Case Study of the Day: The NEEM Project

The Neem Project is a socio-economic project that was initiated by Gujarat Narmada Valley Fertilizers and Chemicals Ltd. (GNFC) in response to the government’s mandate to 100% neem coating of urea. The project aimed to improve the livelihood prospects and generate income for the rural poor, with a special focus on women empowerment.

Objectives

• Stop diversion of urea to chemical factories
• Make more urea available to farmers
• Reduce import and thereby save forex

Implementation

Procurement of neem fruits was done through women self-help groups, milk cooperative societies, pani samitis, and forest department collection centers. More than 2,200 of these centers and 69 Narmada Khedut Sahay Kendras are the primary collection centers. This ensured community involvement and minimized pilferage to guarantee an efficient supply chain.

Outcome

In its first year of operations, the project generated INR 12-15 Cr. of supplementary income for about 1.25 lakh rural women and landless laborers. The hallmark of the project has been the transparent and fair process followed through the entire value chain.

• Increased income for rural women and landless labourers
• Skill training to unskilled rural women
• Increased decision-making role for women in the household
• Reduction of domestic violence
• Transformation of daily wage earners into rural entrepreneurs

Impact

The seed collectors have benefitted from the price of neem seeds going up from INR 2/- to INR 12/- per kg. The project has also resulted in multiple products like neem soap, neem pesticides, and de-oiled neem cakes being available for sale in the market. More than 8,000 MT of de-oiled neem cakes have been sold as organic manure.

Conclusion

The Neem project is a shining example of how a business can be used to achieve social and economic goals. The project has had a positive impact on the lives of thousands of rural women and has helped to improve the livelihood prospects of the entire community.

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