FAIRTRADE

OPEN STANDARDS

1 – SOCIAL DEVELOPMENT

1-1 understanding the local culture

1-2 Participation and Transparency

1-3 Non- discrimination

2 – ECONOMIC DEVELOPMENT

2-1 Training

2-2 Market transparency

2-3 Fair trade premium

3 – ENVIROMENTAL DEVELOPMENT
3-1 Organic practices

3-2 Marketing support

4 - STANDARDS ON LABOUR CONDITIONS

4-1 Forced Labour and Child Labour

4-2 Freedom of Association & Collective Bargaining

4-3 Conditions of employment

4-4 Occupational Health & Safety

AGROCEL WELCOMES INITIATIVES TO IMPROVE THESE STANDARDS

Please email you comments to: standards@agrocel-cotton.com

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Agrocel Industries Ltd mission is to serve the farming community by providing high quality
agricultural inputs and guidance all under one roof this at a fair price, technical guidance and
agricultural output marketing with value addition.

Agrocel fibre is cultivated by small-scale Indian farmers and under the monitoring of Agrocel
Industries Service Centre

With Agrocel support, the farmers have implemented environmentally sound agricultural practices,
which as well as improving the quality of life of the producers has led to the production of
organically certified cotton.

Agrocel offers a range of high quality fair trade and/or organic cotton and its products like yarn,
fabric and garments.

1 – SOCIAL DEVELOPMENT

1.1 Understanding the local culture

Because Agrocel understands and respects the local culture and context, it has been able to develop a
system of working with small-scale a farmers that has had a positive impact on them.

• Agrocel offers producers a price that covers the cost of production, but beyond this, aims to work
with farmers towards reducing costs of production through appropriate & indigenous technologies
and thereby increasing profits for the farmers.
• Agrocel offers fair trade and organic premiums
• Agrocel facilitates long term planning through offering high quality market information
• Agrocel has developed long term partnership with the farmers by offering high quality services
and inputs at a fair price
• Agrocel supports the cultivation of multiple crops, keeping in mind the vagaries of nature, so that
farmers have sustainable livelihood options. Production and Marketing services are also
provided for these crops

1-2 Participation and Transparency

The majority of farmers that Agrocel works with are small producers providing more than 90% of the
total production of Agrocel® cotton. Small farmers defined as size of the farm being up to 17.5 acres
Many farmers have a partnership with 3 or 4 sharecroppers to work on the farms and share the proceeds of
yields.

Agrocel® maintains accurate records and has a transparent administration, which enables information
sharing with farmers, and an effective control by its board. This, in turn guarantees the maximum social and
economic benefits to the cotton farmers Agrocel have published social accounts supported by international
Resources for Fairer Trade in 1997, which are available on request. A second round of social accounts are
in process at the moment.

Agrocel holds general meetings with all the cotton farmers at least twice a year to agree terms of trade and
premiums.

Annual Accounts are available to the farmers and are available more widely on request

Agrocel recognises that clear communication is the key to maintaining long term partnership with the
farmers. Agrocel and the farmers share information at the Agrocel service centre, through training and
through regular visits to farms.

Agrocel believes in the integrated development of farmers. Towards this end, it encourages multi-cropping
options. Agrocel services of advice, inputs, and marketing are available for all crops grown by farmers.

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1- 3- Non- discrimination

Agrocel follows ILO convention 111 on ending discrimination of workers. The convention rejects any
distinction, exclusion or preference made on the basis of race, colour, sex religion political opinion, national
extraction or social origin, which has the effect of nullifying or impairing the equality of opportunity or
treatment in employment or occupation (Article 1).

To guarantee the above Agrocel verifies this through their social accounts .
Agrocel promotes its services to all small farmers without discrimination.
Agrocel also supports the following local development projects

• Technical field service to farmers.

