impact assessment of idei's treadle pump project in assam

BangaloreBangkok

BeijingBoston

ChicagoChennaiLondon

Los AngelesMelbourne

MilanMumbaiMunich

New DelhiNew York

ParisSan

FranciscoShanghai

SingaporeSydney

TokyoWroclaw

S T R A T E G Y + E X E C U T I O N

Impact Assessment of Treadle Pumps

April 28, 2014

Universal Consulting India Pvt Ltd | Shivsagar Estate D | Dr Annie Besant Rd | Worli | Mumbai 400 018 | IndiaTel + 91 22 66222100 | Fax + 91 22 66222111 | www.universalconsulting.com

The materials contained in this document are intended to supplement a discussion between IDEI, Universal Consulting and TNS. These perspectives are confidential and will only be meaningful to those in attendance.

Universal Consulting India Pvt Ltd; H11/ H12 Ground Floor, New Bridge Business Centre, Technopolis Tower B, Golf Course Road, Sector 54, Gurgaon 122002 Indiat: +91 124 4626090/91/6000, f: + 91 22 66222111 www.universalconsulting.com

� 20 Years (estd. 1994)

� 4 Offices (Mumbai, New

Delhi, Chennai, Bangalore)

� 60 Staff

� 300+ Clients

� 800+ Cases

� 76% Repeat & Referral work

� Strategic equity partnership

with global Consulting Firm,

L.E.K. Consulting

Universal Consulting is India’s Boutique Strategy Execution Consulting Firm

San Francisco,

2000

Los Angeles, 1987

Chicago, 1993

New York, 2007

Boston, 1986

London, 1983

Paris, 1989

Munich, 1988

Wroclaw, 2008

Milan, 1991

Tokyo, 2008

Beijing, 2000

Bangalore, 2014

New Delhi, 2008 Shanghai, 2000

Bangkok, 1999

Singapore, 1990

Melbourne, 1993

Sydney, 1987

Seoul, 2013

Chennai, 2012

Sao Paulo, 2013

Mumbai, 1994

CONFIDENTIAL

IDEI – Income Impact Assessment of KB Treadle Pumps in Assam 3

We have experience of ~19 years, ~850 engagements, over 320 clients and deep strategy

expertise (~600 engagements) with client satisfaction rating of 8.4/ 10 and repeat ratio of

over 76%

Practical recommendations

We differentiate ourselves by being a

strategy consulting firm, being able

to leverage our Tipping Point study

knowledge and also talk to

government of India for future

initiatives, if needed

We have done ~ 20 Income

Impact assessment studies

across different consumer and

industrial strategy studies

Global experience pool

We understand Not for Profit

Organizations issues having done

~80 engagements worldwide for

them Efficient and experienced project

management

We have done ~40 engagements in semi

urban and rural markets

Value Creation

UC’s Non Profit Experience

CONFIDENTIAL


We have done ~12 engagements for non-profit organisations in South Asia and Middle East

• Creating Impact Through Corporate Social Responsibility

• Strategy for a High School in Mumbai

• Feasibility Study for a Charitable Trust

• Business Plan for a NGO that Promotes Western Classical Music

• Defining the Tipping Point Penetration Level and means of reaching the Tipping Point Efficiently for an NGO

• Assessing the impact of using treadle pumps

• Blueprint for the Largest Conservation Organisation Engaged in Wildlife and Nature Conservation

• Developing a Strategy


CONFIDENTIAL


We have done ~80 engagements for non- profit organiszations globally (1/ 3)….

• U.S. Motorsports Economy Assessment

• Support the Organizations and its Members in Ongoing Advocacy Efforts

• Assessing the Specific Economic Impact of their Operations in Research Efforts

• Defining a Strategic Plan for an Education off site

• Facilitated Workshop and Session Summary of Key Themes, Issues and Questions for Further Development.

• Evaluation of Potential Acquisition of an UK Charity

• Clear Understanding of the way forward

• Service and Channel Strategy for a Brain Tumor Foundation

• Enhance Web Content, Provide Online Social Networking, Provide Financial Support, etc.

• Business Strategy for a Health Care Services Provider

• Strategic Plan for a School Association


CONFIDENTIAL


We have done ~80 engagements for non- profit organisations globally (2/ 3)….

