A Study of Micro Finance: Special Reference to Female Waste Pickers in Pimpri Chinchwad Area in Pune Prof. Meena Sunildutt Sharma, Asst. Prof. at Novel institute of Management studies, Chinchwad Pune, India Dr. Rashmi Hebalkar, Coordinator of BBA department, S.P. College, Pune India ABSTRACT Female waste pickers are the neglected section of urban women who are struggling to make ends meet, in an occupation which is hazardous for health, and are contributing to the welfare of society, without realizing it, through collecting waste and sending it forward for recycling. These women may be poorly educated but at least some of them have been unionized and their union attempts to improve their condition. Despite the existence of KKPKP union, there are female waste pickers who have not become members of the union. These female collect waste and it is a source of livelihood for them and their family. However their needs are not fulfilled by earning money from this occupation. Finance is needed by every people. This paper describes the micro finance facilities which may or may not be available for them. Key Words: Waste pickers,finance, Loan, Bonus Introduction After independence there is tremendous development in every sector in India. Employment opportunities have increased in the organized sector, for educated and trained adults. Significant improvement can be witnessed in the position of such women in India. However, women who are not educated or illiterate find it difficult to get jobs in the organized sector. Such women can only work in jobs such as, domestic servants, construction workers, and rag pickers, and end up having a low standard and status in society. In particular, waste picking is not considered as decent work. Yet waste pickers make an important contribution to the management and recycling of solid waste, which is otherwise missing in urban areas. Solid waste management is one of the important problems of urban areas today. Pimpri- Chinchwad is one of the highly industrialized and developed municipal areas in India. Yet it is not able to provide employment, to all those living in the area who need it, in the organized or even unorganized manufacturing sector. This study covers the area of Pimpri- Chinchwad precisely because this is an industrial area and yet there are many women who cannot find employment in industries and are working as waste pickers. Women waste pickers, face numerous problems which differ from those of men and these need to be studied. They are a part of the working class but outside the purview of social security and welfare as they remain an invisible section of the working class. 1 Usually they belong to families where men do not provide adequate and steady income, so they are main bread winners. Very little attention has been paid to this section of society and this motivated this researcher to study the socio- economic problems of female waste pickers as well as the working of their Union. Female waste pickers are of two types, those belonging to the Union, that is, Kagad Kach Patra Kashtakari Panchayat (KKPKP), and those who are not members of the union. Thus this dissertation is a comparative socio-economic study of these pickers and the researcher has tried to assess the contribution of the Union to their well-being Objectives Of The Study The following are the objectives of the study: - a) To study and compare the economic condition of unionized and non unionized b) female waste pickers in Pimpri- Chinchwad area. c) 2. To study and compare source of loan taken by unionized and non unionized female waste pickers in Pimpri Chinchwad Area. d) To study the finance provided by KKPKP union to their members. e) To bring out suggestions for female waste pickers solution. www.borjournals.com Blue Ocean Research Journals 50
Review Of Literature J h a b w a l a, R e n a n a, 2 0 0 3 This paper tries to measure and link the changes in the lives and work of rag pickers with other events including globalization or economic reform in India. It was found that the income of rag pickers was declining. Two reasons were given for this. First, due to the closure of the textile mills, the number of women and children picking waste off the streets was increasing and enhanced competition implied that each person was able to collect less. Second, the price of waste paper was coming down due to large scale imports. This was directly related to trade liberalization. Interestingly, this finding is also confirmed by the Shramshakti Report. Furedy, Chris, 1997 This article discusses the dilemmas of waste pickers and waste recovery. It s main conclusions are: a) Casual, manual recovery of materials from mixed municipal garbage (i.e. street or dump picking) cannot be made truly healthy and socially acceptable. The provision of gloves and boots and access to sanitary facilities will not eliminate the most significant health risks faced by pickers. b) Unless all the equipment and