PAD has been working with the coastal villages of Gulf of Mannar (GoM), located on the south east border of India's southern most maritime state Tamil Nadu. PAD started working in 30 of these villages and later added 103 more villages to its operational area. The main target groups selected are (a) the fisher community; and (b) the Palmyra tappers. Additionally, dalits, present in a few villages, are also part of the target group. The target group also includes coastal poor, small and marginal farmers, landless, children in difficult situation and women in general, within these villages.

It is important to note that all members of the fisher community and the Palmyra tappers are part of the target group, though there could be significant differences in the economic status of different families in the same community.

A majority of the villages in the target area comprise of fisher families. Most of the families do not own boats and nets, and go as labour on those who own the boats. As the work is seasonal, usually 6 months a year, borrowing from the moneylender to tide over the lean season, and for boat / net repairs etc., has become a way of life. Thus, while there are some differences in income levels, most families are indebted to moneylenders. The few families which are better off are those of the agents of the moneylenders, who get a commission on the fish catch delivered to the moneylender. Even here the difference is marginal, whether in terms of overall income, living standards etc. Some people migrate during the off season, but not as many as among the palmyra tappers. Most people who migrate go to towns for casual labour. A few fishermen have ventured out to distant towns for marketing fish, or as agents for the moneylenders, and these few are more aware of larger marketing opportunities.

The second group consists of villages of palmyra tappers, where again almost all the families in the village are involved in palmyra tapping. Work here is even more seasonal, with tapping possible for 5 months of the year only. During the rest of the year, some families resort to fishing, though not as intensely as the fishing community, and many work as agricultural or other labour. As agriculture is not practised much in these villages, many of the men migrate to towns in search of employment. In this community as well, borrowing for the off-season has become a way of life. Many young girls are sent to work in spinning and weaving mills, to Coimbatore or Tiruppur, for periods of up to 3 years, at the end of which they get a sizeable amount as cumulative wages. During employment they are provided with accommodation, boarding and some pocket money. This practice often has the support of the families as they feel the girl has earned some money for her marriage.

The people who migrate to nearer towns for earning a living often indulge in multi-partner sex and become more vulnerable to HIV/AIDS. Young girls going out from the villages for textile mills on contract are susceptible to sexual harassment as well, though this is not reported much. In the villages there was some reluctance to talk about these issues.

A major problem faced by these communities is the exploitation by moneylenders. Almost every family living in these villages has taken loans from moneylenders to meet their daily needs during off-season. There is no formal interest charged on the loans – the agreement is to sell all products to the moneylenders (fish, palm candy, etc.), and invariably the price agreed is considerably lower than the local market price, the difference being taken in lieu of interest. The equivalent rate of interest for these loans works out to a very high figure, ranging between 5 to 10% per month.

An important element is that the families themselves do not see the moneylenders as exploiters, but as essential support. As is the case with many seasonal produce, the fish catch and the palmyra yield vary from year to year, and a sustainable cycle, in terms of being able to repay loans fully and take a fresh loan for cash flow, is 3-5 years. Other than the moneylenders, all finance systems, including the SHGs, follow the principle of full repayment of the existing loan before the family becomes eligible for another loan. This means that at least once or twice in 3-4 years the family becomes a “defaulter”, and becomes a bad risk for further loans. This is the fundamental reason for the success of the moneylender, as he understands the multi-year cycle as a feature of the business, and takes the additional risk in giving further loans, charging a net higher rate of interest as the fee for higher risk. It is also important to realise that the moneylender here is more of a trader than just a moneylender, and earns his income from selling the produce of the fisher folk and the palmyra tappers. In this sense he also provides another important service – a regular market channel for the fisher and palmyra tapper families – for them, whatever they produce is bought, albeit at lower prices. Again, the focus here is risk and uncertainty reduction than just the cost and finance. However, the high cost (in terms of price difference) means that often the families can never repay the moneylenders fully, and practically become slaves or bonded labour to the moneylenders for generations.

The third group comprises of a few dalit villages. Most of these work as agricultural labour, or as labour with the contractors engaged in charcoal making. Most do not own any land, and are often in conflict with other (non-SC) villages, over infrastructural issues, amenities etc. Because of the work done in recent years, awareness of dalit issues is stronger in these villages, and there is some degree of asserting oneself. Often this leads to the conflicts with other villages, as they have been accustomed to being obeyed without question. In the villages visited, it was noticed that the conditions of the roads, schools etc. in the dalit villages are worse than that in other villages. At the same time, a majority of the families have acquired “pucca” housing, with concrete roofs, as part of a Government scheme for the SC families. Education levels among the dalits is lower than that in other villages, though at primary level the enrolment and attendance of children is over 60% here as well.