• Membership Structuring and Pricing Strategy

• Development and Implementation of Based Strategy for Organization-wide Knowledge Management Platform

• Aligning Health Services to Micro-enterprise Financing

• Action Plan for the Development of PMI in the International Market

• Strategic Framework for allocating Tsunami Relief Funds

• Value Chain Analysis for a Pharmacy Company


CONFIDENTIAL


We have done ~80 engagements for non- profit organisations globally (3/ 3)

• Marketing Plan for Italian SMEs

• Improving the Competitiveness of Italian SMEs

• Strategic Implementation of New Business Plan


CONFIDENTIAL

Contents

1Research objectives and approach 03

2Impact of treadle pump on income 07

3Impact of treadle pumps on crop productivity

12

4Incremental income post treadle pump purchase

16

5Change in farmer lifestyle post treadle pump usage

20

6Income sources besides farming 26

7Treadle pump usage 31

8Practices among non users of treadle pump

35

9General agricultural practices and lifestyle 38

10Executive Summary 44

8

�1Research objectives and approach

CONFIDENTIAL

Background of IDEI

� IDEI, is a not-for-profit organisation registered u/s 25 of the Indian Companies Act, 1956.

� IDEI Vision-IDEI is a social enterprise committed to providing long term solutions to poverty, hunger and deprivation.

� The company employs a market-development model that envisages the integration of small and marginal farmers with markets, both as buyers of inputs and as vendors of high-value agricultural produce.

� In order to deliver the technologies to smallholders, IDEI has adopted an innovative “Profit for Progress” methodology, creating and nurturing private sector supply chains engaged in the manufacture and distribution of the technologies, at fair prices which incorporate a profit margin for the manufacturers and distributors.

� By adopting this approach IDEI has promoted its technologies with over 1.3 Million households (7 million people) in India. The user farmers have generated over US$ 1 Billion as net additional income.

� IDEI promoted irrigation devices are environmentally friendly and have contributed to saving 672 Million litres of diesel and 2.5 Million tCO2 eq carbon emission reduction and 6.5 Billion cubic meters water and 872 million kWh electricity savings.

� Employment of over 647 million person days on farm and 2.32 Million person days in supply chain have been generated.

CONFIDENTIAL

Research background and objective

� Background on treadle pumps

- Treadle Pumps are driven by human energy with a combination of lifting and pumping device.

– Used in regions with high water table

– Reliable, low maintenance

– Replacing diesel pumps, thereby saving fuel & reducing carbon emission; each pump offsets 0.477 tonne of CO2 emissions per year

– 3,500-4,000 litre/ hour discharge depending on body weight.

– Irrigates up to 1 acre of vegetable farm

� Treadle pumps were sold to marginal farmers in Assam under a social initiative by IDEI and Voxtra

� Through this initiative of selling of treadle pumps at marginal price IDEI aims to improve the livelihood of these farmers.

� The objective of the study is to find out whether the use of a treadle pumps

- Has increased the agricultural income of the farmer

- Has increased the crop production from the same amount of land

- Has yielded the marginal farmers a better livelihood

11

CONFIDENTIAL

Research approach

� Approach: Face to face interviews after purposive identification of the farmers in four districts of Assam. Both users and non users of treadle pumps were approached for the study.

� Target group:

� A total sample of 203 farmers was achieved in Assam

� Both treadle pump users and non users above 18 years were interviewed

12

Districts/ Field officesNumber of treadle pump

usersNumber of treadle pump

non users

Barpeta 31 31

Golaghat 31 31

Nagaon 19 20

Sonitpur 21 19

Total 102 101

CONFIDENTIAL

Demographics

62

62

39

40

Users

Barapeta GolaghatNagaon Sonitpur

Districts

Base: 203 (all)

13

All figures are in nos

9

76

64

44

10

Users

18-25 26-35

36-45 46-55

More than 55

Age break up

Base: 203 (all)

�2

Impact of treadle pump on income

CONFIDENTIAL15

Unit of Currency/ PPP

Overall Treadle pump users Treadle pump non users

INR 19,902 29,296 10,414

USD 318 469 162

PPP 49,755 73,240 26,035

Exchange rate for USD = 62.5

Treadle pump users earn ~200% i.e. ~Rs. 20,000 more than the non users through agriculture