infrastructure is kept in good order, and hygiene is emphasized, picking at compost plants also carries health risks. c) The provision of facilities would need to be backed up with a great deal of education and monitoring. In terms of social status, people who are seen to pickout wastes from contaminated accumulations have always been socially stigmatized; such attitudes are very difficult to change as long as the occupation is regarded as "dirty" and associated with poverty. Madina, Martin, 2007 This article discusses waste picker cooperatives in developing countries. It points out the that, scavenging represents an important survival strategy for the poor in Asia and Latin America. Waste pickers respond to market demand and not to environmental considerations, the underlying factors that make people become waste pickers are the poverty resulting from underdevelopment, the inability or unwillingness of individuals to obtain other forms of employment, as well as industrial demand for inexpensive raw materials. a) When scavenging is considered in Solid Waste Management plans, one of the objectives is usually its elimination. As long as poverty and industrial demand for materials persists, scavenging is likely to continue to exist. Official efforts to eradicate scavenging have not succeeded and have caused further deterioration in the working and living conditions of waste pickers. b) Opportunities arise for the development of monopolistic markets particularly in dumpsites. These are controlled by middlemen who exploit waste pickers. c) The formation of waste picker cooperatives can bypass the middlemen, dismantle the monopolistic markets, and thus increase waste picker earnings. Research Methodology Type of Research Undertaken It is a descriptive research. The researcher has described the socio-economic condition of unionized and non unionized female waste pickers in PCMC area. Descriptive research includes survey using a questionnaire and fact finding inquiries of different kinds. The major purpose of descriptive research to give a description of the state of affairs as it exists at the time of the survey. The methods of research utilized in descriptive research are survey methods of all kind, including comparative and correlation methods. Sources of Data. Primary and secondary data sources were used by the researcher to obtain information about the union member and non- member female waste pickers in Pimpri Chinchwad area. (A) Primary data a) Sample Survey The researcher prepared a questionnaire and personally met all the female waste- pickers and asked them questions and filled the answers herself as most of them were illiterate. b) Interview-Personal interviews were conducted by the researcher with 1) The social activist Baba Adhav, who is revered as a leader of the waste pickers. 2) Mr,.Mohan Nanaware, Head of the KKPKP Union,. 3) Sangeeta John, Coordinator and Secretary of KKPKP Cooperative Credit Society, Pune and Pimpri Chinchwad Area. (B) Secondary Data- Secondary data have been collected from books, government reports, documents, papers, case studies, www.borjournals.com Blue Ocean Research Journals 51
research work, journals and articles related to waste pickers,kkpkp union and Pimpri Chinchwad Municipal Corporation Selection of Samples. The researcher has used stratified random sampling design for the study of female waste pickers in Pimpri Chinchwad area. Personal details. These give us the personal profile of those interviewed. Age distribution For finding out the age Distribution of female waste pickers thoseinterviewed are classified in four groups i.e. 12-18, 19-39, 40-59, and Above 60. Table: Classification of Unionized and Non- Unionized Female Waste Pickers According to Age S.No Age group Waste picker 1 12-18 - - 2 19-39 27 45 3 40-59 30 50 4 60 and above 03 05 Religion. Table: Classification of Unionized and Non- Unionized Female Waste Pickers According to Religion S. Religion Waste pickers 1 Hindu 56 93.3 2 Muslim 03 5.0 3 Christian 01 1.6 4 Sikh - - 5 Other - - It was found that 93% females are Hindu,followed by 5% Muslims and 2 % are Christians Caste composition Table: Caste Composition of Unionized and Non- Unionized Female Waste Pickers S.No Caste Waste pickers 1 Matang & 29 48.3 Mang 2 Mahar 15 25.0 3 Neo 08 13.3 Buddhist 4 Chambhar 04 06.6 5 Dhangsa 03 5.0 6 Maratha 01 1.6 Others - - Source: Field survey It was found in survey that majority of the female waste pickers surveyed came from the Matang & Mang Caste ( 48%).Next in proportion were the females from the Mahar and Neo Buddhist; only 2% belonged to the Maratha caste, while there were no cases from other castes. Most of those surveyed belonged to the scheduled castes and tribes. It is a matter of concern that although the government is encouraging the scheduled castes and tribes to become educated and offering them scholarships and reserving jobs for them these people have not been able to take advantage of this. Education Level Since waste picking is an unskilled job it was expected that the persons surveyed would have a low level of education. The following table gives the educational qualification of the persons surveyed. Table: Classification of Female Waste Pickers According to Level of Education WASTE PICKERS (A) Literate 2 3.33 Illiterate 58 96.66 (B) (Illiterate but cannot 36 62.06 do calculation ) (Illiterate but can do 22 37.93 calculation) Total 58 100 Source: Field survey www.borjournals.com Blue Ocean Research Journals 52
