‘Fair Trade Policy’ for Ryots, Traders

Published: 07th November 2014 06:09 AM  |   Last Updated: 07th November 2014 06:09 AM   |  A+A-

ALUVA: Among the many concepts that were presented at the Biofach-2014, on the sidelines of the Global Agro Meet at the Adlux Convention Centre in Agamaly, the ‘fair trade policy’ endorsed by the Association of Indian Fair Trade Producers (AIFP) seems to be the most beneficial one for cultivators and traders alike.

The fair trade policy is a concept of partnerships between the producers and  consumers, which allows the cultivators to enjoy a better deal and improved trading conditions.

 “As per the conditions set by the International Fair Trade System, fair trade-certified producers would receive a minimum support price for the goods they sell. If the market price is higher than the support price, the trader would have to pay the market price. A unique feature of the policy is the availability of a premium that the producer could utilise for any social project that they wish to take up. In India, a premium of around `19 crore was received by producer organisations in 2013. The sum was later invested for educational scholarships; providing insurance and social security to workers and farmers; conducting health camps and free medical checkups for the poor; providing farm inputs and equipment; subsidising production cost for farmers; and moving up the value chain to set up processing facilities,” said Kuldeep Singh Chouhan of the Network of Asia and Pacific Producers (NAPP), a producer body that represents fair-trade certified producer organisations. FLO CERT, the certifying arm of the Fair-trade International, is in charge of certifying the producer groups.

“The farmers will approach the certifying group, which will explain the dynamics of the policy to them. After inspections and audits, the producers may or may not be inducted into the policy. Kera,” said Kuldeep.  

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