In a small but perceptible way, the fairtrade initiative is changing the life of thousands of farmers who otherwise would find sustenance difficult in the volatile circumstances. With products sold under the fairtrade label growing by almost 22% y-o-y during 2008, the products are gaining acceptance across the board and commanding a premium over similar products and commodities sold without the fairtrade label.
Bonn-based Fairtrade Labeling Organisations International (FLOI) reports that in 2008 products sold under the fairtrade label had a combined retail value of ?2.9 billion. Sales of tea, an established fairtrade product, doubled. Sales of bananas grew 28% to almost 3,00,000 tonne. Almost 9 million litre of fairtrade wine was consumed during 2008, an increase of 57%, and now there are over 2,700 companies licensed to use the ?Fairtrade Mark? on products.
When a product carries the fairtrade mark, it means the producers and traders have met certain standards set by the organisation. Standards are designed to address the imbalance of power in trading relationships, unstable markets and the injustices of conventional trade, FLOI sources said.
?Fair trade? started at least 50 years ago with community and church organisations in Europe and North America buying products from other community organisations in the developing world. These products are now stocked and sold in traditional shops and supermarkets also. Fairtrade offers consumers a powerful way to reduce poverty through their every day shopping.
Small farmers can participate in ?Fairtrade? if they form cooperatives, associations, or similar organisations that contribute to the social and economic development of members and their communities, and which are democratically controlled by their members.
Plantation workers can also join the initiative. Workers, whose employers pay decent wages, guarantee the right to join trade unions, ensure health and safety standards and provide adequate housing where relevant are accommodated in the system. Among other benefits, the certification allows producers to request partial prepayment of contracts. This is important for small-scale farmers? organisations because it ensures they have cash flow during the harvest time and it makes easier to establish long-term trading relations and business plans for the benefit of the entire community.
India too has small models in tea, ginger, cotton and cocoa, which is helping in sustaining some of the crops in times when the global prices plummet to unsustainable levels. Take the case of cocoa, Kochi-based Indian Organic Farmers Producer Company Ltd (IOFPCL) managed to ink an agreement with the famous Switzerland-based chocolate manufacturer Chocolate Stella SA to supply high quality organic cocoa after the organisation received the fairtarde certification.
Traidcraft is helping in the revival of ginger farming in Kochi and its suburbs. Cochin Gingerwas virtually abandoned by farmers until the UK organisation intervened.
The organisation has agreed to assist ginger farming and procure candied ginger from Kerala-based Nadukkara Agro-Processing Company Ltd, a public sector enterprise in Nadukkara -the heartland of pineapple cultivation. Pineapple farmers of the region have 70% of the share of the company with the state government owning the rest.