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Profiles in Profit: Laxmi Shahi - Nepal

courtesy of IDE Nepal

Like many of Nepal’s internal migrants, Laxmi Shahi and her family fled the troubled hilly regions to resettle in Nepal’s southern flatlands. The family was able to purchase a quarter acre of land, but their remaining money was quickly spent on medical treatment for their eldest daughter and debt payments to a local moneylender. When Laxmi’s husband, a seasonal laborer and the family’s sole provider, fell ill, Laxmi was left to support the family of five single-handedly.

When she met some field staff from IDE’s Women Enterprise Program in 2005, she had little technical knowledge, not enough capital, nor any idea how to get started; only a willingness to invest what little money she had to support her family.

The field team helped Laxmi get training in chili production from a local dealer, connected her with a microfinance institution that provided a $140 loan, helped her to purchase and install a treadle pump, and linked her to an IDE-created marketing group selling chilies and other high-value products to local markets. With her newly acquired skills and confidence and with a little investment for buying hybrid chili seeds, Laxmi set out to apply what she had learned.

After her first season, Laxmi realized an income of $340 from chili alone. Seeing the tremendous income potential, she leased an additional half acre to scale-up her production. After a year with the program, Laxmi’s household income increased from $42 to more than $500.

Initially, Laxmi was surprised that people would pay money for her chili. She had had no idea that chili had any market potential or economic value. Her husband – initially very cynical about her chili enterprise – gradually showed more interest as she persisted and started earning an income. Now they work as a team.

Laxmi's friends and neighbors used to know her as “the quiet person” who was always in a hurry and full of worries. Today she is better known as Khursani Didi, or Chili Lady, in the community. People throng to her field to buy chili and she has become a leader in the community.

With her additional income, Laxmi has bought irrigation equipment and is now raising goats. Her children are in school and she has paid off her debts.

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