A couple of years ago I spent some time in rural Rajasthan, in the area to the east and south of Jaipur. I was working on a project which required me to better understand the financial needs of rural entrepreneurs and small business, who often find themselves at the mercy of unscrupulous money lenders. The Indian government, with help from some banks, is trying to clean things up, but it is a problem of monumental scale.
This is not the forum for in-depth analysis of microbusiness financing, but it is worth sharing some of what I learned about an aspect of India which few in the West would ever encounter.
This story is part of our Travel Writing & Reflection series. Read more here.
In Balaji Mandir village I met a group of ladies who were making, of all things, Christmas ornaments. The enterprise receives some private sector money, and the prices they receive in Jaipur are fixed. So it is good, steady money to supplement farming income. About 30 ladies sat on blankets, needles and scissors whizzing as baskets filled with little stuffed stars, hearts, reindeers and Santas. Most of the year they stitch cushions and bed bolsters but I was there in December, and it was clear what the market wanted. I bought a few pieces from them.
I also went to a house where the family makes incense sticks. They have an ingenious machine in the barn, next to the cows, which loads the bare sticks, coats about 70 percent of the length with incense powder, and rapid-fires the sticks into a bucket, from where they are gathered and tied into bundles for packaging. The business challenge for this family is meeting demand. They want a bigger and better machine but have had bad experiences with local lenders. Their other problem is fire insurance. Nobody wants to insure a house that is full of bundles of incense sticks.
Then I met a man who makes cheap paper plates covered in tinfoil for weddings and festivals. He also has a machine, which is fascinating to watch in action, and he also wants a bigger one so as to meet demand. Same story, he has been burned by money lenders. He has quite a big farm and a local bank has offered to lend him money with a couple of acres as collateral. But he is hesitant to do so. He understands the arrangement but is afraid the bank will somehow find a way to seize his land.
And I met some ladies who make soap. A good business selling to the markets in Jaipur was in trouble; the vats were empty and no workers were on site. Their difficulties had been caused by the arrival of a bigger rival from Delhi, who had set up in a neighbouring village and had been buying up all of the wax, dyes and chemicals that go into the soap.
Its hard not to feel sympathy for these people whose lives are so different to ours. And they are wonderful people. Everywhere I went I was welcomed, offered tea, and we looked at photos of each others’ families. They take strength from their faith and families. But life can be tough on the endless, baking plains of Rajasthan.
Steve is a former Army officer and technology manager, now semi-retired and living in Melbourne. He enjoys adventurous travel and believes that good stories should be shared. He founded the Dusty Boots Journal as a means to connect those with similar interests.