What problem or need is the project addressing?
India has had a long history of association with the fair trade movement in Europe. For many farmers and artisans, fair trade has been a lifeline, providing stable prices and long term trading partnerships that have allowed them to take important steps in the long process of social and economic empowerment.
However, fair trade markets in the West have simply not grown fast enough to have a large-scale impact on poverty in India, benefiting only a small proportion of the hundreds of millions of small-scale producers in the country. There is a desperate need to create new alternatives to complement the traditional export-oriented system for those who are unable to access this opportunity.
A domestic market for fair trade products is one such alternative. 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 poor producers, especially for the poorest producers who do not have the capacity to sell to export markets.
With a population of over a billion and a growing middle class, India offers a huge opportunity for developing a domestic fair trade market. Middle-class consumers have shown they are interested in buying ethically, prepared to pay more for products that are traded fairly and provide a decent income to the people who have produced them.
By creating a domestic market for fair trade products, this project will create a new alternative to complement the export-oriented fair trade system, opening up new, fairer market opportunities for poor farmers and artisans.
What is the project doing?
This project will develop the fair trade market in India by:
- Promoting the concept of ‘fair trade’ within India
- Influencing key decision/policy makers to support fair trade
- Developing 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 has already seen significant success. It has received strong and high-profile support within India, from Bollywood actors to fashion designers! Key activities have included:
- An independent organisation, Shop for Change, has been established to implement Indian fair trade standards. Much work is being done to ensure the development of a robust and representative organisation.
- A certification system has been developed for farmers, artisans, and companies against a set of social and environmental standards. These standards have been developed by Indian stakeholders, specifically for the Indian context.
- A Shop for Change website has been launched. This new website targets producers, companies, and consumers, and provides information about Shop for Change’s goals and certification program.
- A marketing and media plan is in place to create market linkages.
- The first Indian fair trade certified products (t-shirts and high-end women's wear) went on sale in early 2010 and can be found in more than 60 retail outlets across India.
- A training and mentoring programme has been developed to support pro-poor small businesses to comply withcertification criteria.
- The initial launch has benefited 5,300 cotton farmers and their families. However, we expect thousand smore produces to benefit as the initiative expands to cover other products. 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 is implementing this project with Shop For Change. Shop for Change is an independent organisation. It uses certification to build the capacity of producer groups and improve their access to value-added markets as well as protect the environment, promote social equity and raise awareness among consumers. Shop for Change has four main functions; certification, business services, producer services and awareness raising.
How is this project funded?
The project is funded by the interchurch organisation for development cooperation (ICCO), grant-making trusts, and donations from generous individuals.
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