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ETHICAL CONSUMERISM: AN OPPORTUNITY FOR INDIAN HANDCRAFTED AND HANDLOOM TEXTILE SECTORS

RESEARCH PROJECT

BY

NOORANI BISWAS

12DFT0025

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INDEX

SL.NO. CHAPTER PAGE

1 TITLE, OBJECTIVE AND RESEARCH METHODOLOGY 3

CHAPTER PLAN

2 INTRODUCTION TO ETHICAL CONSUMERISM 4

3 GREEN AND ETHICAL FASHION 5

4 ETHICAL ALTERNATIVES IN FASHION 6

5 GLOBAL INNOVATION FOR SUSTAINABILITY: TEXTILE AND APPAREL INDUSTRY 8

6 PURCHASE BEHAVIOUR TOWARDS ETHICAL PRODUCTS 10

7 SURVEY RESULTS 12

8 ECOLABELS, INTERNATIONAL ORGANISATIONS FOR CERTIFICATION OF SUSTAINABLILITY AND ECOLABELS IN TEXTILE AND APPAREL INDUSTRY 16

9 INTRODUCTION: INDIAN HANDLOOM AND HANDCRAFTED TEXTILE SECTOR 30

10 GLOBALIZATION AND ITS EFFECT ON THE SECTOR 34

11 GOVERNMENT STEPS TO SUPPORT THE HANDLOOM AND HANDCRAFTED TEXTILE SECTOR 37

12 MAJOR CHALLENGES FACING THE HANDLOOM SECTOR 44

13 MAJOR CHALLENGES FACING THE HANDICRAFTS SECTOR 46

14 ETHICAL STAND OF INDIAN HANDLOOM AND HANDCRAFTED TEXTILE SECTOR 48

15 ETHICAL CERTIFICATION ORGANIZATIONS IN INDIA

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16 PERCEPTION OF ETHICAL CONSUMERS TOWORDS HANDCRAFTED AND HANDLOOM TEXTILE PRODUCTS

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17 OPPORTUNITIES TO HANDCRAFT AND HANLOOM TEXTILE PRODUCER DUE TO ETHICAL CONSUMERISM

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18 CHALLENGES TO HANDCRAFT AND HANLOOM TEXTILE PRODUCER DUE TO ETHICAL CONSUMERISM

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19 CONCLUSION 53

20 BIBLIOGRAPHY 54

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TITLE

ETHICAL CONSUMERISM: AN OPPORTUNITY FOR INDIAN HANDCRAFTED AND HANDLOOM TEXTILE SECTORS

OBJECTIVE

The main objective is firstly, to closely analyse the consumer activism of ethical sourcing, which is creating awareness among consumers to buy products which is ethical, in the sense of socially responsible, environment friendly and economical. How Ethical consumerism is effecting on the purchase of green and ethical product?

Secondly, to research the current scenario of Indian handcrafted and handloom textile sectors in Globalization.

And thirdly, to analyse the opportunities created by the ethical consumerism for the Indian Handcrafted and Handloom textile sectors, which can be leveraged in its growth.

RESEARCH METHODOLOGY

Primary Data Collection: Customer survey to analyse the mentality of Indian youth towards Ethical product. Indian exporters and market demand survey through questioners.

Secondary Data Collection: Articles, books, research document, Case studies, etc.

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CHAPTER PLAN

Introduction to Ethical consumerism Ethical Consumerism is a type of consumer activism practiced through 'positive buying' in that ethical products are favoured, or 'moral boycott', that is negative purchasing and company-based purchasing. An increasing number of people make their consumption decisions on the basis of ethical values, such as environmentally friendly products and production methods, labour standards (wage rates and working conditions), and human rights. Ethical consumerism is a growing phenomenon that underpins ethical trade activities. The term "ethical consumer", now used generically, was first popularised by the UK magazine the Ethical Consumer, first published in 1989. Ethical Consumer magazine's key innovation was to produce 'ratings tables,' inspired by the criteria-based approach of the then emerging ethical investment movement. Ethical Consumer's ratings tables awarded companies negative marks (and from 2005 overall scores) across a range of ethical and environmental categories such a 'animal rights', 'human rights' and 'pollution and toxics', empowering consumers to make ethically informed consumption choices and providing campaigners with reliable information on corporate behaviour. Consumption is not a straightforward process. When we buy a commodity we are also responsible for the process it goes through to reach us. Under what conditions was an item of clothing or a new computer manufactured? Were workers paid fair wages? Were they exposed to harmful substances during the production process? Which products and which companies do I want to support with my purchases? Do I buy food in a supermarket, around the corner at a local vendor or at a weekly outdoor market? How will the product ultimately perish – will its destruction lead to polluting the earth, water or air? The term “ethical consumption” refers to selective consumption based on awareness of the environmental, social and economic aspects of consumption.

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GREEN AND ETHICAL FASHION

People around the world have become more concerned about environmental (ʻgreenʼ) issues. They worry about climate change, greenhouse gas emissions, fuel prices, and the impact that products may have on the environment. Public awareness of the escalating problems due to diminishing natural resources is helping focus attention on the need to adopt sustainable and healthy lifestyles. This scenario has fuelled the latest trend of ethical fashion.

Sustainable clothing and green eco fashion have entered mainstream consumer consciousness with a barrage of recent media attention. Itʼs now hip to show off your green and ethical credentials and the fashion industry has joined the party.

But what really is sustainable clothing and is it different from eco or organic clothing? While concepts of “sustainable clothing” and “organic clothing” share many similarities, they have different roots and history. Where organic clothing grew and evolved out of the organic agriculture movement, sustainable clothing is a product of the environmental movement. They are both working towards the same ends but one has the feel of the farm and the other has the feel of the lab. One of the most apparent differences between the organic approach and the sustainable approach is the emphasis that the sustainable approach places on reuse and recycling of manufactured products.

Improving a corporationʼs sustainability footprint and reducing environmental impact is about more than just recycling materials. It requires a more holistic corporate approach that includes reusing environmentally-friendly packaging, reducing manufacturing and operational waste and pollution, improving building energy efficiency and reducing energy consumption, moving towards the use of renewable energy, improving shipping and transportation efficiencies, and designing sustainability into the products and services that are sold to the public.

TEXTILE ECOLOGY

To analyse the sustainability and ethicalness of a Textile product, we need to analyse the life cycle assessment of textile or Textile ecology. Textile ecology consists of four sectors: production ecology, human ecology, performance ecology and disposal ecology.

Production ecology It examines the impact of production processes on people and environment, e.g. occupational health and safety, material, water and energy consumption, waste water and waste treatment as well as generation of dust and noise. Human ecology Human ecology deals with the impact of textiles and their chemical ingredients on the health and well-being of humans. Performance ecology Performance ecology comes in at the usage phase of textile products. It examines the environmental impact of washing, cleaning and caring for textiles. Disposal ecology Analyses the problems connected with disposal, reuse, recycling and removal (thermal recycling or landfill) of textiles.

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ETHICAL ALTERNATIVES IN FASHION Organic Cotton Cotton might appear to be the best choice for people looking for natural clothing but it is the worldʼs most heavily sprayed crop, around 150g of pesticide and fertilizer might be used to grow the cotton for a single T –shirt, and cotton farmerʼs account for 10% of all pesticides used. In developing countries, poor untrained and ill-equipped farmers are often expected to use some of the most hazardous pesticides available. The alternative of farming organically without the use of pesticides, is more difficult but it saves lives and improve health. Many have seen for themselves the effects of chemical farming – soil erosion and loss of soil nutrients, loss of nutrition in food, and human diseases resulting from the chemicals that inevitably seep into the water table, go directly to the users blood stream, which consequently affect's the body's organs and tissues, all the reasons for the urgent demand for organic foods and farming. Besides the naturally soft organic cotton fabric is a lot more comfortable to use and is available at competitive prices. Organic cotton textiles have evolved from being a niche product for the environment-conscious consumers to emerging as a highly fashionable product sold in major fashion boutiques and renowned fashion houses. Organic cotton is the cotton produced without employing chemical fertilizers and pesticides on plants that are not modified genetically. The organic production of cotton provides benefits not only for the environment and human health, but also for the socio-economic situation of farmers. The market is currently in evolving stage and is projected to expand significantly in the near term. India, Syria, and Turkey account for more than 85% of the global organic cotton production .The United States represents the leading consumer of organic cotton and eco-textiles. The nation accounts for 40% of the organic cotton consumption in apparel products.

Organic Wool Despite the fact that wool is a natural fibre, its processing is far from being eco friendly. Conservative woolmaking process creates adverse results in the environment and livestock health. Animals are subjected to synthetic pesticides, synthetic hormones, or genetic engineering. Organic wool has been produced using eco-friendly methods. It comes from sheep bred under holistic environment, in natural and healthy conditions. Organic wool is cleaned using biodegradable cleaning agents. Processing of raw wool and converting them into fabric isdone without exposure to harsh chemicals. Organic woollen clothes are non allergenic, and hence can be worn by people with chemical sensitivities. Adopting sustainable options in the entire value chain is one of the driving forces of the textile sector today.Smart innovations are the main influencing factor for the development of sustainable textiles. Organic and Peace Silk Silk, the “Queen of Fibre”. Darling of the haute couture set for the luxurious feel and drape. Even though silk is a natural fibre, but how organic, sustainable, ethical and healthy is silk? The finest, most desirable silk comes from the mulberry silkworm, which is actually a caterpillar and not a worm. Known as the Bombyx mori by entomologists. Bombyx mori moth eats only mulberry leaves. One acre of mulberry trees produces enough foliage to feed silkworms that create 178 pounds of cocoons which can beunravelled into 35 pounds of raw silk. The mulberry leaves are a renewable and sustainable crop as the treesproduce year after year. One mature mulberry tree will produce enough foliage for 100 silkworms. The raw silk threads are produced easily to comply with emerging sustainable and organic standards for silk and be manufactured into silk eco-fashion and organic clothing, except for this a 3 inch ethical problem – the Bombyx mori silkworm that is gassed, steamed, or boiled alive to prevent them from escaping from their cocoon as a mothby dissolving a hole in the silk cocoon. To make one pound of the finest silk, 2600 silkworms must die.Fortunately there is an ethical alternative to this, some silk manufactures doesnʼt kill the worms inside the cocoonand let them come out of it. Silk from the damaged cocoon are then spun into yarn like cotton, instead of reeling.This type of silk is known as Vegetarian silk or Peace silk. The Bombyx mori silkworm is not the only silkworm that spins a silk cocoon that can be used to produce silkfabric for silk clothing. There are many species of wild silk caterpillars that produce silk cocoons used in theproduction of silk fabrics, sometimes called “wild silks” or “peace silks” because the silk caterpillars are allowed tolive complete and natural lives in the wild without being sacrificed for fashion. Some of the wild silkworms which are domesticated are Eri, Muga, Tussar. Most wild silkworms are multivoltine, which means that they producecocoons several times during the year rather than just once a year like the Bombyx mori. One of the highly desirable properties of the Bombyx mori silk fibres due to the unique structure of their fibroin protein is their exceptional ability to absorb dyes; wild silk caterpillars secrete a slightly different protein structure and their silk fibres tend to not accept dyes as well, is one reason for the brilliance and luster of dyed silk fabrics.

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Cellulosic Fibres Rayon, modal and lyocell are produced from renewable cellulosic plants such as beech trees, pine trees, and bamboo. All three fibers are biodegradable. Specifically, Lenzing Viscose® and Lenzing Modal® are produced from sustainably harvested beech trees and Tencel® from sustainably harvested eucalyptus trees. Eucalyptus grows quickly and without irrigation, pesticides, fertilizers or genetic manipulation; it can also be planted on marginal land that cannot be used for food crops. The fiber yield per acre from the trees used in the Lenzing fibers is up to ten times higher than that of cotton. Also, cotton needs up to 20 times more water.

However, there are many manufacturers of rayon. Even with the advancements that have been made over time, most rayon manufacturing processes in use today are not considered environmentally friendly. In fact, they use a range of polluting chemicals and heavy metals. On the other hand, lyocell manufacturing, and that of Tencel® in particular, is an extremely environmentally friendly process and the friendliest of these three fibres.

Since regenerated fibres do not qualify for organic certification, other recognized eco standards that review the entire process chain for growing and harvesting the trees through the manufacturing and treatment processes must be applied to these fibres. One such award that has been given to Lenzing for Tencel® is the European Eco-Label, which addresses compliance with high environmental standards for production and products.

As early as 1963, Lenzing started recycling the chemicals from pulp production after the company switched from the calcium bisulphite method to an environmentally friendly magnesium bisulphite method. The revolutionary aspect of Tencel® manufacturing is the recovery and reuse of up to 99.8 percent of the solvent and the remaining emissions are broken down in biological water treatment plants. In fact, the solvent is not acidic, does not remain in the fibre, and has been proven harmless in dermatological and toxicological tests.

Finally, we need to remember that much of the total environmental impact of textile goods comes from their care. With lyocell fabrics, there is no need for fabric softener or whitening agents, and energy and water use can be decreased due to shorter washing machine cycles. So with this knowledge and careful shopping for respected eco-friendly labels, you can buy textiles from manufactured fibres that can be considered to be green.

Bio based alternatives

Cotton and polyester, together, account for over 80% of the world clothing output. They have dominated the market because they were available in abundance and cheap, but they both have sustainability issues in their different ways. According to a report in Eco Textiles, a full life cycle analysis can show an accurate assessment of the environment al impact of any fibre. Among the issues, the growing of crops for raw material using land, which could be for food, is questionable, and that includes cotton and corn (for bio plastics). The polyester industry believes that viable alternative will be available with advances in renewable energytechnology. Textiles made from biopolymers derived from renewable materials (such as corn) are likely toincrease in the coming years, reducing dependence on oil based polymers. Biopolymers are biodegradable, and their inherent properties make them suitable for protecting from moisture, increasing shelf life, and easier to dispense. DuPont has expansion plans for its sorona biopolymer into textiles, while producers such as Proctorand Gamble have committed to replace 25% of their non-renewable materials by renewable or recycled alternatives by 2020.

Natural Dyes More chemicals are used in the making of textiles which are carcinogenic in nature. Textile industry is currently concerned about the use of natural dyes sourced from plants, minerals, and animals. Vegetable dyes are found in most of the plant tissues. Litchens are rich source of vegetable dyes. Other plants such as onion, mango, pomegranate, etc are also rich in dye content. Secretions of insects such as lucca, cochineal, and kermes are used for dye extracts. As far as mineral dyes are concerned, oxides of iron, tin, and antimony are used along with vegetable or insect dyes. Natural dyes not only release medicinal properties but also improve the aesthetic value of the product. They are unique, and eco-friendly.

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GLOBAL INNOVATION FOR SUSTAINABILITY: TEXTILE AND APPAREL INDUSTRY

Global awareness and demand for sustainability has spurred industries to develop process and systems to bring sustainable and ethical principles. Companies are focusing that, the need of their consumers are met without much damage to the environment. During the past few years, with the wake of global warming effects, sustainability has gained increased importance among businesses. New methods are applied in business practices to reduce pollution by better utilization of raw materials, and also to improve financial results. Technological improvements help to foster sustainable business practices.

Sustainability is recognised as a major concern throughout the textile and garment industry. Innovative solution has not only improved production at each stage of the textile and garment chain, but also save on costs, energy, chemical inputs, water and waste, ultimately reduces emission. Innovative technologies are designed, developed, and marketed around the world. The speed of innovation has increased and technological landscape is going through rapid changes, reversing the negative effects of the textile industry.

INNOVATION IN DYE AND FINISHING TECHNIQUES

Textile sector use a lot of water in fabric dyeing and finishing traditionally. There is a strong need to reduce the use of water in these processes to achieve sustainability. New technologies for sustainable solutions for dyeing and finishing were evident in international fairs like ITMA, a vast international textile machinery fair held every four years (in Barcelona 2011).

Denim Industry: Fading and trashing denim jeans is enduringly popular, as well as posing a health risk for workers. Until now, it has been done most often through blasting a spray of sand at a garment to remove the top surface of the fabric, which then becomes fade and abraded with washing for a pre-worn look. But, this process is potentially hugely damaging to the health of textile workers, who can inhale air borne dust. Prompted by health concerns, some major denim brands have now banned suppliers from sandblasting denims, which is a significant step. Laser technologies can create the ʻusedʼ effects on denim without using any water, or any unhealthy techniques. The laser maps out the washing details etching them into the surface of the denim to imitate real aging and worn effects. The systems allow for savings in energy, water, chemicals, and it is infinitely faster. Between 100 and 200 jeans can be produced per hour, while manual scraping produces only 10 units per hour, sandblasting 30 and spraying 60.

Spanish company Jeanologia, which has long been a pioneer in the development of laser for textiles and making machines for laundering denim since 1985. The company has been developing advanced techniques both wet and dry denim garment processing. Washing denim jeans is one of the most polluting activities in the apparel industry. According to Jeanologia, in terms of usage, one pair of jeans uses 70 litres water, 1.5 kwatt of electricity, and 150gms chemicals. But by using a different method of finishing to achieve the ʻusedʼ look, says Jeanologia, this can be reduced to 20 litres water, 1.0 kw and 50gms chemicals. Laser engraving is a safe, quick and eco-friendly way to achieve the aging effects of wear, without using chemicals. Now marketing its third version of the guided laser system, which can also replicate the use of chemical bleaching; output is up to 4,000 pairs of jeans a day. Jeanologia has also created the ʻWaterlessʼ G2 Washing Machine – its latest development to debut in 2012. This is a unique eco-washing machine, which allows the washing of jeans and shirts with vintage finishing, without using water or chemicals. How it works is: air from the atmosphere is transformed into a blend of active oxygen and ozone called ʻPlasmaʼ, which is used to age garments. The plasma is then transformed into purified air before it is returned to the atmosphere.

Italian company Tonello Garment Finishing Technologies introduced G1 N2 Nitrogen Dyeing Machine, offers eco friendly washing and dyeing by allowing the dyeing process to be carried out in a nitrogen atmosphere, thereby drastically reducing the use of chemical products, ensuring a cleaner and safer work environment and guaranteeing sustainable economic saving as well as improved stability in dying process. ʻWaterlessʼ dyeing is another technology, which dyes fabric with absolutely no water at all, being taken up by big sports brands including Puma and Adidas.

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Branded DryDye are developed by the Yeh Group in Thailand, DryDye are dyed using only CO2 and high pressure, a form of dyeing which lowers chemical inputs and reduces energy and dye stuffs, and uses no water at all.

