetings, for financial and credit management literacy interactive workshops, film shows and public consultation meetings • Access to credit facility • Uploading of details in MoFPI, State Nodal Agencies web portal • Display in office notice board of • Transparency ensured Disclosure of half yearly concerned institutions at district • Opportunity given for any reports of social audit and divisional level for one month suggestions/ grievance 126 and available to public on demand at any time, if sought for Disclosure of half yearly Uploading of details in MoFPI, progress report on implementation of GAP and State Nodal Agencies web portal Transparency ensured TDF Disclosure of periodic Uploading in MoFPI and State internal and external Nodal Agencies web portal Transparency ensured monitoring reports Uploading of details in MoFPI, Disclosure of annual social State Nodal Agencies web portal Transparency ensured audit report Consultations with FGDs, Small Group Meetings, community especially interactive workshops and public Satisfaction level project beneficiary and consultation meetings stakeholders on service Disclosure of final internal Uploading of details in MoFPI, and external Monitoring and State Nodal Agencies web portal Transparency ensured evaluation reports 13. Monitoring Evaluation and reporting plan i. IFPVAP being a multi-disciplinary project involving multiple sectors needs a very effective M & E system to ensure participation, transparency and accountability in all the stages of the project cycle. ii. At the national level MoFPI, through the PMU, will lead M&E for the project. Based on the project appraisal document, the responsibilities of the PMU will include: (i) periodic program progress reviews; (ii) consolidating and disseminating information on program progress reports from states and nodal agencies (including reporting on beneficiary satisfaction with project design and delivery, fiduciary performance, and safeguard compliance); (iii) reporting on project achievements against the agreed project Results Framework; and (iv) commissioning surveys, studies, and assessments as necessary. iii. At the state level, SNAs will be responsible for preparing and submitting quarterly reports on implementation progress. To support reporting processes, the PMU will design standardized reporting templates to ensure that project reports provide clear and transparent progress updates on all relevant aspects of the Results Framework and on key implementation parameters. 127 iv. To address the social development objectives of IFPVAP, social monitoring plan needs to be developed. The social monitoring plan needs to address the baseline impacts predicted as observed while undertaking the social assessment. The concerned field monitoring staff from TSP and state and national officials under M&E team should monitor impact on project beneficiaries as well as on other impacted persons. The TSP and M&E cell at each state and national level needs to monitor and coordinate between themselves for timely implementation of various activities. The social monitoring plan should be integrated with the design, operation and maintenance phase of the project on a timely basis. 13.1. Social monitoring and evaluation system for IFPVAP v. The project will roll out a comprehensive electronic MIS capturing key progress areas of program implementation on a regular basis. Key aspects of M&E system for IFPVAP is described below: • Building on MoFPI’s system for monitoring large food processing projects, a digital platform will be developed for tracking smaller projects targeting Micro Enterprises. The project will invest in systems and capacity so that data from the MIS can support decision-making based on deeper analysis. • Dashboards will be developed to regularly track progress indicators to support decision-making at all levels, including the district and sub-district level. MIS would be developed at the National and State level which, could incorporate a geographic information system and the latest innovations in data collection and measurement. Efforts will be made to combine MIS development with development of the other online platforms that support project activities. • The project will commission a rigorous, independent impact evaluation, featuring a mixedmethods approach and a robust counterfactual analysis (randomized if possible) to take advantage of the phased rollout of the project. • To implement these M&E activities, internal M&E capacity will be built in the PMU at the national level and in SNAs through long-term consultancies The structure of the proposed Social M&E team is given below: vi. As depicted in the above figure, the two primary functions of the team have been proposed as separate Sub-units. The Monitoring sub-unit would undertake tasks which would entail regular tracking of social development objectives of the program, primarily through MIS. The Evaluation sub-unit would track progress of the program at regular time intervals and also as per the compliances requirement of SMF and other key requirements of funding agencies. Their tasks would comprise surveys, impact studies (through external agencies), case studies / success stories, etc. vii. The M&E agents will have Social M&E as part of their overall M&E responsibility. TSP will be responsible for field data collection and supervision, at the district and cluster level during the course of the project to ensure that the progress is in line with the social guidelines provided under 128 the Social Management Framework. There would be a provision to hire additional expertise on a short term basis, if required. TSP will provide monthly report to the SNA after visiting each district. viii. The M&E system will be designed to provide concurrent feedback to key stakeholders on progress in achieving key project results. Overall M&E capacity of the implementing entities will be reinforced by investments in technological infrastructure, capacity, and evaluation systems. ix. Key indicators from Social development perspective. These indicators have been highlighted for women, however the same indicators needs to be monitored for tribal population (both male owned Micro Enterprises and women owned Micro Enterprises): Amount of commercial financing accessed by Micro Enterprises Amount of commercial financing accessed by women-owned enterprises Increased number of Micro Enterprises accessing business advisory services and mentorship networks Increased number of women-owned enterprises accessing business advisory services and mentorship networks Increase in revenues of Micro Enterprises supported through the project Percentage of Micro Enterprises compliant with food quality and safety standards Number of SSUPs developed and financed Number of food processing Micro Enterprises benefitting from project interventions Number of food processing women-owned enterprises benefitting from project interventions Number of TSPs capacity building plans supported by the project Number of TSPs trained and accredited through the project Number of individual food processing experts trained and accredited through the project Number of Micro Enterprises FUPs implemented and accessing loans through project support Number of women-owned enterprises FUPs implemented and accessing loans through project support Number of CDPs developed and implemented through the project Number of lead firm agreements developed with Micro Enterprises clusters in the project Number of jobs created by Micro Enterprises supported by the project Number of jobs created for women supported by the project Percentage of grievances addressed Percentage of food processing Micro Enterprises satisfied with the quality of services provided x. The project will also conduct periodic stakeholder’s workshop to share emerging lessons from project implementation and to incorporate new inputs from implementation partners. Key lessons on inclusion will be substantially documented for wider dissemination. 129 13.2. Establishing reporting formats, requirements and calendar xi. The l safeguard specialist at NPMU Level is required to firm up the following aspects to establish M&E reporting formats and align it with the overall project timeline. The following tasks needs to be addressed by M&E team at NPMU Level: 1. The Baseline information for each Micro Enterprise supported by the project would be recorded on commencement of the project. Based on the values of indicators generated in the Baseline Study, mid-term and end-term assessments would indicate progress of the project. 2. An external agency may be appointed to undertake this study, which will be based on domestic competitive bidding and the selection process followed may be QCBS. 3. Based on the Baseline study and reporting requirements for M&E established, milestones, timelines and targets will be fixed annually. Along with, the periodicity of measurement would also be established. xii. The M&E team, with assistance from state teams and external agencies, will periodically collect information and undertake its digitisation to monitor progress of the project. Tablet, computers and mobile phones will be used for field data collection which could eliminate the need of data entry, as data will be entered directly into tablets/phones rather than using a paper questionnaire and uploaded directly into a survey database. Reporting: xiii. MoFPI shall report to the WB quarterly and semi-annually on the progress of the project (progress report), including on the fulfilment of implementation agreements and on all developments of all other important general conditions. The content and form of report shall be determined by the WB and agreed in a Separate Agreement. In addition, MoFPI shall report on all circumstances that might jeopardise the achievement of the overall objective, the project purpose and the results. The first report of the state of affairs shall be submitted within three months after launch of the project. Subsequent reports must be submitted to the WB not later than 6 weeks after the end of the period under review. At the time of physical completion of the Project, MoFPI shall submit a final report on the measures carried out. 13.3. Evaluation and Course Correction: Evaluation: xiv. Based on reports from various studies, monitoring mechanisms and MIS, half yearly and annual progress reports will be compiled and submitted for review. Any issues of concern/red flags and suggestions for course correction will be included in these reports. • Mid-term Assessment Study – this would be undertaken mid-way through the project to ascertain the progress achieved and any mid-course corrections which need to be introduced. It would include indicators to measure progress towards log frame goals and objectives. • End-Term Assessment Study – this will be undertaken at the end of the project period (around the time of project completion) and will assess the achievement of the project during the tenure. 130 131 14. Capacity building Plan i. IFPVAP being a multi stakeholder project, it is important and necessary to build the capacity of all the stakeholders involved in the implementation of the project. Objectives • To build and strengthen the capability of national, state and district level nodal agencies, participating agencies, to integrate sound social management into sub-project implementation • To create high quality and certified TSPs and enhance their outreach capacity • Familiarize the state nodal agencies staff, participating agencies and communities to the requirements of the project’s SMF 14.1. Identification of Stakeholders for Capacity Building ii. Different type of training needs will be required for different stakeholders ranging from social auditing to documentation to eco-system management etc. Capacity Building for project staff is vital in maintaining and sustaining the project life. Capacity building programs would emphasize on knowledge development and skills building. The capacity building would also be given to SNA’s, SPIU’s, District Nodal agencies, TSP’s and NPMU staff to ensure project success. 14.2. Content of capacity building iii. The project stakeholders will apply social and gender safeguards mentioned in SMF at all project activities during planning and implementation phases. Capacity building exercises including orientation, technical, refresher, advance trainings, workshops and exposure visits, focusing on SMF safeguard implication and monitoring. These trainings will be organised in accordance with capacity development strategy of the project. The capacity building exercises along with monitoring and learning process would not only help to ensure the social and gender safeguard application, but also develop awareness and understanding towards social risk and mitigations. The capacity building plans would be planned out phase wise, and certain trainings would be uniform for all stakeholders, while other programs or training would be tailored to suit specific requirements. The training programmes will be coordinated and anchored by the NPMU in consultation with NIFTEM, IIFPT, CFTRI and other state nodal technical institutions. 