From SHGs to Entrepreneurs: How Palash is Redefining Rural Women’s Economy

Palash, launched by the Jharkhand State Livelihood Promotion Society, has transformed rural women’s self-help groups into entrepreneurs by branding local products and linking them to mainstream markets. It has boosted incomes, created jobs, and elevated women’s social status, while grappling with challenges of quality control, pricing, and sustainable growth.

The Asian Development Bank Institute, in partnership with the Capacity Building Commission of the Government of India, has documented a remarkable experiment in rural transformation through the case study Palash: From Commodity to Brand by Creating Markets to Empower Rural Women. At the heart of this story lies the Jharkhand State Livelihood Promotion Society (JSLPS), operating under the National Rural Livelihood Mission, which set out to transform self-help groups into organized entrepreneurial ventures. With 289,000 self-help groups and 3.2 million women members in Jharkhand alone, the challenge was formidable: how to move from subsistence production to creating sustainable enterprises that could compete with commercial brands while empowering marginalized women.

From Sakhi Mandals to Palash Didis

For years, rural women in Jharkhand participated in farming, handicrafts, and small trade through their collectives, locally called sakhi mandals. Their products often reached exhibitions and fairs, yet they lacked consistent branding, limiting both visibility and value. In September 2020, the state introduced Palash, named after the state flower known for its vibrancy and resilience. Palash gave these women, popularly called Palash Didis, a unifying identity and direct entry into structured markets. They were no longer just producers but were recognized as entrepreneurs capable of leading rural economic transformation. The first Palash Mart opened in 2021, selling 66 products across 25 categories, supported by 95 packaging units, 92 processing centers, and 155 manufacturing hubs. Partnerships with e-commerce platforms such as Amazon and Flipkart expanded their market footprint, while the launch of Adiva, a sub-brand for tribal jewelry, showcased the craftsmanship of Jharkhand’s artisans and attracted collaboration offers from premium brands like Tanishq and Amrapali. By the end of 2021, Palash achieved a turnover of $1.5 million, proving that collective entrepreneurship could indeed break into mainstream markets.

Digital Transformation and Global Guidance

The year 2022 brought a turning point with digital innovation and international expertise. A young IAS officer with a background in information technology developed a bespoke digital platform for Palash, enabling real-time monitoring of inventory, logistics, and financial systems. This infusion of technology streamlined supply chains and created unprecedented transparency. Meanwhile, guidance from Women on Wings, a Netherlands-based organization, sharpened Palash’s business planning and branding, leading to a 30 percent increase in sales inquiries. The One Cluster–One Product model was introduced to centralize production around specialized goods, reducing costs and reinforcing brand consistency. Expansion into Jharkhand’s most vulnerable districts allowed marginalized households to cultivate indigenous crops such as pearl millet and cowpeas, strengthening both livelihoods and local nutrition. More than 2,800 women underwent capacity-building in financial literacy and enterprise management, turning grassroots leaders into capable business owners.

Recognition, Challenges, and Strategic Dilemmas

Palash quickly earned national recognition. It won First Prize for Natural Food Products at SARAS Ajeevika Mela 2022 and gained visibility at major fairs such as the Indian International Trade Fair. Individual entrepreneurs were celebrated, including those honored as “Lakhpati Entrepreneurs” during International Women’s Day events in New Delhi. Yet, success brought a host of challenges. Quality control remained inconsistent due to decentralized production, while packaging often failed to meet industry standards without raising costs. The rigid cost-plus pricing model lacked flexibility and left Palash vulnerable to market fluctuations. High commissions on e-commerce platforms nearly doubled product prices online, raising questions about digital affordability. Retaining skilled professionals was another hurdle, as many left for higher-paying roles, creating a talent drain. The biggest strategic dilemma was organizational restructuring: should Palash mirror Amul’s cooperative model, pursue a dual-entity farmer-producer organization structure, or formalize itself as a government-run public sector unit? Each option carried trade-offs between autonomy, efficiency, and grassroots ownership, demanding tough decisions for the future.

Expansion, Impact, and the Road Ahead

By 2024, Palash’s growth trajectory had only accelerated. Its products were showcased at 47 SARAS fairs, two international trade fairs, and numerous national exhibitions. Online presence expanded with 42 products on Amazon, 20 on Flipkart, and 42 on the government-backed E-Saras platform. Annual sales crossed $1.8 million, including a record $600,000 from a single fair in Ranchi. The launch of the Didi Palash Café retail chain in partnership with the Indian Hotel Management Institute added a new dimension to the enterprise. A board of directors was appointed, signaling Palash’s transition toward independent governance. The results were profound: women’s participation in entrepreneurship rose by 150 percent, revenues increased 2.5 times under the cluster-based model, and nearly 17,500 jobs were created in packaging and logistics. Beyond numbers, the initiative elevated women’s social status, reduced distress migration, and preserved tribal craftsmanship through ventures like Adiva jewelry.

Palash now faces the critical task of balancing its social mission with market realities. Standardization through district-level testing labs, adoption of advanced packaging, and automation will be crucial to maintain product quality. Pricing must shift from rigid cost-plus methods to dynamic, data-driven strategies. Direct-to-consumer platforms could reduce dependence on costly intermediaries, while impact investments, CSR funding, and enterprise loans will be vital for financial resilience. Governance innovation, whether through cooperatives, dual entities, or state-backed trusts, must ensure grassroots ownership while equipping Palash to thrive in competitive markets.

Palash is more than a brand; it is a bold experiment in democratizing markets and empowering rural women. It demonstrates that when collective identity and structured opportunities are paired with institutional support, rural women can drive economic transformation at scale. Yet, it also serves as a reminder of the delicate balance between scaling like a corporate enterprise and preserving the grassroots values of inclusion and equity. As India advances toward its vision of a self-reliant, developed nation, Palash stands as both a shining success and a living question: can social enterprises grow without losing their soul?