Sustainable Enzymes are proteins catalyzing chemical reactions. They are applied during the preparation, after dyeing and finishing stages of textile manufacturing to facilitate modification of textiles. Repeated water washes, or chemical reducing agents were traditionally used which leaves behind harsh chemicals. New sustainable enzyme technology facilitates in shorter process time, milder process conditions, improving the finishing of textiles, results in cost-effective innovation and most importantly is environmentally friendly. Applications of sustainable enzymes offer sustainable advantages for eco-scouring in the pre-treatment of cotton fabrics. This process results in 30% of water saving, and 60% of energy saving compared with the standard processes. It also enhances the quality and brightness of fabrics after dyeing.

RECYCLING: A SUSTAINABLE INNOVATION

We think of natural products as being more sustainable, but it is recycled products, which are actually proving to be more immediately accessible and viable, whether from recycled synthetic materials or recycled natural fibres such as wool. Giving new life to materials, destined for landfill, is a neat solution. And, more are taking up recycle fibres, as a response to market demand for social awareness and responsibility.

Plastic bottles into polyester: Recycled polyester, which comes mainly from drink bottles, is really gaining ground. In just a year Newlife, the recycled polyester yarn from Filatura Miroglio, made from plastic bottles collected and transformed entirely in Italy, has grown into a commercial reality, and is now being made into fabric available from for instance Boselli E. &C. and Tessitura Virgilio Taina, as well as in fabric ranges from Pontetorto, Becagli and Klopman, primary for performance sportswear applications. The Newlife recycled fibre is a “complete and certified system of recycled polyester filament yarns coming 100% from post consumer bottles, sourced, processed into polymer through a mechanical process, not a chemical one, and spun into yarn, completely and exclusively made in Italy.” The Newlife Process is the first of its kind, and leading the way in sustainable innovation for the textile yarn industries, with a unique supply chain approach.

Fishing nets into nylon yarns: Most of the nylon (polyamide) being recycled comes from damaged fishing nets. Recycled nylon yarn has been developed by Italian synthetic fibre producer Aquafil, which is already being used by circular jersey knitters Carvio and Jersey Lomallina to develop line of sustainable sportswear fabrics. The new branded Econyl yarn is a 100% recycled hollow polyamide, made from post consumer discarded products such as fishing net, old carpets and plastic from cars, which would otherwise be dump into the landfill. This has turned into a new polymer and then yarn for the production of new generation of ultra light comfortable high performance fabrics.

Jute sacks into Starbuck interior: While on the subject of recycling, another new fabric with an unusual raw material is WoJo fabric for Starbucks interior. This is made from recycled jute coffee sacks mixed with wool, made by UK firm Camira with yarn developed by Wools of New Zealand.

Recycle fibre into new fabric: Around 40 companies under a new label, Cardato Regenerated CO2 neutral, are recycling used fabrics and its fibre into new fabrics. The city of Prato, equipped with a purification system, recycles 22000 tons of textiles a year, which are sorted for different end uses. It is mainly the woollen articles that are destined for fraying and spinning once again into production of fabrics for clothing. This is either turned into wadding or mixed with virgin wool, which has longer fibres, to be able to spin the yarn. Among many commercial fabrics already being produced, Furpile, a member of the Cardato Group, is upcycling regenerated wool to make a jersey flannel.

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PURCHASE BEHAVIOUR TOWARDS ETHICAL PRODUCTS

People do think and care about ethical, social, environmental, and health concerns and would purchase a green product over an environmentally problematic product. But consumers will only buy an ethical product if it doesnʼt cost more, comes from a brand they know and trust, can be purchased at stores where they already shop, doesnʼt require a significant change in habits to use, and has the same level of quality, performance, and endurance as the less-social alternative. Letʼs understand how social consumption fits into our general understanding of consumption behaviour.

GENERAL SURVEY ON ETHICAL CONSUMERISM

During the last 25 years, there has been debate about the value of corporate social responsibility (csr), particularly as it relates to the rise of "ethical consumers." these are shoppers who base purchasing decisions on whether a product's social and ethical positioning—for example, its environmental impact or the labor practices used to manufacture it—aligns with their values.

Many surveys purport to show that even the average consumer is demanding so-called ethical products, such as fair trade–certified coffee and chocolate, fair labor–certified garments, cosmetics produced without animal testing, and products made through the use of sustainable technologies. Yet when companies offer such products, they are invariably met with indifference by all but a selected group of consumers.

Is the consumer a cause-driven liberal when surveyed, but an economic conservative at the checkout line? Is the ethical consumer little more than a myth? Although many individuals bring their values and beliefs into purchasing decisions, when we examined actual consumer behaviour, we found that the percentage of shopping choices made on a truly ethical basis proved far smaller than most observers believe, and far smaller than is suggested by the anecdotal data presented by advocacy groups.

The trouble with the data on ethical consumerism is that the majority of research relies on people reporting on their own purchasing habits or intentions, whether in surveys or through interviews. But there is little if any validation of what consumers report in these surveys, and individuals tend to dramatically overstate the importance of social and ethical responsibility when it comes to their purchasing habits. As noted by John Drummond, ceo of corporate culture, a csr consultancy, "most consumer research is highly dubious, because there is a gap between what people say and what they do."

The purchasing statistics on ethical products in the marketplace support this assertion. Most of these products have attained only niche market positions. The exceptions tend to be relatively rare circumstances in which a multinational corporation has acquired a company with an ethical product or service, and invested in its growth as a separate business, without altering its other business lines (or the nature of its operations). For example, unilever's purchase of ben & jerry's homemade inc. Allowed for the expansion of the ben & jerry's ice cream franchise within the united states, but the rest of unilever's businesses remained largely unaffected.

Companies that try to engage in proactive, cause-oriented product development often find themselves at a disadvantage: either their target market proves significantly smaller than predicted by their focus groups and surveys, or their costs of providing ethical product features are not covered by the prices consumers are willing to pay. (for a different perspective on these issues, see "the power of the post-recession consumer," by john gerzema and michael d'antonio, s+b, spring 2011.) Consumers are aware of a great deal about the issues, and agree that good practices involving labor, the environment, and intellectual property are important to society. But most did not consider such issues to be relevant to them personally. Indeed, they often stated that someone other than the individual consumer should be responsible: the law ("the government should protect the environment"), the competitive market ("it's too bad, but all sneaker companies do this"), the companies themselves ("advertising should let us know about this"), or the overall system ("i cannot do anything, so why bother thinking about it?").

Another key finding is that most people will not sacrifice product function for ethics. When faced with a choice of good ethical positioning and bad product functionality or good product functionality and bad ethical positioning, individuals overwhelmingly chose the latter. They revealed an astounding reluctance to consider ethical product features as anything but secondary to their primary reasons for purchasing the products in question.

Contrary to other research that has typecast ethical consumers demographically or by their responses to surveys of values, we find little difference between people who take into consideration social aspects of products and those who do not. For example, it has been commonly assumed in the popular media that Europeans, with their strong tradition of social democracy, are more socially aware than Americans bred on notions of self-sufficiency and individualism. However, we found only weak support for this idea.

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Simplistic notions about differences influenced by gender, education, income, culture, domicile, basic values, and so on proved similarly unfounded. It is often assumed that individuals from emerging-market countries are significantly less sensitive to social issues, being more concerned about economic development. Again, the reality is more complex; individuals' responses were more nuanced. It is found that although those from Germany, the United States, or china might rationalize their ethical consumption (or lack of it) differently, the purchase behaviours being justified are remarkably similar.

Proponents of ethical consumerism want to believe that people's socially oriented choices are somehow different—perhaps made at a higher level of consciousness—from their general product choices. This is a delusion. Product ethics are more important only when individuals, comparing such ethics to all the other things that have value to them, determine that they are more important. And research shows that for many people, this is seldom the case.

To some, this will sound like heresy. How can it possibly be that the cost of a bar of soap is more important than knowing that it won't pose an ecological hazard? Whatever the moral merits of the issue, for many ordinary people in ordinary circumstances, the cost does matter more. Even a factor like the color of a running shoe matters more, to most people, than the conditions under which the shoe was made.

The emergence of a true ethical consumer base is a long way from being a reality. Although some consumers today do take into consideration the social aspects of their purchasing behavior and care about a company's csr policies, most do not care enough to pay a higher price. Looking ahead, however, social consumption may have the potential to become a mass-market phenomenon. In fact, we see a parallel between the current ethical consumer market and the early days of e-commerce in the mid-1990s. As internet usage expanded and capabilities and security grew more sophisticated, consumers learned to integrate technology into their daily lives. Now, amazon and myriad other online destinations have made e-commerce an integral part of the shopping (and banking) culture.

RISE OF ETHICAL CONSUMERISUM THROUGH AWARNESS

Socially responsible consumption today is a nascent skill. Individuals do not necessarily know how to translate descriptions of ethical activity into judgment. (For example, what is a "good" labor practice? How much of a difference does an "ethical" sneaker purchase make in improving labor conditions?) Nor do they have any reason to trust in the verifiers, which are often the corporations themselves, or biased third-party organizations.

For more ethically oriented consumption to really take hold, the consumer needs to become a knowledgeable participant, not a reader of labels. Rather than relying on traditional market research techniques, firms need to help their existing and future consumers become more socially conscious in their purchasing. This will require giving consumers more tangible, reliable information about the health, social, and environmental benefits of their products and services, in the context of the many choices consumers have to make. Product labels will have to explain why a certain company's production footprint, packaging techniques, or ingredients are better than those of the competition—and have that superiority verified, ideally by independent sources that are accessible through the web or social media, conceivably through a shopper's smartphone.

Bit by bit, this type of information is becoming more available, and people are starting to bring their values not just to the survey but to the checkout counter. But that movement will be gradual, and such behaviour is still far from being second nature. It is possible that 10 or 20 years from now people will be purchasing ethically as a matter of habit, but corporations (along with third-party information providers) must first make the social merit of their products and services tangible to the pragmatic consumers who dominate the market.

This article was originally published by strategy+business magazine and was adapted from devinney, auger, and eckhardt's book, the myth of the ethical consumer (Cambridge university press, 2010).

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SURVEY RESULTS

With an aim to collect primary data for this research project, two surveys has been taken, firstly survey on Consumer behaviour and secondly on Ethical business.

SURVEY RESULTS OF CONSUMER BEHAVIOUR

The survey on consumer behaviour results the core reality of the consumer behaviour in todayʼs ethical activism. The result is not unlike other survey results on ethical consumerism conducted in different part of the world before. Ethical consumers are not from another planet. They are the same consumer as before with basic needs, a consumer, which desire for primary feature in a product like use, quality, and cost. Ethical consumers have evolved from these consumers with sense of responsibility towards themselves, their surroundings and care for their planet. Though the basic desired features of a product remained primary, and the ethical features are still secondary in their desired products. Letʼs see what the survey suggests:

On asking the participants to arrange a list of product features according to their preference while buying a product: Utility, Quality and Cost were the top 3 preference whereas Environment friendly, Fair trade and Child labour free were last 3 preferences out of 10 product features. Around 46.7% of participants gave first preference to Utility and 76.6% of respondent opted Child labour free as least preferred feature while buying a product. This clearly indicates that consumers prefer primary features first.

On asking for preference of ethical features while buying an ethical product: 42.9% gave first preference to Environment friendly product, 32.1% gave first preference to Healthy products and 46.4% gave least preference to fair wages to labour. Consumers first take care of themselves in the environment then care about others related in the product supply chain. Ethical feature will be accepted as primary features only if it relate to or benefit the consumers directly.

30% admitted that they never bought any ethical product. This shows they are not aware of the ethical consumerism nor they have accessibility to ethical products and hence not motivated to buy ethical products.

93% said they would buy ethical product if it is affordable. Though some research claims that, consumers are willing to pay more to buy ethical product, but is very little in number who actually buy ethical products at more price than other similar products.

The survey also shows that 36.7% admitted that they would prefer an unethical product with good product features over an ethical product with less product features. This makes clear that ethical products cannot ignore the competition faced from product & design innovation and technological up gradation. The ethical products will survive in a market only if it provides same or better product features than the similar products present in the market at an affordable price.

About 62.1% said they will look for authentic eco-labels or certification while buying an ethical product. And about 27.6% said they will rely upon the company, offering ethical product. Consumers feel it is companyʼs responsibility to promote their ethical features in product as only 10.3% of the participants said they will take proactive steps to find out the ethicalness of the product themselves. Hence if a company is dealing in ethical product it should get authentic certification or eco-labels to attract ethical consumers and promote its ethical activities to make the consumer aware of their products.

51.7% preferred to buy ethical products from nearby shops over shopping online or buying from store at a long distance from home. The degree of accessibility of ethical product will also affect in the purchase of ethical products.

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SURVEY 1 QUESTIONS AND ANSWERES

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SURVEY RESULTS OF ETHICAL BUSINESS

Along with consumers survey it is important to understand the current business practice towards ethical consumerism. As the consumers are getting aware of ethical issues and demanding products which is, environmental friendly, sustainable and socially responsible, companies also need to stand up to the international standards of ethical business and provide ethical products. Only producing and selling products is not enough, the companies need to promote their social and ethical causes behind their product. They have to make the customers trust them of their authenticity.

There is a difference between consumer demands and actual number of ethical products getting sold. Ethical consumerism and awareness is on rage but this activism is not showing in the sells chart. Almost 50% of companies participated said they have less demand in market for ethical products. Only 25% says they have good demand for their ethical products.

Despite of less demand, the market is slowly moving towards ethical business and will acquire a big share in future. According to survey 58.3% company said they are already dealing in ethical products and 25% are planning enter ethical business in next 5yrs and other 16.7% in 10 yrs.

Around 41.7% are certified with eco-labels and standard certifications. It is also found that 33.3% find lack of knowledge about the certification and there benefits. Unfortunately many companies are taking ethical causes to promote their products without taking ethical steps to produce or source the products. Many are fraud claiming of being an ethical company whereas others who are actually ethical are not getting the benefits of being ethical because of lack of knowledge.

This clearly shows that there is no doubt that demand for ethical products is increasing. But to meet the demand and gain out of this market activism there is need to fill out the missing links and gaps in the producer consumer relation.

SURVEY 2 QUESTIONS AND ANSWERES

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WORLD’S MOST ETHICAL COMPANIES

The Ethisphere Institute, a New York City think tank, has announced its sixth annual list of the Worldʼs Most Ethical Companies 2012. Highlights include Starbucks (NASDSAQ:SBUX) and General Electric (NYSE:GE) among the 23 companies that have been named for six years running since Ethisphere first launched the rankings. New additions include Intel (NASDAQ:INTC), Hasbro (NYSE:HAS), Kimberly-Clark (NYSE:KMB),L’Oreal (PINK:LRLCF), Honeywell (NYSE:HnON), Time Warner (NYSE:TWX), Alcoa (NYSE:AA),CostCo (NYSE:COST) and Kellogg’s (NYSE:K), among others. The 2012 list includes a record 145 companies, up from 110 in 2011. Also of note is that this year 43 of the companies listed are from outside the U.S. Including two from India, Tata Steel and Wipro that have been rated most ethical by the institute.

Worldʼs Most Ethical Companies 2012 in Apparel Comme Il Faut Israel Gap Inc USA Patagonia USA Timberland USA

Ethisphereʼs Worldʼs Most Ethical Companies ranking provides companies a chance to be recognized for their efforts in ethics and compliance. The winners of the Worldʼs Most Ethical Companies are the standouts. Each of these companies will have materially higher scores versus their competitors. They are the companies who force other companies to follow their leadership or fall behind. These are the companies who use ethical leadership as a profit driver. And each of these companies embody the true spirit of Ethisphereʼs credo, ʻGood. Smart. Business. Profit.ʼ

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ECOLABELS

How do consumers and institutional buyers know if something is ʻgreenʼ or ʻeco-friendlyʼ? As environmental qualities are often imperceptible in the final product, producers need to make them visible to consumers. Many ecolabels and eco-certification schemes have been launched to validate green claims, guide green purchasing, and improve environmental performance standards. Done well, ecolabels and eco-certifications can provide an effective baseline within industry sectors by encouraging best practice and providing guidelines that companies must meet in order to meet a certified standard. Demand for products with ecolabels is growing, though confusion about which companies are truly environmentally responsible persists.

Several large companies and government agencies have recently announced or improved their green- or eco-purchasing policies, notably Wal-Mart, Office Depot, Mars, Dow, Dell and the US Federal Government. In order to meet their policies, these large-scale institutional purchasers need standards, detailed information, and proof that a product is green.

The ecolabel and eco-certification landscape is currently fragmented and often confusing to institutional buyers as well as individual consumers. Marketplace confusion has grown and continues to grow due to competing claims on what makes a product ʻgreenʼ, especially when there are two or more competing schemes for the same sector or product. Some ecolabels are regionally specific, while others are global; and some have stricter criteria than others. Compounding the problem is a lack of good quality standardized and comparable information worldwide. According to a European market research study (OECD, 2006), marketing, consumer confusion and competition between similar schemes has caused low market penetration for some ecolabels.

It is very important for manufacturers and sellers to choose ecolabel which is globally accepted and meets global quality standards. It should get certification which is known and appreciated by their specific market.

According to ecolabelindex, there are around than 103 ecolabels on textiles products and textile raw materials, which provides certification and labelling for eco-friendly and sustainable products in various countries. We will focus on the ecolabels with international standards which is beneficial for Indian textile industry.

INTERNATIONAL ORGANISATIONS FOR CERTIFICATION OF SUSTAINABLILITY AND ECOLABELS IN TEXTILE AND APPAREL INDUSTRY

INTERNATIONAL ORGANIZATION FOR STANDARDIZATION

ISO (International Organization for Standardization) is the worldʼs largest developer of voluntary International Standards. International Standards give state of the art specifications for products, services and good practice, helping to make industry more efficient and effective. Developed through global consensus, they help to break down barriers to international trade. ISO International Standards ensure that products and services are safe, reliable and of good quality. For business, they are strategic tools that reduce costs by minimizing waste and errors and increasing productivity. They help companies to access new markets, level the playing field for developing countries and facilitate free and fair global trade.

