Comparison of conventional and fair trade systems on dimensions of sustainability: a study of basmati rice procurement in India

Abstract

Conventional procurement at farm level, as starting point of the supply chain and a crucial link to farmer livelihoods and impact on sustainability, remains specifically ineffective in India. Initiatives like Fair Trade, in domain of 'alternative trade' mechanisms, have made inroads in global agricultural trade bridging the ethical consumers of the west to marginalised farmers in developing countries like India. This research paper explores indicators on all the dimensions of sustainability through literature as well as through exploratory factor analysis on primary data collected from Indian farmers who follow either conventional system or Fair Trade system to dispose their produce (basmati rice). The study also compares these systems on all indicators and dimensions of sustainability. It also explores the strength, weaknesses, suggestions to improve and reasons for formers to remain in the system. Findings suggest that Fair Trade system is better on almost all dimensions of sustainability than conventional system.