CONFIDENTIAL

Treadle pump users in Sonitpur and Naogon earn Rs. 20,000+ more than the non users, while Barpeta and Golaghat users earn Rs. 15,000+ more than the non users

16

Agricultural Income – treadle pump usage and user/non user in districts

Average agricultural income Overall

Districts/ Field Offices Users Non usersNet incremental income

in Rs

Barpeta 31246 13342 17904

Golaghat 24467 7625 16842

Nagaon 31817 11307 20510

Sonitpur 31264 9249 22015


CONFIDENTIAL

26

24

25

16

6

2

1

0

1

26

29

31

20

38

18

16

10

15

Less than 5,000 rupees

5001 - 10,000 rupees

10,001 - 15,000 rupees

15,001 - 20,000 rupees

20,001 - 25,000 rupees

25,001 - 30,000 rupees

30,001 - 35,000 rupees

35,001 - 40,000 rupees

More than 40,000 rupees

0

5

6

4

32

16

15

10

14

A significantly higher proportion of treadle pump owners falling in the higher income category clearly indicates the contribution of treadle pumps in increasing the agricultural income.

17

Agricultural Income

Overall User Non-User

n=203 n=102 n=101

Average earning Rs 19902 29296 10414

Significantly higher

All figures are i nosn

CONFIDENTIAL

Among those treadle pump users who earn less than Rs. 15,000, 6 farmers grew only 1-2 crops in the last year with all of them growing rice for self consumption and one additional crop leading to low income; 5 of them have also been using the treadle pump for less than 2 years.

18

* Low base: results directional in nature

• 11 farmers earning less than Rs 15,000 through agriculture are dependent on other work for income and see an increase in income through non agricultural means post treadle pump purchase.

• According to these farmers they were able to save time due to use of treadle pump and use it for their other income generating activities and thus their non-agricultural income increased because of the treadle pump.

Time since using treadle pump for irrigation

Time since using treadle pumps for

irrigation

Users withagricultural income of less than

15K

Base 11*

Last 1 year 0

More than 1- 2 years 5

More than 2- 3 years 4

More than 3 years 2


No of crops planted

Crops planted in the last year

Users withagricultural income of less than

15K

Base 11*

1 1

2 5

3 2

More than 3 3

Ways in which treadle pump helped in increasing productivity

3

8

Gives sufficientwater when

required

Saves time

n=11*

CONFIDENTIAL

Higher agricultural income is a direct result of using treadle pumps as treadle pump users are able to cultivate a larger variety of crops as compared to the non users; a significantly higher proportion of users also grow multiple crops at the same time.

25

1

24

52

13

39

55

26

29

71

62

9

Overall (n=203)

Users (n=102)

Non-users (n=101)

1 Crop 2 Crops 3 Crops 4 Crops

No of crops grown in the last year

19

25

1

24

178

101

77

Overall (n=203)

Users (n=102)

Non-users (n=101)

We grow a single crop at a time

We grow multiple crops at the same time

Single/multiple crop grown

Significantly higher

Avg no of crops

3

3

2


�3

Impact of treadle pumps on crop productivity

CONFIDENTIAL

n=203 n=102 n=101

125

15

15

7

96

80

50

30

28

25

22

22

17

17

16

13

9

8

6

11

Rice

Wheat

Mustard

Peas

Egg plant

Chilli

Potato

Tomato

Ridge gourd

Cucumber

Cauliflower

Onion

Pumpkin

Okra

Cabbage

Garlic

Bottle Gourd

Radish

Watermelon

Others

61

4

12

1

42

29

21

7

8

4

9

9

5

1

2

4

0

0

1

4

64

11

3

6

54

51

29

23

20

21

13

13

12

16

14

9

9

8

5

7

Users grow more cash crops when compared with non-users; this demonstrates that the use of treadle pump is associated with adoption of more cash crops thereby contributing to their higher agricultural income.