Some of the important sustainable and ethical standards:

• ISO 9000 Quality management The ISO-9000 series of standards evolved by the international standards organisation has been accepted worldwide as the norm assuring high quality of goods. The ISO-9000 is also the hallmark of a good quality oriented system for suppliers and manufacturers. It identifies the basic principles underlying quality, and specifies the procedures and criteria to be followed to ensure that what leaves the manufacture/supplierʼs premises fully meets the customerʼs requirements. The ISO- 9000 series of standards are basically quality assurance standards and not product standards. ISO-9000 spells out how a company can establish, document and maintain an effective and economic quality control system which will demonstrate to the customer that the company is committed to quality. The series of standards aims at the following: 1. Increased customer confidence in the company,

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2. A shift from a system of inspection, to one of quality management, 3. Removing the need for multiple assessment of suppliers, 4. Gaining management commitment, 5. Linking quality to cost-effectiveness, 6. Giving customers what they need. The implementation of ISO-9000 standards involves: 1. Management education, 2. Writing a quality policy, 3. Nominating a quality representative, 4. Identify responsibilities, 5. Identifying business process, 6. Writing a quality manual, 7. Writing procedures, 8. Writing work instructions. It is thus clear that the ISO-9000 series of standards constitute of concept of Total Quality Management (TQM)

• ISO 14000 Environmental management

ISO -14000 is the first series of International standards on environmental management system issued by ISO. The main purpose of the ISO 14000 series is to promote more effective and efficient environmental management is organizations, 1.e. management that is systems-based, flexible and cost-effective. ISO 14001 provides the elements for an effective environmental management system which can be integrated into other management requirements. The system enables an organization to establish and assess the effectiveness of procedures for setting environmental policies and objectives, achieving conference with these objectives and demonstrating such conformance. ISO 14001 series specifies the requirements for certification and self declaration of enterpriseʼs environmental management system. Compliance with the standards will give exporting enterprises a competitive edge. For enterprises in developing countries, the ISO 14000 series of standards represent on opportunity for technology transfer and a source of guidance for introducing and adopting an environmental management system based on best universal practices. The whole ISO-14000 family provides management tools for organizations to control their environmental aspects and to improve their environmental performance. Together, these tools can provide significant tangible economic benefits, including: 1. Reduced raw material/resource use, 2. Reduced energy consumption; 3. Improved process efficiency; 4. Reduced waste generation and disposal costs; and 5. Utilization of recoverable resources. In India, export and trading houses that have acquired certification to ISO 9000, ISO 14000 or the equivalent internationally recognised certification of quality are granted Star Export House status on achievement of a lower threshold limit.

• ISO 50001 Energy management Using energy efficiently helps organizations save money as well as helping to conserve resources and tackle climate change. ISO 50001 supports organizations in all sectors to use energy more efficiently, through the development of an energy management system (EnMS). ISO 50001 is based on the management system model of continual improvement also used for other well-known standards such as ISO 9001 or ISO 14001. This makes it easier for organizations to integrate energy management into their overall efforts to improve quality and environmental management.

ISO 50001:2011 provides a framework of requirements for organizations to:

1. Develop a policy for more efficient use of energy 2. Fix targets and objectives to meet the policy 3. Use data to better understand and make decisions about energy use 4. Measure the results 5. Review how well the policy works, and 6. Continually improve energy management.

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• ISO 26000 Social responsibility Business and organizations do not operate in a vacuum. Their relationship to the society and environment in which they operate is a critical factor in their ability to continue to operate effectively. It is also increasingly being used as a measure of their overall performance. ISO 26000 provides guidance on how businesses and organizations can operate in a socially responsible way. This means acting in an ethical and transparent way that contributes to the health and welfare of society. ISO 26000:2010 provides guidance rather than requirements, so it cannot be certified to unlike some other well-known ISO standards. Instead, it helps clarify what social responsibility is, helps businesses and organizations translate principles into effective actions and shares best practices relating to social responsibility, globally. It is aimed at all types of organizations regardless of their activity, size or location. The standard was launched in 2010 following five years of negotiations between many different stakeholders across the world. Representatives from government, NGOs, industry, consumer groups and labour organizations around the world were involved in its development, which means it represents an international consensus.

INTERNATIONAL FEDERATION OF ORGANIC AGRICULTURE MOVEMENTS The International Federation of Organic Agriculture Movements (IFOAM) is the worldwide umbrella organization for the organic agriculture movement, uniting more than 750 member organizations in 108 countries. It declares its mission to be as follows: IFOAM's mission is leading, uniting and assisting the organic movement in its full diversity. Their goal is “the worldwide adoption of ecologically, socially and economically sound systems that are based on the principles of Organic Agriculture." Among its wide range of activities, IFOAM maintains an organic farming standard, and an organic accreditation and certification service.

IFOAM actively participates in international agricultural and environmental negotiations with the United Nations and multilateral institutions to further the interests of the organic agricultural movement worldwide, and has observer status or is otherwise accredited by the following international institutions:

ECOSOC Status with the United Nations General Assembly The Food and Agriculture Organization of the United Nations (FAO) United Nations Conference on Trade and Development (UNCTAD) Codex Alimentarius Commission (FAO and World Health Organization) United Nations Environment Program (UNEP) The Organization for Economic Cooperation and Development (OECD) International Labor Organization of the United Nations (ILO) International Organization for Standardization (ISO)

According to the One World Trust's Global Accountability Report 2008 which assessed a range of organisations in areas such as transparency, stakeholder participation and evaluation capacity, "IFOAM is the highest scoring international NGO, and at the top of the 30 organisations this year with a score of 71 percent".

IFOAM and Standards and Certification

IFOAM's Organic Guarantee System (OGS) is designed to

a) Facilitate the development of organic standards and third-party certification worldwide and to

b) Provide an international guarantee of these standards and organic certification.

In recent years IFOAMʼs OGS approach underwent some significant changes. With the establishment and spreading of organic standards and certification around the world a number of new challenges appeared. Especially smallholder farmers in developing countries struggle with

a) the multitude of standards they are expected to farm conform with and

b) with high certification costs and considerable administrative expenditures.

IFOAM had a breakthrough in the development and adoption of approaches to address these certification problems. The IFOAM Basic Standards and the Accreditation Criteria are two of the main components of the OGS.

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IFOAM Family of Standards

In the framework of a multi-year collaboration IFOAM developed together with his UN partners: the Food and Agriculture Organization (FAO) and the United Nations Conference on Trade and Development (UNCTAD), a set of standard requirements that functions as an international reference to assess the quality and equivalency of organic standards and regulations. It is known as the COROS (Common Objectives and Requirements of Organic Standards) The vision is that the Family of Standards will contain all organic standards and regulations equivalent to the COROS. Instead of assessing each standard against each other the Family of Standards can be used as a tool to simplify equivalence assessment procedures while ensuring a high level of integrity and transparency. The Family of Standard Program started in January 2011. One year later about 50 standards worldwide are approved.

EUROPEAN UNION (EU)

The European Union bases its organic farming program on the EC 834/2007, which establishes the legal framework for all levels of production, distribution, control and labelling of organic products which may be offered and traded in this region.

EU Organic Certification

The EU organic logo guarantees that the product in question complies with the common European organic food standards. Consumers buying products bearing this logo can be confident that at least 95% of the product's ingredients have been organically produced, the product complies with the rules of the official inspection scheme, the product has come directly from the producer or preparer in a sealed package and that the product bears the name of the producer, the preparer or vendor and the name or code of the inspection body. The hope is that in the long term the EU logo will be able to solve the trade problems that the organic food sector faces today. This certification is also given to organic cotton which fulfils the organic standards of EU.

USDA ORGANIC The U.S. Department of Agriculture has put in place a set of national standards that products labelled must meet, whether it is grown in the United States or imported from other countries. Organic meat, poultry, eggs, and dairy products come from animals that are given no antibiotics or growth hormones. Organic food, cotton is produced without using most conventional pesticides; fertilizers made with synthetic ingredients or sewage sludge; bioengineering; or ionizing radiation.

NATIONAL ORGANIC PROGRAM (NOP)

Information for International Trade Partners The United States has trade arrangements with several nations to facilitate the exchange of organic products. These arrangements provide additional market opportunities for USDA organic producers. Consumers also benefit from a wider range of organic products year-round. The National Organic Program works with the Foreign Agricultural Service and Office of the United States Trade Representative to establish international trade arrangements. Trade opportunities for USDA organic operations vary by an operationʼs physical location: United States Trade Partners: European Union | Canada | Taiwan | Japan India, Israel, Japan, New Zealand Trade Partner: United States The National Organic Program is committed to protecting organic integrity through the following activities:

• Audits of certifying agents to ensure appropriate monitoring of organic products • Annual on-site inspections of approximately 30,000 organic operations by certifying agents

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• Residue testing program to verify that prohibited pesticides arenʼt being applied to organic crops • Compliance and enforcement activities, including suspending or revoking organic certificates for regulatory

non-compliance • Issue-based investigations (e.g. country- or commodity-specific)

International Trade Policies: India The United States has a recognition agreement with India. Recognition agreements allow a foreign government to accredit certifying agents in that country to the USDA organic standards. These foreign certifying agents are authorized to certify organic farms and processing facilities, ensuring that USDA organic products meet or exceed all USDA organic standards. These products can then import for sale in the United States. Scope. This agreement covers all USDA organic products produced in India and certified by an Indian government-accredited certifying agent. Production Requirements. USDA organic regulations Documentation. Standard United States import documentation Overview: Importing and Exporting Organic Products (PDF) Labelling. Products produced under the agreement must meet all USDA organic labelling requirements. USDA Organic Seal

HOW TO CERTIFY AN ORGANIC PRODUCT UNDER USDA In order to label a product organic, as USDA (United States Department of Agriculture) certified, meaning it has met the requirements of the USDA NOP (National Organic Program) standards. Even when not grown in the United States, the cotton must still meet USDAʼs NOP standards in order to be labelled as such. The requirements include: • Retailers and brands require documentation from growers providing that they have met stringent

requirements at every stage of processing, starting at farm level.

• Production practices must comply with the NOP National List of Allowed Synthetic and Prohibited Non-Synthetic Substances.

• Proof must be available on demand. • Transgenic cotton varieties are not acceptable in organic certification.

The USDA NOP standards are written for organic cotton fibres and not the end products. As per the USDA: "Although the NOP has no specific fibre or textile processing and manufacturing standards, it may be possible for fibres grown and certified to NOP crop/livestock standards to be processed and manufactured into textile and other products which meet NOP standards." Only textile products certified to the NOP production and processing standards are eligible to be labelled as “100 percent organic” and “organic”. "100 percent organic": • 100 percent organic fibre content. • Only organic processing aids. • USDA Organic seal may be displayed on final product, in marketing materials, and in retail displays in

proximity to certified products only. • All operations producing, handling, processing and manufacturing the final product must be certified.

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GOTS (THE GLOBAL ORGANIC TEXTILE STANDARD) The Global Organic Textile Standard (GOTS) was developed through collaboration by leading standard setters with the aim of defining requirements that are recognised world-wide and that ensure the organic status of textiles from harvesting of the raw materials through environmentally and socially responsible manufacturing all the way to labelling in order to provide credible assurance to the consumer. Since its introduction in 2006 the Global Organic Textile Standard has already demonstrated its practical feasibility. Supported by the growth in consumption of organic fibres and by the remarkable demand for unified processing criteria from the industry and retail sector, it has gained universal recognition, enabling processors and manufacturers to supply their organic textiles with one certification accepted in all major markets. With the introduction of the logo and labelling system the GOTS is already visible not only on the shelves of natural textile shops but large-scale retailers and brand dealers as well. This is a milestone in consumer recognition and a strong acknowledgement of our reliable quality assurance concept.

The Global Organic Textile Standard (GOTS) is the world's leading textile processing standard for organic fibres, including ecological and social criteria, backed by independent certification of the entire textile supply chain.

Version 3.0 was published on 1 March 2011, six years after the introduction of the initial version. High ecological and social requirements as well as global practicability and verifiability were taken into consideration in the revision work in order to achieve reliable and transparent criteria.

AIM

The aim of the standard is to define globally recognised requirements that ensure the organic status of textiles, from harvesting of the raw materials through environmentally and socially responsible manufacturing all the way to labelling in order to provide credible assurance to the end consumer. Textile processors and manufacturers should be able to export their organic fabrics and garments with one certification accepted in all major markets.

CRITERIA The consensus of the International Working Group was that a clear and unambiguous understanding of the content required the Global Organic Textile Standard itself to focus on compulsory criteria only. The standard covers the processing, manufacturing, packaging, labelling, trading and distribution of all textiles made from at least 70% certified organic natural fibres. The final products may include but are not limited to: fibre products, yarns, fabrics, clothes and home textiles. The standard does not set criteria for leather products.

FIBRE PRODUCTION

The key criteria for fibre production can be identified as:

• Organic certification of fibres on the basis of recognised international or national standards (e.g. IFOAM, EEC 834/2007, USDA NOP)

• Certification of fibres from conversion period is possible if the applicable farming standard permits such certification

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• A textile product carrying the GOTS label grade ʻorganicʼ must contain a minimum of 95% certified organic fibres whereas a product with the label grade ʻmade with organicʼ must contain a minimum of 70% certified organic fibres

PROCESSING AND MANUFACTURING

Key criteria for processing and manufacturing include:

Environmental Criteria

• At all processing stages organic fibre products must be separated from conventional fibre products and must be clearly identified

• All chemical inputs (e.g. dyes, auxiliaries and process chemicals) must be evaluated and meet basic requirements on toxicity and biodegradability/eliminability

• Ban on critical inputs such as toxic heavy metals, formaldehyde, aromatic solvents, functional nano particles, genetically modified organisms (GMO) and their enzymes

• The use of synthetic sizing agents is restricted; knitting and weaving oils must not contain heavy metals • Bleaches must be based on oxygen (no chlorine bleaching) • Azo dyes that release carcinogenic amine compounds are prohibited • Discharge printing methods using aromatic solvents and plastisol printing methods using phthalates and

PVC are prohibited • Restrictions for accessories (e.g. no PVC, nickel or chrome permitted, all polyester must be post-consumer

recycled from 2014 onwards) • All operators must have an environmental policy including target goals and procedures to minimise waste

and discharges • Wet-processing units must keep full records of the use of chemicals, energy, water consumption and waste

water treatment, including the disposal of sludge. The waste water from all wet-processing units must be treated in a functional waste water treatment plant.

• Packaging material must not contain PVC. From 1 January 2014 onwards, any paper or cardboard used in packaging material, hang tags, swing tags etc. must be post-consumer recycled or certified in accordance with FSC or PEFC

Technical Quality and Human Toxicity Criteria

• Technical quality parameters must be met (such as rubbing, perspiration, light and washing fastness and shrinkage values)

• Raw materials, intermediates, final textile products as well as accessories must meet stringent limits in regard to unwanted residues

Minimum Social Criteria

All processors and manufacturers must meet minimum social criteria based on the key norms of the International Labour Organisation (ILO). They must implement social compliance management with defined elements to ensure that the social criteria can be met. The applicable key conventions of the International Labour Organization (ILO) listed must be used as the relevant basis for interpretation for adequate implementation and assessment of the following social criteria topics.

• Employment is freely chosen C29 - Forced Labour Convention C105 - Abolition of Forced Labour Convention

• Freedom of association and the right to collective bargaining are respected C87 - Freedom of Association and Protection of the Right to Organise Convention C98 - Right to Organise and Collective Bargaining Convention

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C135 - Workers' Representatives Convention C154 - Collective Bargaining Convention

• Working conditions are safe and hygienic C155 - Occupational Safety and Health Convention

• Child labour must not be used C138 - Minimum Age Convention C182 - Worst Forms of Child Labour Convention

• Living wages C95 - Protection of Wages Convention C131 - Minimum Wage Fixing Convention

• Working hours are not excessive C1 - Hours of Work (Industry) Convention C14 - Weekly Rest (Industry) Convention C30 - Hours of Work (Commerce and Offices) Convention C106 - Weekly Rest (Commerce and Offices) Convention

• No discrimination is practised C100 - Equal Remuneration Convention C111 - Discrimination (Employment and Occupation) Convention

• Regular employment is provided C158: Termination of Employment Convention C175: Part-time Work Convention C177: Homework Convention C181 Private Employment Agencies Convention

• Harsh or inhumane treatment is prohibited C29 - Forced Labour Convention C105 - Abolition of Forced Labour Convention

HOW TO BECOME A CERTIFIED

Textile processing, manufacturing and trading entities can apply for certification in accordance with the Global Organic Textile Standard. Entities that wish to become certified are requested to contact an appropriate GOTS approved certification body. These are entrusted with implementation of the GOTS quality assurance system and are able to provide information about the related procedures and timeline from the initial request through the inspection and certification process. They will be able to offer individual cost estimates for certification based on the operatorʼs location, size, fields of operation and other relevant factors.

In principle all GOTS-approved certifiers are entitled to offer related inspection and certification services worldwide and each applicant may choose its certification body. Some certifiers operate local offices or work with local representatives in various countries while others coordinate all services through their head offices. There are limitations regarding the accredited scope for which a certifier may offer GOTS certification. Certifiers of textile supply chain operators may be accredited to the following scopes:

• Certification of mechanical textile processing and manufacturing operations and their products (scope 1) • Certification of wet-processing and finishing operations and their products (scope 2) • Certification of trading operations and related products (scope 3)

APLLICABILITY OF THE CERTIFICATION SYSTEM

The applicability of the GOTS certification system starts with the first processing step in the textile supply chain. In the cotton supply chain ginning is considered to be the first processing step, whereas the wool supply chain processing normally starts with scouring.

Organic fibre production is not directly covered by the GOTS certification system as GOTS does not set standards for organic fibre cultivation itself. Instead, cultivation of organic fibres is under the scope of the governmental organic farming standards (e.g. the EEC Organic Regulation or the USDA NOP). Organic fibres certified according to these recognised international or national legal standards are the accepted raw material inputs for the GOTS processing and manufacturing chains.

The GOTS quality assurance system is based on on-site inspection and certification of the textile processing and trade chain. In particular operators from post-harvest handling through garment-making as well as traders up to the wholesale stage have to undergo an annual on-site inspection cycle and must hold a valid certification as a prerequisite for final products (sold to retailers) to be labelled as GOTS-certified.

Processors and manufacturers that receive a GOTS operational certification have demonstrated to the assigned certifier that they are able to work in compliance with all applicable GOTS criteria in the fields of operations and for the product groups shown on their certificate. They may then accept orders for GOTS-compliant processing /

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manufacturing in their certified scope. Accordingly certified exporters-, importers and traders are authorised to trade GOTS textile products within the scope of the certification they have attained.

Entities that receive a GOTS operational certificate are free to advertise their certified status on the market. They must however avoid the impression that all of their products are certified, if this is not the case and ensure that no confusion arises between certified and non-certified products in any marking, publications and advertising. They also become listed in the public GOTS data base on this website.

ELEMENTS OF THE INSPECTION

Generally a company that is participating in the GOTS certification scheme needs to comply with all criteria of the standard. The assigned certifier makes use of appropriate inspection methods which may include but are not limited to the following key elements:

• Review of bookkeeping in order to verify flow of GOTS goods (input/output reconciliation, mass balance calculation and trace back lots and shipments). This is a key aspect of the inspection of any operation that sells/trades GOTS goods.

