1

Sustainable and Responsible Trade Promoted to Wood Processing SMEs through Forest and Trade Networks in China, India and Vietnam.

Training Need AssessmentStrategic Knowledge Management, Advisory Support and Capacity Building for Wood Based SMEs to Enhance Market Potential through Sustainable Business Practices

2

TRAINING NEED ASSESSMENT on Strategic Knowledge Management, Advisory Support and Capacity Building for Wood Based Smes to Enhance MarketPotential through Sustainable Business Practices

This report has been prepareded by Jadavpur University (RC: NAEB & GCP), Kolkata and submitted to WWF-India.

Further information

Information about the European Union is available on the Internet. It can be accessed through the Europa server (www.europa.eu) and the website of the Delegation of the European Union to India (www.delind.ec.europa.eu).

Legal notices:

European Union This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Jadavpur University and GFTN India and can in no way be taken to refl ect the views of the European Union.

Copyright noticeReproduction is authorised, provided the source is acknowledged, save where otherwise stated.

The European Union is made up of 27 Member States who have decided to gradually link together their know-how, resources and destinies. Together, during a period of enlargement of 50 years, they have built a zone of stability, democracy and sustainable development whilst maintaining cultural diversity, tolerance and individual freedoms. The European Union is committed to sharing its achievements and its values with countries and peoples beyond its borders.

“This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of Traffi c-India and GFTN India and can in no way be taken to refl ect the views of the European Union.”

Internal draft for discussion: Not to be quoted

3

Training Need Assessment on Strategic Knowledge Management, Advisory Support and Capacity Building for Wood Based Smes to Enhance MarketPotential through Sustainable Business Practices

2010

4

Acknowledgement

The Regional Centre, NAEB, Jadavpur University & Global Change Programme,

Jadavpur University, wish to thank WWF-India for providing fi nancial support for this

project. We also wish to thank EUROPEAN Commission - SWITCH ASIA for the im-

plementation of the project through WWF-India in India. We also wish to thank Dr. T.R.

Manoharan, Head, Forest Policy and Economics, WWF-India, for his kind assistance and

guidance during the fi eld survey at different states. We also wish to thank Jaipur and

Jodhpur trade associations, Federation of Rajasthan Handicraft Exporters (FORHEX)

and Jodhpur Handicraft Exporters Association (JHEA) in Rajasthan; Saharanpur Wood

Carving Association (SWCA) and Nagina Wood Craft Association (NWCA) in Uttar Pradesh;

Kozhikode Timber Trade Association in Kerala for their cooperation during the fi eld survey.

We are also thankful to the IFS offi cials of the three states for their kind cooperation to

carrying out the survey. Our special thank to all owners/head of the Small and Medium

Enterprise (SME) units in Jaipur, Jodhpur, Kochi, Kozhikode, Nagina and Shaharanpur

who have shared their valuable information with the evaluation team during the fi eld visit.

Principal Investigator(s) Prof. Joyashree Roy

Prof. Asis Mazumdar

Jadavpur University

Kolkata

5

Contents

Acknowledgement 4

Contents 5

Transmittal Memorandum 7

Executive Summary 9

PART 1: OVERVIEW 10

1.1 Project Background 11

1.2 The Purpose Statement 11

1.3 Objective 11

1.4. Area Description 3

1.5. Methodology Adopted / Assessment Exercise 9

1.6. Scope of Assessment 10

1.7. Time Frame 10

PART 2: ANALYSIS AND REPORT 11

2.1 Stakeholder Analysis and Institutional Mechanism 12

2.2 SWOT Analysis 15

2.3 Survey Results 16

2.3.1 Rajasthan 18

2.3.2 Uttar Pradesh 21

2.3.3 Kerala 25

2.4 Q Sort Survey. 27

PART 3: RECOMMENDATION 29

3.1 Strategies and Priorities 30

3.2 Conclusion 33

3.3 Insight Gained in TNA 34

References 36

Annexure 1: Questionnaire for SMEs 37

Annexure 2: Q Sort Survey Sheet 42

Annexure 3: Glossary of Terms 43

Annexure 4 : Photographs 44

6

7

Transmittal Memorandum

Date :

To : Dr. T.R. Manoharan, Head, Forest Policy and Economics, WWF India

From : RC: NAEB & GCP, Jadavpur University, Kolkata- 32

Subject : Training needs assessment report on Strategic Knowledge Management,

Advisory Support and Capacity Building for Wood Based SMEs to Enhance Market

Potential through Sustainable Business Practices.