• Agricultural inputs under one roof at a reasonable price, of a good quality and timely supply.
• Support for agricultural commodities marketing with value addition for export and domestic markets.
• Export of Agricultural commodities to European Fairtrade Organisation
• Agricultural research and development, demonstration and training.
• Water management through drip and sprinkler irrigation and water harvesting programme with VRTI, a
local NGO.
• Mini Oil Mill for Neem oil and Oil cakes for Organic Farming.
• Organic manure from Cow Dung and Agricultural Waste with Suthri Panjarpol, a local NGO
• Provide technical guidance, inputs to various Government departments.
• Social support to people affected by natural disasters (Earthquake, cyclone etc.)
• Saline Soil Reclamation Programme in Maharashtra.
• All Government Schemes for Agricultural development are routed through Agrocel Service Centres
wherever they exist.

2 – ECONOMIC DEVELOPMENT

2-1 Training

Agrocel encourages farmers to make annual business plans, cash flow predictions and longer-term strategic
plans. This helps the farmers reduce their expenditure on agricultural inputs

Agrocel provides free training .The training covers areas such as

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 Seed management - selection of most suitable GM Free variety of cotton

• Soil management - increasing soil fertility, moisture holding capacity, as well as micro- organisms by
sowing green manuring crops between 2 crops

• Water management - promotion of drip irrigation systems which, besides saving more than 60 % of
water, it also improves the quality of the crop and also limits reproduction of harmful insects.
• ow better weed control as water and nutrient is fully available for the main crop

• Nutrient Management - With the use of portable soil analyst kits, Agrocel field officers are able to
identify the exact nutrient requirements so that farms make best use of organic manure.

• Pest Management - The field is a bug eats bug world, in which a "natural enemy complex" of predator
and parasite insects keep pests in check. Agrocel Field officers with the farmers monitor the insect
population in order to calculate the ETL (Economic Threshold level) and based on that information
prescribes the use of organic or natural pesticides.

• Overall management - Agrocel keep full records of the above, as well as data of production and quality
of cotton. Those documents can then be used by any certification agency.

2-2 Market transparency

Agrocel recognises the need to enhance the farmers’ position in the marketplace both locally and for export
markets

Agrocel offers technical services on cotton to the farmers to improve the quality and therefore marketability
of the cotton

Agrocel has a transparent purchasing policy. Seasonal meetings with farmers are arranged to fix the price on
par with current market rates, based on which a premium is paid. This process clearly indicates the
breakdown of the price to the eventual buyer.

Agrocel has developed market knowledge in response to the farmers’ need to know where the cotton is
going in order to influence the price they are paid
Agrocel has set up a cotton bank in order to:

• Support the sale of cotton at the optimum price

• Take advantage of the varieties and qualities of cottons produced by the cotton farmers
• To enable export if appropriate

Agrocel provides forecast for cotton requirements, enabling farmers to plan their production effectively.

Agrocel keeps accurate trading records, which enable transparency; farmers share those records in order to
increase effectiveness of production.

Farmers are not obliged to sell their cotton to Agrocel

Where possible, Agrocel supports the marketing of organic products other than cotton that come from the
farms that are certified organic.

Agrocel has established partnership with an UK Company in order to

• Access textile markets and develop new products.

• Obtain market information.
• Achieve the shortest possible supply chain for cotton, in order to deliver maximum benefit to the
cotton farmers
• Ensure the most ethical and environmentally safe supply chains to serve our customers.

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2-3 Fair trade premium

Agrocel based on the current market price the premium ranges from 5-10 % on the seed cotton.
Agrocel is transparent and flexible about the way it administrates and manages the fair trade premium. By
paying better prices for product that is of better quality, as well as providing training in how to do this, Agrocel
is stimulating improvements in production, leading to the strengthening of the farmers economic position.

Agrocel also trains and employs some of the local farmers to become Agrocel field officers in order to:
• Ensure that the training and guidance offered is in line with what farmers need
• That it is delivered in a form that is appropriate for the farmers
• Maximise opportunities for Agrocel to receive accurate feedback from their farmers.

3 – ENVIROMENTAL DEVELOPMENT

3-1 Organic Practices

Agrocel encourages the cotton farmers to implement organic farming principles. This is with the aim of
establishing a balance between environment protection and business results Through an ongoing monitoring
of economic and environmental parameters, an integrated cultivation and protection plan is devised and
continuously being adapted.