14.3. Capacity building across project cycle Pre planning phase • A capacity building needs assessment would be first carried out to understand the training needs of the various stakeholders • A review of human resources at MOFPI will identify existing capacities, gaps in skills and recommend capacity building and training needs to fill the skill gaps. The training and capacity 132 building needs would be segmented into the following areas namely strategic, technical and project management • Human resource and infrastructure at national level institutions like NIFTEM, IIFPT and CFTRI will be reviewed to strengthen their service delivery to become apex institutions to provide quality and standardized technical services to Micro Enterprises in the focus states Planning Phase • Content of the capacity building would be designed as per the requirements identified during the need assessments • MoFPI and NPMU will identify and select organisations and institutions that will impart trainings • Detailed training program will be developed for the nodal agencies and key stakeholders. • Human resource and infrastructure need for national level institutions will be assessed and arranged by MoFPI • Key staff of TSP’s will be imparted training to enable in -house capacity building and trickle down training to the grassroots level. Implementation Phase • There would be a review of the trainings done • Based on the reviews, the stakeholders would be given refresher courses or sent for further training to improve their existing knowledge 14.4. Capacity building and training Plan Table 58: Capacity building and training plan S Task Topics Responsibility Frequency No A National Level Capacity Building Programme • Training on World Bank safeguard s1 Directorate policies • Regulatory requirement for the food National Resource processing sector National • Labour, Social, Health & safety Institutes Programme • MoFPI regulatory requirement for the food 2 Management processing sector Dept. of FSSAI, Yearly Unit • Food safety and hygiene regulatory Labour Department requirement for the food processing sector External 133 • Finance and budgeting trainers as • Monitoring and evaluation required • Gender sensitization B State Level Capacity Building State Nodal • Training on World Bank safeguard 3 • State Resource Agency policies Institutes • Regulatory requirement for the food • Nodal Agency processing sector • Dept. of FSSAI, State • Labour, Social, Health & safety Labour Yearly Programme regulatory requirement for the food 4 Department Implementation processing sector • External Unit • Gender sensitization trainers as • Finance and budgeting required • Monitoring and evaluation S Task Topics Responsibility Frequency No • Food safety and hygiene regulatory requirement for the food processing sector • Social Impact Assessment • Implementation of the Social Management Framework • Implementation of Tribal Development Framework, Gender Action Plan, Labour Standard Action Plan, Resettlement Policy Framework C District Level Capacity Building 134 • Training on World Bank safeguard policies • Regulatory requirement for the food processing sector • Labour, Social, Health & safety regulatory requirement for the food • State Resource processing sector Institutes District Nodal • Food safety and hygiene regulatory • Nodal Agency agencies, TSP’s requirement for the food processing • Dept. of FSSAI, 5 and other sector DIC, Labour Half-yearly similar • Social Impact Assessment Department departments • Gender sensitization • External • Implementation of the Social trainers as Management Framework required • Implementation of Tribal Development Framework, Gender Action Plan, Labour Standard Action Plan, Resettlement Policy Framework 15. Grievance Redressal Mechanism i. As per the IFPVAP project implementation plan dated April 2019, grievance redressal mechanism has been proposed. Prompt grievance redressal enables target beneficiaries to develop trust in the processes and be willing to participate in project activities. Thus, the project monitoring system will provide information on the number of complaints received against the number actually resolved. The National Portal will have a dedicated window for registering grievances. ii. Stakeholders at various levels (enterprise/district/state) will be able to register their grievances in this portal through an appropriate representative at each level. Enterprises could register their grievances through a mobile app to their enterprise representative and in turn, this would be escalated to higher levels. The process of submission of grievances is illustrated below: Figure 3: Grievance framework proposed as part of IFPVAP 135 iii. The mechanisms for grievance redress for IFPVAP would be established at four levels namely enterprise/ cluster level, district level, state level and at national level and at each level the project management unit will be supported by grievance redressal cell (GRC) who will be the point of contact for all the grievance related activities. iv. For each grievance which is received, a unique tracking number will be issued which will help the complainant in tracking his or her grievance and this number will be used as a reference number for all future communication and record maintenance. 15.1. Enterprise/Cluster level: • The grievance can be addressed at enterprise level or cluster level. The grievance can be lodged online using the national portal as well as directly registering the compliant with GRC using IFPVAP mobile portal or physically going to district, state or national level GRC’s. • In addition, to the mobile application a toll free number will also be provided for registering the grievance. The TSP’s are responsible for disseminating the information on available channels for raising grievances to project beneficiaries. This information would also be made available on the project’s website and should also form part of any project related communication doc ument which is shared with the project beneficiary. • The GRC would be headed by Sarpanch/ Pradhan of the concerned villages or Block Development Officer. The GRC committee would be responsible for maintaining a register to record the number of grievances received, details of the discussion held, and the minutes of the meeting. They would also share a copy of the grievance status with the Cluster Project Management Unit. 136 • It is mandatory to involve members of local NGO’s active in gender related issues ( and women empowerment amongst others) as well as NGO’s working towards upliftment of Tribal population. Such NGO members are required to be part of district, state or national level GRC’s. 15.2. District level: • The District Nodal Agency(DNA) will be the next point of contact for handling grievances at the district level supported by GRC, if the appellant is not satisfied with the resolution provided by enterprise level/ cluster level GRC. • The GRC for this purpose would be headed by a District Collector/ Magistrate in urban areas and a Sarpanch or equivalent in rural/ semi-urban areas. • If the DNA fails to satisfy the appellant with the grievance resolution, then GRC at this level will send the issue/grievance to the State level. 15.3. State Level: • In case the appellant is not satisfied with the resolution provided at the district level, he/she would approach the next level which is the State Project Management Unit (SPMU). • The GRC will be headed by Principal Secretary Food Processing/Industries/MSME. The state PIU will provide resolution through appropriate liaising with relevant departments. The committee would maintain a register to record the number of grievances received along with details of the discussions and meetings held. The State level GRC will continuously track the status of the grievances at the district and cluster level and appraise the National level GRC in case on any issue which needs immediate attention. Further, a monthly meeting will be held in the first week of each month to review the status of the grievances and a consolidated quarterly report will be shared with the National level GRC for review. • If the state PIU fails to satisfy the appellant with the grievance resolution, then GRC at this level will send the issue/grievance to the National level. 15.4. National Level: • If the complaint cannot be resolved at the state level, it would be referred to the National level Project Management Unit headed by an Ombudsman to handle the grievances. • This Ombudsman would head the GRC of IFVAP and will also review the grievance records on quarterly basis for district and state level GRC’s. If this GRC fail to satisfy the appellant with the grievance solution, then Ombudsman in discussion with the project advisory committee* and Mission Director would decide whether to send the issue/grievance to the Court of Law. • In addition to the continuous monitoring of the grievances at the cluster, districts and state levels, a quarterly meeting will be held to review the status of the grievances and an annual report on the grievances handled for the overall program and will shared with the Mission director for his review. 137 • For all the grievances resolved, the aggrieved will be provided with a feedback form to capture their satisfaction with the process and outcomes. This can be submitted both online via portal and by post. These feedback will be reviewed by NPMU for further analyses and future action . Below noted are the proposed members for the GRC at each level. Each committee to comprise of five to six members. Table 59: The proposed members for GRC are given in the table below S. No. Level Members 1 National Level • Mission Director • Ombudsman • Representatives from other relevant departments 2 State Level • Representative from State level Financial Institution/ Nationalized bank • Representative from SNA • Representative from Department of Women and Child Development • Representative from Department of Tribal Welfare/Affairs Social and Gender expert 3 District Level • District Collector/ Magistrate, • Department of Panchayat and Rural Development • Representative from Department of Tribal Welfare/Affairs • Representative from Labour Department • Branch manager of Local Nationalized bank • District Industries (representative of MSME) • Member of local NGO • Chief Health Officers, FSSAI • Members from district level business associations 4 Cluster/Village • Sarpanch/ Pradhan of the concerned villages Level • Block Development Officer • Two members of SHG federation/ clusters (one can be from tribal community) • School teacher of a Government school • Member of local NGO • Members from the health sector • Enterprise association representatives *Note: The project advisory committee will comprise of representation from a range of associated government ministries and departments including the Ministry of Micro Medium and Small Enterprises, the Food Safety Standards Authority of India and the Ministry of Rural Development at the national level and corresponding departments at the state level. It will also include representatives of the private sector, financial institutions, producer organizations, and civil society. 138 Online Grievance NPMU National portal 4th Level GRC Through mobile application Toll Free No. SPIU 3rd Level GRC GRM Registered Operator DNA at NPMU 2nd Level GRC Enterprise/Cluster 1st Level GRC Offline Grievance Figure 4: Proposed Grievance mechanism for implementation of SMF 15.5. Court of Law v. This would include the District Commissioner and Legal courts. If the issue cannot be addressed or is outside the purview of the GRC, then it may be taken by the Office of the District Commissioner or a Legal Court. 