Fairtrade Certification and Poverty: A Panel Analysis of the Coffee Sector in India
Sabina Khatri Karki1, Pradyot Ranjan Jena2, Ulrike Grote1
1Leibniz Universität Hannover, Inst. for Environmental Economics and World Trade, Germany
The fairtrade minimum price and the price-premium make fairtrade certification unique. This particular certification scheme has gained popularity in the developing countries with the fact that it gives small-scale farmers access to global markets and directly or indirectly reduces poverty. Having said about fairtrade´s role as a poverty reduction measures, there has been too little research known about the impact of certified Indian coffee on Indian small-scale farmers. Although coffee had been introduced a long time ago, certification schemes remain limited in India. Fairtrade initiative is a new concept in the coffee sector of India, only started in 2007, which explains the limited impact studies. The cooperative called Small and Marginal Tribal Farmers Mutually Aided Cooperative Society (SAMTFMACS) of Araku Valley is the largest cooperative of coffee in India and is the first one to have received fairtrade certification.
Keywords: Coffee, fairtrade certification, India, panel analysis, poverty, smallholders
Contact Address: Sabina Khatri Karki, Leibniz Universität Hannover, Inst. for Environmental Economics and World Trade, Bischofsholer Damm 85, Room Number 471, 30173 Hannover, Germany, e-mail: karkiiuw.uni-hannover.de