Fairtrade works to help farmers and workers in countries with widespread poverty to get out of poverty while creating self-sufficiency – and to improve their own working and living conditions. Often, the payment that the farmer receives when selling the raw material is crucial for the family economy. That is why Fairtrade puts a minimum price on the raw material – which often results in much higher payments for the farmer. The purpose of the minimum price is for farmers to have a protecting and functioning safety net, even if the world market price fluctuates or is lowered by competition, and farmers risk running a deficit on their production. The growers can thus be safer, and Fairtrade makes it easier for them to plan a stable future.
When growers sell their cotton within the Fairtrade certification, they also receive a Fairtrade premium. The premium is an extra payment, a bonus, that farmers or employees collect in a mutually shared fund. The money is invested in environmental, economic and social initiatives that strengthen local communities in India. For example, free education, housing, free healthcare, investments in agriculture such as clean drinking water wells - and much more. Our partner was the first in India to be certified for Fairtrade, and they are very passionate about their employees and their futures, which is why they’ve invested in further initiatives: such as free transport to and from work and stocks in the business.