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The project - Pro Sustain Country India

Funding Total: 1,040,376 Euro. EU: 832,301 Euro (80%)

Duration 01.01.2010 - 30.06.2013

Lead Partner Hivos

Partners International Resources for Fairer Trade (IRFT), Fair Trade Forum India (FTF-I)

Associate - Shop for Change Fair Trade (SFC)

Overall Objective: To contribute to building environmentally sustainable production and consumption practices that help reduce poverty amongst poor farmers and handicraft producers in India.

Specific Objective: To create a consumer market for fair trade products in India that measurably contributes to the improvement of rural livelihoods and provides farmers and artisans with the resources necessary to follow environmentally sustainable production practices.

Beneficiaries of the Action

Poor Farming and Handicraft producing families across

India

+/- 900 000 women and men

Target Groups

SME Members of FTF-I & Shop for Change

10 Major Branded Product Manufacturers

100 Students each in 75 Colleges

90 Corporate Offices with Gift Program

350 000 Upper Middle Class Consumers

Ministries of Commerce; Textiles & Agriculture

Outputs of the Action

Building Environmentally sustainable Production

practices

Reduce Poverty amongst poor Farmers and

Handicraft producing families.

Measurably contribute to the improvement of

Rural Livelihoods

Create Awareness on sustainable consumption

practices

Create a Consumer market for Fair Trade

Products

Create A Retail Channel for Fair Trade

Where Pro Sustain started…

Main barriers Pro Sustain

addressed

Lack of consumer

awareness on Fair Trade

values & practices

Limited presence of ‘Fair

Trade’ products in markets

Conducive Policy

Environment 36.3

63.7

0

10

20

30

40

50

60

70

% S

tud

en

ts

Yes No

Awareness of Students of Fair Trade Concepts and Its Products

37.1

62.9

0

10

20

30

40

50

60

70

% R

esp

on

den

ts

Customers

Awareness of Fair Trade Concepts and Its Products

Yes

No

Ref; Baseline Survey, Conducted by FTF-I

37.1 % Customers Aware about Fair Trade

36.3 % Students Aware about Fair Trade

Age Profile of the Customers

18.8

34.7

23.4

8.9

3.6 3.96.7

0

5

10

15

20

25

30

35

40

45

50

15-19 20-24 25-29 30-34 35-39 40-44 >45

Age-Group

% C

usto

mers

Age Profile of the Students

29.2

56.9

13.9

0

10

20

30

40

50

60

70

15-19 20-24 > 25Age-group

% S

tud

en

ts

Main opportunity: Who are the Consumer Groups?

Urban Middle Class & Youth : Potential age group of 20 – 35 yrs

Ref; Baseline Survey, Conducted by FTF-I

More than 57 % Potential Customers are young

36.3 % Students Aware about the values of Fair Trade

Drivers for Mainstreaming Sustainable Consumption

Income Profile of the Customers

24.6

18.6

6.7

1.0 1.7

47.5

0

10

20

30

40

50

60

<25,000 25,000-

50,000

50,000-

75,000

75,000-

100,000

> 100,000 No Income

Monthly Income

% C

usto

mers

Income Profile of the Students' Family

13.9

26.625.1

16.9 17.6

0

5

10

15

20

25

30

35

40

45

50

<25,000 25,000-50,000 50,000-75,000 75,000-100,000 > 100,000

Income Per Month

% S

tud

en

ts

Income level shows potential to purchase of

Consumers

Fair Trade Brand for Shops

Fair Trade Label(Domestic)

Corporate Procurement & Gifting

Lobbying with government

Exhibitions

Youth Outreach programs

Strategies for Mainstreaming Sustainable Consumption

For Corporates:

-Corporate conclave

-Corporate Procurement

& Gifting

With Government:

Exhibition & sale of

natural products & Policy

suggestions

Tactics for Mainstreaming Sustainable

Consumption

Actress Shefali Shah

releases Corporate Combo

Marketing sustainable consumption

Celebrity Endorsements…the Bollywood connection!