15.6. World Bank Grievance Redress System vi. In addition to seeking to resolve their grievances through the GRM established at the government level, “communities and individuals who believe that they are adversely affected by a World Bank (WB) supported project may also submit complaints to the Grievance Redress Service (GRS) established by the World Bank. The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project affected communities and individuals may also submit their complaint to the WB’s independent Inspection Panel, after having brought the complaint to the World Bank's attention through its GRS. Information on how to submit complaints to the World Bank’s Grievance Redress Service is available at http://www.worldbank.org/grs. In formation on how to submit complaints to the World Bank Inspection Panel is available at www.inspectionpanel.org. 139 16. Budget for SMF i. The budget for SMF implementation should be framed by respective state by assessing the requirement of infrastructural development, number of Social Management Cells to be created, requirement of staffs in Social Management Cells and other developed facilities (like laboratory technicians, ETP operators) etc. once the overall need is identified. ii. The exact quantum of Budget to be utilized for SMF cannot be estimated. This heavily depends on the actual project implementation structure as proposed by SPIU and agreed by NPMU for catering to the states. iii. However, it is recommended that the SMF budget should be allocated to the tune of 1% of the entire project cost. iv. The budget for SMF implementation should include the following components as a furnished below: • Development of Social cell at different levels (hiring of experienced professionals at central and state level) • Provision for training and calibration of implementing agencies and also for the project beneficiaries, as per the prescribed training plan • Ensuring that the following feasibility studies, product development and hiring of appropriate agencies and individuals for implementation of SMF is being fulfilled: o Baseline assessment of for understanding the social risk o Design of a digital app based system for managing social data of project beneficiary at the time of registration and linking it with periodic monitoring and supervision of data. o Periodic monitoring of SMF implementation o Assistance in establishing infrastructure or mechanism for compliance of beneficiary units on social parameters 140 Annexures A.1. List of units covered List of units covered in Andhra Pradesh (41 units) Owner Profile Owners S. Distric Ag Educatio Gen Social Category Final product hip of No. t e n der Group firm 1 Prakasa Fruits and Mushroom Pickle 47 10th Class Femal OC Proprieto m vegetables e rship 2 Prakasa Fruits and Pickles, Karappodi, Vadiyalu 35 10th Class Femal OC Proprieto m vegetables e rship 3 Prakasa Packaged food Sweets & Hot (Ladoo, Badsha, Misore pak, Karapusa, Cake 52 5th Class Femal BC- Proprieto m etc..20 items) e Kuruma rship 4 Prakasa Packaged food Sweets & Hot (Ladoo, Badsha, Misore pak, Karapusa, Cake 50 10th Class Femal OBC Proprieto m etc..20 items) e rship 5 Prakasa Packaged food Biscuts (Fine Biscuit, Salt Biscuits, Ragi Biscuts, Bakery Items 35 Inter Femal Proprieto m etc..20 types) e rship 6 Prakasa Packaged food Spices Powders Manufacturing 35 10th Class Femal Proprieto m e rship 7 Prakasa Packaged food Laddu, Mithai, Karas, Jangree & Badsha 50 ILLITERAT Femal OC- Vysya Proprieto m E e rship 8 Prakasa Packaged food Boondhi Mudda, Mudda Types 45 SSC Femal OBC Proprieto m e rship 9 Prakasa Grains and Oil Rice ILLITERAT Male Proprieto m seeds E rship 10 Prakasa Packaged food Pickles(9 types- Mango, Chilly,Amla, Tamarind, Gogu, Giinger, 45 INTERMED Femal OBC Proprieto m Tomato, Lime, Chicken) IATE e rship 141 11 Prakasa Packaged food Pickles (18 types) Karappodi preparation 50 9th Class Femal OC Proprieto m e rship 12 Prakasa Grains and Oil Multi grain powder, Ragi, Jowar, Perrel Millet,White Jowar 28 Inter Male OC Proprieto m seeds rship 13 Prakasa Packaged food Sweet, chakhna, Namkeen food items 34 No Male OBC Proprieto m education rship 14 Prakasa Packaged food Sweets, Khoa, 33 5th Class Male OBC Proprieto m rship 15 Prakasa Packaged food Namkeen & Snacks 29 No Male OBC Proprieto m education rship 16 Prakasa Packaged food Popcorns 27 Inter Femal SC Proprieto m e rship 17 Prakasa Packaged food Chikky, Laddu 45 No Femal OBC Proprieto m education e rship 18 Prakasa Packaged food Ice cream nuts, Butter skotch nuts 35 10th Femal General Proprieto m e rship 19 Prakasa Packaged food Chilly Powder, Cerpow skotch Powder 48 Inter Femal OBC Proprieto m e rship 20 Prakasa Fruits and Mushroom, Mushroom Pickles, Mushroom papad 54 Graduate Male OBC Proprieto m vegetables rship 21 Prakasa Packaged food 10 types of Pickles 35 7th Femal General Proprieto m e rship 22 Prakasa Dairy Sweets, Khoa, Mysore pak, Laddu, SonPapdi, Halva 46 9th Femal General Proprieto m e rship 23 Prakasa Packaged food 45 5th Class Femal Proprieto m e rship 24 Vizianag Fruits and Pickle (Chicken, Prawn, Mango, tomato etc.) 35 5th Femal OBC Proprieto aram vegetables e rship 25 Vizianag Packaged food Chikodi(snacks) 42 5th Femal General Proprieto aram e rship 26 Vizianag Packaged food Papad 53 No Femal OBC Proprieto aram education e rship 142 27 Vizianag Packaged food Papad 30 No Femal OBC Proprieto aram education e rship 28 Vizianag Packaged food Chikki 40 Intermediat Femal OBC Proprieto aram e e rship 29 Vizianag Packaged food Papad 45 No Femal OBC Proprieto aram Baddi (Mung daal) e rship of Rice starch papad the same family 30 Vizianag Packaged food Coconut laddoo, chikodu, papads 35 5th Femal ST DOCRA- aram standard e MEPMA 31 Vizianag Packaged food Pootharekulu (Rice coated sheet), Cashew 45 Uneducated Femal OBC Self aram e 32 Vizianag Fruits and Mango pickle (Spicy & Sweet), Tomato pickle, ginger pickle, 36 Uneducated Femal OBC Self aram vegetables lemon pickle, rice papad, badi e 33 Vizianag Packaged food Pootharekulu (Rice coated sheet) 36 10th Femal OC Proprieto aram standard e rship 34 Vizianag Packaged food Bakery and confectionary 28 Degree Male OC Self aram Laddoo Jaggery Mysore Pak Boondi mixture Normal mixture Khoya 35 Vizianag Packaged food Snacks - Different kinds of mixtures (masala peanuts, chikodi) 45 6th Femal OC Self aram e 36 Vizianag Fruits and mango jelly (aam Papad) 29 intermediat Femal BCD (OBC) self aram vegetables e e entrepren uer 143 37 Vizianag Fruits and mango jelly (aam Papad) 32 Higher Femal BCD (OBC) self aram vegetables Secondary e entrepren uer 38 Vizianag Fruits and mango jelly (aam Papad) 30 intermediat Femal BCD (OBC) self aram vegetables e e entrepren uer 39 Vizianag Packaged food Biscuits (multiple types), ragi garins 35 uneducated Femal ST Working aram e in communit y based processin g centre 40 Vizianag Packaged food Biscuits (multiple types), ragi garins 20 Higher Femal ST Working aram Secondary e in communit y based processin g centre 41 Vizianag Packaged food Biscuits (multiple types), ragi garins 55 uneducated Femal ST Working aram e in communit y based processin List of units covered in Maharashtra (59 units) Owner Profile S. Distr Category Final product Age Educati Gen Soci Ownership N ict on der al o Gro up 1 Nandur grains & oil halad powder, masala, dhana powder 42 SSC male obc Unregistered (Self) bar 2 Nandur grains & oil dhaniya powder, mirchi powder, hing, rai, onion garlic 47 7th female obc Partnership bar paste, sauuf, etx 144 3 Nandur packaged food animal food 43 12 male Unregistered bar 4 Nandur packaged food pav, bread etx 40 10 male genera Proprietoship bar l 5 Nandur packaged food kaju unclear B com male obc Unregistered bar 6 Nandur packaged food papad, sevai 56 12 male NIB Propreitorship bar 7 Nandur packaged food kurdai, papad, sevai 44 12 female obc Propreitorship bar 8 Nandur grains & oil pav bhaji masale, pani pori, masatan masale, khabra 40 B com female Propreitorship bar 9 Nandur grains & oil Rice 48 4th female ST Propreitorship bar 1 Nandur packaged food pav, khadi, nankharai 42 5th male Propreitorship 0 bar 11 Nandur Dairy Products panner, khoya, sweet, shrikhand, mava, yogurt, butter 55 7th female genral Propreitorship bar milk, ghee 12 Nandur pakaged food Chilli powder 40 12th male genral Propreitorship bar 13 Nandur grains & oil raw oil, animal feed 53 graduate male genral Propreitorship bar 14 Nandur grains & oil mungi, papapd, kurdi 30 graduate male OBC Propreitorship bar 15 Nandur fruits & vegetables cherry 24 graduate male Propreitorship bar 16 Nandur pakaged food mirchi powder 67 graduate male genral Patnership bar 17 Nandur grains & oil Dals NA NA male NA Propreitorship bar 18 Nandur pakaged food Papad, mirchi, garam masala 36 graduate male genral Propreitorship bar 19 Nandur fruits & vegetables Coconut powder and papad 40 10th female OBC Propreitorship bar 2 Nandur fruits & vegetables cherry 31 graduate male obc Propreitorship 0 bar 145 21 Nandur pakaged food murmure 50 12th male NA Propreitorship bar 2 Nandur pakaged food mirchi powder, powder, papad NA NA female SHG 2 bar 2 Nandur Grains and Oil Chilli powder 50 2nd standard Female Pawar Propreitorship 3 bar a 2 Nandur Processed food Papad 60 11th Female Pawar Propreitorship 4 bar Standard a 2 Nandur Grains and Oil Pulse 67 5th Standard Male Wadw Propreitorship 5 bar i 2 Nandur Grains and Oil Rice 44 Graduation Male Mauvs Propreitorship 6 bar chi 2 Nandur Grains and Oil Pulse 42 BA Male Hindu Propreitorship 7 bar bil 2 Nandur Packaged food Papad,Sewai 40 Graduation Female Minor Propreitorship 8 bar ity 2 Nandur Packaged food Packed mushrooms 44 Graduate Male ST - FPO 9 bar tribal 3 Nandur Grains and Oil Dal 44 Graduate Male ST - FPO 0 bar tribal 31 Nandur Grains and Oil Dal 40 12th pass Male OBC Proprietorship bar 3 Pune Fruit and Vegatables Ready to eat vegetables, Powdered vegetables and fruits, 31 Post Female Gener Proprietorship 2 dry vegetables and fruits Graduate al 3 Pune Fruit and Vegatables (Organic Organic jaggery 40 10th Male Farmer Produce 3 Jaggery) Organisation 3 Pune Fruit and Vegetables Frozen fruits, Fruit pulp, frozen vegetables 55 Graduate Male Proprietorship 4 3 Pune Fruit and Vegetables and Frozen fruits, Aamras 29 Post Male Partnership 5 Beverage (Aamras) Graduate 3 Pune Fruits and Vegetables Frozen Custurd apple, Dry vegetables, Respond 10th Male Proprietorship 6 ent was not sure (50 +) 146 3 Pune Grain and Oil Rice, Rice Polish and Tusk 59 8th Male Proprietorship 7 3 Pune Grain and Oil Rice, Rice Polish and Tusk 55 8th Male Proprietorship 8 3 Pune Packaged food Pickel, Ready made mix, Papad, spices 0 0 Female Partnership 9 4 Pune Packaged food Cashew 30 Graduate Male Sole Proprietor 0 41 Pune Packaged food Idli dosa batter, Chutneys 35 Graduate Male Proprietorship 4 Pune Dairy Milk and milk products like ghee, paneer 0 0 Male Sole Proprietor 2 4 Pune Packaged food Pickel, Ready-made mix, Papad 0 0 Male Sole Proprietor 3 4 Pune Packaged food Namkeen 0 Graduate Male Sole Proprietor 4 4 Pune Packaged food Golgappe 0 Not educated Male Sole Proprietor 5 4 Pune Packaged food Namkeen 0 0 Male Sole Proprietor 6 4 Pune Dairy Milk and milk products like ghee, paneer 49 10th Male Partnership 7 4 Pune Packaged food Different kinds of masala used in kitchen (Mirchi powder, 47 10th Female Proprietorship 8 pav bhaji etc) 4 Pune Packaged food Sewai Manufacturing from Aata and Rava 55 10th Female Proprietorship 9 5 Pune Grain and Oil seed Papad manufacturing 35 10th Female Proprietorship 0 51 Pune Dairy Paneer, yoghurt, Sri khand, Amrakhand 31 Post Male Proprietorship Graduate 5 Pune Dairy Soap, Gauarka, hair oil, 37 10th Male Proprietorship 2 5 Pune Fruit and Vegetables Cutting, ripening, Chilling, packaging, freezing 52 12th Male Proprietorship 3 147 5 Pune Grain and Oil seed Pulses cleaning and processsing 45 10th Male Proprietorship 4 5 Pune Grain and Oil seed Flour of Wheat, Maize and Bazra 41 10th Male SC Proprietorship 5 5 Pune Grain and Oil seed Flour of Wheat, Maize and Bazra 40 10th Male SC Proprietorship 6 57 Pune Fruits and Vegetables Tomoato pury and paste 28 Post Male Proprietorship Graduate 5 Pune Fruits and Vegetables Organic jaggery 43 10th Male Proprietorship 8 5 Pune Fruit and Vegetables & Amal Candy and Mava, Mulbery jam, Amla Juice 35 Graduate Male obc Proprietorship 9 Beverages List of units covered in Punjab (44 units) Owner Profile Owner Social S. No. District Category Final product Age Education Gender ship of Group firm Fruits and Amla, Gajar, Apple, Harar, Bael ka Murabba, Amritsar 55 Graduate Married Male General 1 Vegetables Pickle and Sharbat 2 Amritsar Dairy Cottage Cheese (Paneer) 37 Graduate Married Male General BC- Propriet Prakasam Packaged food Curd, Ghee 52 5th Class Female 3 Kuruma orship Grains and Oil Amritsar Papad and Variyan 65 Graduate Married Male General 4 Seeds Grains and Oil 7th Standard Amritsar Papad and Variyan 52 Married Male General 5 Seeds Pass Fruits and Under Amritsar Pickle, Biscuit, Powder 46 Married Male General 6 Vegetables Graduate Grains and Oil Higher Amritsar Atta 29 Unmarried Male General 7 Seeds Secondary Pass 148 Grains and Oil 7th Standard Amritsar Atta 33 Married Male General 8 Seeds Pass Grains and Oil Amritsar Papad and Variyan 23 Matric Pass Unmarried Male General 9 Seeds Grains and Oil Primary Amritsar Papad and Variyan 56 Married Female General 10 Seeds schooling Grains and Oil Primary Amritsar Papad and Variyan 62 Married Male General 11 Seeds schooling Grains and Oil Amritsar Papad and Variyan 32 12th pass Married Male General 12 Seeds Fruits