A person who can both read and write with understanding in any language isconsidered as literate and a person who can merely read but cannot write is taken to beas illiterate. 1 As can be seen from the above table about 97 percent of those surveyedare illiterate and 3 percent are literate and 37.93% of females are able to count and even calculate. Source From Which Waste Collected S.no Source of waste Waste pickers 1 Roads, shops and commercial places in residential and 45 75.00 market places and from Garbage bins. 2 Streets in Industrial area. 6 10.00 3 Ghanta gadi (from a vehicle pulled by hand used by 3 5.00 worker appointed by PCMC ) 4 Software companies 6 10.00 5 It was found in survey that 75 percent female waste pickers collected waste from roads, shops and commercial places. Only 10 percent collected waste from streets and binsin the industrial area. Some female s waste pickers collect waste from software companies in Hinjewadi. This is because the KKPKP (a union of waste pickers) have made efforts to collect waste from the companies. Only 1.66 percent unionized female collect waste using a Ghanta gadi. Information about income of female waste pickers in PCMC area. N.B. Income was calculated after deducting travelling/transport expenses for work from their daily income. Hence it is their estimated average net earnings per day. Waste pickers may not get the same item of waste, and in same quantity, everyday; hence the income reported by the female waste pickers surveyed was not fixed each day. The daily earnings reported by them are therefore their approximate estimate of average income per day. It was found in the survey that elderly females were not able to walk long distances; hence they walked around the area near to their residence twice or thrice a day after a time interval. It was found that: A majority of female waste pickers (83%) earned a daily income between Rs.100 and Rs.200 per day, followed by 13 percent who earned Rs 50-100, 2% earned 200-250,250-300 each 50 45 40 35 30 25 20 15 10 5 0 Income of female waste pickers in PCMC Area. Unionized www.borjournals.com Blue Ocean Research Journals 53
Loans Taken by Female Waste Pickers. S.No Group Waste pickers 1 of females who took a loan 37 61.66 2 of females who did not take a loan 23 38.33 3 Information about loan taken by Female waste pickers in PCMC area. It was found that a large percentage, in fact the majority of, female waste pickers i.e. 61.66 percent had taken a loan. Whereas 38 % of females have not taken loan. Information about the source of loans taken by the female waste pickers was also collected during the survey Source of Loans taken by Female Waste Pickers in Pimpri Chinchwad Area S. Source of loan Waste pickers 1 KKPKP union s shop (from union s credit cooperative 13 15.00 society ) 2 Scrap-dealer/other shopkeeper 04 06.66 3 Neighbours 3 5% 4 Other source - - N.B. Friends and relatives are omitted because they are nil in above table. In the survey it was found that: a) 15 % of females had taken a loan from the KKPKP s Pat Pedhi (The Union s Cooperative Credit Society). b) 6.66 percent unionized females had taken a loan from private shops. c) 5 percent non- unionized female had taken a loan from their neighbors. Waste pickers when asked why they took a loan from a private shop instead of the union shop replied that the latter was time consuming and they got the loan immediately from private shops. Reason for Taking Loan. Reason for Taking of Loan by Female Waste- Pickers in Pimpri Chinchwad Area S.no. Reason for taking loan Waste pickerts 1 Marriage 07 18.91 2 Construction of house 07 18.91 3 Household Expenses 14 37.83 4 Hospital 01 2.70 5 Education 03 8.10 6 Purchase of vehicle 04 10.81 7 Repayment of loan 01 2.70 Total 37 100 According to above table it was found that the most important reason given by the female waste pickers for taking loan was to cover household expenses. Majority waste pickers (38 percent) have taken loan www.borjournals.com Blue Ocean Research Journals 54
