A study on performance of different self help groups in Mungeli district of Chhattisgarh

The present study was undertaken to evaluate the performance and financial performance of selected Self Help Groups (SHGs) in Mungeli district of Chhattisgarh. A total of twelve SHGs engaged in diverse microenterprises — including Mid Day Meal services, vermicomposting, food processing, tailoring, spice processing, fancy stores, flour milling, and poultry farming — were purposively selected for the study. Primary data were collected through structured interviews, focus group discussions, and record verification for one financial year. The performance of the SHGs was assessed using the NABARD grading system, which considers parameters such as group size, meeting regularity, savings, internal lending, record keeping, group cohesion, and loan utilization. Out of the twelve SHGs, five (41.7%) were graded as Excellent (Grade A), four (33.3%) as Good (Grade B), and three (25.0%) as Poor (Grade C). Financial performance was analyzed by estimating input cost, revenue, net profit, and profit per member. The highest net profits were recorded by the tailoring shop (?3,20,000) and flour mill (?3,20,000), followed by food processing (?2,85,000) and fancy store (?2,20,000), highlighting the profitability of value-added and retail activities. SHGs involved in the Mid Day Meal program showed comparatively lower profits, constrained by fixed pricing and limited scope for expansion. Overall, the findings suggest that SHGs undertaking high value-added and market-oriented activities tend to achieve better financial outcomes. Strengthening group management, enhancing skill development, and encouraging diversification into more lucrative enterprises can further improve the economic benefits of SHGs in the district.