and Amla, Gajar, Apple, Harar, Bael ka Murabba, Primary Amritsar 28 Married Male OBC 13 Vegetables Pickle and Sharbat schooling Fruits and Amla, Gajar, Apple, Harar, Bael ka Murabba, OBC, Amritsar 58 12th pass Married Male 14 Vegetables Pickle and Sharbat Prajapati Fruits and Amla, Gajar, Apple, Harar, Bael ka Murabba, Amritsar 28 12th pass Married Male OBC 15 Vegetables Pickle and Sharbat Fruits and Amla, Gajar, Apple, Harar, Bael ka Murabba, Amritsar 65 10th pass Married Male General 16 Vegetables Pickle and Sharbat Higher Amritsar Dairy Cottage Cheese (Paneer) 43 Married Male General 17 Secondary Pass 18 Amritsar Dairy Cottage Cheese (Paneer) 38 Graduate Married Male General Primary Amritsar Dairy Cottage Cheese (Paneer) 38 Married Male General 19 schooling Primary Amritsar Dairy Cottage Cheese, Milk, Curd, Butter, Cream 27 Married Male General 20 schooling Primary Amritsar Dairy Cottage Cheese, Curd, Milk 62 Married Male General 21 schooling 22 Amritsar Dairy Cottage Cheese, Milk, Curd, Butter, Cream 56 Post Graduate Married Male General Primary Amritsar Dairy Cottage Cheese, Milk, Curd, Butter, Cream 35 Married Male General 23 schooling 24 Amritsar Dairy Cottage Cheese, Milk, Curd, Butter, Cream 38 12th pass Married Male General Amritsar Packaged food Turmeric 36 Graduate Married Male General 25 149 Fruits and Under Amritsar Jaggery 26 Married Female General Vegetables Graduate 26 Fruits and Under Amritsar Jaggery 42 Married Male General 27 Vegetables Graduate Grains and Oil Amritsar Flour 30 Graduate Married Male General 28 Seeds Under Amritsar Packaged food Green tea 55 Married Female General 29 Graduate Grains and Oil 8th Standard Amritsar Flour 48 Married Male General 30 Seeds Pass Amritsar Packaged food Spice 33 Graduate Married Male General 31 32 Amritsar Packaged food Bakery items - biscuits, bread, buns etc. 29 Graduate Married Male General List of units covered in Uttar Pradesh (48 units) Owner Profile 150 Owner Social S. No. District Category Final product Age Education Gender ship of Group firm Grains & Oil Partner Fatehpur Rice 45 LLB Male General 1 Seeds ship Propriet Fatehpur Dairy Products Chilled Milk 40 Graduate Male General 2 orship Mass Propriet Fatehpur Packaged food Bread, Bun 25 communicati Male General orship 3 on Grains & Oil Partner Fatehpur Rice 42 Graduate Male OBC 4 Seeds ship Propriet Fatehpur Dairy Products Icecream 32 High school Male OBC 5 orship Partner Fatehpur Dairy Products Milk 55 High school Male General 6 ship Private Fatehpur Packaged food Toast, Mixture 32 Post graduate Male General 7 Limited Fruits & Propriet Fatehpur Pickle, Mixture 45 High school Male General 8 Vegetables orship Propriet Fatehpur Dairy Products Icecream 35 Graduate Female General 9 orship Fruits & propriet Fatehpur 0 38 Graduate Male General 10 Vegetables orship Grains & Oil 8th and Unregis Fatehpur Chilly Powder, Haldi and Dhaniya 25 Female SC 11 Seeds below tered 35-40% Fruits & uneducated member Fatehpur Pickle, Sauce, Squash, Jam and Muraba 45 Female SHG Vegetables to graduate s are 12 from SC 151 Prorieto Fatehpur Packaged food Bakery (Bun, Bread, Toast) 41 intermediate Male Minority 13 rship Fruits & Prorieto Fatehpur Pickles, Aawla candy and Murabba 35 Masters Female General 14 Vegetables rship Undergradua Prorieto Fatehpur Dairy Products Ice creams 37 Male General 15 te rship Fruits & Undergradua Prorieto Fatehpur Canned Mushroom 33 Female General 16 Vegetables te rship 30% Spices (Haldi, Chilly and Dhaniya) and 7th Standard member Fatehpur Packaged food 40 Female SHG Bari Pass s are 17 from SC Prorieto Fatehpur Packaged food Bakery (bub) 51 Graduate Male Minority 18 rship Grains & Oil Prorieto Fatehpur Flour (packed in 50 kg bags) 55 Intermediate Male General 19 Seeds rship Grains & Oil Paddy cleaning, seperation (removing of Partner Fatehpur 52 Graduate Male General 20 Seeds husk and the bran) and polishing ship Grains & Oil 8th and Prorieto Fatehpur Oil mill 30 Male OBC 21 Seeds below rship Grains & Oil 8th and Prorieto Fatehpur Oil mill and Flour mill 32 Male OBS 22 Seeds below rship Grains & Oil 8th and Prorieto Fatehpur Oil mill 28 Male OBC 23 Seeds below rship Grains & Oil 8th and Prorieto Fatehpur Oil mill and Flour mill 40 Male OBC 24 Seeds below rship Grains & Oil 8th and Prorieto Fatehpur Oil mill and Flour mill 50 Male OBC 25 Seeds below rship Grains & Oil 8th and Prorieto Fatehpur Oil mill and Flour mill 38 Male General 26 Seeds below rship 152 Fruits & Popriet Hathras Amla Murabba and Aam pickle 58 Bachelors Male General 27 Vegetables orship High School Popriet Hathras Packaged food Rusks 65 Male OBC 28 fail orship Popriet Hathras Dairy Products Milk, dahi, paneer, Matha (chach) 55 High School Male General orship 29 Fruits & Popriet Hathras Amla Murabba and Aam pickle 50 Interpass Male General 30 Vegetables orship Popriet Hathras Dairy Products paneer 40 6th-7th pass Female General 31 orship Popriet Hathras Dairy Products paneer, dahi, ghee 50 High School Male General 32 orship Grains & Oil Propreit Hathras Mustard oil 72 High School Male OBC 33 Seeds orship Grains & Oil Propreit Hathras Flour 45 High School Male OBC Seeds orship 34 Grains & Oil Propreit Hathras Flour & Mustard oil 50 8th Male OBC 35 Seeds orship 153 Fruits & Partner Hathras Vegetables Petha 30 high school Male General ship 36 Propriet Hathras Packaged food Snacks and namkeen 60 high school male General orship 37 Grains & Oil Unregis Hathras Seeds Oil mill 35 graduate male General tered 38 Unregis Hathras Packaged food Khajla maker 35 high school male General tered 39 Unregis Hathras Packaged food Khajla maker 32 high school male OBC tered 40 Grains & Oil Unregis Hathras Seed processing 35 Graduate male General Seeds tered 41 Propriet Hathras Packaged food Frimes 28 Graduate male General orship 42 Fruits & Propriet Hathras kethups 35 high school Male General Vegetables orship 43 Hathras Packaged food Chips making 32 high school Female General SHG 44 154 Hathras Packaged food Chips making 48 10 Female General SHG 45 Private Hathras Packaged food Hing manufacturing 40 Graduate male General Limited 46 Propriet Hathras Packaged food Hing manufacturing 40 Graduate male OBC orship 47 Propriet Hathras Packaged food Hing manufacturing 45 Graduate male OBC orship 48 155 156 A.2. Annexure: Questionnaire for Social Assessment Additional Guidance for Applicability of Questionnaire This tool is divided into 5 separate questionnaire, Please fill the relevant questionnaires as the case is found in the unit Section Questionnaire Name Applicability Applicable for this No. unit (Please tick) 1-10 Social Assessment For all units 11 Women Entrepreneur Assessment Only for the units with a women owner 12 Tribal Entrepreneur Assessment Only for the units in a tribal area and a tribal owner 13 Gender Assessment Only applicable for female workers of the unit (if any) Name of the surveyor: _____________ Date: _________________ Time: _________________ Social Assessment Questionnaire Section 1- About the unit a. Name of the g. Owner’s details/ profile: unit:…………………………………….. ……………………………………………………… 1) Age (in actual completed years) …………….. ………… 2) Education (highest education)……………………. 3) Marital Status b. Name of the brand of the (Single/Married/Divorced/Widowed) product:………………. 4) Gender (Male, Female, Transgender)………….. 5) (please mention if there is no brand/sold loose) Religion:…………………… ………………………………………………………………… 6) Social Group (SC/ ST/ OBC):……………………… …………… 7) Economic Category (APL/ BPL/ others)……………… c. Name of the 8) Disability status (Y/ N)……………………… respondent:……………………………. 9) If Yes state nature of disability:……………………….. (indicate if the respondent is the 10) No. of family members (male and female):Male owner/representative in bracket(to be interviewed only of next to kin to the owner- (adults)…….Female (adults)…….... Male in that case indicate the relation) (children)…….. female (children)……….. 11) No. of dependents (male and female): Male……. d. Address of the Female……… Unit:………………………………….. 12) If owner is the head of the family (Yes/No)…….. ……………………………………………………… ………. ……………………………………………………… ……….. e. Contact number/s:…………………………………… f. Type of unit (Home based Enterprise /Workshop based 157 Enterprise):……………………. h. Year of establishment:……… i. Ownership of firm (Proprietorship, Partnership, SHG owned, others [specify]): j. Gender and education background of k. No. of Migrant Workers (Male/Female): Male….. employees: Female……..None…….. No. of Education Male Female employee l. i) Daily working hours for full time staff: ……………hrs J i)Full Time ii) Daily working hours for part time staff: ……………hrs J ii) Part Time (Please note if there is any variation between hours of work for male and female workers)…………………………….. m. Final Product from the unit (if n. Average monthly production (Volume stated product multiple, separate each product by wise): comma): Name of product Volume 158 o. Average monthly sales and profit (in INR p. Processing facility (own/rented/shared): as stated by the respondent): q. What is the present land coverage for r. Is more land required for expansion (Yes/No):……….. the unit?...........................(sq. ft.) 1) If Yes, How much?.........................(sq ft) s. Membership in any Association or trade/ t. Is the unit supported by any govt. scheme (If Yes, Business bodies/ collectives please name the scheme/s): Yes/ no……… (Yes / No):……… 1) Name of the scheme:…………………………………… 1) If Yes, Please mention the name, location and contact details:………………………………….......... Section 2- Value Chain Analysis Raw material Backward linkages In house process Forward linkages / procured Market linkages a. List of raw material f. Areas from where the i. Name the p. Buyers of the processed procured: products are procured Process(es)/carried in product (areas and products to house : (location, categories) : be mentioned): b. Mode of transport used in procuring: j. Type of equipment’s/ q. Market linkages g. Concerns or issues machine used: available (private prevailing in the area organizations/ c. Middle men/suppliers of procurement: individuals [middle involved (mention men]/ government details): k. Capital Investment procurement) state all required for options as applicable: h. Any technological machines: d. Key responsible process used to person (self/other facilitate l. Skill/Training r. Key responsible person staff, indicate the staff procurement provided to (self/husband/wife/ responsible): (Computer employees: other male member/ application): responsible staff): m. Source of water: e. Challenges in s. Mode of transport procurement (discus n. Source of electricity: used: with respect to distance, price, gender issues, o. Challenges: t. Challenges in selling: transport) 159 Section 3 - Worker Related a. Minimum daily wage to male c. Are the workers covered under PF? (Yes/ workers:……. No):………… b. Minimum daily wage to female workers:…….. d. Are the all workers covered under e. What is the mode of payment for the any medical or accidental workers? (mention) insurance (if any exclusions pls i. Cash ii. Bank mention): transfer/ Cheque i ical Insurance (Yes/ No): ii. Med Accidental insurance (Yes/ No): f. What is the frequency of payment of g. In how many shifts do the workers work in wages and their timings?............ shifts………….. i. Full time employee (daily/weekly/monthly): ii. Part time employee (daily/weekly/monthly): iii. Is the payment done regularly/irregularly: h. Is there a weekly off for the i. How many skilled/semi-skilled/un-skilled workers? (Yes/ N0) workers are in the unit by gender: i. Skilled M ………. F…….. ii. Semi skilled M ………. F…….. iii. Unskilled M ………. F…….. j. What are the facilities available in the unit?