Project Description:

Boraluwewa village in the Kobeigane Divisional Secretary’s Division in the Kurunegala District has 30 families who work for a producer supplying coconut husk chips to an exporting firm in the district. There are several such producers but there is a large unsatisfied demand for these chips at present. There have been several groups of women who have been working on a piece rate basis for these large producers who have started producing chips on their own for these agents of the exporters with support from banks.

Now a group of 30 members of the Wayamba Govi Sanwardena Padanama – an NGOaffiliated to the Kurunegala District Consortium have thought of striking out on their own, after giving up their piece rate work. They hope to purchase coconut husks at Rs.2 a piece, whereby they have to pay Rs.2000 for the raw material required for a day (1000 husks). With 1000 husks, they can produce 300 kg of coconut husk chips which can fetch Rs.2700 (Rs.9 per kg). When they work as wage labour for the chip producers they are paid only around Rs.300 – 400 for a day’s work. If they shift their operations to their homes working in groups of five they can produce 350 – 400 kg., per family which means they can, earn anything over Rs.1600 for a day per family. Several members of the family can even take turns at their activity, which involves cutting the husk into 1” pieces in a simple electrically operated machine, washing these pieces in a water tank and sun dried on a drying floor. All these facilities have to be shared by the groups of five in rotation. These cutting machines can be purchased from the Industrial Development Board (a State run industrial promotion institution) in Kurunegala, which will also train these people in operation and maintenance of the machine.

 

Update from the field: November 2011

With regards to the coconut chips cutting project, the supply of coconut husks has now improved significantly with increased coconut production in the area and both groups are now able to command better supplies.  The women’s groups go around, with support from the men, to several nearby villages on missions to collect coconut husks.

The price they can realize from coconut chips has risen, from an original Rs. 17 to the current Rs. 23 per kg.  Both groups have been able to improve the income per participant to around Rs. 7500 per month.  This is supplementary income for these families which they are able to earn while being able to attend to household chores and regular day-to-day cultivation of their paddy fields, mostly as share croppers.  They continue to perceive and treat their income from producing coconut chips as supplementary income.

Update from the field: September 2011

For the recurring problem of short supply of coconut husks, the NGO and the district NGO apex organization, the Kurunegala District Consortium arranged for another member NGO to supply a lorry load of husks. The NGO/CBO using the husks had to bear the transport costs. The NGO/CBO has Rs.22,000 retained with them to look after any unforeseen exigencies. They have to now build up a working capital to minimize any losses due to marketing delays. They have also a stock of unsold chips amounting to 3000 kg which they can sell at 22 per kg.

The next update will provide a better overview of the prospects of this project in the coming months. The two groups of women face these problems with confidence. They learn that this is the nature of small enterprises and how they can cope with business problems / challenges.

Update from the field: June 2011

Mainly due to the vagaries of coconut husk supply in the area resulting from the fall in production of coconuts in the country, the chip production has gone through a lean period. However, in the coming months it is expected to assume normalcy and the two groups of processors will be able to get their supply of husks at more or less the normal prices.

These groups will be able to sell the produced chips at Rs.17 – 25 per kg, increased from the Rs.12 – 15 per kg. they used to get in the past.

The incessant rains in the recent weeks prevented the sale of 3500 kg. of processed chips which now will fetch at least Rs.70,000, when distributed among the 10 members of the group, increasing their income by Rs.7000 per month. When normal production levels are reached with improved supplies of husks, the monthly income of an individual member can easily go up to Rs.20,000 per month. All this achieved with the possibility of attending to their normal activities related to the agriculture calendar in their neighbourhood.

Update from the field: April 2011

During this period 2 groups (10 families) were engaged in this project. Please find below the chart ($ in SLRs) for thier current status for the month of March 2011.

                                            1st Group      2nd Group
                                           (5 families)    (5 families)
Production costs                   15,065             11,640
Chips sold Kgs.                      2,200               3,100
Income from sale of chips     41,800            48,260
Reserved for maintenance      802               1,099
Net profit                               25,932            35,521
Profit per Person                    5,186              7,104

Ten families have realized a higher income through this project. These families invested their earnings for production of chips, housing and children’s education in addition to their day to day expenses. Both groups have repaid part of their loans from the income they earned from this project.  With these repayments additional 5 families will be selected for the next round.

Kurunegala is a district in the coconut triangle with high yield. However, due to urbanization the felling of trees, demand for coconuts and husks for export purposes, and in addition the disease in coconut plantation experienced recently, there has been an acute shortage of coconut husks.

Previously coconut husks were purchased at Rs.3/- each by the groups. At present, due to the shortage and the price hike of coconut husks they have found it extremely difficult to carry on the project of optimum capacity. But by May, coconut production is expected to increase and hopefully the project may see better days.

Update from the field: November 2010 

The second group of women have installed the machinery and has already operated the coconut husk chip cutting machine. They have sold the first consignment of coconut husk chips. Even at present these women are having their hands full with the Maha season (major cultivation season) rains already in full swing. They have to work their paddy field, however small the plots are, with the rains.

They have each earned Rs.4500 for a period of 2 weeks amidst all their other agricultural work – working only around two hours per day on this project. When they were working for employers previously they could not work there while also attending to their own agricultural work during the cultivation season. So the Rs.4500 earned by each family on cutting coconut husk chips is really a bonus for them. Now they control their own lives without been tied down to one employer. The going price per kilo of chips has gone up further to Rs.17.

The other 3 groups already mobilized are awaiting some financial support to start operations. This project is at present attracting further attention from more women in the neighbourhood, as this operation can provide self employment and bring them much needed sustenance. The extra income these women earn they spend on the health and education needs of their children.

Update from the field: September 2010 

The Project for cutting coconut chips is by now fully operational and the first consignment of chips has been sold to the exporter. The group of 5 women has realized Rs.26,600 by selling 1660 kg of chips. The price has now gone up to Rs.16 per kg. from Rs.9 prevailing about a year back. What each family has earned works to around Rs.3500 for 2 weeks, after meeting all the costs. This during a period when their hands were full with heavy work on their paddy fields is really a bonus to these poor women, who are now on their own.

The second group of 5 women is now raring to go with the machinery already on order, and the worksite for housing the machinery is already prepared. There are other groups of poor women who are keenly awaiting financial support to start on a venture which will bring them a supplementary income during the time they are either unemployed or underemployed.

 
Update from the field: June 2010

One of the participants, Mr. Lal Premasiri, donated a small plot of land in a central location selected by the first group of participants. These participants, in association with their CBO and NGO, have purchased the necessary machinery for one group and installed it in a sturdy hut constructed by the participants on this land donating their labor and the materials required. They have used the funds provided by UEnd, supplemented with some funds advanced by SLCDF, to facilitate the commencement of the project. The coconut husks needed for the project have been collected from the neighbourhood by the villagers. They started producing coconut chips on 2nd June 2010. They are now ready with the first consignment of coconut chips for sale to an exporter.

More funds once raised will facilitate the expansion of the project to the other groups as planned, and the return of the loan already taken. Group activities are been continued and the three tier monitoring system has been established.

Update from the field: November 2009

Thirty members of the NGO, Wayamba Govi Sanwardena Padanama, already have been mobilized into a CBO for this project. They have commenced group activities, small groups meeting separately and started savings / credit programmes on a small scale. They are also studying the work process involved in producing coconut husk chips for export.

This group has got in touch with the Industrial Development Board to have a closer look at the machinery they have on offer for similar projects. Stakeholders were also mobilized to start the project next month with a little funding support.