for household expenses, followed by 19 percent waste pickers who had taken loan for construction of house, 19 percent female took loan for marriage, A small percentage (8percent) had taken a loan for education. Only 10.81% had taken loans for, purchase of vehicle, hospital expenses (2.70 percent), and repayment of loan (2.70 percent). The highest amount received from union s credit society as loan was Rs.50,000 and the lowest was Rs.500, whereas highest amount of loan from private shop was Rs.2500 and the lowest was Rs.250. Awareness About the Rate of Interest Charged on Loans. Awareness About Rate of Interest Charged on Loan Female Waste Pickers in Pimpri Chinchwad Area Awareness about the rate of interest charged Waste pickers Rate of interest is known 55 91.66 Rate of interest is unknown 5 8.33 According to the survey most of the females surveyed, that is, 91.66 percent knew the rate of interest charged on loans and only 8.33 percent of them did not know the rate of interest. In fact, the female waste pickers not only knew the rate of interest charged by the KKPKP Pat Pedhi, 2%, but also knew the procedure for taking the loan. Place of Selling Waste As a part of the survey the female waste pickers were asked about the place where they sold the waste collected by them.. Information about the Place of Selling Waste by Female Waste- Pickers in Pimpri Chinchwad Area Place of selling waste Waste pickers Union shop 26 43.33 Private scrap shop 34 56.66 It was found in the survey that 56.66 percent of females sold the waste collected by them to private scrap shops. 43.33 females sold their waste to the union shop. That is, a majority of unionized females sell their waste to private shops; the major reason given for this was that they were habituated to sell waste to a particular shop for a long time. When asked about price they said that there was no difference in price paid for waste by the union shop and by the private shop. Majority of the females sold their waste to the private shops and only 1.66 percent of them sold the waste collected to the union shop. Bonus paid by Shops to Female Waste Pickers. When asked about bonus paid to them by the shops. Bonus is based on the percentage of total waste sold during a year by the waste picker to the union shop, However private shop owners give bonus according to their wish. www.borjournals.com Blue Ocean Research Journals 55
Number and percentage of Unionized and Non-Unionized Female Waste Pickers Surveyed Receiving Bonus. Source of Bonus Waste pickers Bonus from union shop 26 43.33 Bonus from private shop 19 31.66 Not received bonus 15 25.00 Total 60.00 100 IT was found in survey that 43.33 percent female received bonus from the union shop. However, all those who sold their waste to private shops did not receive bonus. The female who sold to private shops, only 19 females or 31.66 percent received bonus. This was because private shops did not give bonus if not claimed at Diwali, whereas the union shop had no such condition. In other words, the union shop paid bonus to all those who sold the waste collected to this shop, without discriminating between members and non-members, without any conditions, whereas the private shops did not pay bonus to 15 (25 percent) they give flimsy excuse that they did not collect it at Diwali time. This is a form of exploitation by the private shops. However this gives evidence of lack of awareness about bonus conditions in different shops on the part of female waste pickers, or lack of concern about losing bonus. Amount of Bonus. During the survey information was collected about the amount of bonus given by the union shop and private shops. Amount of Bonus given by Private Shops to Female Waste Pickers in Pimpri- Chinchwad Area S.no Amount of Bonus from Private Shops Waste pickers 1 Less than 500 03 5.00 2 500 05 8.33 3 800 - - 4 1000 06 10.00 5 1500 02 3.33 6 2000 02 3.33 7 2500 01 1.67 8 Total 19 31.66 N.B. In the above table those who did not receive bonus are excluded. Bonus from Union Shop s. no Amount of bonus from union shop Waste pickers 1 2000 02 3.33 2 2500 03 5.00 3 4000 01 1.66 4 6000 02 3.33 7000 11 18.33 5 8000 01 1.66 5 10,000 05 8.33 6 20,000 01 1.66 7 Total 26 43.33 www.borjournals.com Blue Ocean Research Journals 56
It can be seen from above table that KKPKP union shop distributed bonus at 13 percent of the value of total waste sold during 2008-2009. But the waste pickers selling their waste to private shops were not aware of the calculation. Highest amount of bonus paid by KKPKP union shop to those surveyed was Rs 20,000 and the lowest amount was Rs.2, 000, whereas the highest amount of bonus paid by private scrap shops was Rs. 2,500 and lowest was Rs. 250. Findings From The Survey 1. As can be seen that 45% of female waste pickers fall between 19-59 age group, 50 % are between 40-59 years of age.5 percent are also seen in this profession. 2. It was found that females who are above 60 years of age, are engaged in this work due to lack of family support. 3. It was found that 93% females are Hindu,followed by 5% Muslims and 2 % are Christians 4. It was found in survey that majority of the female waste pickers surveyed came from the Matang & Mang Caste ( 48%) while there were no cases from other castes. 5. Most of those surveyed belonged to the scheduled castes and tribes. 