(circle all relevant facilities) i. Common toilets ii. vi Mention other facilities (if any): iii. Separate toilet for female iv. Separate eating space v. Drinking Water vi. Work shed k. Do you lay off worker in the off season? (Yes/ No): i. If yes, then where do they work in off season? Also indicate the off season time (by months ), if relevant ii. If the workers are laid off, which type of workers are laid off first? iii. Off season (months):…………………………… l. What kind of skills do you require for operating the unit? ………………………………… 160 i. Are these skill sets available in the market (refer to gender based availability across the value chain) ………………………………………………………………………… ii. Are the workers provided with any skills/trainings? (Yes, No, Sometimes, Never)…………………………… iii. Please mention the type of trainings conducted in last one year to the workers: ………………………………. ……………………………………………………………………………………………………………………… …………………………. iv. How do you manage major or minor accidents during work? (first aid internally, local dispensary, local hospital) Section 4- Working capital and operational revenue management a. Is the revenue of the unit : (Regular/Seasonal/Irregular) please indicate response product wise (if applicable) Please give reasons for the response. Also indicate the highest revenue generating season and the lowest time: b. How do you manage your working capital? Please circle the relevant options i. Diversify into other business ( in case of seasonal business/ otherwise) ii. Loan from bank iii. Loan from family/friend iv. Government funding scheme v. Loan from unorganized financial institutions vi. Any others (Please specify) c. Please arrange the challenges faced in running this business ( in highest to lowest order 1 being highest ) i. Access to market ii. Availability of raw material iii. Availability of logistics (transport, warehouse, storage and others) iv. Availability of Labour v. Availability of latest technology vi. Availability of finance vii. Any others (Please specify) Section 5- Access to Finance 161 a. How was the initial/ starting working b. How is the ongoing working capital/finance capital arranged? Circle the most arranged? relevant option i. Loan from Bank ii. i. Loan from Bank Loan from family ii. Loan from family iii. Own Savings iii. Own Savings iv. Government funding schemes iv. Government funding schemes v. Any others (Please specify) In case of an v. Any others (Please specify) Institution, Please provide the name: ………………………………………………. In case of an Institution, Please provide the name:……………………………………………….. and amount……………………………….. Was it linked to any scheme (name the scheme)/: ………………………………………………………….. c. What mode of finance do you prefer most?(circle one most relevant response) Please give explanation for the response i. Loan from Bank ii. Loan from family iii. Government funding schemes iv. Loan from SHG v. Self-Investment vi. Mortgage of land/other asset vii. Any others (Please specify) d. What difficulties do you face in making financial arrangements for your business? (circle three most relevant responses) Please give explanation for the response (get top three - priority 1 being highest in terms of challenge) i. Preparing the proposal ii. Awareness of financial schemes iii. Tedious process of application of loan with banks iv. Arranging/Meeting the requirements of collaterals v. Repayment schedule vi. Lack of support from government officials/ department vii. Lack of support from family viii. Non co-operation of banking staff ix. Any others (please specify) Section 6- Access to Market 162 i. Who is your customer? Please mention the share of consumption (in %) if there are multiple type of customers. ii. Neighbors iii. Family members iv. Local community v. Dealers/Retailers vi. Wholesalers vii. Brands/ other companies viii. Self help groups ix. Any other NGO x. Any Other (specify) a. What type of market channels you use to sell your product? Please select multiple options if applicable i. Own Shop ii. Online channels iii. Through third party/dealers iv. Self/ Family member v. House to house selling vi. Any other (specify) vii. Self help groups viii. Any other NGO b. Rank the following challenges (descending order, 1 being the highest) in selling your product? Please give explanation for the response i. Logistics (lack of transport facilities and others) ii. Access to markets iii. Peer competition iv. Quality of product v. Others (Specify) c. Do you need any marketing and advertisement to facilitate the selling of your product? (yes/ no) Share reason: d. What initiatives you have taken to market your product? e. Who plays the key role in marketing the product? Discuss the role with respect to gender and social group? In case of female entrepreneurs we need to understand if husband, male member or any others take responsibility and why: f. Is there any support provided by government to market or sell your products? Section 7- Registrations and Certifications 163 1. Different registration/license you have 2. Different registration/license you have applied obtained? Please circle all applicable for? Please circle all applicable option(s) option(s) i. GST i. GST ii. FSSAI ii. FSSAI iii. Factory License (Factories act) iii. Factory License (Factories act) iv. License under Shop and establishment Act iv. License under Shop and v. MSME/SSI registration vi. CGWB establishment vii. SPCB (CTE/CTO) Act viii. Any other state regulatory body registration v. MSME/SSI registration ix. None of the above vi. CGWB x. Others (Please specify) vii. SPCB (CTE/CTO) viii. Any other state regulatory body registration ix. None of the above x. Others (Please specify) 3. Quality mark/certification body you are accredited to/applied for? Circle all relevant options i. ISI Mark ii. AGMARK iii. Organic Certification and Symbols for Organic Food in India iv. ECOMARK v. Others (Please specify) 4. Do you think certifications and associations with trade bodies help in growth of your business? Please mention the support provided by them? Discuss the reasons i. Facilitating market linkages ii. Access to trainings iii. Access to govt. schemes/policies iv. Advocating for the sector v. Others (specify) 5. What challenges do you find in registration and getting certification? (circle three most relevant ones) i. Information and knowledge of such accreditations ii. Document Preparation iii. Document submission iv. Availability of collaterals in own name v. Filing Application vi. Fee Payment vii. Renewal viii. Any others (Please specify) Section 8- Plan and Vision a. Do you want to expand your business?( Yes/ No)………………. b. Please give explanation and reasons 164 c. What are the next steps required to expand your operations? What is the tentative plan and areas of expansion? d. Rank the challenges you face in expanding your business (1 being the highest challenge) i. Availability of finances ii. Availability of land iii. Access to Market iv. Access to Storage facility v. Availability of technology vi. Availability of labour vii. Meeting the required quality viii. Support from government ix. Support from family x. Low Demand xi. Mention others (if any) e. Have you thought of packaging your product differently? f. Would you be open to upgrading to new technologies for unit operations? g. Discuss the key challenges with respect to location, gender and access to facilities. h. Other than financial support, what additional help do you require to expand or scale up your business? Section 9- Government schemes a. Are you aware of any government schemes or policies prevailing in your region for your business? (Yes/ No)… b. If yes, which schemes are you aware of and what were the sources of information? Names of schemes and sources of information c. Have you taken support from any government schemes or policy (Yes/ No)…… d. If yes, which ones? e. Are you aware of any government regulations which are applicable for your unit? (Yes/ No)…… If Yes, state which all (separate by comma) 165 f. Is it easy to comply with existing regulations? (Yes/ No)…… g. If yes then please explain and if no which are those regulations? h. What difficulties do you face in complying with the regulations? What type of changes do you think is required to make it easier to comply? i. Rank the support (in descending order, 1 being the most important support) you want from government for your business. Please give explanation for your reason. 1) Financial subsidies for machines 2) Subsidies for land 3) Marketing assistance 4) Softer environmental and social regulations 5) Softer food safety norms 6) Any other (state and rank) Section 10- Grievance Redress Mechanism : For owners only a. Is there any special grievance redress mechanism for women employees? If Yes, then what? b. How many reported grievances were from male/female c. Are you aware about any channel/platform (Government body/Associations) where you can raise your issues/grievances related to your unit? What kind issues you think needs to be resolved for your unit d. Are there trade associations or entrepreneur associations which resolve grievances of the unit? e. Is the grievance mechanism efficient in finding solutions to the issues? f. What is the typical time to resolve issues? 166 g. Typically, what are the grievances that the unit faces? Suggestions a. What suggestions you have for the improvement and growth of food processing units? b. What do you think government should do to support micro entrepreneurs? Section 11- Women Entrepreneur (Only applicable for Women owners) , Only if applicable About the Unit 1. What were the factors that motivated you to start your own business? 2. Are you the sole owner and manager of this unit or is your husband involved in the business as well? 3. How many vendors do you have for the procurement of raw material? 4. Do you directly interact with them or do your husband/son/family member (male/ female) interact with them on your behalf? a) Self b) Other Male family members c) Both 167 5. Do you directly transport your goods to the market or is there anyone else who does it on your behalf? a) Other Male family members b) Other than family members 6. Do you use a smartphone to handle any aspect of your business? If Yes, then for which activities a) Acquiring raw material b) Selling c) Marketing d) Others (specify) e) No (if they don’t use smart phone) 7. Before starting the unit, did you take advice from family members, friends? a) Family member b) Relative c) Neighbours and friends d) NGO e) Any other 8. Whom do you typically seek business related guidance and advice, presently? 9. Where and when did you learn the skill to run your operations? 10. Did you, as a woman, face any challenges to acquire the finances? If yes, then what was the challenge? 11. Are any of the assets (machinery, land, shop, vehicle etc.) related to your unit, registered under your name? a) Which one (multiple separated by comma) 168 12. Being a women entrepreneur, are you aware of government schemes, grants which are applicable to you? 13. Is there a platform or association where you can go to share your queries/ challenges/ grievances? 14. What kind of support do you require from the government to overcome these challenges? Managing Domestic and Work Life 15. How has becoming the proprietor of a business unit changed your day-today life? a. Decision making ability b. Improved finances c. Increased self-confidence d. Overall increase of self esteem / status in family 16. Was your family supportive of you starting a business? 17. How do they currently support you? 18. What are the major time consuming activities and average time spent (example Taking care of family, Cooking, House cleaning, Other household chores, Time spent for running business operations) 19. Are you the sole breadwinner of your family? 20. What is your personal contribution to the overall household income? (get qualitative response ) 169 21. Do you feel safe while working in your unit? If Not, Why 22. Have you ever felt unsafe or faced any threats in your area? 23. What are the typical gender based violence (take an idea from: physical abuse, sexual harassment, disparity in wages, domestic harassment etc.) that the women of the community face? Capture qualitative response 24. Are you aware about the women helpline or NGO working in your area? 25. How can the women raise/file their grievance in the unit and in the community? Expansion 26. What are your future plans for your business? 27. What are the next steps required to expand your operations? 28. What support do women need in this sector? 29. How can we increase women participation in this sector? Section 12- Tribal Assessment (Only applicable for tribal areas/units) , Only if applicable Objective of the questionnaire is to assess participation of tribal community in food processing sector, challenges faced by them in growing their business and working together with general community. This is to be administered on to the entrepreneurs from belonging to the tribal community (as confirmed in 1e) 1. What are the various tribal groups present in the area (district)? 2. What are the occupations that the people of this area are involved in? Please specify the occupations of both men and women. 170 3. Is it common for men and women to migrate from the locality? (What are the reasons for this? What are the activities for which you need to leave your village area and go into the city? Please specify separately for men and women?) 4. How did you get motivated to take up this production process? (Did you get any support from state or private players or NGOs to undertake this activity? If yes share the nature of support) 5. Do you think there are challenges with respect to starting and operationalizing a food processing unit in a tribal area? What are the challenges? Is it different for men or women? 6. Are you aware of the present government schemes that are applicable to you (Tribal/ Food processing industry) how did you get the information? Have you accessed this support (financial/ non –financial)? If yes, state the nature of support. 