• Assessment of the processing and storage system through visits to the applicable facilities • Assessment of the separation and identification system and identification of areas of risk to organic integrity • Inspection of the chemical inputs (dyes and auxiliaries) and accessories used and assessment of their

compliance with the applicable criteria of the GOTS • Inspection of the waste water (pre-) treatment system of wet processors and assessment of its performance. • Check on minimum social criteria (possible sources of information: interview with management, confidential

interviews with workers, personnel documents, physical on-site inspection, unions/stakeholders) • Verification of the operator's risk assessment of contamination and residue testing policy potentially including

sample drawing for residue testing either as random sampling or in case of suspicion of contamination or non-compliance.

OEKO-TEX®

The OEKO-TEX® Standard was introduced at the beginning of the 1990s as a response to the needs of the general public for textiles which posed no risk to health. "Poison in textiles" and other negative headlines were widespread at this time and indiscriminately branded all chemicals across the board used in textile manufacturing as negative and dangerous to health. In order to become OEKO-TEX® certified, a product must undergo rigorous testing to determine if it is free from harmful substances which are prohibited or regulated by law, and chemicals which are known to be harmful to health. Additional parameters are included as a precautionary measure to safeguard health. In principle, the more intensively a textile comes into contact with the skin, the stricter the human ecological requirements it must fulfil.

Before introduction of the OEKO-TEX® Standard there was neither a reliable product label for the assessment of the human ecological quality of textiles for consumers nor a uniform safety standard for manufacturers in the textile and clothing industry allowing practical assessment of potential harmful substances in textile products. The Austrian Textile Research Institute (ÖTI)and the German Hohenstein Research Institute have therefore jointly developed the OEKO-TEX® Standard 100 on the basis of their existing test standards.

The Oeko-Tex Association is an independent, third-party certifier that offers two certifications for textiles: Oeko-Tex 100 (for products) and Oeko-Tex 1000 (for production sites/factories). Products satisfying the criteria for Oeko-Tex 100 and produced in a OekoTex 1000 certified facility may use the Oeko-Tex 100+ mark, which is simply a combination of the two.

OEKO-TEX® Standard 100

The OEKO-TEX® Standard 100 is an independent testing and certification system for textile raw materials, intermediate and end products at all stages of production. Examples for items eligible for certification: Raw and dyed/finished yarns, raw and dyed/finished fabrics and knits, ready-made articles (all types of clothing, domestic and household textiles, bed linen, terry cloth items, textile toys and more).

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Criteria Testing for harmful substances includes:

• illegal substances • legally regulated substances • known harmful (but not legally regulated) chemicals • as well as parameters for health care In their entirety the requirements clearly exceed existing national legislation.

Laboratory tests and product classes OEKO-TEX® testing for harmful substances always focuses on the actual use of the textile. The more intensive the skin contacts of a product, the stricter the human ecological requirements to be met.

Accordingly there are four product classes: • Product class I:

Textile items for babies and toddlers up to 3 years (clothing, toys, bed linen, terry cloth items etc.) • Product class II:

Textiles used close to the skin (underwear, bed linen, T-shirts etc.) • Product class III:

Textiles used away from the skin (jackets, coats etc.) • Product class IV:

Furnishing materials (curtains, table cloths, upholstery materials etc.)

Some of the specific items tested for include:

• Banned MAK amines in specific AZO dyes • Other carcinogenic and allergenic dyes • Formaldehyde • Pesticides • Extractable heavy metals and heavy metals in digested samples • pH value, color fastness, and odors

Certification The requirement for certification of textile products according to OEKO-TEX® Standard 100 is that all components of an item have to comply with the required criteria without exception – that means in addition to the outer material also sewing threads, linings, prints etc. as well as non-textile accessories such as buttons, zip fasteners, rivets etc.

OEKO-TEX® Standard 1000

OEKO-TEX® Standard 1000 is a testing, auditing and certification system for environmentally friendly operations in the textile and clothing industry.

On the basis of criteria which are updated annually the standard allows an objective assessment of the achieved environmental balance and social acceptability at the respective site of the company. The aim is the continuing improvement of operational environmental performance and working conditions. Criteria • Product certification according to OEKO-TEX® Standard 100 • Compliance with national legislation • Adherence to strict guidelines regarding waste water purification and exhaust emissions/environmentally

friendly waste management • Use of environmentally compatible technologies, chemicals and dyes (e.g. omission of chlorine bleach) • Optimised use of energy and materials • Proof of a quality and environmental management system • Workplace hygiene and occupational safety (low noise and dust pollution, provision of required protective

measures etc.) • Satisfaction of social criteria (ban against child labour, no discrimination/forced labour, performance-based

pay, regulated work and holiday times etc.) Certification

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Precondition for certification according to OEKO-TEX® Standard 1000 is the satisfaction of the stipulated environmental and social criteria as well as the proof that at least 30% of total production is already certified according to OEKO-TEX® Standard 100. Any environmental management systems such as ISO 14000 or EMAS which cover several industries are taken into account for OEKO-TEX® Standard 1000 certification and are an ideal complement to it. The same applies to already install quality assurance systems in line with in-house approaches or ISO 9000. OEKO-TEX® Standard 100plus The OEKO-TEX® Standard 100plus is a product label which enables textile and clothing manufacturers to provide evidence to their end users, by means of only one certification mark, that their products have been optimised for human ecology and that the production conditions are environmentally friendly. Products with this label are tested for harmful substances according to OEKO-TEX® Standard 100 and were produced exclusively at environmentally friendly production sites according to OEKO-TEX® Standard 1000. Criteria • Testing for harmful substances / product certification according to OEKO-TEX® Standard 100 • Environmentally friendly and socially acceptable production / production site certified according to OEKO-

TEX® Standard 1000

Certification The precondition for certification according to OEKO-TEX® Standard 100plus is the satisfaction of the requirements stipulated by OEKO-TEX® Standard 100 as well as OEKO-TEX® Standard 1000. Furthermore proof is required that the entire production chain – meaning all facilities involved in the production of a certain product (across all stages of textile processing) – fully satisfies the requirements of OEKO-TEX® Standard 1000.

FAIR TRADE

Fairtrade certified clothing is a market based approach that aims to help producers in developing countries obtain better trading conditions. The cotton in products with Fairtrade certification has been grown by farmers who receive a fair deal for their work. In addition to their salary they also receive a premium which goes towards projects within their local community such as building a school or establishing access to water. These factors are at the very heart of the Fairtrade clothes industry.

THE HISTORY OF FAIR TRADE Fair trade first started in the 1940s in Europe and the US where handicrafts were sold in NGO shops in support of disadvantaged communities. The modern fair trade movement began in the 1960s when Alternative Trading Organisations (ATOs) were launched and NGOs, such as Oxfam in the UK, began selling handicrafts purchased from producer co-operatives. In the first decades Fair Trade products were sold mainly by Fair Trade Organizations that had Fair Trade as the central ethos guiding their activities. In the seventies and eighties, Fair Trade products were sold to consumers mainly in world shops or Fair Trade shops. During the 1980s the fall of global commodity prices pushed many marginalised farmers into terrible poverty, and the fair trade movement began to focus on agricultural commodities as a way of providing farmers with asustainable income. More and more shoppers got behind products like fair trade cotton, coffee, tea, cocoa andbananas, supporting many thousands of poor farmers around the world. In the second half of the 1980s, a new way of reaching the broad public was developed. A priest working with smallholder coffee farmers in Mexico and a collaborator of a Dutch church-based NGO conceived the idea of a Fair Trade label. Coffee bought, traded and sold respecting Fair Trade conditions would qualify for a label that would make it stand out among ordinary coffee on store shelves, and would allow not only Fair Trade Organizations, but any company to sell Fair Trade products. In 1988, the “Max Havelaar” label was established in The Netherlands. The concept caught on: within a year, coffee with the label had a market share of almost three percent.

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In the following years, similar non-profit Fair Trade labelling organizations were set up in other European countries and in North America. In 1997 their worldwide association, Fairtrade Labelling International (FLO), was created. Today, FLO is responsible for setting international standards for Fair Trade products, certifying production and auditing trade according to these standards and for the labelling of products. The range of labelled products now counts almost twenty and is expanding. Fair Trade labelling has helped Fair Trade to go into mainstream business. Currently, over two-thirds of Fair Trade products are sold by mainstream catering and retailing. parallel to the development of labelling for products, the World Fair Trade Organization (WFTO) developed a monitoring system for Fair Trade Organizations. The World Fair Trade Organization (WFTO) was created in 1989to improve the livelihoods of disadvantaged producers by promoting and connecting fair trade organisations.Today, the WFTO is a global association of 324 organisations, including fair trade producer associations, producer marketing companies, retailers, fair trade networks and support organisations in over 60 countries. InIndia, Fair Trade Forum India works to carry WFTO's work forward. In order to strengthen the credibility of these organizations towards political decision-makers, mainstream business and consumers, the WFTO World Fair Trade Organization Mark was launched in January 2004. The Mark is available to member organizations that meet the requirements of the WFTO monitoring system and identifies them as registered Fair Trade Organizations. WFTO is working with FLO on a Quality Management System for Fair Trade. WFTO is also developing a third-party certified product label for Fair Trade ..Organizations.

FAIRTRADE LABELLING ORGANISATIONS INTERNATIONAL (FLO)

Fair trade certification aimed to bring fair trade principles into the mainstream by offering consumers an easy way to buy fair trade. Organisations that certified fair trade products sprang up across Europe. The first was Max Havelaar in the Netherlands, which certified coffee bought at a fair price from disadvantaged famers in Mexico. Others gained success across Europe as well as the US, Canada and Australia, coming together in 1997 to create a central certification body, Fairtrade Labelling Organisations International (FLO).

Today, fair trade certification is a huge success story, both commercially and for the farmers in the system who have gone from strength to strength. In 2008, estimated global sales of fair trade certified products reached US$4.1 billion, growing 22% on the previous year despite the recent global economic downturn. Consumers across the world have taken fair trade into their hearts, signing up to their local fair trade town or university campaign and attending fair trade events where they can meet farmers and taste or try on the fruits of their labour.

Fairtrade certification

The Fairtrade labelling operates an independent, transparent and globally consistent certification system that follows the requirements of ISO 65*.

The Fairtrade certification system is run by a separate company called FLO-CERT. By checking compliance withFairtrade Standards, FLO-CERT ensures that relevant social and environmental standards are met and that producers receive the Fairtrade Minimum Price and Premium.

Everyone in the supply chain, from the certified producer organisations through to the companies licensed for the consumer-ready product, must be registered by one of the FLO Labelling Initiatives or FLO-CERT. All registered companies are subject to independent audits to ensure compliance with Fairtrade standards. At present, the only material that the Fairtrade Foundation certifies is cotton.

FLO-CERT auditors are highly qualified, usually based in the countries and regions where they work, and familiar with local cultures, languages, and legal systems. All auditors are examined on their skills and receive annual training.

Consumers can be confident that the international FAIRTRADE Mark is only used on products that come from Fairtrade certified producers and that traders meet their obligations under the Fairtrade Standards.

Inspections and audits

No producer organization can become certified without an initial on-site inspection. Many Fairtrade producer organizations are large, including hundreds and sometimes thousands of farmers. This makes it impossible for the auditor to visit every single farm. Accordingly FLO-CERT operates a ʻgroup certificationʼ model. This includes the audit of the producer organization itself as well as random checks of a representative sample of individual farmers.

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A full Fairtrade audit can last from four days for a small producer organization and up to six or seven weeks for the largest cooperatives. The time the auditor spends on the ground depends on the size of the producer organization, its complexity, and the number of certified products it is seeking to sell.

The cost of certification is dependent on the number of working days required to inspect the producer group. Following an audit, a report is sent to FLO-CERT for evaluation. The decision to certify is taken by a specialized certifier, who is supervised by an independent certification committee.

After they receive their initial Fairtrade certification, producers are inspected on-site on an annual basis. In some circumstances, where organizations have demonstrated excellent compliance over many years, they may qualify for a ʻdesk-topʼ review as part of a three year inspection cycle.

ISO 65 Certification

FLO-CERT is ISO 65 certified. ISO 65 is the leading, internationally recognized quality norm for bodies operating a product certification system. FLO-CERT follows the ISO 65 norm in all its certification operations.

Concretely, ISO 65 certification guarantees that:

• A quality management system is in place • Transparency in all processes • Independence in the certification decision making

FLO-CERT is checked by an independent third party to ensure compliance with ISO 65 rules.

WORLD FAIR TRADE ORGANIZATION

The WFTO represents Fair Traders from grassroots through to the G8 and is the authentic voice of Fair Trade, having driven the movement for 20 years. It is the only global network whose members represent the Fair Trade chain from production to sale.

The World Fair Trade Organization (WFTO), formerly the International Federation of Alternative Traders ("IFAT"), was created in 1989 and is a global association of 324 organizations in over 70 countries. Members are fair trade producer cooperatives and associations, export marketing companies, importers, retailers, national and regional fair trade networks and Fair Trade Support Organizations.

WFTO's mission is to improve the livelihoods and well being of disadvantaged producers by linking and promoting Fair Trade Organizations, and speaking out for greater justice in world trade.

WFTO's core fields of activities are: Developing the market for fair trade Building trust in fair trade Speaking out for fair trade Providing networking opportunities Empowering the regions

In 2004 WFTO launched a fair trade certification. The FTO Mark identifies registered Fair Trade Organizations worldwide (as opposed to products in the case of FLO International and Fair trade mark) and guarantees that standards are being implemented regarding working conditions, wages, child labor and the environment. These standards are verified by self-assessment, mutual reviews and external verification. The FTO Mark is available to all WFTO members who meet the requirements of the WFTO Standards and Monitoring System and so far over 150 organizations have registered. The WFTO operates in 5 key regions: Africa, Asia, Latin America, Europe and North America & Pacific Rim. Members in Africa, Asia, Europe and Latin America have come together to form WFTO regional chapters. They are:

Cooperation for Fair Trade in Africa (COFTA) WFTO Asia WFTO Europe WFTO-LA – Associacion Latino Americana de Commercio Justo (WFTO Latin America)

WFTO Logo

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The WFTO logo is for organizations that demonstrate a 100% commitment to Fair Trade in all their business activities. Only monitored WFTO members are authorized to use the logo. Launched in 2004, the Fair Trade Organization Mark (WFTO Logo) shows that an organization follows the WFTO's 10 Principles of Fair Trade, covering working conditions, transparency, wages, the environment, gender equity and more.

The WFTO logo is not a product mark - it is used to brand organizations that are committed to 100% Fair Trade. It sets them apart from commercial as well as other Fair Trade businesses, and provides a clear signal to retailers, partners, governments and donors that their core activity is Fair Trade.

The WFTO is currently developing the WFTO Fair Trade System. The system was originally designed for marginalized producers currently not catered for by the Fair-trade Certification system, which was designed for commodity products. Due to the variety and complexity of handcrafts, for example, a product standard is technically difficult to apply. The system, then, provides an alternative that will verify that an organization practices Fair Trade in all its activities. Once certified, the organisation will be able to use the label on all its products.

10 Principles of Fair Trade

WFTO prescribes 10 Principles that Fair Trade Organizations must follow in their day-to-day work and carries out monitoring to ensure these principles are upheld:

1. Creating Opportunities for Economically Disadvantaged Producers 2. Transparency and Accountability 3. Fair Trading Practices 4. Payment of a Fair Price 5. Ensuring no Child Labor and Forced Labor 6. Commitment to Non Discrimination, Gender Equity and Freedom of Association 7. Ensuring Good Working Conditions 8. Providing Capacity Building 9. Promoting Fair Trade 10. Respect for the Environment

WFTO-Asia: The Asian chapter of WFTO comprises 90 fair trade organizations. Member nations represent mostly the poorest part of the continent: Bangladesh, China, Cambodia, India, Indonesia, Korea, Laos, Nepal, Pakistan, Philippines, Sri Lanka, Thailand, Timor Leste and Vietnam. Their roles in the fair trade operations vary, and included are: producers, cooperatives, retailers, NGO's, and faith-based organizations, amongst others.

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Introduction: Indian handloom and handcrafted textile sector

The sectors of Handlooms and Handcrafted textile embody the rich traditional, historical and cultural diversity that distinguishes India from the rest of the world. Be it the kashida embroidery of Kashmir, Naga textile, kullu shawls of Himanchal or paitkar art work from Jharkhand, ajrak from kutch or the bhandhej and toran from Gujarat, each of these crafts is enriched with centuries of dedicated refinement and has a unique story to tell. Equally importantly, these two sectors constitute the only industry in the country that provide low cost, green livelihood opportunities to millions of families, supplementing incomes in seasons of agrarian distress, checking migration and preserving traditional economic relationships. With women contributing the majority of pre- and post-loom labour and accounting for over 50% of artisans in the country, and a significant mass of weavers/artisans consisting of scheduled castes, schedules tribes and religious minorities, the two sectors also represent the economic lifeline of the most vulnerable sections of our society. Major handloom and handcrafted textiles in India: Handloom and Handcrafted textiles of India represent our cultural tradition in true sense, as Indian way of life is replete with fabrics made with the help of simple, indigenous technique of dyeing, printing, weaving and embroidering, by crafts people who belong within a strong fabric of tradition, aesthetic and artistry. The range of Indian Handcrafted textile is as diverse as the culture diversity of the country. They embody our heritage of creativity, aesthetics and craftsmanship. At a more substantial level the Handicraft tradition has sustained generation of people in our country. As a highly decentralized activity the Handicraft industry is a shining example of using local resources and local initiatives.

Handloom Textiles

Jamawar shawls of Kashmir; Kullu shawls of Himanchal Pradesh; Ikat sarees and fabrics from Andhra Pradesh, Gujarat (Partan Patola) and Orissa; Chanderi from Madhya Pradesh; Jamdani and Baluchari from West Bengal, And many more silk/wool/ cotton handloom products from various states of India.

Handcrafted Textiles

1. Hand embroidered Textiles: Kantha from Bihar and West Bengal; Lace & Crochet goods in Narsapur (Andhra Pradesh); Embroidered goods in Kutch, Chikenkari of Lucknow; Kashida embroidery Srinagar (J&K), Phulkari of Punjab and Zari & Zardosi items;

2. Block printed/ painted and dyed textiles: Block prints and Tie dye of Rajasthan; Ajrakh ( Block printed natural dyed textile) of Kutch; Kalamkar of Andhra Pradesh; Hand paintings of Madhubani from Bihar, Patachitra from Orissa, Worli painting from Maharashtra, etc

Despite their cultural and economic importance, however, both handlooms and handcrafted textile sectors suffer from perennial problems of weak infrastructure, inadequate availability of inputs at regular prices, poor supply chain systems and ineffective marketing and sales practices. Limited private entrepreneurial support has increased the sectorsʼ dependence on Government resources and the lack of a universally recognised definition of ʻhandicraftʼ remains a challenge. Further, the lack of synergy between handlooms, handicrafts, and khadi and the village industry sectors leads to inefficient utilization of resources. Although these sectors are distinct, they have an undercurrent of commonality. The sectors, therefore, need to be administered with greater synergy.

