FAIR TRADE ASSOCIATION

INTRODUCTION
Fair Trade is an alternative approach to conventional international trade. It is a trading partnership which aims at sustainable development for excluded and disadvantaged producers. It seeks to do this by providing better trading conditions, by awareness raising and by campaigning. Getting money is not all a mans business; to cultivate kindness is a valuable part of business life. - Samuel Johnson.

HISTORY
The concept of fair trade began in the 1940s. Alternative Trade Organisations was fairly disparate groups in many different countries, but the essence of what they were doing grew into the basis of fair trade as we know it today. It began with crafts, and moved on to include food (sugar initially) in the 1960s. It was in the 80s however that there began to be much more organisational approach to fair trade. IFAT (The International Association for Fair Trade) began in 1989.

 IFAT launched a Fair Trade Organization Mark in January 2004. 1989 was the first time anyone saw a guarantee of fair trade linked to a product. It was arranged by Max Havelaar of the Netherlands. In 1997 the umbrella organisation,Fairtrade Labelling Organisations (FLO) International, was set up. The first World Fair Trade Day took place on May 4, 2002. It continues to be celebrated every second Saturday of May.

PRINCIPLES OF FAIR TRADE

WFTO prescribes 10 Principles that Fair Trade Organizations must follow in their day-to-day work and carries out monitoring to ensure these principles are upheld: 1. Creating Opportunities for Economically Disadvantaged Producers 2. Transparency and Accountability 3. Fair Trading Practices 4. Payment of a Fair Price 5. Ensuring no Child Labour and Forced Labour 6. Commitment to Non Discrimination, Gender Equity and Freedom of Association 7. Ensuring Good Working Conditions 8. Providing Capacity Building 9. Promoting Fair Trade 10. Respect for the Environment

TYPES OF FAIR TRADE ORGANISATION

PRODUCERS IMPORTERS RETAILERS LABELLING INITIATIVES

FAIR TRADE IN INDIA

FAIR TRADE IN INDIA

India is warming up to fair trade. But the concept remains a niche market as companies are hesitant about taking it to the masses. Indian farmers have been selling their fair trade products to developed markets for years by getting certified by the Fairtrade Labelling Organizations International (FLO).

 The Spice Board of India is looking to follow suit with a fair trade label for the domestic spice market. More than $4 billion worth of fair trade products were sold internationally in 2008, up 22 percent since the previous year. The Indian market and other domestic markets in producing countries are increasingly important for the fair trade movement because they could each be larger than the European market, which is the largest market for fair trade products.

 The FLO also fixes a fair trade price, which includes a minimum price for the product and a fair trade premium. Now, retailers have started selling fair trade products without a price premium for consumers. Retailers that have included more equitable conditions for artisans and weavers. But there may still be some distance between promise and scale in the market. But this change will have to come from the customer side.

Fair trade certification

 Fair-trade certification is a product certification system designed to allow people to identify products that meet agreed environmental, labor and developmental standards. Companies offering products that meet the Fair-trade Standards may apply for licenses to use the Fair-trade Certification Mark.

CRITICISM
Ethical basis of criticisms Less money reaches farmers Corruption Inefficient marketing system Imposing politics Misleading volunteers Failure to monitor standards Little money reaches the Third World Unethical selling techniques Fair trade harms other farmers