Making Trade Work for the Poor: Promoting Fair Trade in India (PROFIT)

India- With a particular focus on Orissa, Rajasthan, Madhya Pradesh, Gujarat (Kutch region), Andhra Pradesh, Maharashtra and Tamil Nadu.

Objectives:

This project will benefit some of the poorest communities in India. For these communities, employment and income generating opportunities are limited and those that do exist are often seasonal, poorly paid and exploitative. Pro-poor micro and small enterprises can play an important role in providing employment and income generating opportunities, and reducing poverty.

Overall Objectives:

To reduce poverty amongst poor and marginalized producers in India (especially in Orissa, Rajasthan, Madhya Pradesh, Gujarat (Kutch region), Andhra Pradesh, Maharashtra and Tamil Nadu) by increasing the ability of pro-poor micro and small enterprises to benefit from trade.

Specific Objective:

To increase the ability of pro- poor micro and small enterprises (MSEs) and their producers to benefit equitably from trade.

MSEs face a variety of problems in finding markets for their products and consequently providing a sustainable income to the poor producers who depend on them for their income. This project will help them by:

  • Promoting the concept of 'fair trade' within India - raising awareness and understanding of fair trade amongst potential consumers (the Indian middle class), the media, key decision/policy makers, academics etc.
  • Developing appropriate fair trade standards for the Indian context - including monitoring and certification systems
  • Implementing a high profile campaign (with a particular focus on two Indian cities-Mumbai and Hyderabad) to promote two selected fair trade product sector.
  • Developing the Indian fair trade market in order to provide market opportunities for more than 40,000 poor and disadvantaged fair trade producers.
  • Building the capacity of 30 pro poor MSEs in two selected product sectors so that they can benefit from this new market opportunities and to make sure that fair trade products are available to the consumers.
  • Facilitating a distribution and retail network for the sale of fair trade products(with 'buy in' from at least 10 retailers in Mumbai and Hyderabad)
  • Influencing key decision/policy makers to support fair trade practices.

Activities

Activity 1. Project set up, management and administration

An initial planning meeting will be held to develop the detailed action plan for the project.

Activity 2. Research on fair trade in Europe and India

The research will involve:
· A European consultant to carry out research into fair trade in Europe.
 ( European Union Research Report )

· An Indian consultant to carry out research into fair trade in India.
 ( Indian Research Report's Executive Summary )

Activity 3. National Workshop 1

This workshop has successfully carried out on 13-14 November, 2006 at Hyderabad.

      (1) Agenda
      (2) Discussion Paper
      (3) Presentations
        (3.1) Sharing findings of Consumer Research India
        (3.2) Sharing findings of European research
        (3.3) Overview of PROFIT project
        (3.4) Untrade and Poverty
      (4) National Workshop I- Report
      (5) EU-India Relations- partners in progress

Activity 5. Independent body for fair trade certification

· To ensure standards available
· Monitoring systems in place
· Feasibility of a fair trade label and choice of labels for Indian consumers
(label not an outcome of the projects)

Activity 6. Interactive Website

· To share information, knowledge and learning
· To support Interaction between stakeholders within India
· To share experience and updates of the project.
· To support the campaign in India, and if viable;
· House a virtual, market place.

Activity 7. Distribution and Retail Network for fair trade products

-motivation of wholesalers and retailers
-organize the market network (wholesalers and retailers) 15 retailers in each city
-focus on Mumbai and Hyderabad

Activity 8. Training , Mentoring, and Support programme for pro-poor MSEs

-development of tools
-information on fair trade standards
- Guidance to achieve fair trade certifications
- Work with 30 pro-poor MSEs in a more in depth training and mentoring programme
in two product sector(tea and spices)
- Two workshops for producers in groups of 15 each led by TX
- Mentoring to help:
   • meet the fair trade standard development in India
   • produce products appropriate for the Indian domestic market
   • deal with the logistics of supplying goods ton the retailers.

Activity 9. Consumer Campaign

The consumer campaign will focus on two cities in particular- Mumbai and Hyderabad.

The activity is divided into three parts:
   • Developing a communication strategy for consumers
   • Developing a campaign using a variety of channels and approaches
      to reach out to the consumers over a three month period.
   • Promoting the fair trade products available through the fair trade
      retail network.

Participation from the Indian media will be a critical component at this stage of the project.

Activity 10. Fair Trade Festival

- At the end of the consumer campaign a 3 day fair trade festival will be organized
in Mumbai.
- A 'buyer-seller' meet
- Two half day workshops focusing on fair trade as a concept and the other focusing
on consumers and their issues.
- Fair trade organizations will be encouraged to put up stalls that will provide information
about fair trade issues-besides displaying products.
-During the evenings local theatre groups will be invited to put up street theatre plays,
and puppet shows.

Activity 11. National Workshop 2

This final workshop is aimed at bringing together Indian and Asian stakeholder groups with the following objectives:

  • To share the learning from the Indian initiatives
  • To seek feedback on the possibility of similar initiatives in other countries, or with a focus on a region(e.g. south Asia, south east Asia)
  • To get buy in from the Asia fair trade forum(representing Asian fair trade organizations)
  • To build relationships of support between different Asian countries for long term commitment to fight poverty through trade.(a basic vision of all fair trade organizations)
 




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