7. Do you have the required identity proof documents confirming your status? Has this been useful in access the government schemes? If we you don’t have it, is it a hindrance? 8. Has the (traditional) lifestyle of the community affect your economic activity? Discuss this specifically in the context of men and women. 9. Are you connected with social media and other available digital information? Which of the following do you use? i. Facebook ii. WhatsApp iii. Newspaper iv. Television v. Mobile phone internet vi. Others vii. None of the above 10. What are the challenges that you face in communication with other stakeholders important for your business (Suppliers, dealers, customers etc.)? 11. Do you think that your product provides adequate competition to the similar existing product? 171 12. What kind of support is required from this project so that more tribal people (both and men and women) can participate in this project food processing industry Section 13- Gender Assessment (Interview of female workers) , Only if applicable Objective of the questionnaire is to assess participation of women workers and challenges faced by them in the unorganized food processing industries. For female workforce less than 5 members, conduct a group discussion with the available members. The following pointers/ questions is for group of women employees and hence the responses would be average or inclusive of all answers. Variations need to be captured too. Role in the FP Unit 1. How many months have you been working here: 2. What is your skill set as required in the unit: 3. What is the reason for you to work here in the unit: 4. What are the wages you receive: 5. Which decisions in the unit are you involved in (Please mention if none at all): Work space 6. What are the gender friendly infrastructure provided in the unit (separate toilet /crèche etc) 7. Do you feel safe and comfortable working in this unit? If no, when why not 8. Please rank the difficulties you face in your work place. Please explain for your reason (Safety issue, Hygiene issue, Behavioral issues, Payment issues or others) 9. What are your daily average working hours 10. Are your working hours flexible and are you allowed to work from home 11. Is your workplace easily accessible from your house? What is the mode of transport used 12. How can the women raise/file their grievance in the unit 172 Role in the family and personal space 13. Out of the average household income, what percentage is your contribution 14. What are the type of important decision related to management of finance, health and household activities do you take 15. What kind of financial assets (land, house, shop, savings in the bank etc.) are under your name 16. Do you face any hindrance in working at the unit (small child, family issues/ male domination, violence, health & safety) 17. What kind of financial assets (land, house, shop, savings in the bank etc.) are under your name Role in community and outside family 18. Are you associated with any women organizations or any SHG’s? If yes, then which 19. What is your role/position in that group: 20. How has that group benefitted you: 21. Are you a participant in any of the local governing body? If Yes, which and at what role: 22. Are you aware about the sexual harassment policy and other women rights, If Yes, which: 23. How can the women raise/file their grievance in the community: 173 Aspirations 24. Do you think that you require skill development training for your work: 25. Have you ever received any skill development training? If Yes, then from where: 26. Do you wish to or plan to open up your own unit/business: 27. What do you think are the key challenges in opening up your own business: Others 28. What are the key advantages of being a worker in the food processing unit: 29. What are the key challenges of being a women worker in the food processing unit: 30. What kind of interventions do you think should be present in the unit to further facilitate women in food processing sector? 31. What kind of support is required from this project so that more women can participate in this project? A.3. Annexure: Key institutional stakeholders selected for consultation Linkage and Key relation to Agency State District stakehold Designation IFPVAP’s er objective Nodal Amritsar Mr. For each state, General Manager - agency of Punjab Rajnish nodal agency has Ferozepur PAIC the Tuli Ministry of been selected who will implement the District Incharge Food Mr. Mr. scheme Uttar – Dept. of Processing Hathras Virendra Pradesh Horticulture & Industry Singh Food Processing 174 Deputy Director Mr. Vijay – Lucknow Bahadur Deputy Director Fatehpur Yadav – Prayagraj Dr. Vineet Dept. of Kumar Horticulture & Food Processing Joint Director, Mr. Vijay Pune Dept. of Ghawate Agriculture Maharashtra Mr. Deputy Director, Nandurbar Deepak Dept. of Patel Agriculture Andhra Vizianagaram Mr. V. Consultant, Pradesh Prakasam Ramesh APFPS FSSAI is an Mr. Food Safety institution created Amritsar Simranjeet for laying down Officer Singh Gill science based Punjab Mr. standards for Manjinder Food Safety Food articles of food and Ferozepur to regulate their Singh Officer Safety and Dhillon Standards manufacture, storage, Authority distribution, sale of India and import to (FSSAI) ensure availability Mr. Uttar District officer – of safe and Fatehpur Brijendra Pradesh Food safety wholesome food for Sharma human consumption. The District Mr. Industries Centers Amritsar Balwinder General Manager District (DICs) program was Pal Singh Industries Punjab started in 1978 with Ms. Centre a view to providing Ferozepur Sushma General Manager (DIC) integrated Kumari administrative Uttar Mr. Ashok framework at the Fatehpur General Manager Pradesh Kumar 175 district level for encouraging entrepreneurs in rural areas. The DIC is treated as a single window interacting agency at the district level which provides service and support to small entrepreneurs under a single roof at both pre and post investments. District Industries Centers (DICs) give Mr. Ritesh full assistance to the Hathras General Manager Bansal entrepreneurs who are going to start the business on their own and in their regional places. DICs provide various schemes for promoting the growth of rural and cottage industries and also different (micro, small and macro) industrial enterprises. National National Rural Mr. District Rural Livelihoods Mission Maninder Functional Punjab Ferozepur Livelihood (NRLM) was Singh Manager Mission launched by the (NRLM) Ministry of Rural 176 Development (MoRD), Government of India in June 2011 and is the implementing body for Deendayal Antyodaya Yojana Uttar Mr. Manoj District Mission Fatehpur (DAY-NRLM). Pradesh Kumar Officer NRLM target is to cover 7 Crore rural poor households, across 600 districts, 6000 blocks, 2.5 lakh Gram Panchayats and 6 lakh villages in the country through self-managed Self Help Groups (SHGs) and federated institutions and support them for livelihoods collectives in a period of 8-10 years. Agriculture ATMA is a society Dr. Harnek Amritsar Project Director Technology of key stakeholders Singh Manageme involved in Punjab Mr. Mr. nt Agency agricultural Ferozepur Khuswant Project Director (ATMA) activities for Singh 177 sustainable agricultural development in the district. It is a focal point for integrating Research and Extension activities and decentralizing day to day management of the public Agricultural Technology System (ATS). It is a registered society responsible for Mr. Anil technology Maharashtra Pune Deputy Director Deshmukh dissemination at the district level. As a society, it would be able to receive and expend project funds, entering into contracts & agreements and maintaining revolving accounts that can be used to collect fees and thereby recovering operating cost. National NABARD was Bank for established on 12 Mr. Mr. District Agriculture July 1982 and Punjab Ferozepur Rajesh Development and Rural focuses on matters Kumar Manager Developme concerning policy, nt planning and (NABARD) operations in the field of credit for agriculture and other economic activities in rural areas in India. NABARD is active in developing financial inclusion policy. 178 Aryavart Bank, a Regional Rural Bank, was constituted on 1st April, 2019 after amalgamation of two Regional Rural Banks (RRBs) namely Gramin Bank of Aryavart and Allahabad UP Mr. Prem Uttar Aryavart Gramin. Gramin Hathras Prakash Sr. Manager Pradesh Bank of Aryavart Sharma was sponsored by Bank of India while Allahabad UP Gramin Bank was sponsored by Allahabad Bank. The bank is a facilitator for financial inclusion. On behalf of the Government of Maharashtra, the Mahila Arthik Vikas Mahamandal (MAVIM) has taken up the cause of overall Mahila development of Arthik women – half the Ms. Vikas District part of our society. Maharashtra Pune Archana Mahamand Coordinator MAVIM has taken Shivsagar al (MAVIM) tireless efforts for over a decade to initiate, expand and establish the selfhelp group movement in Maharashtra. The progressive Government of 179 Maharashtra has always supported the cause of women’s empowerment and has form time to time devised supportive policy mechanisms and assure them that even in the future the Government will continue to support them. The Mission for Elimination of Poverty in Municipal Areas (MEPMA) is a Government of AP Society forming Mr. Somi Director, part of Department Naidu, Vizianagaram of Municipal Administration & Vizianagaram Mr. DMC, MEPMA, Urban Venugopal Vizianagram Development. (MEPMA) both missions are Mission for promoting SHG Eliminatio concept in Andhra n of Pradesh. These Poverty in SHGs are working Municipal towards promoting Areas women in social, Andhra economic and Pradesh political aspects to overcome poverty. The government Mr. Veera DMC, MEPMA, has set up the Prakasam Swami Prakasam required standards, assessment mechanism and capacity-building programmes for these SHGs. The government has spent huge funds on these programmes. 180 Society for The society was Ms. elimination established by the Andhra Vizianagram Vijayalaksh DPM-HD, SERP of rural Government of Pradesh Andhra Pradesh as mi poverty a critical support structure to facilitate poverty reduction through DPM- Livelihood, social mobilization Prakasam Mr. David and improvement SERP of livelihoods of rural poor in the Andhra Pradesh The main objective of ITDA is socioeconomic development of tribal communities Mr. Assistant Project through income Paderu Nageshwar Director generating schemes allied with Infrastructure Development Integrated programmes and Tribal protection of the Andhra Developme tribal communities Pradesh nt against Authority exploitation. The ITDA project areas are generally Mr. APM Livelihood, contiguous areas of Parvathipuram Sathish SERP the size of a Tehsil or Block or more in which the ST population is 50% or more of the total. 