Fair Trade: An Overview
By: Abhilash Khalkar
Tags: Farmers, Food, Fair Trade, Agriculture, Farming

Image Source: Apaari

During the early 1980s, an apple was just an apple — a round, red-colored fruit. And if you wanted to buy a few, it wouldn’t have cost you much. You did not have information regarding whether the apple was cultivated organically, or if they were pesticide-free. You did not have information as to whether they came from Ukraine or Poland. And you certainly, were not bothered regarding the wellbeing of the farmers who cultivated them — or if their villages were equipped with clean sanitation, had clinics, or if their children had access to education. You just picked up your apples, had a cup of tea or coffee, and leave being no wiser about the conditions of the farmer or where your products came from.

Then suddenly during the late 1980s, stories of farmers and their worsening conditions started making frequent rounds on the television and newspapers. The reasons for such a shift were the rising importance of safe cultivation practices, the rise in environmental awareness, and the crashing prices of a few commodities. These incidents placed the income via agriculture in a serious position than ever.

The foundation of fair trade is ideally based on 3 core beliefs:

Producers or manufacturers have the right to convey their unity with customers Existing trade practices among nations promote the uneven distribution of wealth Procuring commodities from manufacturers belonging to developing nations, at a fair price is an excellent way to promote sustainable development as opposed to conventional charities

The Bleak Present

In the name of austerity, governments across the globe have shredded their budgets for industry audits. This has left companies across industries to audit themselves. And more often than not, companies both big and small alike, cheat, when they are conducting their audits. Forging in-house certifications for sustainability are very unlikely to empower cultivators or disrupt the trade structure. Companies, hence, often act in ways, which cause harm to the bottom line manufacturers or farmers.

Today the crisis in the agricultural sector is so stark, that organizations across the world have been motivated to provide farmlands and farmers, the required protection. This motivation on the part of companies is most likely stemming from their aim to secure future profits. There have been reports suggesting that companies are spending increasing amounts on sustainability initiatives. However, very few of these companies are following the impact of their investments on farmers and the environment. Organizations today, are just trying to check off tasks from their to-do lists, and are least bothered regarding the implications of their actions.

Time to Rethink Fairtrade?

Millions of people come together in Fair Trade Month, every year, to urge others to buy fair trade products and ‘be fair’. However, an increasing number of ethical campaigners and producers are raising questions regarding the capability of the fair trade system to tackle the widespread inequality in global labor and commodities markets.

Many people have claimed that a majority of the organizations across the globe utilize the fair trade certification to provide consumers with an illusion of ethical commitment. This permits large organizations to exploit the fair trade certification for commercial purposes. If organizations continue to act in a current manner, sooner or later the entire system will crumble.

We need to rethink fair trade to create a lasting positive impact on the society and environment. It is important that we give equal importance to every member of the system, and pay them their work’s worth. Fairtrade should ensure that farmers are paid at least a minimum sum for their products. This will help to provide them with a safety net for commodities, which have high fluctuation in their prices. An additional premium should also be paid to farmers, which can be utilized for their socio-economic wellbeing.

Fairtrade International has conveyed that its certifications compel organizations to adhere to regulations and are robust. They have also suggested that the standards laid for exporters and importers have been made more stringent. Moreover, the Internal Labor Organization Convention has mandated all traders to provide farmers with pre-finance for their produce.

Steps such as these are expected to do wonders in ensuring the wellbeing of farmers. These improvements have been perceived as a silver light behind a dark cloud. However, as per a majority of people, several steps in a similar direction have to be taken to protect and elevate the status of Fairtrade International.

Dealing with poverty stemming from decades of inequality and injustice is no mean task. I am honest regarding the difficulties our society has faced up until now, however, at the same time I am thankful for work carried out by Fairtrade International over the recent years, in often very daunting situations.

Final thoughts

I am delighted regarding the efforts put forth by organizations that is helping alleviate child labor improve worker empowerment, embed a fair supply chain, and enhance living wages. However, Fairtrade International alone cannot accomplish the betterment of society — be it revamping our policies and procedures, committing to the protection of children, or fixing injustice, we all have to pool in our efforts and ensure the upliftment of our society. Everyone on this planet is entitled to their human rights and along with Fairtrade International, and NGOs, we also have to work towards ensuring both, equality and equity.