IMPACT OF GOVERNMENT TRAINING ON FAIRTRADE CERTIFICATION: EVIDENCE FROM SRI LANKA’S SPICE FARMERS

Abstract

Fairtrade (FT) is an alternative trading system that encourages sustainable development by improving trading conditions and safeguarding the rights of downgraded producers in developing countries. Despite the solid potential for FT adoption with adherence to core principles such as minimal chemical use and the absence of child or forced labour, the uptake in the spice sector remains extremely low. This study investigated the impact of training on the application behaviour of spice farmers for FT certification, addressing a critical evidence gap in the agricultural certification literature. A randomized controlled trial was conducted for 1,200 spice farmers in 30 Grama Niladhari divisions across the Central Province of Sri Lanka. The results revealed that training that consisted of both Fairtrade and organic content was 36.3 to 38.7 percentage points more likely to apply for FT certification. Heterogeneity analysis suggests that the treatment effects are consistent across most subgroups, with female-headed households indicating particularly high responsiveness. This study underscores the importance of targeted, content-specific training in expanding Fairtrade participation among smallholder farmers, advancing both economic equity and sustainable development.