21

Types of crops cultivated


Others include til, carrot, pulses, dhaniya, jute, corn All figures are in nos

Users of treadle pump show a higher cultivation of cash crops including fruits and vegetables

CONFIDENTIAL

4

27

7

3

6

12

30

2

2

10

39

37

5

2

Upto 500 kgs

501-1000 kgs

1001 - 1500 kgs

1501-2000 kgs

More than 2000 kgs

34 (~65%) treadle pump users harvest more than 1000 kg of egg plant whereas only 10 (~25%) non users harvest more than 1000 kg

22

Average harvest of Egg plant

from up to 1/3 acre land


n=93

Average harvest 1058 kgs 1084 kgs 1024 kgs

n=52 n=41


CONFIDENTIAL

10

21

21

18

7

Upto 200 kgs

201 -300 kgs

301 -400 kgs

401 -500 kgs

More than 500 kgs

4

17

5

0

3

6

4

16

18

4

38 (~80%) treadle pump users harvest more than 300 kg of chilli whereas only 8 (~28%) non users harvest more than 300 kg

23

Average harvest of chilli from

upto 1/3 acre land


n=77

Average harvest 385 kgs 420 kgs 326 kgs

n=48 n=29*



�4Incremental income post treadle pump purchase

CONFIDENTIAL

Almost all treadle pump users find it useful for their irrigation requirements with a need to improve crop productivity being the prime reason behind the purchase of the treadle pump

42

29

26

21

6

4

4

3

2

2

Reasons for buying treadle pump

25

Irrigation requirement satisfied through treadle pump

96

6

Yes Non=102 (users)

n=102 (users)

To improve productivity

Inadequacy of rain water

Cost effectiveness of treadle pump

Desire to grow multiple crops in a year

Awareness about the benefits of treadle pumps

Need for hiring diesel pumps for irrigation

Benefits of treadle pumps seen at neighbourhood farms

Saving of time

To avoid pulling water manually from the well

Need to bring more land under cultivation

Only 6 farmers get extra water through other machines or canals. Their reason for the need of extra irrigation is to irrigate a larger size of land


CONFIDENTIAL

98 farmers feel that treadle pump has increased the productivity of their farm whereas 63 believe that the increase in income is due to savings in time or freeing up of time

Increase in farm productivity through treadle pump usage

26

Ways in which treadle pump helped in increasing productivity

n=102 (users)

98

4

Yes Not sure

n=98 (users)

31

31

15

13

11

Gives sufficient waterwhen required

Saves time

Requires less labour

Low investment andrunning cost

Different crops can becultivated


Reasons for increase in income post treadle pump usage

33

30

8

2

Saves time

I get time for other work

Water can be given in the fieldany time

Anyone can run itn=65 (users)

�5Change in farmer lifestyle post treadle pump usage

CONFIDENTIAL

Although there is a similar frequency of illness between the users and non users, treadle pump owners are able to spend more on doctors as compared to non users, indicating an improvement in lifestyle and therefore a higher spending on healthcare

139

71

68

64

31

33

Overall (n=203)

Users (n=102)

Non-users (n=101)

No Yes

Illness in the house

28



Spend on the doctor Average Spend in Rs

Overall (n=55) 2512

User (n=27*) 3104

Non – user (n=25) 1941

District wise spend on the doctor Average Spend in Rs.

Barpeta (n=15*) 2353

Golaghat (n=17*) 932

Nagaon (n=11*) 6045

Sonitpur (n=12*) 1708

CONFIDENTIAL

56

11

9

41

17

15

Treadle pump users spend ~Rs.1200 on school fees for their children, ~35% more than non users; the average agricultural income of users who spend more than Rs.1000 on school fees is ~Rs. 30,000

54

29

25

149

73

76

Overall (n=203)

Users (n=102)

Non-users (n=101)

No Yes

School going children

29

Spend on the school fees

Overall User

Non-User

n=149

Average spend 1026 1199 861

n=73 n=76

95

28

26

Upto 1000

1000 -1500

More than 1500


Users spending more than INR 1000 on school fees Average agricultural income

Barpeta (n=12*) INR 34,907

Golaghat (n=7*) INR 24, 650

Nagaon (n=5*) INR 20,474

Sonitpur (n=8*) INR 30, 004


CONFIDENTIAL

37

47

7

16

62

16

The users also spend ~Rs. 1300 on vegetables fruit and milk as compared to non users who spend ~Rs. 1100 on it; the average agricultural income of users who spend more than Rs. 1000 on vegetables, fruits & milk is ~Rs. 30,200

