Phoolrani Guha, 39, and her sight-impaired husband led a hand-to-mouth existence in the Bonvilla locality of village Daronda in Birbhum district of West Bengal. The meagre income they earned was through tuition given by Phoolrani.  But when Annapurna, a Self Help Group (SHG), was formed, Guha was one of the first 11 housewives who joined in with a monthly deposit of Rs 20. Now, with the help of loans from the SHG, Phoolrani runs a tutorial centre, is paying back her loans at two per cent interest, and lives a comfortable life with her husband.

Like Annapurna, there are over 600,000 SHGs across the state that are changing the lives and status of about 10 million rural people — 90 per cent of whom are women — through social development initiatives and micro-finance.

"Annapurna has helped me with loans of Rs 6,000 before every village fair. I set up food stalls at these fairs with the help of my husband. We pay back the loans on a two per cent interest within a six-month period. Earlier, my husband used to get working capital for interest ranging between five and 10 per cent, which ate into our profits," says Sandhya Baidya, 36, who joined a rapidly growing Annapurna in 2003 with a monthly deposit of Rs 35.

The savings of SHGs under the Swarnajayanti Gram Swarojgar Yojna (SGSY) is about Rs 1,070 million; while under NABARD (National Bank for Agriculture and Rural Development) it is about Rs 970 million. With support from the World Bank, the West Bengal Government also started a poverty alleviation programme through micro-credit in 2002.

The SHGs were formed at the panchayat (village council) level with a minimum of seven women per group.

Small savings

The women accumulated their small savings, against which the secured a loan from nationalised banks. According to Rekha Goswami, Minister for Self Help Group and Self Employment Department, West Bengal, as the SHG initiative was part of a World Bank Poverty Alleviation Program, institutions such as NABARD and co-operative banks came forward with loans. Furthermore, the SHGs make money from the sale of their products in India and abroad under government initiatives like the Saras Mela, which is organised by the central government's Ministry of Rural Development, twice a year in every state; the India Rural Business Summit; and the India International Trade Fair.

The 'Sar Saaru Ganyota' (Good Luck Organisation) SHG was set up with seven tribal women day-labourers.

These below-poverty-line women began farming on 'oral lease' land with an initial loan of Rs 5,000 from the Hooghly District Co-Operative Bank. Today, the women own a power tiller, which they drive themselves. The success of the SHGs thus lies in its capacity to offer self-employment to women.

"Now I can participate in family decisions. My husband and in-laws listen to me when I talk about family budgets and the children's education. I also stopped my minor daughter from being married off by my mother-in-law. She had to bow to my wishes because I contribute Rs 2,000 every month to the family's income," says Purnima Adak, 54, who makes pickles, 'papad' and 'badis' (dry dumplings of mashed, cooked lentils). Adak's husband, a rickshaw-puller, is also motivated enough now by Purnima's income. He carries a box of her products at the back of his rickshaw to sell to customers.

The SHG movement has transformed the life of rural women. They no longer tolerate abusive drunken husbands, nor do they put up with continuing demands for dowry.

The women enjoy a greater say in the education of their children and marriage of their daughters. Some have also made their presence felt at gram sabhas (village councils) and now express their opinions in policy decisions.
As a result of their ability to earn an income, the women now command respect in society.   

The SHG movement across rural West Bengal is ushering in a silent revolution. Women are becoming financially independent and realising their unfulfilled needs.

Mothers can now ensure their children go to school and that their minor daughters are not married off. Education and jobs have become life's priorities.

As family life improves, with physical and mental abuse by husbands diminishing and in-laws according the women respect, the empowered women also stand tall at the community level, expressing their point of view at grassroots bodies.