Update on DISHA - Conference call (July 30, 2002)

Status of the different projects is as follows:

Salt making units:

The salt making units in the local market (near the villages) were Rs. 1500 more than what they could buy in Rajkot. In the last few weeks, they have sought quotations from different parties and they plan to buy the salt making units in the coming week. In this project the potential beneficiaries are asked to contribute 10% of the expense incurred on each salt unit. The plan is to provide salt units to 50 groups. DISHA plans to divide the projects into different Phases. In Phase 1, they plan to give salt units to 10 groups. 3 of these groups have already deposited 5% of the expense.

Shoe Making:

In phase 1 about 30 families will be targetted. The raw materials are quite expensive near the villages. Hence 2-3 shoe making "experts" from the villages will be in Ahmedabad on Monday Aug 5th to purchase the raw material. There will be some transportation costs but the net expense on raw materials will still be less. These experts will then cut the raw material and distribute it amongst the chosen families. The families can either make the shoes in a common shed (guess DISHA runs this) or make them at home, deposit them with DISHA, and take their wages. Also, the families have an opton to sell the shoes on their own or take DISHA's help in marketing them. The plan is that in time, DISHA will be encouraging the families to do their own marketing so that they are independent.

This set-up is a big change from earlier days. The contractors used to take advance money from the villagers to sell them raw material. They charge a small commission (5%) for the raw material and also demand a cut (10%) from the final sales as they helped in marketing.

Ambar Charkha:

From our discussion, we gathered that DISHA plans to change/modify this project. It seems that "Khadi Work is facing recession". DISHA may modify the project and get selected families to produce POLYVASTRA (some type of polyester). This change will be decided upon at a meeting with the villagers/beneficiaries next week. The charkhas needed for making this cloth are different, some of them are also electrical. [As these charkhas may cost more, we think that the number of beneficiaries may be decreased. Things will be clearer when we hear back from Mahenderji after their meeting]. DISHA has also contacted a cooperative to work with these villagers and help them with raw materials and marketing.

Effect of Gujarat riots:

The villages, where the 3 projects are being started, were riot-free. However Virangam about 45 km from Patdi taluka (where the projects are based) still faces problems. The market for the goods exist outside the manufacturing villages. As a result, the villagers will have to go to the violence-hit areas to sell their goods. It will be difficult selling the shoes/clothes in this atmosphere as the buying capacity of people in general is lower. The drought-like conditions over the past few weeks have not helped either.

The salt manufactured will be sold to some of the chemical industries in the area as raw material. So that hasn't been affected as much.