181 A Krishi Vigyan Kendra (KVK) is an agricultural extension center in India. Usually associated with a local agricultural university, these centers serve as the Krishi ultimate link between the Indian Andhra Program Vigyan Visakhapatnam Mr. Srihari Council of Pradesh Coordinator Kendra Agricultural Research and farmers, and aim to apply agricultural research in a practical, localized setting. All KVKs fall under the jurisdiction of one of the 11 Agricultural Technology Application Research Institutes (ATARIs) throughout India. A.4. Entitlement Policy Matrix S. Definition of Application Entitlement Details No. Entitled unit A. Loss of Private Agricultural, Home-Stead & Commercial Land 182 a) Land for land, if available. Or, cash compensation for the land at market value, which will be determined as provided under section 26 of RFCTLARR Act 2013. b) The land, if allotted will be in the name of both husband and wife. c) If post acquisition, residual land is economically unviable, the land owner will have the choice of either Titleholder Compensation at retaining or sell off rest of the land. family and Market value, 1 Land families with Resettlement & d) Refund of stamp duty and traditional Rehabilitation registration charges incurred for land Right Assistance replacement land to be paid by the project; replacement land must be bought within a year from the date of payment of compensation to project affected persons. e) Subsistence allowance of INR 36000 as one time grant f) One time grant of INR 500,000 or annuity g) Compensation at market value for loss of crops if any B. Loss of Private Structures 183 a) Cash compensation for the structure at Market value which would be determined as per as per section 29 of the RFCTLARR Act 2013. House under Indira Awas Yojna in rural area or INR 50000 in lieu off and house under RAY in urban area or INR 100,000 in lieu off. The house if allotted will be in the name of both husband and wife. b) Right to salvage material from the demolished structures. c) Three months' notice to vacate structures. d) Refund of stamp duty and registration charges for purchase of new alternative houses/shops at prevailing rates on the market value as determined in (a) above. Alternative houses/shops Compensation at must be bought within a year from the Market value, date of payment of compensation. Title 2 Structure Resettlement & holder/owner Rehabilitation e) In case of partially affected Assistance structures and the remaining structure remains viable, additional10% to restore the structure. In case of partially affected structures and the remaining structure becomes unviable additional 25% of compensation amount asseverance allowance. f) Subsistence allowance equivalent to INR 36000 as one time grant. G) Each affected family getting displaced shall get a one-time financial assistance of INR 50,000 as shifting allowance. h) Each affected family that is displaced and has cattle, shall get financial assistance of INR 25,000/- for construction of cattle shed. 184 i) One time grant of INR 50,000 as resettlement assistance j) Each affected person who is a rural artisan, small trader or self- employed person and who has been displaced (in this project owner of any residentialcum commercial structure) shall get a one-time financial assistance of INR 25,000/-for construction of working shed or shop. j) One time grant of INR 500,000 a) Registered lessees will be entitled to an apportionment of the compensation payable to structure Resettlement & owner as per applicable local laws. Tenants/ 3 Structure Rehabilitation Lease Holders b) In case of tenants, three months Assistance written notice will be provided along with INR 50,000 towards shifting allowance. C. Loss of Trees and Crops 185 a) One-month advance notice to project affected persons to harvest fruits, standing crops and removal of trees. b) Compensation to be paid at the rate estimated by: i) The Forest Department for timber trees Owners and beneficiaries ii) The State Agriculture Extension (Registered/ Department for crops Standing Un-registered Compensation at 4 Trees and tenants, market value iii) The Horticulture Department Crops contract for fruit/flower bearing trees. cultivators, leaseholders & c) Registered tenants, contract sharecroppers cultivators & leaseholders & sharecroppers will be eligible for compensation for trees and crops as per the agreement document between the owner and the beneficiaries. d) Un-registered tenants, contract cultivators, leaseholders & sharecroppers will be eligible for compensation for trees and crops as per mutual understanding between the owner and the beneficiaries D. Loss of Residential/ Commercial Structures to Non-Titled Holders 186 a) Squatters/ encroachers shall be given three months' notice to vacate occupied land b) Squatters/ encroachers will be provided cash assistance at replacement cost for loss of structures valued as per Basic Schedule of Rates (BSR). c) All squatters/ encroachers other than Kiosks will be given shifting allowance of INR 20,000 per family as Owners of one-time grant for a permanent structures or structure and INR 15,000 for a semi- Structure on Occupants of permanent structure and INR 10,000 for 5 Government structures a temporary structure. land identified as per Project d) Each affected person who is a Census Survey rural artisan, small trader or self- employed person assistance' of INR 25,000/- for construction of working shed or shop. e) In case of Kiosks, only INR 5000 will be paid as one-time grant. f) Training Assistance of INR 10,000/- for income generation per family applicable for non-titleholders not covered by the RFCTLARR Act 2013. E. Loss of Livelihood and shifting assistance a) Subsistence allowance of INR 36,000 as one time grant. b) One-time grant of INR 500,000 Title Holders/ or annuity in lieu of employment. Families Resettlement & sharecroppers, living within Rehabilitation 6 agricultural c) Each affected family getting the affected Assistance as per labourers and displaced shall get a one-time financial area second schedule assistance of INR 50,000 as shifting employees allowance. d) One-time grant of INR 50,000 as resettlement assistance F. Additional Support to Vulnerable Families SC, ST, BPL, Resettlement & One-time additional financial assistance 7 Families WHH families Rehabilitation of INR 50,000. Squatters and 187 Assistance as per encroachers already covered under Second Schedule clause 5 are not eligible for this assistance. G. Loss of Community Infrastructure/Common Property Resources Reconstruction of Structures & community other structure and resources Affected Reconstruction of community structure common property 8 (e.g. land, communities and Common property resources in resources / water, access and groups consultation with the community. Resettlement site to structures development as etc.) per Schedule 3 H. Temporary Impact During Construction Compensation for temporary impact during Land & construction e.g. Compensation to be paid by the assets diversion of contractor for loss of assets, crops and temporarily Owners of land normal traffic, 9 any other damage as per agreement impacted & Assets damage to between the 'Contractor' and the during adjacent parcel of 'Affected Party'. construction land / assets due to movement of heavy machinery and plant site. J. Resettlement Site 188 Resettlement sites will be developed as part of the project, if a minimum of 25 project displaced families opt for assisted resettlement. Vulnerable PAPs will be given preference in allotment of plots/flats at the resettlement site. Plot size will be equivalent to size lost subject to a maximum of provision given in RFCTLARR Act 2013. Basic facilities shall be provided by the project at Displaced resettlement site as per the provisions Loss of Provision of given in the Third Schedule of titleholders 10 residential resettlement site/ RFCTLARR Act 2013. Similarly, if at and non- structures titleholders vendor market least 25 displaced commercial establishments (small business enterprises) opt for shopping units, the Project Authority will develop the vendor market at suitable location in the nearby area in consultation with displaced persons. Basic facilities such as approach road, electricity connection, water and sanitation facility, will be provided in the vendor market by the project. Vulnerable PAPs will be given preference in allotment of shops in vendor market. One displaced family will be eligible for only one land plot at resettlement site or shop in the vendor market. A.5. Contents of RAP & ARAP Contents of the Resettlement Action Plan (RAP) shall include the following as a basic minimum: • Executive Summary • Project description • Objectives and Study Methodology • Socio-Economic Profile of the project area • Regulatory Policies with respect to Social Safeguards • Proposed Improvements under the project • Options considered for minimizing adverse impacts • Assessment of Project impacts • Baselines Socio Economic Survey 189 • Public Consultation & Disclosure and Plan • Nature and magnitude of impacts • Type of impacts • Compensation and R&R assistance • Livelihood Restoration and Income Generation Plan • Gender Dimensions and Action Plan • Grievance Redress Mechanism • Implementation Schedule and Budget • Institutional Arrangements • Implementation Arrangements • Monitoring and Evaluation ARAP would be prepared covering the following minimum elements: • A census survey of displaced persons and valuation of assets; • Description of compensation and other resettlement assistance to be provided; • Consultations with displaced people about acceptable alternatives; • Institutional responsibility for implementation and procedures for grievance redress; • Arrangements for monitoring and implementation; and • Timetable and budget 190 A.6. Case studies: Gender Assessment Case study 1 A unit is located in Rampur tharaiyon village of Fatehpur district, Uttar Pradesh. The district is blessed with fertile land and paddy is one of the major crop produced in the city. Rampur Tharaiyon is one of the most backward village with one of the lowest female literacy rate. Around 47% of population is female but only 19% of them are literate. The unit processes around 20-30 tons of paddy per day. They get paddy from the farmers and process it into simple rice (Thick rice) which they sell to the government, retaining only 10% for local selling. The unit employs 40-50 workers but most of them are on contract basis and are employed only during milling season and otherwise work at the farm. On visiting the Mill, a group of women were found sewing the rice sacks in the rice mill. Through interactions with them, it was learnt that the unit employed women workers (8-10) for packing and sewing rice sacks. These women came in groups and sewed rice sacks for the unit. They worked for 8 hours a day and earned about INR 200/day. All the women were locals and illiterate, with an average age group of 40-45 years. On discussion with them it was found that they face difficulty in getting a job because unit owners think that women are slow and cannot work efficiently and effectively. They were involved in bag preparation, which is a task much lower in the value chain of rice milling, as it does not require any skill or literacy. Surprisingly none of them were aware of Self Help Group and denied being approached by any officials to form the group. Case study 2 A unit in Uttar Pradesh (UP), registered under a woman, who recently started manufacturing ice cream in a small space at their home in an area of around 500 square meter. Her husband is in Indian army and also helps her wife in running the business. On discussion it was found that they have taken support from UP state Industrial development corporation to purchase machinery and set up the ice-cream making facility. They received assistance of INR 10 lakh under the scheme. As the scheme promotes women entrepreneurs and have certain reservation for women entrepreneurs so the unit is named under his wife but actually it is operated by her husband and his brother. All the workers in the unit were male and they were working on temporary basis. The case substantiates the fact that even though the government is trying to promote women entrepreneurship by providing reservations in subsidies and loans to women, misuse of the same is being done at ground level. All the work including procurement of raw material to ice-cream manufacturing to selling of ice-cream is handled either by the husband or his brother. The wife has a little role of managing books and keeping tab on accounts. There is high possibility that many of the units in UP under the registration of women are being run like this where women has little or minimal participation. Interventions needs to be applied which can actually promote women entrepreneurship and participation. Case study 3 A self-help group comprising of 10 women with age range varying from 28-50 is based out of Hathras, Uttar Pradesh. The average education level also varies from primary level education to graduate. The SHG is involved in making packaged food like potato and other vegetable chips. The activity helps women 191 to get additional income and also utilize their free time in some productive way. They have capacity to produce 50 Kgs of chips daily. Only women from the SHG are involved in performing all activities of the value chain, from procuring raw material, to producing chips and selling them in the market. On interacting with the women, it was learnt that they don’t face any challenges in procuring raw materials. Many of them have their own farm land from where they procure raw material. These women coordinate among themselves and work in a planned way to produce chips. According to their availability and capacity each women is given target to produce certain quantity of chips and accordingly profit is shared. They have a very strong record keeping where they diligently maintain daily production and contribution from each member. However, on discussion it was found that these women do not have understanding of market and hence face major difficulty in selling their produce. If some market channels can be provided to them where they can easily sell their produce then their income and profitability can be increased. Common market place/facility center where these SHGs based enterprise can bring their produce and sell to common people, retailers, wholesalers etc. can be a good solution to promote these enterprises. This is augmented by the fact that the unit has not obtained registration from FSSAI and hence is currently