Grassroots Trading Network Capacity Building of the Poor their Organizations Challenges in suitability scaling up

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Grassroots Trading Network "Limit Building of the Poor & their Organizations – Challenges in reasonability & scaling up of casual division laborers' association in a globalized economy" September 2006 Grassroots Trading Network for Women 12 Bishopsgate, 61 Bhulabhai Desai Road, Mumbai – 400 026 India T: +91(22) 23521512 +91(22) 23538613 Email: rkkidwai@grassnet.org W: www.grassnet.org The encased material is the copyright of Grassroots Trading Network for Women and must not be duplicated in entire or to some extent for any reason without the express composed assent of Grassroots Trading Network for Women

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GTN's Mission and Process GTN is a segment 25 organization advanced by SEWA and the Government of India Our main goal: "Connecting poor makers to business sectors, with reasonable returns and manageability" Our procedure Identify existing items/aptitudes of the Grassroots Producer Organization we work with Identify a purchaser who needs such items/abilities Identify a business need of the purchaser that the GPO can satisfy Refine contemplations through a conceptualize with cross segment GTN well wishers Ensure a win, for all, and position the advantages and disadvantages Define the parts and duties of all gatherings concerned Buyer gives limit building administrations, to guarantee the GPO produces item according to prerequisites in his/her long haul enthusiasm LEARNING : Need sensible volume to premium substantial purchasers

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Corporate Government Buyers GPO Rural Producers Rural customers Rural information GTN's Value Proposition to GPOs Goal Create a strong, dynamic & maintainable worldwide system of GPOs which will : - Reach new markets - Strengthen operational capacities Address boundaries to exchange Obtain quality items at aggressive costs How GTN methodology: Attract huge purchasers Sustainability by guaranteeing a win-win Facilitate Trade Create/guide business dev. Construct Capacity - Advocate for Policy Change Problem Poor market get to a noteworthy issue confronting GPOs. Common society's absence of trust in corporates who could give showcase get to Stakeholders absence of coordination hinders systemic arrangements Grassroots Trading Network

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GTN's built up models The Consolidator Model The Vendor Development Model The Rural Distribution Network (agro wares, bungalow industry from rustic to country/urban) The Rural Distribution Model (urban items to provincial markets) The Industrial Accessories Model Focus of discourses

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Middlemen Challenges in existing procedure Flow of Agricultural Goods and Currency Legend Flow of Goods Small Farmers Marketplace Corporates Flow of Currency

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Grassroots Small Farmers GPO Corporates GTN's Consolidator Model Role of GPO Act as consolidator, acquiring and amassing products Provide reasonable costs to little and peripheral ranchers Provide traceability component and documentation Provide esteem included administrations cleaning, evaluating and so forth. SEWA ranchers secure sesame seed for ITC since 2003 Legend Flow of Goods Flow of Currency Role of Grassroots Identifying need and acquainting idea with GPO and Corporate and encouraging MOU Mentoring and encouraging association and enhancing frameworks for higher effectiveness Communicating the differing points of view of both the accomplices and building trust Role of Corporate Procurement and Training Purchase cost correspondence Provide particulars and documentation Reducing GPO costs Technical contributions to expand quality and yield Possibly give working capital at first

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Success-ITC/SGMH Partnership since '03 ITC benefits : Procured 250 tons of cleaned and reviewed sesame seed with traceability documentation for fares in 2003, and keeps on observing worth in organization SGMH advantages: Farmers' acknowledgment expanded to Rs. 29/kg from Rs.18/kg in 2002 Farmers presented to universal quality benchmarks, cultivate level documentation, and conventions to build yields and quality Farmers increased comprehension of working with an extensive purchaser SGMH believability improved, and more profound connections built up with 3200 agriculturists picking up in 2003 and numerous all the more now Future Prospects: ITC now taking a gander at cumin, amla and groundnut for 2006 season and additionally natural sesame Cargill keen on guiding wheat obtainment Negotiating with pharmaceutical organization for therapeutic plants NOTE: This is absolutely a business suggestion with no subsidizing. Extraordinary preparing was given by ITC to the initial two seasons with refresher courses now. LEARNING: Need year round acquirement to legitimize modern inventory network framework. Go betweens can be made repetitive just if ranchers necessity of data sources & offer of items are thoroughly obliged.

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GTN's experience rundown Middlemen : Middlemen are looked downward on as exploiters, in any case, they give administrations of collection, supervision and accreditation to purchasers, and convey the danger of dismissals. Need to acquire altruistic agents who will give a similar administration without abusing. Require volume to pull in extensive purchasers – SEWA has done this splendidly Need to professionalize to acquire huge purchasers Social part needs business keenness : Profit has not been the driver Funds now going away unless supportability guaranteed Need to change disposition to benefit and corporates Who gives the market? – corporates Who do the brokers, operators and go betweens offer to? – in the long run corporates Why give them the edges to offer to corporates – why not make the edges? With benefits could do a great deal more for constituents Fortunately corporates likewise now have a need to work with common society subsequent to concentrating on urban markets for quite a long time. With rivalry and edge presses they are currently taking a gander at the extensive provincial market, yet don't have the imperative learning given their urban concentration A flawless marriage is holding up to be solemnized – corporates furnishing markets and working with common social orders country information and base to work in rustic markets.

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GTN's learnings If you can think of a thought that has potential, you will discover bolster Have figured out how to satisfy corporate business needs, need to now recreate the procedure with Government, benefactors and establishments to satisfy their missions/goals Focus on request side before working up inventories of poor makers who as of now have an issue of offering the merchandise they deliver Micro back has been gainful for diminishing expense of creation with access to less expensive assets, and capacity to pay forthright decreases crude material cost – however need to offer products delivered stays Private part needs both obligation and value – small scale fund gives obligation – where is the value – do provincial business visionaries not require value?

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GTN's viewpoint on benefactors Donor organizations bureaucratic methods and requirement for projectization, requires some serious energy and executes numerous a smart thought Need for Government sanctions postpones ventures Donor offices, establishments and so forth have concentrated on limit working of the supply side for a considerable length of time – need to comprehend supply holes on the request side and afterward manufacture supply side limit Donors, establishments and governments encourage common society to not rethink the wheel. It is safe to say that they are sharing data? Do they work together? Hierarchical sense of self is frequently an issue among them

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Social Venture Fund (SVF) A business person with a decent proposition in the private segment goes to an investor. Would we be able to set up a SVF which like the kindhearted go between, will maintain itself, while giving less expensive value Instead of stipends the SVF would give value like a moving asset to help other comparable recommendations with the primary being given back The speculators to the store would involve giver offices, establishments, government divisions and so forth. Contingent upon accomplishment of the pilot subsidize, we could have sectoral SVF for wellbeing, instruction, vocations, social legacy and so forth Recruit the reserve administration group from the private value segment to guarantee achievement and manageability Will help with reasonable limit building prerequisites of common society with load up/trust positions being taken by the SVF

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Benefits to Stakeholders of the SVF With cross area joint effort, the enormous experience of the partners would be shared and the learnings would backpedal to their associations Through convenient mediations without the bureaucratic procedure, common society would profit, therefore helping partners accomplish their targets Will beat sense of self issues between partners Will address partners question of corporates by being required with corporates who give the market to the social segment It is humorous that the partners don't trust corporates, yet acknowledge, however grudgingly, merchants and mediators who abuse this division as evidently there is no option GTN's models have helped common society working with corporates. Why not attempt it through the Social Venture Fund – where it turns into an aggregate duty and not an individual association breaking from custom

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