Private sector supply chain for home toilets in rural areas

Although poor demand is often cited as the major factor for low toilet coverage in rural areas of India, there is enough evidence that it is actually absence of adequate number of convenient supply points that limits coverage. This is particularly true of the densely populated Gangetic plain, where land use is intensive and population densities are high resulting in very little surplus space which people can use as open toilets. This paper describes an evolving strategy which encourages small scale entrepreneurs in rural districts of Bihar, India to establish supply points for a range of four alternate designs of leach-pit toilets costing between $15 - $145. Promotion campaigns are organised in the catchment of these supply points which informs the potential adopters regarding the “product” features. Trained motivators convey the orders to the production centres or orders are placed directly by the customers against cash advances and on completion of installation, full payment is made. The margin of profit for the “suppliers” is in the range of 15%. Since there are no capital subsidies for the private supply points, the indications are that this might be a relatively more sustainable option in the long run.