What problem or need did the project address?
Many producers are desperate for income and have no alternative but to sell to local traders. This means they are vulnerable to exploitation.
India has had a long history of association with the fair trade movement in Europe. Over 50 producer organisations have been supplying the European market with fair trade products over the last 40 years.
Fair trade has traditionally involved the export of goods from developing countries to developed countries. However fair trade can also involve trade within a country. This is a new but potentially rewarding opportunity for fair trade producers.
With a population of over 1 billion, and a growing middle class, India offers a huge opportunity for poor producers. This is especially the case for the poorest producers who do not have the capacity to sell to export markets.
What did the project do?
This project launched a domestic fair trade market in India by:
- Promoting the concept of ‘fair trade’ within India
- Influencing key decision/policy makers to support fair trade
- Developing appropriate fair trade standards for India – including monitoring and certification systems
- Develop a distribution and retail network for the sale of fair trade products
- Building the capacity of small fair trade producer groups so that they can benefit from this new market opportunity
What impact has the project had?
This project was very successful. It received strong and high-profile support within India, from Bollywood actors to fashion designers! Key impact has included:
- An independent organisation, Shop for Change, was established to implement Indian fair trade standards.
- A certification system was developed for farmers, artisans, and companies against a set of social and environmental standards, beginning with cotton. The standards were developed by Indian stakaholders specifically for the Indian context.
- The standards were finalised and certification of three producer organisations covering 2400 cotton farmers was completed.
- The first Indian fair trade certified products (t-shirts and high-end women's wear) went on sale early in 2010 and can be found in more than 60 retail outlets.
- The initial launch has benefitted 5,300 cotton farmers and their families. However, we expect thousands more to benefit as the initiative is rolled out to cover more products in the next few years. In the medium term these activities will benefit over 400,000 producers. With an average family size of 5 this will benefit about 2 million poor people.
Our local partner
Traidcraft Exchange implemented this project with IRFT. IRFT has 10 years of experience of supporting small businesses across India. It also operates on fair trade principles and has been promoting ethical business practices across the country.
How was this project funded?
The project was funded by the European Commission, Belgium Technical Cooperation, the interchurch organisation for development cooperation (ICCO), grant-making trusts, and donations from generous individuals.
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