Shabana Azmi

Purab

KohliS.C.Seker Anirudha

Gul Panang

EKA Band Shefali ShahParveen

Dabbas

Usha Uthup

& Ramsey Lewis

Use of traditional Media & new media to spread

the message of sustainable consumption

Connecting with the consumer

Exhibitions &

Fairs

I support Fair

Trade

Campaign

Campus awareness

programs for youth –

schools and colleges

Engaging the youth

Post Awareness Willingness to Buy Fair Trade Products among

Students

68.9%

31.1%

Yes

No

75.7

24.3

0

10

20

30

40

50

60

70

80

% R

esp

on

den

ts

Customers

Post Awareness Preference to Buy Fair Trade Products

Yes

No

Need of Credible Brand &

Identifiable Label

Mainstream Product

availability

Communication training for

service providers

Consumer awareness

Media Engagement /

Effective use of social media

Celebrity endorsements

Need for Fair Trade

Curriculum in colleges and

schools

Engaging Government on

policy promotion

Corporate commitment on

procurement

Lessons on marketing sustainable consumption

RefL Survey, Conducted by FTF-I

Majority wish to buy Fair Trade

products when they were briefed about

its values

Engaging Government

Engaged with Government Ministries and other agencies to put sustainable

consumption and fair trade procurement in their activity agendas.

Government support ensured in terms of the promotion of Fair Trade at

exhibitions, in promotional campaigns and through retail collaboration.

Fair Trade product presence at two Nation-wide Exhibitions in years II and

III of the project.

Policy documents for promotion of Fair Trade submitted to at least three

ministries /departments of National Government.

Government resources or infrastructure were made available during and

after the project to promote sustainable consumption and Fair Trade.

Medium Small and Marginalized Entrepreneurs (MSMEs) in State

Governments have been sensitized and co-opted to hold Product

Consumer meets for Fair Trade Products

Policy Advocacy

Raised the issues and problems of producers at appropriate

levels/institutions to provide inputs for policy making to the

Ministries of Commerce & Trade, Environment, Textiles and

Handicrafts, Agriculture, Labour, such as -

unorganised women work force including artisans in the

studies being conducted by government agencies. Sensitised

them on how the Fair Trade approach helps to address some

of the issues on women participation in livelihood generation

activities.

to global issues and positioning of FTF-I within the global Fair

Trade Fraternity, issues on global standards on Fair Trade,

issues with member organisations and memberships, practice

of standards by members, etc,

Policy contribution to Govt of India’s 12th Plan

Components of social and environmental concerns and the upcoming global statutory regulations to ensure gender equity, fair wages and environment friendly practices/ processes and products that are free from child labor should be included as the core objectives of relevant Government Schemes.

Introduce a value chain fund to address the short term capital requirements of small producers

A single brand based on the ideals of Fair Trade to integrate marketing and retailing initiatives for handicrafts/ handloom/natural food/ tribal craft

A separate fund to support craft communities to get benefit of GI

There shall be clear guidelines towards integrating various government schemes that covers handicrafts sector such as schemes by Ministry of MSME, Ministry of Agriculture, Ministry of Rural Development and Ministry of Commerce

Outcome of Pro Sustain

Increased Consumer Awareness in four Major Cities in India

o Bangalore - Delhi – Hyderabad - Mumbai

o IRFT reached ca. 10.8 Million People

o FTF-I organized 10 Trade fairs & Awareness programs at various campuses

IRFT reached 40 Colleges = 25 000 Students, FTF-I reached 111 Colleges = 40 000 Students- Target was 75 Colleges & 7500 students

Over 125 Companies sensitized to incorporate Fair Trade Products in their Gifts

Fair Trade sales Increased from 3.62 Million Euro to 10 Million Euro - FTF-I and Shop for Change combined

Innovative approaches

Consumer Helpline on Fairtrade

Celebrity endorsements and youth sensitisation

FTF-I registered with ‘JustDial’ – India’s telephone directory service

Documentary “Fair Trade: A Way Forward” and its dessimination at various platforms

