SIPA - Federation of South India Producer Associations

India

Farzana Khatoon - handpainting toys

Purpose

The goal of the Federation of South India Producer Associations (SIPA) is to facilitate sustainable peoples development both economic initiatives and self-development through:

working on, and strengthening, the enterprising initiatives and economic activities of marginalised people, by channelling and facilitating their efforts to obtain fair wages and a liveable income
facilitating fair trading and the capacity building of the needy; and networking amongst marginalised people for collective action
promoting learning by sharing for those who need a helping hand to build themselves up as equals; to become productive and to be confident in working to transform their own futures

Effectively the activities involve marketing support including access to international markets and advice on product development and networking. In addition, training is offered to the producers; the overall objective is to develop and support sustainable livelihoods. Part of the work also involves advocacy in various forums to promote the producers interests, for example, discussing moves to introduce income tax for non-governmental organisations (NGOs). SIPA is also an influential member of the World Fair Trade Organization (WFTO).

Producers

There are 45 member associations and more than 100 associates representing more than 7000 families. SIPA has a participatory management system; the member associations are largely trusts or co-operatives, the largest of which is SHILPA (an organisation committed to the social and economic development of rural artisans) with 320 producers working in wood (toys), terracotta and silk. Fair trade principles must be followed by all groups. Producers are largely dependent on their SIPA income, though some have marginal lands providing food assistance.

A number of NGO producer/producer-groups focus on women and womens issues. Of particular note is Sabala which began by organising women to have general awareness of and to understand their property rights and rights to equal wages. Approximately 80% of producers are women; the organisation enjoys strong female leadership and the management believes there are no gender issues at any level in SIPA. At producer-group level there are numerous examples of women in leadership roles, exhibiting confidence, and enjoying an improved status in society. SIPA has a strong relationship with at least one tribal group, Sabala, which produces embroidery and jewellery.

Benefits

Besides marketing support, SIPA offers training and skill upgrading in management, information sharing and networking, and advisory and consultancy services. IT training workshops are also conducted with the participants returning to their areas and passing on the skills. Furthermore, the producers benefit from exposure to buyers and, sometimes, the international market. Health insurance is provided for all members, and sick leave is available as well as a months maternity leave. Savings' schemes are also in place, and in some areas schooling is provided where state assistance is not available. Most producers would like regular orders, but overall it seems orders cover approximately seven months, with variations among groups. Regular work is considered to be just as important as the wage rates.

Wages vary from group to group, but are reported to be up to four times the ruling rates. There is also an annual profit sharing arrangement that is reported to increase wages by 15 22% per annum. A one month salary bonus is paid at festival time.