Globalization has shaken and stirred the Indian economy but
the process of globalisation has adversely affected the poor and marginalized the world over. The primary producers, artisans and small farmers are losing out to markets forces and economies of scale which sophisticated machines and mass production bring in. Traditional arts and skills are disappearing and so are the customs and rural livelihood opportunities.
Fair Trade is the response of the civil society in the Northern countries to help the producers in south to offset the adverse impact of trade. The basic tenets of Fair Trade are care for human values, fair price, transparency in supply chain and long term relationship. Fair trade gives the most disadvantaged producers an edge as well as sustainability due to the values it supports, besides promoting environment friendly, good quality products.
Internationally Fair Trade is registering phenomenal growth rates of about 25 per cent year on year, and fair trade sales in Europe alone exceed $ 500 million a year. Besides protecting environment a successful Fair Trade business ensures that thru shorter supply chains consumers get quality products at reasonable rates. This is proof enough that fair trade is a successful business model that provides a channel for primary producer groups to access markets
We have been working in this field since our inception in 1995 with an objective to support development of Community Based Enterprises as sustainable business entities through Fair Trade.We believe that developing sustainable livelihoods relate to greater incomes, greater employment and long-term economic possibilities and mobility out of poverty.
Over the years we have realized that in an era of globalization and open markets, small producers find it increasingly difficult to compete internationally. The implications are producers have to either go out of markets or cater to local markets. There is a dire need to connect producers with Fair Trade but since traditionaly Fair Trade has been a North-South trade with buyers mainly from the developed countries, not many people in India are aware of the benefits and impact of Fair Trade for consumers as well as producers.
With global retails sales now close to half a billion Euro, fair trade has grown considerably over recent years. However markets still remain an issue. The answer we feel lies in Domestic Fair Trade. We feel that our people who have strong sense of ethics would definitely support Fair Trade if they know that buying a Fair Trade product means that close to 40% of the product price goes back to the poor producer.
We are being supported in this endevour by Hivos ( www.hivos.nl ).
Moreover, creating a fair trade market within the country has potential for immediate benefits for poor producers, who are looking for a sustainable income source rather than just access to the export markets.
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