HANDLOOM TEXTILES

Handloom weaving is one of the largest economic activity next to agriculture providing direct and indirect employment to more than 43 lakh weavers and allied workers. This sector contributes nearby 15% of the cloth production in the country and also contributes to the export earning of the country. 95% of the worldʼs hand woven fabric comes from India.

The handloom sector has a unique place in our economy. It has been sustained by transferring skills from one generation to another. The strength of the sector lies in its uniqueness, flexibility of production, openness to innovations, adaptability to the supplierʼs requirement and the wealth of its tradition. The adoption of modern techniques and economic liberalization, however, has made serious inroads into the handloom sector.

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Competitions from power loom and mill sector, availability of cheaper imported fabrics, changing consumer preferences and alternative employment opportunities have threatened the vibrancy of handloom sector. Handlooms have remained not only one of the important options of livelihoods but have also been the saviours of the various traditional skills that have been inherited by the weavers over generations.

Handloom forms an important part of the rich cultural heritage of India and the skilled craftsmen weave the rich cultural heritage of India into garments of astounding beauty, complexity and simplicity – unifying opposites as only the harmonizing tradition of India can. Handloom in India is a critical component of sustainable development in poor, rural regions.

Handlooms are environmentally friendly with no external energy requirements so the energy impact is near zero, but the handloom industry is endangered by WTO policies that favour the large, globalized, power-loom textile companies. The unique and high-skill oriented processes for creating the exquisite fabrics have helped the handloom tradition survive the onslaught of automated production systems. It is estimated that today there are about 4.60 million handlooms in the world out of which about 3.9 million are in India.

Production in the handloom sector recorded a figure of 6949million sqr.meters in the year 2010-11, which is about 23.23% over the production figure of 5493 million sqr. meters recorded in the year 2003- 04. During 2011-12 production in the handloom sector is reported to be 5178 million sqr. meters (April – Dec.,2011). While the major producers are India followed by Bangladesh, Pakistan and Nepal, the main importers of textiles & clothing were the USA, UK, France and Italy.

HANDLOOM CLOTH PRODUCTION OVER THE YEARS

Statistics on exports of handloom products available from 2009-10 onwards, indicate that exports rose by 32% in 2010-11 as compared to the previous year. During 2011-12, total exports in the first seven months had already reached almost 90% of the exports during the whole of the previous year.

EXPORT OF HANDLOOMS

Year Target Achievement (In ` Crore)

2009-10 NA 1252.81

2010-11 1350.00 1662.89

2011-12 2250.00 1483.21(April-Oct 2011)

Year Cloth Production (Million Square Metres)

2005-06 6108 (+6.75%)

2006-07 6536 (+ 7.00%)

2007-08 6947 (+6.29%)

2008-09 6677 (-3.89%)

2009-10 6806 (+1.93%)

2010-11 (Prov.) 6903 (+1.42%)

2011-12 (Apr. – Jan. ’12) (Prov.) 5775

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A Importance of Handloom 1. Handlooms are a part of an age old Indian tradition

2. Largest Handloom industry in the world 3. Handloom sector is one of the largest employer in the country 4. About 65 lakh of low income group people are directly or indirectly employed 5. Total 35 lakh looms spread practically all over India (Household looms-33 lakhs &

Non House hold-2 lakhs) 6. Over 469 Handloom clusters in the country 7. Average Productivity per loom per day of 5.12 meters

B Features of Handloom 1. Element of Indian culture & rich artistry

2. Uniqueness – intricate designs 3. Flexibility of production in small batches 4. Constant scope for innovation 5. Adaptability 6. Rich comfort factor 7. Eco-friendliness 8. Niche products canʼt be made on Power loom 9. Small volumes of Niche products possible only on Handlooms 10. Consumer perception –Uniqueness in clothing and pride of being different than

others. 11. Multiple Handloom products with fusion of traditional and trendy designs are

possible. 12. Growing concern on Social responsibility, Ethical sourcing, Sweat- Shop

conditions and pro-poor approach among international buyers.

Some of the exclusive product ranges include: Silk Saree from Varanasi, scarf from Barabanki, home furnishing from Bijnore, shawls from Kullu, ikat sari from Sonepur and Bargarh, cotton saree from Chanderi and many other products.

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HANDCRAFTED TEXTILE Handcrafted Textiles refer to textile items made by hand with the use of simple tools, generally artistic and /or traditional in nature, used for decorative purposes, including gifts and souvenirs as well as for utility purposes. Handcrafted textile is a huge portion of the Indian handicraft sector. Indiaʼs main handcrafted Textile items are Hand-printed textiles like, Block prints Jaipur (Rajasthan); Ajrakh( Block printed natural dyed textile) of Kutch; Kalamkari; Lace & Crochet goods in Narsapur (Andhra Pradesh); Embroidered goods in Kutch, Chikenkari Lucknow; Kashida embroidery Srinagar (J&K), Phulkari of Punjab and Zari & Zardosi items; Hand paintings of Madhubani, Patchitra, Worli, etc. Handcrafted textile activity is predominantly carried out in the unorganized household sector and small workshops. The artisans/manufacturers are household members practicing handicrafts activity jointly at their residence, who if need arises, employ other handicraft artisans for work.

Production and Exports There is no objective criterion for assessment of domestic production of handicrafts in the country, as there is no primary data on total production in the sector. It is estimated by Ministry of Textiles that exports constitute about 60% of the total production of the handicrafts sector, and the remaining 40% is consumed domestically. While the export figures are compiled by the Export Promotion Council of Handicrafts (EPCH) and Carpet EPC (CEPC), figures of domestic production are derived and, thus, only indicative in nature. At the

end of the 10th Plan (2006-07), export of handicrafts was at its peak, with total exports (inclusive of carpets) estimated at ` 17,288.00 crore. But towards the beginning of the 11th Plan, the industry suffered a severe setback due to the global economic recession in 2008, especially as USA being the leading importer of Indian handicrafts was badly affected. Thus, exports of handicrafts (inclusive of carpets) declined by 37.89% in the second year of the 11th Plan (2008-09) to ` 10,891.73 crore. However, despite a worldwide slowdown, steps taken by the Government led to total handicraft exports increasing by 3.05% in 2009-10, followed by a 20.51% increase during 2010-11, to reach a level of `13,526.70 crore. Exports have further increased by 24.58% during the last year (2011-12) of the 11th Plan and amounted to ` 16,851.27 crore. The revival of the industry has now led to the return of many artisans who had left the sector earlier. Despite the revival of the handicrafts industry in the last two years of 11th Plan and the large production base within the country, Indiaʼs share in total world handicrafts exports is estimated to be less than 2%, thereby pointing towards the potential for raising exports of Indian handicrafts in the largely unexplored international market.

GLOBALIZATION AND ITS EFFECT ON THE SECTOR

Globalization – which refers to the growing integration of societies, economies and cultures around the world, has become one of the most hotly-debated topics and key area of research among the policy makers, statesmen, corporate, politicians and academia respectively over the past few years. As India opens up her doors to the multinationals during the era of economic reform and liberalized market, putting an end to the ʻlicense rajʼ in the early nineties. It is not only the economies that often meet in the global market sphere, but also the people and cultures, which bring a new dimension to the multi-cultural setting. What we can see in present day modern world is that there is always a cross-cultural interaction between the ʻlocalʼ and ʻglobalʼ and the much discussed ʻglobal villageʼ, is now not just a possibility but a reality despite many contradictions. Talking about Indian Handloom and Handcrafted textile sector, which constitutes a significant segment of the decentralized sector of the economy, its export has reached at a commendable height. Indian folk art and textile crafts which are the integral parts of the Indian culture and tradition are in high demand among the western consumers. Again, foreign fashion industry borrows a great deal from Indian traditional textiles, Saree, ethnic Indian wear, motifs & designs of appliqué, embroidery, prints and handlooms. Needless to say, the borders between the world cultures are now eroding out

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and becoming irrelevant, therefore prompting to call it as a deterritorialized world. But notwithstanding, the real concern is that, can the ʻlocalʼ really meet with the ʻglobalʼ by truly sustaining its localness? The biggest problem in the Indian Handloom and Handcrafted textile industry is that the village craftsmen remain concerned that with free trade and mass production, hand-made products from other parts of the world will out price the products of their hard labour. Globalizationʼs increasing impact on Indian handloom and handcrafted textile sector serves as an opportunity and threat to the artisans.

INTRODUCTION

Globalization is a process which refers to the growing socio-economic interdependence of countries worldwide through rising size and variety of transactions of goods and services, capital flows, widespread diffusion of technology across border and moreover the interaction and interdependence of people and culture throughout the world. Reduction of poverty and rapid economic growth in countries like India, China, and other countries that were poor few years ago, proposes sufficient promises about globalization. At the same time increased inequality among people and economies as well as large-scale environmental degradation has also generated significant opposition and concerns both in national and international level. Globalization simply refers to increasing connectivity, integration and interdependence in the socio-economic, technological, cultural, political and ecological spheres. The very concept has many sub-processes which includes, enhanced economic interdependence, increased cultural influence, rapid advancement of information and communication technology, and novel governance and geopolitical challenges that are increasingly binding people and culture of the world more tightly making a global village. To Friedman, Globalization is the integration of markets, finance and technologies in a way that is shrinking the world from size medium to size small and enabling each of us to reach around the world farther and cheaper than ever before. Giddens called globalization the direct consequence of modernization. He defined it as “the intensification of worldwide social relations which link distant localities in such a way that local happenings are shaped by events occurring many miles away and vice-versa. This is a dialectical process because such local happenings may move in an obverse direction from the very distanciated relations that shape them. A local transformation is as much a part of globalization as the lateral extension of social connections across time and space.”

Nowadays, globalization has laid to the end of geography and also the death of distance. Geography and national border have become obsolete concepts. Drastic development in the technologies of transport and communication has made available of everything at everybodyʼs doorstep. The World Wide Web (WWW) and Internet have helped this process, enabling business to communicate more smoothly and efficiently and sparking what some have called the “Third Wave” of economic growth.

Even in India, in the local supermarket/hypermarket, different products of American and European origin catch attention of its home consumers. So fast is the information flow as well. It is surprisingly a phenomenon that many foreign fashion shows are run these days with Hollywood models wearing the traditional textile craft saris designed by Indian fashion designers. This instance adds to growing demand for Indian folk textile creations. This shows how tradition meets with modernity these days. Globalization has put both east and west into one compartment and makes a single village – a global village. As we know, globalization produces varieties of responses in the field of culture. Sometimes global culture gets inhabited in local spheres making a micro global, and sometimes local culture mounts to the height of the global-dome making a macro local and yet again sometimes both global and local culture produce a hybrid one – a glocal. This is the magic of globalization.

That globalization creates a world that is increasingly becoming homogenous in nature spreading the dominant culture across the globe. The world cultures are becoming more and more diverse leading to heterogeneity in its form and content. And that there is always the interface between the global and local leading to plurality/hybridity.

THE GLOBALIZING CRAFTS India has a history of rich and diverse cultural tradition. And among its diversity, the legacy of Indiaʼs craft culture always occupies a special place owing to its beauty, dignity, form, style and aesthetics. “To write about Indian Handicrafts is almost like writing about the country itself, so vast, complex and colourful, and yet with a simplicity and charm, difficult to attain under comparable conditions”. The versatility of the various technique used in Indian handloom & handcrafted items, such as dyeing printing techniques, tie and dye, weaving techniques, embroidery techniques, and handloom designs, makes these products truly unique. Emphasizing on the greater value of the arts and crafts, T.M. Abraham wrote: “the world of art and craft is as valuable as the world of science, philosophy or ethics. Like art, crafts reflect the state of human society through the individual. Craft treasures like arts; give us a glimpse into the core and kernel of the collective mind and societies through the mirror of individual mind that created them”. There are numerous varieties of art and textile crafts in India which are made with attractive designs and meticulous craftsmanship.

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With the passage of time, Indian society and economy has changed enormously. It opened up its economy and adapted to globalisation in the early nineties. Major changes initiated as a part of the liberalisation and globalisation strategy included scrapping of the industrial ʻlicense rajʼ (referring to the regulated and controlled economic policy by the state for running business), reduction in the number of areas reserved for the public sector, amendment of the monopolies and the restrictive trade practices act, start of the privatisation programme, reduction in tariff rates etc. Many Indian companies have started becoming respectable players in the International scene. The liberalisation of the domestic economy and the increasing integration of India with the global economy have helped step up the Gross Domestic Product (GDP) growth rates. Indian economy experiences the existence of both traditional handicrafts and modern mechanised production. True, industrial capitalism has brought machine-based mass production. But keeping pace with tradition, the Indian handicrafts industry still shows its importance. Since the advent of globalization in 1991, India has experienced a lot and accordingly the society has undergone many changes in different spheres. The forces of globalization have ample positive effects in the long-run in many sectors of our economy and society, but it has also made the handloom and handcrafted textile sector vulnerable to global competition and standards. CHALLENGES IN GLOBALAIZATION Compromise in Quality: The traditional practice of hand weaving and hand crafts is gradually replaced by machines. Customers want the products to be cheaper and attractive. Artisans go for more profit, at times ignoring the quality. Middle man: In the globalization times, though with their products going global and increasing demand for it, there is a rise in the handicraft sector economy, still the artisans have become increasingly dependent on middle men and trader entrepreneurs who pay the artisans wages on piece rate bases. The low bargaining power of the artists in a liberalized and comparatively more competitive market has forced the artisans to depend upon the middle-men. The governmentʼs initiative to create cooperatives has not become much successful. Craft workers who have little formal education and are rarely organised are subject to many exploitative work conditions. Shifting Occupation: A large section of the artisan population in India is illiterate and devoid of formal education. Poverty again makes them become more vulnerable. As a result most of the artists are now a day choosing to shift to other professions rather than to stick into their hereditary occupation. A study by Soma Basu suggests that the weavers of Pattamadai mats of Tamil Nadu in general and women artists in particular are increasingly shifting to the profession like beedi rolling, which is faster and easier and which earns higher returns. A report of the census conducted by National Council of Applied Economic Research (NCAER) in 1995-96 suggests that, the handloom sector boasts of 3,4 million weavers, whereas in 1987-88, it was 4,3 million. A UN report suggests that over the past three-four decades in India the number of artisans has declined by at least 30 % with many joining the ranks of casual labourers and the informal economy. Another report by N. Biswas suggests that the ʻKeithelʼ, the traditional market run and managed by women in Imphal, Manipur is coming under attack. It is here, the Manipuri women sell their different coloured hand woven clothes. The report suggests that all over the Northeast, forces of globalization and privatization, backed by hegemony of the state machinery are ousting the indigenous womenʼs markets and production centers. Handmade vs. Machine made: Another problem is that the village craftsmen in our society remain concerned that with free trade, mass production; textile from other parts of the world will out price their own crafts. It has been observed that many textile crafts are replaced by cheap machine and mill made finished textile items these days. Handlooms were replaced by power loom made textiles; hand embroideries with machine embroideries; block prints/ natural dyed with screen prints/ chemical dyed. There is an urgent need for the Indian government to invest more in this sector and support the craftsmen. Diminishing Home Market: During the post-liberalization phase “although the rise in income of the middle-class and growth of the tourism industry helped in cultivating the notion of interior decoration and raising the domestic demand for ethnic crafts, the favourable effects of this tendency was not powerful enough to overcome the dampening of the change in consumersʼ preferences from the traditional to modern consumption needs under the influence of liberal imports of cheap machine made products and many other factors of globalization regime”. Thus the traditional crafts need to be beautiful and cost effective and maintain proper quality in order to find a place in the competitive market.

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GOVERNMENT STEPS TO SUPPORT THE HANDLOOM AND HANDCRAFTED TEXTILE SECTOR

Many steps have been taken by the office of Development Commissioner – Handlooms, Ministry of Textiles, Government of India, to promote and develop handloom and handcrafted textile exclusiveness for the global market. Comprehensive and innovative attempt among others to promote merchandising and marketing both at the domestic and international levels, which is central to the success of the handloom and handcrafted textile sector have been taken. Brand equity of handlooms and handcrafted textiles is the need of the hour.

The handloom and handcrafted textile sector faces many challenges. With technological developments, the handloom and handcrafted textile products are being increasingly replicated on power looms and through high-tech printing and embroidery machines at a much lower cost. While the Government's endeavor is to create conditions for the harmonious growth of the entire textile industry, at the same time it would also like to ensure that there is well defined and delineated areas for handlooms and handcrafted textiles which is not unduly encroached by the power looms and mills. The Government of India is aware of the difficulties faced by the handloom weavers and handcraft artisans, who face stiff competition from international markets, powerloom and mill sector and Government is constantly making concerted efforts to arrest the declining trend of the weavers and textile craft artisans. Towards this end, the Government has implemented many schemes for handloom weavers and handicraft artisans in the XIth Plan.

SCHEMES/PROGRAMMES FOR THE HANDLOOM SECTOR IN THE ELEVENTH PLAN The objective of the 11th Plan for the handlooms sector was to develop a strong, competitive and vibrant sector that would provide sustainable employment leading to economic development, particularly of rural areas. The vision was to target growth in terms of doubling the countryʼs share in the global market and ensure higher socio-economic status for the artisan community. Major programmatic interventions planned for the 11th Plan were as under:-

1. Cluster based approach: Organisation of over 36.88 lakh weavers into handloom clusters, and 375 new artisanal clusters covering 4 lakh artisans.

2. Census: Carrying out a census and mapping exercise to determine the presence of crafts and craftspeople across the country, along with their skills. Issue of photo ID cards to weavers and artisans.

3. Availability of Working Capital and Credit: Assisting weavers and artisans to obtain credit facilities relevant to their requirements.

4. Availability of Raw Material: Creating raw material banks and ensuring timely availability to individual weavers and artisans at reasonable prices.

5. Social Security: Launching Health and Life Insurance schemes to improve the quality of life of weavers and artisans; To Cover 83.92 lakh weavers/ancillary workers and 40.80 lakh artisans; Launching schemes for Distress Relief, Pension and Thrift Fund.