30

Spend on vegetables, fruits and milk

53

110

22

Upto 1000

1000 -1500

More than 1500


n=185


n=95 n=92


Users spending more than INR 1000 on vegetables, fruits & milk

Average agricultural income

Barpeta (n=24*) INR 32,017

Golaghat (n=23*) INR 25,463

Nagaon (n=11*) INR 33,845

Sonitpur (n=20*) INR 31,785


CONFIDENTIAL

101

8

2

9

4

6

4

3

1

1

102

13

17

6

8

6

2

3

3

1

203

21

19

15

12

12

6

6

4

2

Putting money in the farm

Repaying of loans

Buying new farming equipment

Renovating/constructing your house

Buying of livestock

Saving money for the future

Buying durables for the house

Entertainment

Buying of gold

Buying of vehicle

Users invest have been able to invest in productive assets of the future than non users who spent most of their money in entertainment of items of immediate consumptions

31

Money spent on different

activities in the past one year


n=203 n=102 n=101


CONFIDENTIAL

83

16

1

1

37

49

10

6

120

65

11

7

Less tha 5,000 rupees

5,001 - 10,000 rupees

10,001 - 15,000 rupees

More than 15,000 rupees

While 49 (~48%) treadle pump users are able to spend between Rs. 5,000 – Rs 10,000 on their farms only, 16 (~16%) non treadle pump users are able to invest the same amounts in their farm

32

Average amount spent on the

farm in the past year


n=203


n=102 n=101


�6Income source besides farming

CONFIDENTIAL

Due to higher farm incomes, a significantly higher number of treadle pump users do not need to engage in alternative livelihoods in addition to agriculture

44

33

11

159

69

90

Overall (n=203)

Users (n=102)

Non-users (n=101)

We sell some/all that we grow on the farm and only depend on farming for our income

What we grow on the farm is not enough for the family and we also earn money from otherwork besides farming

Dependence on farming

34

Significantly higherAll figures are in nos

CONFIDENTIAL

A comparatively higher proportion of treadle pump non users migrate to nearby towns during non farming season for extra income.

24

7

17

179

95

84

Overall (n=203)

Users (n=102)

Non-users (n=101)

Yes No

Migration to nearby towns during non farming season

35


�7

Treadle pump usage

CONFIDENTIAL

79% (80) of treadle pump users have been using the treadle pump for more than 2 years; majority of them use it for each crop cycle and are able to irrigate up to 0.6 acre of land.

2

20

59

21

Last 1 year

More than 1- 2 years

More than 2- 3 years

More than 3 years

Note: Time since treadle pump usage is in harvest years

Time since treadle pump usage

37

Regularity of treadle pump usage

n=102 (users)

100

2

I have used it for each crop cycle

I have used it sometimesn=102 (users)

40

55

5

2

0.3 acre

0.6 acre

1 acre

Did not answer

Area irrigated through treadle pumps

n=102 (users)


CONFIDENTIAL

All the users are satisfied with the treadle pumps with low investment and running cost being the key reasons for satisfaction

Level of satisfaction with the treadle pump

38

Reasons for satisfaction

n=102 (users)

37

65

Extremely satisfied Very satisfied

n=102 (users)

40

38

20

19

5

5

4

Low investment

Low running cost

Ease of use

Gives sufficient waterwhen required

Increases productivity

Saves time

Makes me fit


CONFIDENTIAL

98% (100) farmers do not find any problem with the treadle pump and 96% (98) plan to use it in the future too.

39

Performance of treadle pump basis expectation

n=102 (users)

100

2

Very well, there have been no problemsNot too well, it requires frequent repairs

Plan to use of treadle pump in future

98

4

Yes Not sure

Children dropping out of school post treadle pump purchase

101

1

No No response

n=102 (users)

n=102 (users)


�8Practices among non users of treadle pump

CONFIDENTIAL

98% (99) farmers not using treadle pumps face problems in irrigating the field; non availability of means of irrigation is the main problem faced by them.

Any problem faced while irrigating the field?

41

Types of problems faced

n=101 (non users)

99

2

Yes No

n=99 (non users)

55

17

14

13

13

3

2

Non availability of means ofirrigation

Unable to cultivatevegetables/other crops

Lack of water at the righttime

Completely dependent onrain

It is expensive to get waterfrom the canals

Depend on other machinesfor irrigation

Irrigation needs lots of hardlabourAll figures are in nos

CONFIDENTIAL

Although 98 (97%) farmers not using treadle pumps are aware of it, lack of information and money as the key inhibitors to its purchase.

