CERTO, Tuticorin, Tamilnadu

Project Id: IN 117

40 years ago sum fishermen from Kadiapattinam village of Kanniyakumari District ventured out to fishing and reached the East Coast between Tuticorin and Tiruchendur. They found good amount of catch every day. This marine resource could not be tapped by the local fishermen as they did not have the skills as it involved deep sea fishing near the WEDGE BANK which is considered to be the second highly potential fishing ground in Asia and depended on shore line fishing. The migrant fishermen found it difficult to take the catch back to their village every day as it took lot of time and caused wastage. Realising this they started settling down in the near by shore area covered by forest. Slowly they developed the location and created a hamlet. This hamlet then was named Kombuthurai. Presently there are 250 families living in this village. 

The entire community in this village depends on fishing for their livelihood. Traditionally these people go in groups of 4-5 members in a country craft for fishing. Then the catch brought to the shore is auctioned by a local individual who acts as a middleman and gets commission from both sides.

When we visited this village, we came across 4 SHGs functioning with not much effectiveness. One of the groups who came forward to collaborate with us in terms of economic development. The group St. Mudiappar (St. Jamesh) has 18 members involved in fishing. This six year old group has managed to build its own infrastructure for their group activities. During the interaction they felt the need for free access to market and avoidance of middleman. After a lengthy discussion they decided to restructure their functioning in terms of marketing their catch. Previously they were depending upon the middleman for selling their fish and would get their money after a week’s time. They found it difficult to manage the operation in terms of fuel, wages which could be paid only after a week’s time and also they had to pay a sizable amount to the auctioneer as commission. They also struggled to meet out their running expenses as the payment would be made on a weekly basis. This led them to borrow from money lenders at a higher price. These issues were thoroughly discussed and debated in the group meetings with the organisation.

As a result, it was agreed to support the group with the working capital of INR.3.0 lakhs to run the operations with the appointment of their own person to manage the auction. Presently the group has been functioning with the assistance of one auctioneer and an accountant who are paid fixed monthly salary. This arrangement has benefited the group in terms of cut back in the expenses towards marketing and avoided borrowing for operational expenses. In fact the earnings of the group and the share of profit of individual members have increased. The progress and the gaps in the operation are discussed by the members in their monthly meetings organised in their office which is attended by the staff from the organisation. The meeting helps them to assess the progress find out the earnings and take necessary steps in case of any constraints. They have savings bank account and the excess money after the payment of wages, salaries and other expenses is deposited in to the bank.

Out of the sale proceeds, 3% money is given to the local committee as their contribution for the construction of the church which will be 1% after the completion of the work. 1% goes for administration while 5% is given to the organisation towards repayment of loan. Another 3% is set aside as savings. Out of the remaining amount 3% is allocated for the running cost in terms of fuel and craft maintenance. 2% is invested for the purchase of equipments and accessories. The balance is shared among the members towards their earnings.

This initiative has demonstrated the effects of a systematic functioning of a group with the involvement and participation of all the members in their development with unity and mutual trust.
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