Advantages And Disadvantages Of Fair Trade

711 Words3 Pages
Another issue is the intense certification process. For small producers, it may become too expensive and bureaucratic and sometimes they are not able to fulfil the Fair Trade requirements. This leads to reduced profit margins to the producers as they incur upfront costs for getting their products certified. For example, the producers may be taking a risk by paying for the certification but not being sure whether they will have good sales due to various external factors such as environmental disasters, diseased crops, etc. Furthermore, when it comes to Fair Trade, raw materials such as coffee, cocoa and cotton are preferred to processed goods. This limits the profits that the producers can gain as processed goods have a higher value. By the…show more content…
• The World Fair Trade Organisation should ensure that marginalised producers and workers are allowed to be present during the negotiation of trade deals, which may have positive or negative consequences on their livelihood. • FT products should be sold in mainstream supermarkets and even online. NATIONAL LEVEL: Nations all over the world face similar problems when it comes to fair trade. Fair Trade India aims to use the FT premium money to improve the quality of life of people in rural areas Example: In 2009, the FT premium received was utilised to provide a village in Haryana with a computer centre for girls to promote learning and education. The teacher is also paid with the FT premium money. However, in India corrupt leaders and politicians prevent the money from being utilised in the right way. We will never know how much money is actually used for the maintenance of the resources provided using FT money. Solutions: • The government should make conscious policies keeping local manufacturers in

More about Advantages And Disadvantages Of Fair Trade

Open Document