In pursuance of the above objectives, during the 11th Plan, the Government of India implemented five Plan schemes that were administered through the Development Commissioner for Handlooms, Ministry of Textiles, of which two are Centrally Sponsored Schemes (CSS) and three are Central Sector Schemes. A new CSS, namely ʻRevival, Reform and Restructuring Package for Handloom Sectorʼ was introduced during 2011-12 to revive the Handlooms sector. The various Schemes were: MILL GATE PRICE SCHEME (MGPS) With the objective of providing all types of yarn to handloom weaversʼ organizations at the prices at which yarn is available in mills, the Government of India introduced the Mill Gate Price Scheme (MGPS) during 1992-93. The Scheme enables all eligible handloom agencies to obtain yarn at Mill Gate Prices; facilitates regular supply of basic raw material to individual weavers through the yarn depots and helps to optimize their employment. Assistance is provided by GOI for reimbursement of transportation expenses in the supply of yarn; for expenses of operating the yarn depots, and service charges to National Handloom Development Corporation (NHDC) for its role as nodal agency for implementation of the Scheme. In 2011-12, a component was added to this Scheme to mitigate the price disadvantage which had arisen for the handloom sector after CENVAT of 9.2% on all varieties of cotton yarn was abolished in July 2004 (prior to this period, cotton yarn in plain reel only was exempted). It provides 10% Price Subsidy on Hank Yarn distributed to the handloom sector. Both cotton and domestic silk yarn is covered and quantity supplied is limited to 30 kg per loom per month for cotton yarn below 40s count, 10 kg for cotton yarn of 40s count and above and 4 kg for silk yarn.

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INTEGRATED HANDLOOMS DEVELOPMENT SCHEME (IHDS) 1) The Integrated Handlooms Development Scheme (IHDS), introduced during 2007-08, has four components.

(1) The Cluster Development Programme provides need-based inputs to clusters of 300-500 handlooms over a 3-year period through grant of financial assistance up to Rs 60 lakh per cluster, for meeting expenditure on formation of Self Help Groups (SHGs), setting up yarn depots, design development, setting up Common Facility Centres (CFCs)/ dye houses, margin money for working capital, new looms and accessories and construction of worksheds, skill upgradation and marketing opportunities. (ii) The Group Approach supports the handloom weavers not covered by the clusters, in groups of 10 or more and up to 100 weavers, by providing financial assistance for basic inputs; training in weaving, dyeing, designing and managerial disciplines; and construction of worksheds. Per beneficiary cost is in the range of Rs 10, 000 to Rs30, 000.

(2) Marketing Incentive is given to Handloom corporations, Apex organizations and Primary weaver cooperative societies, at the rate of 10% (shared 50:50 between the Central and the State Governments) for promoting marketing of handloom products, largely through promotion of investment in infrastructure. Besides, assistance is extended towards financial strengthening of the handloom agencies.

(3) Up to 10% of funds under the Scheme are for Innovative Ideas, and up to 2% allocated for Publicity, Monitoring, Supervision, and Training of officials of the O/o Development Commissioner for Handlooms and State Directors of Handlooms as well as for evaluation of the Scheme.

2) A component of ʻInstitutional Credit for Handloom Sector’ was introduced under IHDS in 2011-12. It has

three sub-components, namely a) Interest Subsidy of 3% on loans for a period of 3 years, b) Margin Money Assistance of Rs 4200 per weaver to individual weavers, their Self Help Groups

(SHGs) and joint liability groups (but not to cooperative societies and producer companies) and c) Credit Guarantee for three years to banks/financial institutions lending to weavers, for which the

guarantee fee and annual service fee will be paid by the Government of India.

3) Besides, the Integrated Handloom Cluster Development Scheme (IHCDS), a Central Sector scheme for holistic and integrated development of 20 Handloom Clusters, introduced in the year 2006-07, was also continued in the 11thPlan. The Scheme covers about 5000 handloom weavers in each cluster, with GOIʼs contribution of up to Rs 2 crore per cluster over a period of 5 years (initially it was for 4 years). It has benefitted more than 1.50 lakh handloom weavers/workers.

4) A Comprehensive Handloom Cluster Development Scheme (CHCDS) was also introduced as a Central

Sector Scheme under the Mega Cluster Scheme of the Ministry of Textiles in 2008-09, which covers clearly identifiable geographical locations with at least 25,000 handlooms, in which Central share is up to Rs 70 crore per cluster over a time period of 5 years. It provides corpus for raw materials, credit for working capital, construction of worksheds, skill upgradation, technology upgradation, and design studio marketing complex, value addition such as setting up of garment unit, common infrastructure and publicity. Four such Mega Clusters have been sanctioned so far at Varanasi (UP), Sivasagar (Assam), Virudhunagar (Tamil Nadu) and Murshidabad (West Bengal). These Mega Cluster projects are at different stages of implementation.

OBJECTIVES OF THE SCHEME

• To focus on formation of handloom weaversʼ groups as a visible production group in a selected handloom clusters,

• To assist the handloom Weavers Groups for becoming self –sustainable, • An inclusive approach to cover weavers both within and outside the Co-operative fold, • To up-grade the skills of handloom weavers/workers to produce diversified products with improved

quality to meet the market requirements, • To provide suitable workplace to weavers to enable them to produce quality products with improved

productivity, • Market orientation by associating entrepreneurs, designers and professionals for marketing, designing

and managing the production,

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• To facilitate process of credit from financial institutions/banks. • To encourage co-operativisation of weavers. • Holistic and flexible interventions to provide need based inputs specific to each cluster/group,

DIVERSIFIED HANDLOOM DEVELOPMENT SCHEME (DHDS) The Diversified Handloom Development Scheme (DHDS) provides assistance for technological and skill upgradation of weavers, and design inputs and product development through 25 Weaversʼ Service Centres (WSCs) and 5 Indian Institutes of Handloom Technology (IIHT), aimed at improving the productivity and earnings of the weavers. The IIHTs are located at Varanasi, Salem, Jodhpur, Guwahati and Bargarh (Odisha). Additional IIHTs are being set up in the State sector at Champa (Chhattisgarh) and Kannur (Kerala) for which maximum GOI grant is ` 1 crore each. Besides the National Centre for Textile Design (NCTD) set up in January, 2001, other components of DHDS include Design Exhibitions-cum-Dyeing Workshops, Research & Development activities (studies and need-based surveys), conduct of Handloom Census and Issue of Photo Identity Cards. HANDLOOM WEAVERS' COMPREHENSIVE WELFARE SCHEME This Scheme is an important initiative aimed at providing social welfare facilities to weavers and ancillary workers. It consists of two separate sub-schemes. 1) The Health Insurance Scheme (HIS) provides health insurance to the weavers and their families, and it is

being implemented through ICICI Lombard General Insurance Company. The annualcover per family is ` 15000, of which ` 7500 is for OPD expenses. Total premium is `939.76, of which GOI bears 80% and State/weaverʼs share is 20%, with weaverʼs contribution being a minimum of ` 50. Based on feedback received from the State Governments and the beneficiaries, several initiatives have been taken during 2010-11 and 2011-12 to improve delivery, which include settlement of insurance claims within 30 days from the date of receipt of claim and payment of interest at 2% above the bank rate on prorate basis in case of delay in settlement by the insurance company. A Grievance Redressal Committee has also been formed in all States having more than 5000 health card holders.

2) The Mahatma Gandhi Bunkar Bima Yojana (MGBBY) is being implemented through the Life Insurance

Corporation of India. It provides life insurance cover to handloom weavers in case of natural death (` 60,000), accidental death and total disability due to accident (` 1,50,000) and partial disability due to accident (` 75,000). Scholarship benefits of ` 300 per quarter per child are also available to enrolled weaversʼ children studying in standards 9th to 12th. The total premium is ` 470 per weaver, of which ` 290 is GOIʼs contribution, ` 100 is paid by LIC and ` 80 by the weavers.

MARKETING & EXPORT PROMOTION SCHEME

The Marketing & Export Promotion Scheme, aimed at developing and promoting marketing channels in domestic as well as export markets, has two components. 1) Marketing Promotion Programme assists the sale of handloom products by

• organizing exhibitions at National, Regional, State and District levels; • providing facilities to consumers to purchase genuine handloom products under one umbrella; • promoting awareness about latest designs and varieties of handlooms; • providing marketing infrastructural support; • encouraging innovation in designs and techniques; • preserving and promoting traditional skills and designs; • fostering brand identity and technological developments among weavers. • It includes assistance for organising Special Expos, Craft Melas, Urban Haats and Marketing

Complexes; • grant of National Awards and National Merit Certificates; • registration of special designs/techniques under the Geographical Indication (GI) Act, • and establishing brand image for handloom products through the Handloom Mark.

2) Handloom Export Promotion Programme’s objective is identify and assist suitable Apex/Primary

handloom cooperative societies & corporations in developing export-worthy products, by interventions such as engaging professional designers and marketing consultants, upgradation of skills, and market penetration through participation in international fairs/ exhibitions, buyer-seller meets and brand development through Handloom Mark and setting up design studios.

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HANDLOOM MARK The Handloom Mark has been launched to serve as a guarantee to the buyer that handloom product being purchased is a genuine handwoven product and not a powerloom or mill made product. Handloom Mark will be promoted and popularized through advertisements in newspapers and magazines, electronic media, syndicated articles, fashion shows, films etc. The Textiles Committee is the Implementing agency for promotion of Handloom Mark. As on 31st Jan., 2012, 241.21 lakh (cumulative) handloom mark labels have been sold to 8737 stakeholders. 812 retail outlets are selling handloom goods with handloom mark label. The new beneficiaries included in the Handloom Mark Scheme to get the benefits are: Self Help Groups, Joint Liability Groups, Consortia, Producer companies, Handloom Weavers Groups or any other legal entity, or organization involved in Handloom activities and approved by Development Commissioner for Handlooms with a onetime registration fee of Rs. 500.00. Sale price of one label has been brought down from Rs. 1.25 to 60 paise and application forms are available free of cost. The Registration fee for individual weavers is Rs. 25 and for Master weaver Registration fee is Rs.500. REVIVAL, REFORM AND RESTRUCTURING PACKAGE Pursuant to the announcement of the Finance Minister in his Budget Speech for 2011-12, a newly Centrally Sponsored Plan Scheme was introduced during 2011-12 with a total outlay of ` 3884 crore. The Scheme aims to revive the handloom sector through a onetime write-off of loans extended by banks to individual weavers and also open the choked credit lines for the handloom weaversʼ co-operative societies, to facilitate future access to credit by the handloom weavers at lower cost. NABARD is the designated implementing agency for the Scheme. Of the total outlay of ` 3884 crore, the share of GOI will be ` 3137 crore and that of the State Governments will be ` 747 crore. The funds are to be shared between GOI and States in the ratio of 90:10 in respect of special category States, and for other States, it is to be 80:20 for Primary Handloom Cooperative Societies and individual weavers /SHGs and 75:25 for State Level Apex Societies. The funds for the remaining components (strengthening weaver societies, 3% interest subsidy on fresh loans, credit guarantee, and training of functionaries) are to be provided by the Central Government. INTEGRATED SKILL DEVELOPMENT SCHEME (ISDS) The Integrated Skill Development Scheme (ISDS) was launched in 2010 to address the training needs of textiles and related segments. For handlooms sector, the target is to train 1.55 lakh persons over a period of five years. All facets of skill development are to be covered, namely basic training, skill upgradation, advanced training, training of trainers, retaining and entrepreneurship development. The Scheme proposes to leverage on the existing institutions and training experience within the Government and also proposes private sector participation through the PPP model. The Government meets 75% of total cost and the balance 25% is to be met from fee / industry contribution. HANDLOOM RESERVATION The Handlooms (Reservation of Articles for Production) Act, 1985 is aimed at protecting the livelihoods of handloom weavers and protecting the cultural heritage of the handloom industry from encroachment by the power loom and mill sectors. Under the Act, initially 22 textile articles were reserved for exclusive production through handlooms. Subsequently, these were reduced to 11 articles in 2008. Central assistance was released to State Governments for enforcement of the Reservation Order. During the first two years of the 11th Plan, ` 150 lakh each was released, which was raised to ` 350 lakh each in the third and fourth years of the Plan. There is a demand from handloom weaver groups that the Reservation List may be expanded to include items woven with blended yarns, besides cotton and silk yarn already included. As fabrics woven from blended yarns are already included in the List, the matter needs to be clarified. Since it is a policy matter, it may be dealt with by M/o Textiles separately. SPECIAL REQUIREMENTS OF NORTH EASTERN REGION As per the latest Handloom Census, 90% of handloom worker households in the North Eastern Region (NER) are weaver households. Of the total number of handloom worker households in the country, 63.4% are in the NER. Also, in contrast to the national trend, the NE States have recorded an increase in the number of weaver households from 14.6 lakh in 1995 to 15.10 lakh in the latest Census (2009-10). However, 52% households produce less than one meter of fabric per weaver per day. Accordingly, handlooms in the NER are being

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supported through increased levels of assistance as well as increased number of clusters/ events under the Plan Schemes.

RESTRUCTURED TECHNOLOGY UP-GRADATION FUND SCHEME FOR HANDLOOM SECTOR The Handloom Sector, being highly decentralized and dispersed, suffers from cost disadvantages, technological obsolescence and marketing handicaps in comparison to Powerloom and Mill Sector. The Govt. of India, Ministry of Textiles, Office of the Development Commissioner for Handlooms has been supporting the Handloom Sector through State Governments by implementation of various programmes relating to input supplies, production, marketing etc. This has helped the Sector in development of new/diversified products for domestic and foreign markets. However, there is need to up-grade the technology in the areas of pre-loom, weaving, post-loom etc. with a focus on the overall improvement in quality of the products for niche market, productivity and level of earnings of the Handloom weavers. Objectives of the Scheme The objectives of the Restructured Technology Up-gradation Fund scheme are as follows:

• to encourage the beneficiaries to set up all the facilities at one place, which would ease inter-linking of all the production activities.

• to establish a production base with up-graded technology in pre-loom/on-loom/post-loom/quality control etc. as the case may be, under one roof, thus, strengthening the capacity to undertake bulk production for domestic and export markets, with improved productivity & quality.

• to reduce production cycle time, thus ensuring delivery of goods in time; • to achieve product and quality standards and ensure price and quality competitiveness in the domestic

and export market. Financial Assistance available under the Restructured TUF Scheme for Handloom Sector (a)(i) 5% interest reimbursement of the normal interest charged by the lending agency on Rupee Term Loan (RTL); Or (ii) 25% capital subsidy on the basic value of the new machineries and equipments; Note: In both the cases, proposal shall be submitted by the beneficiary organization to the bank concerned directly for approval and loan will be extended by the bank accordingly. Documents will be submitted by the bank to the Office of the Development Commissioner (Handlooms) for interest reimbursement/capital subsidy. b) The following investments are also eligible to the handloom units to the extent necessary for the plant and equipment to be installed for Technology Up-gradation and the total of such investments will not normally exceed 50% of the total investment in such plant and machinery: (i) Factory building including renovation of factory building; (ii) Preliminary and pre-operative expenses; (iii) Margin money required for working capital, specifically required for the technology up-gradation The Technology Upgradation Fund Scheme (TUFS) was launched on 01.04.1999 for 5 years. It was subsequently extended up to 31.3.2007. The Scheme has been restructured w.e.f. 28.4.2011 and approved upto 31.03.2012. SCHEMES/PROGRAMMES FOR THE HANDICRAFTS SECTOR IN THE XIth PLAN At the beginning of the 11th Plan, the eight existing operational schemes were clubbed and converted into six Schemes. Subsequently, two more Schemes were introduced. All the eight Schemes are in the Central Sector and being implemented through the Development Commissioner for Handicrafts. The Schemes are aimed at providing welfare measures to the artisans and also need-based interventions for holistic and sustainable development of the handicrafts sector. These Schemes benefits the whole handicraft sector in the country including the handcrafted textile sector. The Scheme are:

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1. BABASAHEB AMBEDKER HASTSHILP VIKAS YOJNA (AHVY) The Babasaheb Ambedkar Hastshilp Vikas Yojna (AHVY) was launched in 2001- 02. The Scheme has five components. 1) Social interventions include diagnostic survey and mobilization of artisans and issue of ID cards to the

artisans, 2) Technological interventions include development & supply of improved modern tools, design and technical

development workshops, training of artisans, and organizing seminars andsymposium, 3) Marketing interventions include organizing exhibitions, publicity, setting up Handicrafts Emporia, market

assessment & product assessment studies, study- cumexposure tours for artisans/other stakeholders, establishment of warehousing-cumworksheds and entrepreneurship development programmes,

4) Financial interventions include margin money support, wages to cluster manager, engagement of experts/ consultants / institutions for providing need-based assistance, and credit guarantee, and

5) Infrastructure-related interventions include establishment of Resource Centre for majorcrafts, establishment of e-kiosks, creation of raw material banks, and setting up Common Facility Centres (CFCs).

The Mid-Term Appraisal of the 11th Plan by the Planning Commission has rated AHVY as one of the most successful schemes in terms of coverage and outreach. The Scheme has been able to increase the sales and provide market linkage to more than 70% of the artisans covered, leading to improvement in the economic conditions of the artisans. 2. DESIGN AND TECHNOLOGY UPGRADATION SCHEME (DTUS) The Design and Technology Upgradation Scheme has eight components. 1) Financial assistance to Central Government sponsored institutions; 2) Skill up-gradation through training of trainers and assistance to Shilpgurus; 3) Financial assistance for development and supply of modern improved tools, equipment and process

technologies; 4) Assistance for design and technology upgradation through workshops and integrated projects for design

development; 5) Documentation, preservation and revival of rare and languishing crafts; 6) National Award for outstanding contribution in Handicrafts sector; 7) Financial assistance for institutions to be set up under State Initiatives including Design Centres, Design

Banks and Museums; 8) Product Development for Exports. The Mid-Term Appraisal of the 11th Plan has stated that around 50% of the artisans reported improvement after attending design workshops and more than 80% reported increase in work orders after attending design development programmes. 3. MARKETING SUPPORT AND SERVICES SCHEME (MSS) The objective of the MSS scheme is to enhance the access of artisans to various markets and marketing channels, and also create awareness about handicrafts amongst consumers and public at large, both in domestic and international markets, along with creation of marketing infrastructure. The Scheme has three broad components. 1) Domestic marketing through Crafts bazaars, exhibitions, sourcing shows, setting up Urban Haats, Emporia,

and Warehousing facilities; and organizing Workshops, 2) International marketing including workshops and training programmes, craft exchange programmes,

participation in fairs and exhibitions, road shows, reverse buyer-seller meets and market studies abroad, and 3) Publicity and marketing. The Mid-Term Appraisal of the 11th Plan has indicated that more than 90% of the artisans reported increase in marketing accessibility and sales due to the Scheme and more than 80% reported increase in their income levels. 4. HUMAN RESOURCES DEVELOPMENT SCHEME (HRD) The aim of the HRD Scheme is to provide trained and qualified workforce capable of establishing a strong production base, coupled with improvements in quality and use of appropriate techniques, processes and innovative designs to meet present day market requirements. The Scheme has five key components. 1) Training through established institutions, 2) Training in innovative designs for artisans involved in hand block printing, terracotta, etc.,

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3) Training of artisans/ SHG leaders/ NGOs in non-technical skills such as micro finance/ entrepreneurship development/ preparation of business plans/ preparation of project reports/ packaging/export procedures/ documentation,

4) Conducting seminars/ workshops for dissemination and creation of awareness about schemes/ programmes, technological developments, market intelligence, amongst artisans and stakeholders, and

5) Training through Guru Shishya Parampara for passing the expertise along with appropriate technology and indigenous methods by master craftsperson to the artisans and provide gainful employment in rural areas.