6. As can be seen from the above table about 97 percent of those surveyed are illiterate and 3 percent are literate and 37.93% of females are able to count and even calculate. 7. It was found in survey that 75 percent female waste pickers collected waste from roads, shops and commercial places. Only 10 percent collected waste from streets and bins a. in the industrial area. some females waste pickers collect waste from software companies in Hinjewadi. This is because the KKPKP (a union of waste pickers ) have made efforts to collect waste from the companies. Only 1.66 percent unionized female collect waste using a Ghanta gadi. 8. It was found that: A majority of female waste pickers (83%) earned a daily income between Rs.100 and Rs.200 per day, followed by 13 percent who earned Rs 50-100, 2% earned 200-250,250-300 each. 9. It was found that a large percentage, in fact the majority of, female waste a. pickers i.e. 61.66 percent had taken a loan.whereas 38 % of females have not taken loan. 10. 15 % of females had taken a loan from the KKPKP s Pat Pedhi (The Union s Cooperative Credit Society). 6.66 percent unionized females had taken a loan from private shops. 5 percent non- unionized female had taken a loan from their neighbors. 11. Waste pickers when asked why they took a loan from a private shop instead of the union shop replied that the latter was time consuming and they got the loan immediately from private shops. 12. According to above table it was found that the most important reason given by the female a. waste pickers for taking loan was to cover household expenses. Majority waste pickers 13. (38 percent) have taken loan for household expenses, followed by 19 percent waste pickers 14. The highest amount received from union s credit society as loan was Rs.50,000 and the a. lowest was Rs.500, whereas highest amount of loan from private shop was Rs.2500 and 15. According to the survey most of the females surveyed, that is, 91.66 percent a. knew the rate of interest charged on loans and only 8.33 percent of them did not know the b. rate of interest. In fact, the female waste pickers not only knew the rate of c. interest charged by the KKPKP Pat Pedhi, 2%, but also knew the procedure for taking the d. loan. 16. It was found in the survey that 56.66 percent of females sold the waste collected by them to private scrap shops. 43.33 females sold their waste to the union shop 17. It was found in survey that 43.33 percent female received bonus from the a. union shop. However, all those who sold their waste to private shops did not receive b. bonus. The female who sold to private shops, only 19 females or 31.66 percent received bonus. This was because private shops did not give bonus if not claimed at Diwali, whereas the union shop had no such condition. 18. In other words, the union shop paid bonus to all those who sold the waste collected to this 19. It was found that KKPKP union shop distributed bonus at 13 percent of the value of total waste sold during 2008-2009. But the waste pickers selling their waste to private shops were not aware of the calculation. 20. Highest amount of bonus paid by KKPKP union shop to those surveyed was Rs 20,000 and the lowest amount was Rs.2, 000, whereas the www.borjournals.com Blue Ocean Research Journals 57
highest amount of bonus paid by private scrap shops was Rs. 2,500 and lowest was Rs. 250. Suggestions: 1. No bank give finance facility to these waste pickers. So that they can fulfill their basic needs. 2. Government should provide micro finance for them. 3. Government should start some recycling industry for these waste pickers so that they can live properly. 4. These people should be observed by the recycling industry. References [1] A.Kousoyiannis,(1980) Modern Microeconomics, The Macmillan Press Limited, London and Basingstoke, printed in Hongkong, p. 154. [2] Dr. Furedy Chris, (1997)Research and Advising Inc., Toronto [3] [Prepared for Urban Waste Expertise Program of WASTE, May 1997; [4] published in Source Book for UWEP Policy Meeting 1997. Revised April [5] 1999] Reflections on some Dilemmas Concerning Waste Pickers and waste [6] Recovery. [7] Kothari,C.R.,(2008) Research Methodology,Methods and Techniques,,New age International Publishers, New Delhi 110002, p. 184 [8] Michale,V.P. (2008) Research Methodology in Management, Himalaya Publishing house, Mumbai 4, Printed at A to Z printers, New Delhi 110002, pp. 2. [9] Martin Medina, (2007), El Colegio de la Frontera Norte, Mexico, Waste Picker Cooperatives in Developing Countries. 2007 [10] Sharit K. Bhowmik,(2009) India Labor Sociology Searching for a Direction [11] Tata Institute of Social Sciences, Mumbai, India, Work and Occupations [12] Volume 36,Number 2, May 2009 pp 126-144. [13] Shramshakti Report, (1988) Report of National commission on Self Employed Women and Men in Informal Sector, New Delhi, 1988 p. iv. http://www.wiego.org/ahmedabad/papers/final/ Medina_MBOP.doc www.borjournals.com Blue Ocean Research Journals 58