facing challenge in openly marketing their produce. Case study 4 In 2014, A man in Amritsar, Punjab established a home-based unit with the main aim of following his passion for food by commercializing home made products such as ‘achaar’ and ‘murabba’ and showcasing them in the market. The unit was initially started with the employment of 5 women. Today, the unit employs 3 male workers and 5 female workers. The women working at the unit were employed as they knew the art of making ‘achaar’ and ‘murabba’ and to also provide them with an opportunity to uplift their status in society and encourage them to be financially independent. As the nature of work was home-based, it offered women the flexibility to focus on domestic duties in the off-season. To augment the skills of the workers, the owner, along with 3 of the 5 female workers underwent trainings at the Agricultural Department before starting the unit. The initial and ongoing financial investment were made through the personal savings of the owner and his wife and they are not aware of any policies or schemes which are applicable to them. The unit procures the primary raw material i.e.: fruits and vegetables from the local ‘mandi or the owners farm’ while the additional raw material is procured from the local department stores. The owner is the one who is in charge of procuring the raw materials and the workforce prefer not to get involved. The women are also actively told to engage in the procurement process as well as the selling of the product however there is resistance from their end. For few women, they are not comfortable stepping out of their comfort zone and prefer to stay indoors while a few women face restrictions by their family members, especially if they wish to travel outside of Amritsar for showcases. Once the raw material is procured, the processing of the fruits and vegetables takes place manually in the owner’s house. The main processes are cutting, cleaning, brining, baking and packing. Their annual production is less than 1 ton which they hope to increase. Once the products are prepared, they are showcased and sold in trade fairs and exhibitions which are held in and around Amritsar. Their main consumer base is trade fairs and exhibitions and they wish to open up their own store in the near future when they have access to more skilled labour, land as well as finances. A.7. Case studies: Tribal Assessment 1. Case study of a women entrepreneur 192 A tribal women from the village of Adagaon, Nandurbar district established a unit in 2013. Nandurbar is said to be as a hub for dry red chilies. Her unit, is the only chili powder processing unit in the village of Adagaon. The family consist of 7 people including her and her husband. The monthly production of chili powder is approximately 40 kg per month earning an income of INR 10 thousand/month by selling the product to neighbors, local community and via putting Kiosk at Nandurbar city during Flea market events. Value chain: The unit procures dry red chilies from their own farming land, adjacent to the living house and process it into powder. The major volume of chili powder is sold to the Nandurbar flea market customers. The existing customers expand the customer network. The unit undertakes processing of chilies, turmeric and wheat too and has installed respective machines for them. There were six male workers at the unit, working as a full time worker. The workers were provided with one day meal which was cooked by herself. The case statement: The key issue identified here is even if government is trying to promote women entrepreneurship by providing reservations in subsidies and loans to women, people take undue advantage of the same and runs pseudo women enterprises. All the work including procurement of raw material to chili powder manufacturing to selling of chili powder is handled by the husband. The wife has a little role of managing, operating machine, marketing, selling and keeping check on accounts. Even during the interview the owner (woman) did not have valuable information to share and showed hesitation and shyness to communicate. Key outcome: The enterprise does capitalize on the women’s ownership however does not empower her enough to contribute to the management of the unit. However this exposure too has built into her confidence and has changed her status in the family. Similar practices are common in the area and the policy interventions are required to actually empower tribal women through entrepreneurship development in the food processing sector. 193 2. Case study: NGO established bakery at tribal unit of Setampeta, Srikakulam (Andhra Pradesh) –Initiative to uplift tribal women Seethampeta of Srikakulam district is largely inhabited by tribal people who constitute approximately 60% of the total population. The area receives annual rainfall of more than 1100 mm every year and known for the cultivation of cashew nuts, millets and pineapples. Recently Integrated Tribal Development Agency (ITDA) has been supporting the Chinnayya Adivasi Vikas Sangham (NGO) for running their bakery unit through infrastructure, provision of machines and capacity development of the tribal women to work in the bakery. About the unit: The NGO built its bakery unit and grinding mill in 2014. The land and infrastructure was provided by ITDA. The bakery unit had 3 baking machines, a packing machine and a labelling machine. The machines were provided by Krishi Vignan Centre (KVK), Watershed Support Services and Activities Network (WASSAN) and National Bank for Agriculture and Rural Development (NABARD). The grinding mill unit had 5 machines namely D Haller, grader, stoning machine, flour mill and weighing machine. While ITDA provided funds for the infrastructure and products, Girijan Cooperative Corporation (GCC) in Visakhapatnam is helping the units through their assistance in marketing and sales. The unit has Food Safety and Standards Authority of India (FSSAI) licenses for the manufacturing of the biscuits. Currently the packaging is carried out in plastic jars but the unit is planning to upgrade to corrugated packaging. The unit employs around 35 tribal women from the local area who earns approximately rupees 5000 to 10,000. All the women working there are familiar with all the operations ranging from grinding, baking and packaging. The unit not only produces biscuits but also packs baby food, bulgur and jiggery. Value chain the unit has tie up with FPO which procures the millets and jiggery from local farmers at a low rate. Around 2000 kilograms of raw material is consumed by the unit every day out of which 200 kilograms is used for bakery items and the rest are used for baby food making. The biscuits are supplied to tribal colleges, anganwadi and GCC stores. The unit has its own truck which carries the products. In the bakery unit women were engaged in crushing and packaging of jiggery and packaging, bulgur and baby food powder consisting of 5 types of millets. These three packets, 1 kilogram each was then sent to Anganwadi Centres (Rural Child Care Centre). The women were all locals residing in Seethampeta and commute through bus and auto and d the commute time ranged from 30 minutes to half an hour. The women worked around 8 hours per day and have a weekly off. Most of them were unemployed educated youth. The NGO head (Bhu Devi) revealed that the unit was initiated to uplift the vulnerable tribal women in this region. She started the NGO by herself by later received support. She has seen tremendous growth of the unit as she stated “we first earned 30,000 and now the unit is selling the products upto 20 lakhs per month�. She aspired to expand the unit to involve more young women and scale it up into a factory structure. The breakthrough for tribal women: Finding a job in the region was challenging as it is far from urban center. Before joining the unit they were engaged in casual work and also remained unemployed. Remarkably these women did not have any kind of restriction at their house or society. For most of the women their husbands were also working but they are also not getting a very good pay and hence both of them needs to work to manage expenses. The early joiners of the unit received baking training from NABARD and KVK. They trained the remaining employees at the unit. Most of the women engaged in the unit have high school education but they lacked information on the available government schemes and policies. It can be deduced that self-help groups are not prevalent in the region as the awareness level of the women with regard to self-help group was extremely poor. 194 Challenges and opportunities: The main challenge for the women are lack of transport system in the area. Although the roads are in a good condition and government buses are available in the area, they are very limited and is difficult to commute during the late evening. They have poor access to internet and lack awareness on it. Capacity building programs on available schemes and policies for tribal development can be carried out in the area. Also trainings on use of technology can be provided. 195 A.8. National consultation organized by the Ministry of Food Processing Industries 196 197 A.9. Labour Laws Sl. Relevant Acts and laws Objectives No. • Relates to regulation of employment and other conditions of service of workers employed in shops und establishments and for matters connected The Model Shops and therewith and is applicable on shops and Establishments (Regulation of establishment employing more than 10 workers 1. Employment and Conditions • Provides provision of safeguards for employees against of Service) Act, 2015 exploitation with respect to working hours, timing, provision of leaves, rules of employment and termination of service It specifies the minimum wage rates on a per day basis The Minimum Wages Act , which needs to be given to the workers employed and 2. 1948 and notification for each extends to the entire country and is revised within a state period of not less than five years The Child Labour (Prohibition 3. And Regulation) Amendment Prohibition and regulation of children below 14 years Act, 2016 and adolescents in certain occupations The Employee's Ensures that every employee is informed of his rights 4. Compensation (Amendment) to compensation by this employer at the time of Act, 2017 employment Provision of financial protection to workmen and their The Workmen’s dependents in case of injury and accidents arising 5. Compensation Act, 1923 during the course of employment resulting in disablement or death The Payment of Wages Act, Provision of timely wages to workers and no 6. 1936 unauthorized deductions Protects the employment of women during the time of her maternity and entitles her of a 'maternity benefit' The Maternity Benefit 7. i.e. full paid absence from work to take care for her (Amendment) Act, 2017 child. The act is applicable to all establishments employing 10 or more employees 198 Provision of equal remuneration to men and women Equal Remuneration Act , workers and prevention of discrimination, against 8. 1976 women in the matter of employment and for matters connected therewith or incidental thereto The Sexual Harassment of Women at Workplace Provision of protection to women against sexual 9. (Prevention, Prohibition and harassment at workplace in a public or private place Redressal) Act, 2013 Provision of the payment of bonus to persons The Payment of Bonus employed in certain establishments on the basis of 10. (Amendment) Act, 2015 profits or on the basis of production and for matters connected therewith Provision of benefits to employees in the case of sickness, maternity and employment injury. Employees’ State Insurance Provision of medical relief, cash benefits, maternity 11. (Central) Amendment Rules, benefits, pension to dependents of deceased workers 2016 and compensation for fatal and other injuries and diseases Employees Provident Fund Provision of provident funds, pension fund and 12. And Misc. Provisions Act, deposit-linked insurance fund for employees in 1952 factories and other establishments Provision of gratuity to the employees on the The Payment of Gratuity Act, 13. satisfaction of certain conditions on separation if an 1972 employee has completed 5 years of employment The Weekly Holidays Act , Provision for the grant of weekly holidays to persons 14. 1942 employed in shops, restaurant and theatres If contract workers are involved, then in addition to the above regulations the Contract Labour (Regulation and Abolition) Act, 1970 will also be applicable. This Act regulates the employment of contract labours in certain establishments. 199 A.10. Annexure: Pictures from Site Visits Amritsar 200 Ferozepur 201 Vizianagaram 202 Prakasam 203 Pune 204 Nandurbar 205 Fatehpur 206 Hathras 207 208