INTERNATIONAL RESOURCES FAIRER TRADE

Promoting Fair Trade in India

International Resources Fairer Trade (IRFT)

Start: 1995

Field of action: India

IRFT tries to access domestic and export markets for products of these businesses. It has also had some influence within the wider Indian business community, promoting best trade practices and employee welfare.

Context

In this era of globalization and open markets, small producers are finding it increasingly difficult to compete internationally. Because of lack of information, logistical support, planning, and so on, the export markets are often out of reach for the most marginalized groups of producers and the smallest businesses. Fair trade is a source of hope, but western markets are not spreading at the rate the poor producers need.

With a population of over 1 billion people and a growing middle-class, India offers huge opportunities – and it has a market waiting to be tapped. Unfortunately, consumers in the country are not familiar with the fair trade concept and benefits.

Local fair trade

Recognising this situation, IRFT and Traidcraft (an English fair trade organization) joined hands to launch a process of promoting domestic fair trade through a new project that they have called PROFIT (Promoting Fair Trade in India). Some of the communities that will profit from the project include the poorest, located in the most remote regions of the country. These communities have only limited employment and income generating opportunities, often with only seasonal and poorly paid jobs.

PROFIT also intends to enhance the capacities of MSEs to attract more trade so that they can benefit from these new market opportunities

At the other end of the chain, the project raises awareness and understanding of fair trade amongst potential consumers (the Indian middle-class), the media, academics, politicians and Indian decision-makers.

The project also tries to develop appropriate fair trade standards for the Indian context - including monitoring and certification systems, resulting in increased quality of fair trade products and improved consumer confidence in fair trade.

Finally the project works with stakeholders to facilitate a distribution and retail network for the sale of fair trade products (starting with buying in from retailers in Mumbai and Hyderabad).

This should demonstrate the potential of fair trade as a means of alleviating poverty and other developing countries could draw from the Indian experience.

“Fair trade has been a beacon of hope for marginalized producers, helping them develop skills and access markets, better prices and sustainable livelihood through the trading relationship.” (IRFT)