Role of village level institutions in facilitating finance for coping with climate variability in district Mewat of Haryana
Student name: Ms Komalpreet Kaur
Guide: Ms Suruchi Bhadwal
Year of completion: 2014
Host Organisation: S.M. Sehgal Foundation
Supervisor (Host Organisation): Mr Sumit Vij
Abstract: Coping practices have been indentified in areas of agriculture, water and livestock. Informal
institutions are pre-dominant in providing finance for coping with climate variability in the 2
villages selected for the study. The funds available suffice for coping needs of the community
and hence, financing longer-term adaptation to climate variability needs consideration.
Among informal sources, milkman was found to be the pre-dominant source in arranging
funds for coping. Among factors that induce people to opt for a source for borrowing, „rate of
interest‟ and „flexibility in repayment‟ were found to be major determinants of these choices
in case of informal sources. Loss of time and wages in obtaining loan and overhead expenses
which include bribes and commissions were found to be major deterrents in case of formal
sources of finance, more specifically, banks. Finally, a clear trend is seen with regard to
land-ownership and access to formal finance for coping. Strengthening of informal
institutions such as milkman and self-help groups with a view to channelling funds for coping
more effectively have been suggested.
Key words: Climate variability, Coping, Rural financial institutions, Microfinance, Access
