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Fair Trade

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Fair trade

In recent years, there have been increasing concerns on the usages of chemical inputs and unsustainable production practices in agriculture across the globe. CSPC has been actively supporting farmers to adopt sustainable farming practices through extension and input support in its operational areas. There is also a growing awareness and willingness among consumers to pay a premium for products which are produced in a sustainable manner. Though this market segment is nascent at present, this is also growing every year.

CSPC supported two of its FPO get certification of Fair Trade. As part of the certification process, awareness generation campaigns were organised with groundnut farmers about practicing sustainable practices, to stop the usages of prohibited chemical inputs and other unsustainable practices. The certification team from Fairtrade visited the field locations and based on random checking with farmers granted two of our FPO’s get the fair trade license. Post certification, the farmers now receive USD 110 per Tonne premium for their groundnut. The price premium is about 16% higher than the market price and a part of the premium also goes towards meeting the expenses of FPO. One of the additional benefits Is that the produce is collected from the doorstep of the farmer, reducing the transport and transaction cost of the beneficiaries. CSPC is presently also exploring possibilities of Fairtrade certification in other commodities and ways to upscale the initiatives.

Ensuring Minimum Support Price (MSP) to Farmers

CSPC partnered with Gujpro (a consortium of FPOs) in Gujarat to ensure MSP to farmer’s, who are members of CSPC promoted FPO’s. 5 of the FPOS promoted by CSPC participated in this program.  These FPO’s were designated as government procurement agencies and provided a handling charge. The total procurement doe through CPPC promoted FPC in project area was Rs 40 Crores and most of the farmers were paid the money within 15 days of procurement. This year too when there is expectation of a bumper crop, CSPC is exploring ways of linking farmers to MSP.