3-2 Marketing support

Agrocel supports farmers in the process of converting to organic cultivation, and helps them find markets for
all other products on these farms.

4 - STANDARDS ON LABOUR CONDITIONS

Agrocel ensures that the conditions laid out below are complied within the organisation
Farmers are clearly informed in the course of training and visits about these standards.
They are aware that breaches of these standards would mean Agrocel could not buy their cotton until the
standards had been improved.
Farmers are also informed about the standards through brochures mentioning the agronomic practices.
Agrocel ensures farmer compliance with these standards through regular visits by field officers, some of
which are unscheduled.

4-1 Forced Labour and Child Labour

Agrocel follows ILO Conventions 29, 105 and 138 on child labour and forced labour. Forced or bonded
labour is prohibited and ensured. . Children may only work if their education is not jeopardised. If children
work, they must not execute tasks, which are especially hazardous for them due to their age.

• Forced labour, including bonded or involuntary prison labour does not occur.
 Abuse of child labour is not allowed.
 Working does not jeopardise schooling.
 The minimum age of admission to any type of work which by its nature or the circumstances under
which it is carried out, is likely to jeopardise the health, safety or morals of young people, shall not be
less than 18 years.
 Employment is not conditioned by employment of the spouse. Spouses have the right to off-farm
employment.

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4.2 Freedom of Association & Collective Bargaining

Agrocel follows ILO Conventions 87 and 98 on freedom of association and collective bargaining. Workers
and employers shall have the right to establish and to join organisations of their own choosing, and to draw
up their constitutions and rules, to elect their representatives and to formulate their programmes. Workers
shall enjoy adequate protection against acts of anti-union discrimination in respect of their employment.

 {Agrocel recognises in writing the right of all employees to join an independent trade union, free of
interference of the employer, the right to establish and join federations, and the right to collective
bargaining.
 The organisation allows trade union organisers to meet all the workers, and allows workers to hold
meetings and organise themselves without the interference of the management.

4.3 Conditions of employment

Agrocel promotes the ILO Plantation Convention 110, ILO Conventions 100 on equal remuneration and 111
on discrimination. All employees must work under fair conditions of employment. The producer organisation
must pay wages in line with or exceeding national laws and agreements on minimum wages or the regional
average.

 Salaries are in line with or exceeding regional average and official minimum wages for similar
occupations..
 Payments are made regularly and in legal tender and properly documented.
 Other conditions of employment like maternity leave, social security provisions, non-monetary benefits,
etc. are followed.
 All workers are employed under legally binding labour contracts.
 The organisation works towards all permanent workers having the benefits of a provident fund or
pension scheme.
 An adequate sick leave regulation is put in place.
 A working hours and overtime regulation is put in place.
 Salaries are gradually increased to levels above the regional average and official minimum.
 Differences in the conditions of employment for casual, seasonal and permanent workers are
progressively diminished.

4.4 Occupational Health & Safety

Agrocel follows ILO Convention 155 which aims “to prevent accidents and injury to health arising out of,
linked with or occurring in the course of work, by minimising, so far as is reasonably practicable, the causes
of hazards inherent in the working environment.”

 Workplaces, machinery and equipment are safe and without risk to health.

 Among the workers’ representatives, a person must be nominated who can be consulted and who can
address health and safety issues with the organisation.
 Those who are handling agrochemicals are adequately trained in storage, application and disposal of
these. They are actively informed of all relevant information on the product they are handling . This
information is provided in the local language.
 Adequate personal protective equipment of good quality is available and appropriate, especially for the
use of agrochemicals. Workers have access to this.

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  The following persons are not allowed to work with the application of pesticides: persons younger than
18 years, pregnant or nursing women, persons with incapacitated mental conditions; persons with
chronic, hepatic or renal diseases, and persons with diseases in the respiratory ways. This
information is provided to farmers and workers in the area
 Workers’ capability and awareness of the chemicals they are using, relevant health protection
and first aid is improved through training.
 Collective risk assessments are carried out regularly.

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Updated on the 20th of August 2002

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