The Mid-Term Appraisal of 11th Plan has indicated that nearly 88% of the beneficiaries reported increase in production after training and accessibility to new designs and techniques, and about 80% of the beneficiaries felt that the impact of these trainings/workshops is long term. 5. HANDICRAFTS ARTISANS’ COMPREHENSIVE WELFARE SCHEME: The Scheme is aimed at addressing the welfare needs of the artisans in respect of health and insurance, and has two sub-schemes. 1) Rajiv Gandhi Shilpi Swasthya Bima Yojana (RGSSBY) aims at financially enabling the artisansʼ

community to access healthcare facilities. The Scheme covers the artisansʼ family of four, comprising self and any other three members of the family from amongst the dependent parents, spouse and children. All craft persons, whether male or female, between the age group of one day to 80 years are eligible. One artisan family receives the benefits for 3 years. The Scheme was initially being implemented only through ICICI Lombard General Insurance Company. In addition, Reliance General Insurance Company has also been engaged recently. The Scheme provides insurance cover of ` 100,000 for accidental death / disability, and medi-claim benefit of ` 15, 000 per family per annum. GOIʼs contribution to the premium is 80% (general artisans) / 90% (artisans belonging to North East Region/ SC/ ST / BPL families) and the artisanʼs contribution is 20% / 10% respectively.

2) Janashree Bima Yojana for Handicrafts Artisans provides life insurance protection to handicrafts artisans, whether male or female, between the age of 18 – 60 years. The Scheme was launched in 2003 and is being implemented by LIC. It provides life insurance cover of ` 30,000 for natural death, ` 75,000 for accidental death or permanent disability, and ` 37,500 for partial disability. Additional benefits are extended in the form of an associated Scheme of LIC – “Siksha Sahyog Yojana” under which not more than 2 dependent children of the beneficiary studying in classes 9th to 12th are given scholarships at the rate of ` 300 per quarter per child.

The office of DC (Handicrafts) also implements a Pension scheme titled ʻFinancial assistance to artisans in indigent circumstancesʼ under Non-Plan funding. This Scheme focuses only on the National awardees, National Merit Certificate (NMC) Holders and State awardees. Any person of the age 60 years or above and having an annual income of less than ` 15,000 is eligible to get a pension of ` 1000 per month. 6. RESEARCH AND DEVELOPMENT SCHEME (R&D) The R&D Scheme was introduced in 1956-57 as a Central Sector Scheme on all- India basis to generate feedback on economic, social, aesthetic and promotional aspects of various crafts and artisans in the sector. The Scheme consists of five components.

(i) Conducting surveys/ studies of specific crafts for which adequate information is not available, including problems related to availability of raw material, technology, design, and common facilities; living and working conditions of artisans and issues related to brand building and promotion of Indian Handicrafts,

(ii) Census of handicraft artisans, (iii) Registration of Crafts under Geographical Indication Act, (iv) Setting up/strengthening Testing Laboratories, and (v) Assistance to exporters for adoption of global standards and bar coding, including

Handicrafts Mark for generic products. 7. SCHEME FOR INFRASTRUCTURE/CAPITAL The Scheme provides support for development of building infrastructure for the offices of the DC, Handicrafts. 8. INTEGRATED DEVELOPMENT PACKAGE FOR J&K The Scheme provides financing for taking up specific programmes in the State of Jammu & Kashmir.

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MAJOR CHALLENGES FACING THE HANDLOOM SECTOR Welfare and Livelihood of Weavers including Women Despite the welfare-oriented policies implemented by the Government, almost half of the handloom weavers belong to the most backward and poorer sections of the population. Nearly 47% of all handloom weavers possess Below Poverty Line cards and 10% have Antodaya Anna Yojana Cards. About 29.4% of all handloom workers have never attended school and 12.7% are educated only up to primary school level. The high incidence of poverty and illiteracy among weaver families is accompanied by poor access to basic necessities including health, water, sanitation, housing and livelihood facilities. The role of women in the handloom industry is largely unacknowledged. But this sector derives a majority of its skills and work from women who constitute more than 70% of weavers and workers engaged in this sector. Although in some regions, women may not specifically take up weaving work, they are engaged in the production process right from the initial stage of opening up the hank to the finishing of the product. Hence, women workers need to be recognized as contributors and need to be enumerated in any mapping and diagnostic exercises. Rising Input Costs The issue of easy sourcing of raw materials (both yarn and dyes & chemicals) at reasonable prices has been a key problem across centres of handloom production. The problem is far more acute for individual weavers. Cotton yarn is the major input for handloom weaving. In recent years, there has been a phenomenal rise in the prices of yarn. The main reason for this is the sharp increase in the prices of cotton. Supplementary reasons include lack of proper delivery systems, closure of spinning mills in some handloom producing States, and non- fulfilment of the Hank Yarn obligation by the organized mill sector. For ensuring easy availability of yarn at reasonable prices and on a regular basis, the Government of India has been implementing the Mill Gate Price Scheme, under which yarn is supplied at the door steps of weavers at mill gate prices. Over 700 yarn depots are functioning in weaver clusters. However, despite these interventions, the Scheme has not been able to address the problem fully, due to certain constraints in implementation of the Scheme was also due to lack of financial resources. The corpus fund made available to National Handloom Development Corporation (NHDC) under the cluster development programme, has not eased the problem. Therefore, easy availability of yarn at reasonable prices remains a persistent problem for weavers cross the country, especially in the NER States. Independent weavers face a major difficulty as the delivery of yarn by NHDC is in bulk, whereas independent weavers need small quantities. Hence, yarn depots need to also supply yarn in smaller quantities. Sparse Credit Coverage and High Cost Weavers are prone to diverting credit towards consumption needs. Lack of even rudimentary financial literacy aggravates the existing credit-related obstacles faced by the weavers. Furthermore, a majority of handloom weavers operate outside the fold of institutionalized financing. Of the total households surveyed in the 3rd Handloom Census, nearly 44.6% were dependent on Master Weavers for their credit requirements, while 13.4% still relied upon moneylenders. Only 14.8% had access to institutionalized sources of credit. Further, institutional credit is currently being accessed mainly through the Scheduled Commercial Banks, Cooperative Banks, Regional Rural Banks, etc., which have limited reach in interior/remote/rural areas. In fact, as per the Handloom Census, access to institutional financing for rural households was only 7.7%. These factors reveal the extent to which the weavers are trapped in the vicious cycle of debt and resultant poverty. Marketing Bottlenecks Dearth of innovation and limited dynamism is associated with the handloom sector, particularly in the field of marketing. One major factor impeding the expansion and growth of this sector is lack of adequate investment, participation and stake-holding by the private sector, mainly in marketing and supply chain. As 61.1% of the total weaver workforce (24% for non-North Eastern States) comprise of independent workers, a majority of the weavers necessarily bear all the risks associated with the business of procurement, marketing and sale, with obvious consequences. Relieving them of these uncertainties is critical, which can only be achieved by developing reliable and sustainable marketing networks with the involvement of the private sector. Poor Institutional Management The Handlooms sector was encouraged to adopt a co-operative model and the Government policy facilitated the formation and running of Primary Cooperative Societies at the village/taluka level and Apex Societies at the State level. Besides, State Handloom Corporations were also promoted with a view to supporting individual weavers. It was envisioned that the Apex Societies/ State Handloom Agencies would, inter-alia, arrange for procurement of yarn from organized mills, supply the same to Primary Societies for producing cloth and, thereafter, also undertake marketing activities. Unfortunately, in the last 5 to 10 years, several Apex Societies /Handloom Corporations have become dormant due to a host of reasons such as financial losses, lack of professional management, overstaffing and poor marketing and distribution channels. These organisations are, therefore, not

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able to arrange for sufficient work for the weaversʼ community, which has further adversely affected the health of the Primary Cooperative Societies. Estimates show that of the 21,765 registered Primary Weaversʼ Cooperative Societies (which cover only around 15% of the weavers in the country), only 50% are functional and that too, partially. Moreover, about 85% of weavers in the country are outside the cooperative fold, as they work either under Master Weavers/ traders or independently. Poor Policy Dissemination Lack of information to weavers regarding various Government policies and schemes under implementation, is a significant cause for the dwindling fortunes of the weaver community. Sometimes, the implementing agencies and the concerned Governments Departments may not possess complete information, resulting in critical gaps in implementation. Infrastructure gaps Infrastructure in the handloom sector continues to be inadequate, particularly in the North Eastern Region (NER). Facilities such as clean drinking water, sanitation, effluent treatment plants and electricity, are not available in all hubs of handlooms production. Systems that ensure efficient supply chain management from the stage of availability of handloom raw materials up to sale of finished goods, essential for providing the weavers easy access to inputs and markets throughout the country and thereby resulting in higher returns for their products, are yet to be set up. In the NER, the biggest challenges faced by weavers include regular and easy access to raw materials, credit and markets. This is compounded by the sparse nature of population and settlements, limited local organization through participation of SHGs, poor implementation of public schemes and lack of adequate public accountability as well as lack of institutionalized evaluation and monitoring mechanisms. Information and Resource gaps Major institutions providing inputs-credit, research, technology, management and market development, etc. are largely centralized and, hence unable to reach the dispersed and largely home-based weavers. There has been limited information flow between buyers and sellers and as such, weavers are often not familiar with the variety in usage of fabrics and thus find themselves unable to respond to dynamic market trends or suggestions by designers/ marketing agencies. Data Base Inadequacy of a dedicated data base for the sector continues to be a major drawback, which adversely affects policy formulation and review. Its absence also hinders attempts at inter-sectoral comparisons with related departments. For example, the Government uses aggregate data to compare the production figures of handloom industry with those of mills and power-looms. But aggregate data does not reflect the rich diversity of handlooms – in terms of differences in production patterns and types of products amongst States, regions and districts. The conversion factor used for arriving at production of handloom cotton for hank yarn delivery has also remained unchanged for more than a decade, in the absence of updated and reliable data pertaining to the conversion element involved. Monitoring and Evaluation A critical success factor for any scheme is a robust monitoring and evaluation system to ensure timely completion of project activities as well as attainment of objectives of increasing incomes of weavers, increasing output, maximizing coverage and ensuring a sustainable impact. Towards this end, there is a need for a strong web-based monitoring system to promote transparency and accountability and facilitate regular tracking of physical and financial performance of individual programmes/projects, particularly the ongoing Clusters. Education, Skills, Research and Training The formal education system, including research institutes, has not included teaching, training and skill development for the handlooms sector into their mainstream curricula/activities. As a result, the onus of introducing innovation in design and techniques is left to the initiative of the weaver families who usually have no resources to devote to this critical field. While rapid changes in technology and processes have taken place globally, practices in the domestic handloom sector have tended to be relatively static and consequently unable to meet the market requirements. Upgrading the skills and capacity building throughout the handloom chain is one of the most urgent needs for bringing about positive transformation in the sector. Skills linked to production planning, costing, quality control and marketing as well as in design and technology development, are some of the areas that need concerted efforts to enable weavers to compete in open markets. Another crucial requirement is to mainstream the handloom technology and management-related education relating to handlooms, in order to turn the sector into a lucrative career option for the youth. Investment in education will also help preserve and document existing technologies and practices. Focused training and skill up gradation programmes must be instituted to help women workers manage weaving and weaving related production. Existing training modules and schemes should be more inclusive of women workers and it should be ensured that women get equal access to training and infrastructure under the schemes. Environmental compliance and occupational health and safety issues also need to be built into the training and educational modules. Particular emphasis is required to make yarn and handloom dyeing units aware of the ban on Azo dyes as use of these dyes are harmful both to weavers and the customers, and it is not desirable to sell products made using these

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dyes. Steps need to be taken to promote vegetable dyeing and providing training and awareness building workshops for chemical dyeing. Consolidation Various cluster development schemes have been in operation since the last two Plan periods, spanning different sizes of clusters in terms of number of looms covered. While the existing clusters need consolidation for making them more self-sustainable, efforts are also required to provide coverage for areas which have not been assisted so far. As the number of looms in a cluster varies from place to place, the levels of interventions required would also vary. Cluster development needs to be given continued emphasis for achieving integrated and holistic development of the weavers. MAJOR CHALLENGES FACING THE HANDICRAFTS SECTOR The handicrafts sector, despite the immense economic and social significance, remains beset with several constraints such as lack of infrastructure facilities, inadequate availability of quality raw material at reasonable prices, depletion of natural resources, decentralized status of the industry, lack of access to credit, lack of focused approach, absence of brand image, less penetration in domestic market and growing competition from machine-made products. Resource Mapping Several crafts in the country are an integral part of our history and tradition, but they are languishing due to lack of recognition being accorded to them and continue to remain neglected. The lack of proper processes and systems for identification, documentation and mapping of all crafts and clusters is still a major challenge. Handicrafts Census The lack of adequate and authentic data on crafts persons, including their socioeconomic status, livelihood conditions and details of their families, is a major bottleneck which adversely affects planning and policy making for this sector which is the second largest employment generating sector after agriculture. Urgent completion of the proposed Handicrafts Census is required in order to bridge the existing gaps. Welfare of Artisans Although detailed figures are not available to assess the exact status of handicraft artisans in the country, scheme-based assessments have revealed the need to reposition and improve upon the implementation of all welfare oriented programmes. Ensuring easy accessibility to health centres, quick and objective settlement of claims and effective claim redressal mechanisms are some of the immediate priorities that need action. Inadequate efforts to improve livelihoods, occupational health and safety, education and social security remain impediments in holistic growth of the handicrafts sector and its people. Credit and Raw Materials Most artisans are from economically disadvantaged sections of the population and lack resources required to meet working capital and other requirements. They do not have regular access to formal credit sources, which leads them to the local moneylenders and gradually fall into the debt cycle. Similarly, most artisans obtain their raw materials locally and normally do not get access to good quality raw materials, with the result that the returns on their output are meagre and erratic. Infrastructure and technological gaps The availability of infrastructure required by the handicrafts sector has been less than satisfactory, leading to a loss of competitiveness. Formal institutions/organisations for facilitating production, marketing and distribution of handicrafts in an organized manner are lacking and often non-functioning, that hampers the development of regular markets for the artisans who end up being dependent on local traders and middlemen. They do not have direct access to markets within the country as well as abroad. The situation is further escalated by the lack of technological upgradation, as age-old technology and methods of production are still utilized, resulting in inefficient operations and low-quality of output. Technical Resource Gaps & lack of Design Innovation There are no direct linkages between the handicraft producers and designers as is the case with the apparel and fashion sectors where big brands are identified by designers and vice-versa. There is also a lack of comprehensive data on equipments that are used by various crafts in the industry, apart from lack of concentrated efforts to develop good quality, low cost tools that can be supplied to artisans. The design banks are fairly outdated and redundant unless they undertake continuous revision through; inter alia, increasing use of internet. Designers often lack requisite knowledge on practical application of crafts. The training programs introduced to upgrade skills of artisans are also treated as a one-time activity, with no mechanism to institutionalize learning; the knowledge gained is rarely put to practical use or developed further. A base set of

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products and labour standards need to be created to enable products to be retailed as craft products and be eligible for government support and promotional schemes. Monitoring and Evaluation A critical success factor for any scheme is a robust monitoring and evaluation system by independent agencies to ensure timely completion of project activities, and attainment of project objectives in terms of increased incomes of artisans, increased output, maximum coverage and sustained impact. Hence, there is a need for a strong monitoring system, preferably web-based, to introduce transparency and regularly track the performance of ongoing clusters and other schemes to initiate mid-course corrections, if required. Consolidation Out of more than 2800 handicraft clusters covering 506 districts across the country, 1396 clusters in 397 districts have been covered under the AHVY Scheme under implementation since 2001. However, the Scheme has not been able to convert artisan SHGs into self-sustained community-based enterprises in most clusters. Hence, adequate measures are necessary to ensure consolidation of all existing clusters introduced in the earlier Plans, which is a big challenge for the 12th Plan. At the same time, for equitable growth of the handicrafts sector, the remaining clusters spread over 109 districts, also need coverage in a phased manner. Regional Imbalances Regional imbalances continue to prevail throughout the country with visible gaps in production and consumption (sales). This is evident from the fact that the northern and central regions account for bulk of the exports, whereas the remaining regions contribute only marginally. Programmatic inefficiencies Various programmatic inefficiencies need to be evaluated. For example, implementing agencies are facing challenges in acquiring land for Urban Haats as per their requirements. Financial parameters also need to be reviewed and revised. Thus, eligibility criteria, financial aspects, fund release pattern and such parameters need to be reviewed for the entire sector. Limited role of private enterprise The implementation of the AHVY is carried out largely by NGOs and other institutions. Accordingly, implementation of project interventions is limited by the capacity of the NGOs/ Implementing Agencies (IAs), particularly as the latter do not have enough exposure to current developments in the field of design, technology and management. Also, they have limited linkages with the market, thereby limiting the sustainability of their operations. The IAs often has limited capacity to sustain operations after the funding support under the Scheme has stopped. There is, therefore, a strong need for greater private participation in the implementation process to supplement Government resources and bring about greater efficiencies and ensure attainment of project targets. The private sector can provide professional management and handholding support to assist IAs in attaining project objectives on one hand and facilitating the Office of DC, Handicrafts on the other hand, so that schemes are implemented in a targeted manner and desired outcomes are achieved. There is also a need to take steps for ensuring greater transparency and accountability. Marketing and other relevant components of other Schemes could have a PPP model to incentivize the private sector to invest in infrastructure. Support for commercially viable producer groups and entrepreneurs through institutions such as SIDBI and NABARD need to be considered, along with suitable tax incentives for private investment in design, capacity building, quality control and retail.

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Ethical stand of Indian handloom and handcrafted textile sector HIGHLIGHTS OF ETHICALNESS IN HANDLOOM AND HANDCRAFTED TEXTILE SECTOR

1. Input material used are from organic and natural sources, like organic cotton, domestically grown silk and wool from local sheep.

2. Most of the products of these sectors use recycle materials like threads for embroidery and old used cloths in appliqué and quilts. One of the best examples is kantha quilts, which are made by recycling cotton & silk saris and cloth pieces.