Organising CSR Conclave for corporate

Harmonising Inter – Agency

Information, Communication Systems

Regular Meetings

Birth of the Fair Trade Label

A Typical School Engagement Diagram - IRFT

Youth involvement – poster campaigns,

logo designs

Shop for Change

14 Commercial Brands Certified

6 Producer Brands Certified

Available in over 150 Stores & on Line

By 2014 45 SFC Branded Shops Across India

7 000 Farmers Certified in 7 States

12.2 Million Certified products Sold

1.3 Million Consumers reached through Media

States in India with Fair Trade presence

New Delhi 2 Stores

Maharashtra 4 Stores

Gujarat 2 Stores

Himachal Pradesh 1 Store

Tamil Nadu 4 Stores

Haryana 1 Store

Uttarakhand 5 Stores

Kerala 1 Store

Karnataka 3 Stores

Rajasthan 4 Stores

Odisha 2 Stores

Total 30

At the end of the Project 112 Members

Increase in Artisan & Farmer Base from 80 000 to 200000 via its Members

Maintenance of Cross Cutting Issues

Human Rights

Gender Equality

Democracy

Good Governance

Children's Rights

Environmental Sustainability

o Are amongst the 10 Fair Trade Standards Practiced by Fair Trade

Organizations/Members

Learnings

Amount of Time & Effort to change Sourcing patterns

Government Involvement & procurement policy

Access to finance for Fair Trade producers

Maintaining the momentum post project with consumers and corporate buyers.

Easy and continued availability of Fair Trade products – supply chain management.

Develop a unified Marketing Strategy addressing retail, hospitality and corporate buyers – eg. Hotel IBIS use certified cotton, Airlines consume certified products

Addressing value chain development from farm to retail under Fair Trade

A strong partnership and cohesive approach to implementation challenges in a vast and varied country like India.

Way Forward…

Build on achievements of Pro Sustain in creating the

ecosystem for sustainable consumption and production.

Nurture the brands and channels created, deepen and

widen Fair Trade products and service to sensitized

consumers.

Address key challenges -

o Access to finance to strengthen green agri-value chain

o Improving access to markets for Fair Trade producers

o Capacity building of MSMEs to manage and grow their

basket of sustainable goods and services.

Introducing…..New project A2F

Continuation of EU-SWITCH Asia Support –EURO 1.28 million initiative

for 48 months started April 2014.

Partners – Hivos, IRFT, India Foundation for Humanistic Development

(IFHD) and Friends of World Women Banking (FWWB)

Picking up from where Pro Sustain concluded

Objectives of A2F

The overall objective of the action is that MSMEs

increasingly adopt sustainable technologies using

financial incentives and linkages with retail markets.

• Specific objective 1:- Promotion of sustainable practices

across the supply chain of MSMEs:

• Specific objective 2: - To incentivise access to finance for

MSMEs adopting sustainable procurement & production

practices.

• Specific objective 3: Promotion of sustainable

consumption through certified production & procurement

practices

Key components of A2F

Result Areas Outputs

1. Increased use of sustainable

technologies by 30 MSMEs leading to

diversification of green and fair

products

1. Comprehensive survey and report on low cost,

sustainable, post harvest technologies viable in target

locations

2. Database of technical experts and extension service

providers to facilitate capacity building of MSMEs

3. Case studies documenting MSMEs adoption of

sustainable technologies and diversification of green

and fair products

2. Improved access to finance for 80

MSMEs using sustainable production

and post harvest technologies

1. Policy paper(s) making the business case for green

finance of MSMEs to the commercial banking sector

2. Dissemination workshops for the commercial banking &

financing sector and relevant Government forums

3. Increased market linkages and

consumer demand for 30 MSMEs for

green and fair products

1. Policy paper to promote procurement of sustainably

certified products by Govt agencies.

2. Promotional materials & media outreach to corporate

buyers and 10 million middle class consumers

Thank You

On behalf of Hivos

Aruna Rangachar Pohl

Executive Director

India Foundation for Humanistic Development

[email protected] +919538821481

Skype: aruna.pohl www.ifhd.in