Awareness of treadle pump

42

Reasons for not buying treadle pumps

n=101 (non users)

98

3

Yes No

n=98 (non users)

Purchase of any technology other than treadle pumps

n=101 (non users)

54

28

8

7

5

Clear information on thebenefits of treadle pumps on

the productivity

Lack of money to buy it

Needs labour

No one has recommend it tome

Lack of people to use it

2

99

Yes No


�9General agricultural practices and lifestyle

CONFIDENTIAL

1

0

1

Overall

User

Non-user

Ownership of the land farming is done on

Majority of the farmers own the land that they farm on, with some farmers farming on land owned by their family

174

86

88

26

15

11

Overall (n=200)

Users (n=101)

Non-users (n=99)

Owned by me

Owned by my family

Actual owner of the land

2

1

1

200

101

99

Work on own land and also part time on other people’s land

I have taken the land on lease

for farming

I own the land that I farm on

Overall (n)=203

User (n)=102

Non-user (n)=101

44


CONFIDENTIAL

Land is together

Land is broken into 2 plots

Land is broken into 3 plots

Land is broken into more than 3 plots

Most of the farmers have an agricultural land up to 0.3 acre and 74% (150) of the farmers have a single plot of land. 52% (53) of non treadle pump non users have farm area that is not irrigated

45

6122

39

82

37

45

28

17

117

6

110

6

41514

1

Overall User Non-user

0.3 acre

0.6 acre1 acre

Size of the agricultural landholding Fragmentation of land

67 3829

64

47

17

16

14

2

3

3

0

53

0

53


0.3 acre 0.6 acre

1 acre More than 1 acre

Not irrigated

Farm area that is irrigated

Overall (n)=203

User (n)=102

Non-user (n)=101

150 7179

4423

21

7 612 2 0



CONFIDENTIAL

Almost all the farmers own a house and have a kitchen; however, 38% (39) of treadle pump users have more than 3 rooms in their house as compared to 21% (21) of non users.

201

101

100

2

1

1

Overall (n=203)

Users (n=102)

Non-users (n=101)

Yes No

Ownership of the house

46

1

1

43

15

28

99

48

51

54

34

20

6

5

1

Overall (n=203)

Users (n=102)

Non-users (n=101)

1 2 3 4 5

No of rooms in the house


CONFIDENTIAL

Most farmers use service latrine that is owned by the household, however users have a higher proportion of owned laterine i.e. ~92% as compared to non-users i.e. ~86%.

Type of latrine facility used

47

181

22

94

8

87

14

Owned by household Shared latrine

Overall (n=203)

Users (n=102)

Non-users (n=101)

192

3 8

94

2 6

98

1 2

Service latrine Flush system latrine Septic tank latrine

Overall (n=203)

Users (n=102)

Non-users (n=101)

Ownership of latrine used


�10

Summary

CONFIDENTIAL

Executive Summary

� On an average treadle pump users earn an agricultural income of Rs. 20,000 or ~200% more than the non users through agriculture clearly indicating the impact of treadle pump on their livelihood.

� This difference in the income is a result of the higher productivity enabled by treadle pumps. Treadle pump users are able to cultivate a larger variety of vegetables and crops as compared to the non users. For those who also do other work besides farming treadle pump helps them to save time on irrigation that is utilised to earn money through other occupations.

� Treadle pump users have a higher standard of living as compared to non users; they are able to spend more on healthcare, education and quality of food. They are able to invest more in their land and productive assets and therefore have the opportunity to get higher returns sustainably.

� Treadle pump users cultivate cash crops and are also able to participate in the market thus generating higher income for themselves.

� Migration to nearby towns is low among treadle pump users as compared to the non users.

� Most treadle pump non users cultivate only what they consume, this subsistence farming along with general labour work leads to an inferior quality of life.

49

impact assessment of idei's treadle pump project in assam

Technology

impact of treadle pumps

profit experience

strategy ucs

treadle pumps blueprint

business strategy

strategy consulting

users of treadle pump

channel strategy