Success Story

Mussel farming in Cheruvathur and Padanna in Kasargod district in Kerala

Kasargod, the extreme northern district of Kerala is particularly notable for mussel farming as it has been successfully accomplished by the women’s Self Help Groups (SHGs) for the past few years. These groups were given financial assistance in the scheme namely, SGSY (Swarnajayanthi Gramaswa Rosgar Yojana) by the state government which takes care of economic empowerment of weaker sections. Subsidies, bank loans etc are the part and parcel of it and it essentially focuses attention on poverty alleviation through organized Self Help Groups. This programme looks into training, credit, marketing, technical knowledge and basic facilities necessary for the upliftment of the poor. This study was undertaken in two major Panchayaths namely Cheruvathur and Padanna in Kasargod district. Six Self Help Groups of women (three each from both panchayats) were selected for the study.

The major expenditure required for mussel farming is for the materials such as bamboo, nylon rope, coir, cloth, seed, etc. and labour costs essentially cover construction, seeding, harvesting etc. The women’s’ groups started mussel farming as early as 1996-97 and are assisted by loan amount worth Rs. 8800 per member with a subsidy amount worth Rs. 4400. The duration of the loan is 5 years and the rate of interest is 12.5 % per annum. In addition to this, a revolving fund of INR. 5000 was also provided without interest. When the SHGs are economically empowered with the provision of loan facilities, the returns from mussel farming help them to repay the loan slowly.

The loan was granted through Farmers’ Service Cooperative Banks and North Malabar Gramin Banks in Cheruvathur and Padanna panchayaths of Kasargod district. Majority of the SHGs’ showed considerable progress in repayment of the loans interpreted as indication of the profitability of Mussel farming.

The Net Operating Profit in all the six SHG’s was computed and found as substantially good which prove the profitability of Mussel farming in the initial trial itself and since during the subsequent years, material costs such as those of bamboo, rope, cloth and labour cost in construction etc. are negligible, this ensures reasonable profit as a major consequence of adoption of Mussel farming enterprise bringing about economic empowerment of rural women through organized Self Help Groups. The Benefit-Cost (BC) ratio for all the six SHG’s was above 1 indicative of considerable economic viability and potential in mussel farming.

The loan sanctioning, utilization, accounts maintenance and timely repayment of loans etc. are all perfectly accomplished with proper maintenance of the documented records by the group members. This ascertains the fulfillment of norms and standards of the SHG leading to economic empowerment of the members.