3. Handloom weaving and Handcraft process are environmental friendly and sustainable process. Handlooms donʼt run on power hence save a lot of energy in comparison to the power looms.

4. It provides employment to a huge number of craftsmen and artisans supporting their livelihood.

5. Almost 50% of the workers in these sectors are women, who work in their leisure time after doing their daily household work. This provides support for the women empowerment in rural areas.

6. Workers in these sectors work at their house courtyards or cooperative sectors, which has ample space and friendly environment to work. The artisans feel like at home. There condition is a way better than the workers in a sweatshop or a factory.

7. These sectors generally use eco-friendly materials like wood, Iron and jute ropes to build their looms and other tools for weaving; needle and frames for embroidery and wooden blocks for block printing. This imparts minimum damage to the environment.

8. Traditionally, printing and dyeing were natural and vegetable dyed. Use of Indigo for blue, Maddar for red and Iron for black color is very common in these printed textiles which is harmless unlike chemical dyes.

ORGANIC FARMING

Organic farming has been practiced in India since thousands of years. In India, traditionally, the entire agriculture was practiced using organic techniques, where the fertilizers, pesticides, etc., were obtained from plant and animal products (like cow dung used as fertilizers).

During the Green Revolution in 1960s, to ensure food security for the growing Indian population, a large amount of land was brought under cultivation. Hybrid seed were introduced. Natural and organic fertilizers were replaced by chemical fertilizer and locally made pesticides were replaced by chemical pesticides. Farmers in remote areas in India are not economical sound. Organic fertilizer and natural pest control are the only tools available to most of these farmers, who have always lacked the financial resources to explore chemical solutions. As time went by, extensive dependence on chemical farming has shown its darker side. The land is losing its fertility and is demanding larger quantities of fertilizers to be used. Pests are becoming immune requiring the farmers to use stronger and costlier pesticides. Due to increased cost of farming, farmers are failing into the trap of money lenders, who are exploiting them to end, forcing them to commit suicide.

Both consumers and farmers are now gradually shifting back to organic farming in India. It is believed that organic farming is healthier and consumers are willing to pay higher premium for the same. Many farmers in India are shifting to organic farming due to domestic and international demand for organic agricultural product. Organic farming is a better alternative to chemical farming.

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According to the International fund for Agriculture and development (IFAD), about 2.5 million hectares of land was under organic farming in India in 2004. Further, there are over 15,000 certified organic farms in India. India is one of the most important suppliers of organic products to the developed nations. The major organic products sold in the global markets include dried fruits and nuts, cocoa, spices, herbs, oil crops, and derived products. Non-food items include cotton, cut flowers, livestock and potted plants. No doubt, the organic movement has again started in India.

ORGANIC COTTON IN INDIA

India has seized a sizable stake of around 50% share in the organic cotton production across the globe. The rise in the country's output is primarily because of an aversion towards producing genetically-modified cotton, higher cost of synthetic pesticides, as well as lack of availability of fertilizers. Organically grown cotton is more profitable for farmers than Bt cotton (genetically modified). The genetically modified variety makes farmers more vulnerable to financial collapse due to high debts and increased costs of cultivation. According to a report by new Greenpeace report, in the year 2009-10, farmers cultivating cotton through organic practices earned 200 percent more net income than farmers who grew genetically engineered cotton (Bt cotton).

International organic certification: a threat to Indian farmers, who are organic by default

As the international community adopts standards for organic agriculture, the danger is that the well-intentioned global move towards organic standards will make small organic farmers in India, who have been never done anything but organic farming, no longer able to sell their crops because they cannot afford expensive organic certifications. Under current government policy, it takes four years for a farm to be certified as organic. The cost of preparing the report is a flat fee of Rs. 5000, and the certificate itself costs another Rs. 5000. While these costs are bearable for the new industrial organic greenhouses, they are equal to or more than an entire yearʼs income for the average small farmer, if the costs of travel and inspection are included.

In order to certify these small organic farmers minimise the accreditation agenciesʼ procedures and cost, IFOAM (International Forum for Organic Agricultural Movements) has introduced Community Certification. In community certification, communities, on a non-profit basis, take charge of the certification process themselves. They evaluate the farmerʼs commitment to the stewardship of the soil, and examine from many angles whether the food is being grown in an environmentally sensitive way or not, rather than technical standards. While community certification may be a viable solution on the local level, it is our opinion that, in the global marketplace, less than exact technical standards will never be enough for todayʼs consumer. India must find a way to keep the strict international organic standards intact if it wants to compete in the international market for organic demand without leaving small farmers out in the cold. One obvious solution is for the government so eager to make India organic to subsidize these certification fees enough to make it a viable option for ordinary farmers, not just for neo-organic factory farms and greenhouses. Banks also could provide a more level playing field for small farmers. Currently, almost all bank loans are for pure crop farmers, that is, monoculturalists. While many of these big-business farmers use harmful chemicals and processes, small farmers fertilizing their soil with recycled organic wastes are usually ineligible for insurance, much less state subsidies.

ORGANIC SILK FARMING

Organic silk is produced by cocoons reared on forest tress and fed with leaves that are natural organic plants (NOP), grown with vermi-compost without the help of pesticides and chemical fertilizers. Vermi-compost (bio-fertilizer) is produced by earthworms feeding on biological waste and plant residue. With the world increasingly turning to organic things and China and Thailand substantially eating into the global silk market, Bhagalpur is all set to give a big thrust to its silk industry by going organic. Bhagalpur produces and exports some of the best tussars in India.The directorate of handloom and sericulture, department of industries, government of Bihar, gripped with the challenges thrown by China, Thailand and other countries that produce organic silk, is going for commercial production of this variant of silk in a public private partnership. For starters, the directorate has taken up farming of tussar food plants like arjuna and asan trees. The trees are being reared in more than 350 hectares of land under Katoria and Bounsi blocks in Banka district in Bhagalpur under a joint venture involving the Central Silk Board, the government of India and the directorate of handloom and sericulture.The land which is being used for growing the trees is barren and arid, which could produce nearly 15,000 to 20,000 cocoons on each hectare and about 20 kg of silk yarns. The cost of cultivation of trees is around Rs 16,000 to Rs 18,000 per hectare, according to the industries department sources.1

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1http://articles.timesofindia.indiatimes.com/2011-03-03/patna/28650458_1_silk-industry-central-silk-board-cocoons

Jharkhand to establish organic silk as global brand : Moved by the awesome response that the Stateʼs organic silk has met in the local as well as world markets, Jharkhand Chief Minister Arjun Munda is keen on intensifying its production and establishing it as an international brand.The Chief Minister, while talking about Kuchai, a village in Seraikela-Kharsawan, which falls under his home constituency, said that not only the quality of the silk produced in the region was excellent, but also, it has a potential of drawing attention of people from all corners of the world. The Chief Minister also revealed that there is a plan to establish ʻKuchaiʼ as a brand. Mr. BC Prasad, Director of the Central Tasar Research & Training Institute, said that the scientists have set a target of achieving silk production of 5,000 tons per annum during the 12th Five Year Plan, as against present production of 1,050 tons per annum. He said that the State can greatly contribute in achieving this target with the help of new processing techniques which have been developed for four silk varieties - tasar, erri, oak and munga.Further, while stating that the silk industry is a labour intensive cottage industry, Mr. Prasad said that increasing number of women can be trained in silk cultivation and production in the next few years. The Chief Minister said that the State government intends to commence the dyeing process to facilitate production of finished silk in the State and enable the brand to better compete with other brands from Varansi and Bhagalpur. In April last year, Mr. Munda called upon over 200 scientists from across the country and urged them to formulate ways to involve more farmers so as to boost the production of silk, while cutting down on the time factor. http://www.fibre2fashion.com/news/silks-news/newsdetails.aspx?news_id=10029

ETHICAL CERTIFICATION ORGANIZATIONS IN INDIA

NPOP INDIA ORGANIC

Indian National Standards for Organic Production & India Organic Logo is governed by APEDA, which provides national standards for organic products through a National Accreditation Policy and Programme. The aims of the National Programme for organic production include:

• To provide the means of evaluation of certification programmes for organic agriculture & products as per internationally approved criteria.

• To accredit certification programmes. • To facilitate certification of organic products in conformity to the National Standards for Organic

Products. • To encourage the development of organic farming and organic processing.

SHOP FOR CHANGE

Shop for Change Fair Trade is a non profit organization, which works to ensure decent livelihoods for poor farmers in India. It has announced a groundbreaking association with Shoppers Stop, Indiaʼs premier fashion and lifestyle destination. To kick off this partnership, Shoppers Stop has launched a stunning collection of womenʼs ethnic wear under its exclusive brand STOP. The new collection, which includes kurtis in 6 styles, is made with Shop for Change Fair Trade certified cotton, guaranteeing cotton farmers a fairer deal so they can care for their families and the environment. Shop for Change Fair Trade, which builds on successful international models of fair trade certification, was established by Traidcraft Exchange (UK) and International Resources for Fairer Trade (India) and is funded by the European Union, Dutch foundations ICCO and Hivos, NABARD.

Having already partnered with brands like Anita Dongre and ColorPlus, Shop for Change collaborates with small and marginal cotton farmer organisations working across 5 Indian states such as Chetna organic farmers association, links their farmers to markets and helps them earn better livelihoods. Seth Petchers, CEO of Shop for Change Fair Trade says, “The momentum for fair trade in India has been

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building and our partnership with Shoppers Stop, one of the retail industryʼs trendsetters, takes fair trade to the next level. The presence of fair trade products at Shoppers Stop makes it easier than ever for consumers to shop for change and know that theyʼre doing their bit to make a difference in the lives of poor farmers.” Vinay Bhatia, Customer Care Associate & Senior Vice President, Marketing & Loyalty, Shoppers Stop Ltd. says, ”Itʼs a matter of great pride and pleasure that Shoppers Stop is the first large-format retailer to join hands with the Shop for Change Fair Trade movement. We have launched an extensive Shop for Change womenʼs ethnic-wear collection under our popular, exclusive brand STOP. This collection is made entirely from Shop for Change Fair Trade certified cotton. The social implications of using Shop for Change fair trade certified cotton are truly phenomenal. It allows farmers to receive 15% additional income and at the same time makes customers feel good about making a difference. We are already seeing a great response to the Shop for Change collection from our customers.” Shoppers Stopʼs new Shop for Change collection is priced at Rs. 999/- and is available at select Shoppers Stop stores in Mumbai, Delhi, Bangalore, Kolkata, and Hyderabad. The Shop for Change certified cotton used for the range is sourced from Chetna Organic Agriculture Producer Company.

THE SHOP FOR CHANGE MARK: The Shop for Change Mark is a symbol of trust that certifies, the product bought, is ethically and environmentally sourced and that the farmer or artisan behind it received a fairer deal.The Shop for Change Mark works to:

• Improve livelihoods and protect wages • Develop farms through training on better and greener growing practices • Care the environment • Build stronger farmer organisations • Empower farmers and women • Ensure safe, healthy and non-discriminatory workplaces • Build long-term trading relationships around better terms of trade • Increase transparency and accountability

Chetna Organic Farmers Association

The Indian market and other domestic markets in producing countries are increasingly important for the fair trade movement because they could each be larger than the European market, which is the largest market for fair trade products. For instance, take Chetna Organic Farmers Association, which works with 9,000 cotton farmers in the Vidarbha region of Maharashtra, Telangana in Andhra Pradesh, and Koraput, Bolangir and Kalahandi region of Orissa. It sells most of its cotton in Europe at a premium of Rs. 320 a quintal. But even now it is able to sell only half the produce; the rest gets sold in India without any premium. It is no wonder then that Seth Petchers, chief executive of Shop for Change, a marketing and labelling organisation for domestic fair trade products, is trying to launch this movement in India. Shop for Change launched a range of fair trade clothes along with designer Anita Dongreʼs prêt label AND. The collection featured an ad campaign that starred fair trade cotton farmers along with former Miss India, Gul Panag.

This collection was made with fair trade cotton from Chetnaʼs farmers in Orissa, who were paid Rs. 35 per kilo of cotton rather than the market price of Rs. 30 per kilo. The FLO also fixes a fair trade price, which includes a minimum price for the product and a fair trade premium. Says Reykia Fick, external relations co-ordinator, FLO, “On top of stable prices (usually the fair trade minimum price), producer organisations are paid a fair trade premium — additional funds to invest in social or economic development projects.” Farmer members of Chetna, in Andhra Pradeshʼs Karimnagar district, have used this premium along with an international grant to build a storage warehouse for their cotton. During the off-season, they rent out the warehouse as a marriage hall and distribute earnings for the co-operative. Another farmer group in Maharashtraʼs Akola district has used the premium to build a school. In Keralaʼs Kannur district, the premium is used to create a fund for distressed farmers. It has also allowed the community to set up solar sensing technology as a benign blockade warding wild elephants off the cashew nut trees. Their cashew produce is labelled Jumbo Cashews in the European market. This article appeared in Forbes India Magazine of 30 July, 2010Read more: http://forbesindia.com/article/breakpoint/fairtrade-in-india/15422/1#ixzz2ABpAnsYQ

AGROCEL

To meet the demand for a reliable Organic and Fairtrade cotton fibre, Agrocel Industries Limited, in conjunction with Vericott Ltd and Traidcraft Exchange, have defined and branded a cotton fibre. Agrocel® Pure & Fair Indian Organic Cotton. Agrocel, from its 12 rural service centres across India, co-ordinates organic fibre cultivation with a selected group of local farmers. A team of agronomists is based at each Agrocel service centre, and monitors growing to International Organic Standards.

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PERCEPTION OF ETHICAL CONSUMERS TOWORDS HANDCRAFTED AND HANDLOOM TEXTILE PRODUCTS

1. Ethical consumers are looking for products, which is socially responsible. Handcrafted and handloom textile products provides the perfect cause. Buying them is a social cause, a way to support the dying tradition of art & culture and help artisans, as well as taking a piece of heritage home.

2. Consumers are now appreciating the handmade quality of products, which is not possible in factory

made products. They like the raw look of hand-woven or hand embroidered fabric, or minor printing mistakes in hand block printed textiles. Consumers want to feel the work of craftsmanship.

3. Organic handloom and handcrafted textiles product impart a safe and harmless image to the

consumers. Hence these products are an easy choice for ethical consumers concerned about safety, health and environment.

4. Though handloom and handcrafted textiles have an edge over similar factory made products, due to itsʼ

art and cultural uniqueness as well as ethical aspects, majority of consumers still evaluate the products on the basis of design, quality and cost.

5. With growing ethical demand, customers are also getting aware of fake ethical promotion and

concerned about the authenticity of the ethical product. In the market full of eco and green labels claiming there ethical features, they want to trust only in companies with eco- certification under international standards, which differentiate them from rest of the products.

6. Products of handloom and handcrafted textile sectors were widely bought as gift items or for special

occasions or functions because they have presented in this way. Handloom and crafted textiles has the flexibility to get incorporated in products for day to day life. Consumers will be benefited & attracted to the diversified use of handloom and handcrafted textile. It can become the textile for day to day life as well as for celebrations.

7. In todayʼs fast growing and changing fashion industry, traditional and stereotype designs of handloom

and handcrafted textiles are ignored. In textiles, fashion and design plays a major role in driving the purchase decision, trend changes with every season and so the designs.

OPPORTUNITIES TO HANDCRAFT AND HANLOOM TEXTILE PRODUCER DUE TO ETHICAL CONSUMERISM

1. After experiencing a strong competition in international and domestic market in globalization, producers of handloom and handcrafted textile sectors now have the golden opportunity from the market trend, which now prefers handmade over machine made.

2. International demand for organic products will directly benefit Indian cotton farmers, who were organic

by default. They just need organic certification from any of the international organic certification like, USDA, IFOAM, etc. to sell their product in global market.

3. Suicide by cotton farmers in India has created concern for them. Consumers want to ensure farmers

and workers get a fair price for their product. They want to make sure that the product they buy must benefit the farmers and workers. Hence they want buy from a Fair-trade certified organization, which ensures, that the worker and farmers are fairly waged and get financial assistance for infrastructural up gradation.

4. An emerging group of consumers are exempting buying of dyed products to prevent from risk of harmful chemical dyes and water pollution. They now prefer naturally occurring color in the fibres like natural

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color in silk, cotton, jute and wool. This kind of consumer choice bring sustainability by reducing the dyeing cost, reducing water pollutions as well as lowering the cost of the product.

5. Producers dealing with printed or dyed textiles should get OKEOTEX certification. This will give

assurance to customer about the product safety and eco- friendly dyeing and printing process. This certification will provide international acclaim in the market.

6. Garment manufactures can get GOTS certification for their garments if they source raw material like, cotton with an international organic certification (USDA). This certification is helpful in differentiating the product in the market and globally accepted as one of good certification for organic garments.

7. Government of India has been providing many schemes for infrastructural development, artisan welfare and training along with design and marketing assistance to the producers in this sector. Rising ethical and organic demand has motivated government to invest more and boost the organic and ethical production.

CHALLENGES TO HANDCRAFT AND HANLOOM TEXTILE PRODUCER DUE TO ETHICAL CONSUMERISM

1. Ethical consumerism is a global activism. To gain from this modern market, Indian handloom and handcrafted textile sector have to compete at a global platform, facing all the challenges in design innovation, quality and marketing irrespective of its own financial and unorganised issues.

2. Getting international eco-certifications like organic and fair-trade may be very costly for poor individual farmers and artisans. Lack of certification will restrict them from selling their products even if there product is organic by default.

3. Coming up with a competitive price for product is an issue of concern. Production rate of a handloom cannot match the production rate of power looms, or the hand-embroidery with the machine embroidery. Hence the cost is not competitive with the machine made products, lacking a basic feature that is cost. Ethical consumers support handmade products, but they will buy them only if, it is available at an affordable price.

4. Consumers do care about the quality first. In many cases handloom and handcrafted textile products may lack the quality and finish due to human errors and lack of technology in their products as compared to the factory made quality.

5. Marketing and promotion of these products are difficult for unaware producers, who lack information about the government schemes, market situation and means to promote there ethical products.

CONCLUSION

Despite of many challenges being faced by handloom and handcrafted textile sector in globalization and a growing but a very thin layer of actual ethical buyers, the ethical consumerism has provided handloom and handcrafted textile sector an opportunity to come out of itsʼ niche market to a wider market segment and take a global stand. Now it is not only considered as gift or souvenir but as an organic and ethical textile for diversified use. Handloom and handcrafted products can be used as home as well as lifestyle textiles and ethical consumers need such products with ethical feature and diversified use. Though by getting certified by international eco-labels can make the products eligible for ethical consumers, but to sell the products, it have to qualify the basic desirable feature in a textile product i.e. design, quality and cost according to the market.

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