Enclosed here is our report on assessment of training needs conducted at your re-

quest for the stakeholders in three states of India (Uttar Pradesh, Rajasthan and Kerala)

on Strategic Knowledge Management, Advisory Support and Capacity Building for Wood

Based SMEs to Enhance Market Potential Through Sustainable Business Practices.

The fi eld assessment was completed in November 2009. The report recommends the

implementation of training on a) Lacey act and FLEGT and its implication towards their

trade, b) Forest Certifi cation (basics and/ or advanced), c) Carbon benefi ts and account-

ing processes. Further Annual Report making, Process Flow Chart design and drawing

out the Flow Chart for Sourcing and Outsourcing of products are of second importance

in Rajasthan and Uttar Pradesh. While in Kerala training on CITES and Illegal Trade of

Wood Species and Effi cient waste Wood Management are listed out. Each training need

has been carefully analyzed and is believed to be the most effective remedy for those

considered by the assessment task force.

It is our belief that the information contained in this report will enable you to make

satisfactory implementing decision to build the capacity of the stakeholders. Should ad-

ditional information be needed, however, we are prepared to provide it on request. We

are also prepared to brief you and members of your staff about the assessment process

and to write informational memoranda to the stakeholders who took part in the assess-

ment activities.

8

9

Executive Summary

A Training Need Assessment (TNA) exercise has been undertaken on the request of WWF-

India to identify gaps and prioritize training needs of various stakeholders who are direct

and indirect benefi ciaries of the European Commission – Switch Asia Project. Informa-

tion obtained from this exercise is expected to help implementing agency (WWF-India ) of

European Commission – Switch Asia Project for planning appropriate training remedies

to achieve the overall objective of the project that by 2020, sustainable consumption

and production in forest product markets worldwide predominates as best practice,

leading to conservation of forests and supporting sustainable development in India.

The objectives of the training need assessment exercise were A) to familiarize the stake-

holders with the changing trade practices and consumer demand globally and with the

concept of sustainability, B) to identify and prioritize training needs and strategies at

professional level in technology improvement, value addition of standards, labeling and

extension of trade links so as to encourage sustainable and responsible trade practices of

forest products in India and C) to prepare a training module for projecting a road

map of transition for wood based SMEs to sustainable and responsible trade prac-

tices in cooperation with Forest and Trade Networks in the region.

The following three states, Rajasthan, Kerala and Uttar Pradesh were assigned by WWF-

India as project sites where the Training Need Assessment has to be carried out. Specifi -

cally Jodhpur and Jaipur States in Rajasthan, Kochi and Kozhikode in Kerala and Nagina

and Saharanpur in Uttar Pradesh were exclusively chosen to study the wood based

handicraft industry. A four step procedures is followed in completing the assessment

of training needs of the stakeholders .These include scanning, focusing, planning for

implementation and reporting. The TNA exercise was applied to 30% of the total popula-

tion registered under the Local Handicrafts Trade Associations of Wood based SMEs , and

100% of Local Forest offi cers in each assessment area.

Eighteen (18) topics are identifi ed on which training is requested by the SMEs of three

states. The major trainings (fi rst importance) those are to be organized immediately and

is common to all the three states and all the stakeholders are a) Lacey act and FLEGT

and its implication on their trade, b) Forest Certifi cation (basics and/ or advanced), c)

Carbon benefi ts and accounting processes. Further Annual Report making, Process Flow

Chart design and drawing out the Flow Chart for Sourcing and Outsourcing of products

are of second importance in Rajasthan and Uttar Pradesh. While in Kerala training on

CITES and Illegal Trade of Wood Species and Effi cient waste Wood Management are

listed out. Many non training needs are also identifi ed which should be addressed

for successful implementation of the project.

10

PART – 1

OVERVIEW

11

1.1 Project Background

WWF-India is a one of the implementing partner of the project Sustainable and Responsible

Trade Promoted to Wood Processing SMEs through Forest and Trade Networks in China, India and Viet-

nam, with European Commission under the SWITCH Asia Programme with effect from

1st

January 2009. Overall objective of the project: “By 2020, sustainable consumption

and production in forest product markets worldwide predominates as best practice, lead-

ing to conservation of forests and supporting sustainable development”. The project will

benefi t 15,700 SMEs in three countries. In India, the specifi c areas of intervention are in

the States of Kerala, Rajasthan and Uttar Pradesh. The implementation of project requires

support and technical inputs from several institutions.

Jadavpur University (Global Change Programme and Regional Centre: National Affor-

estation and Eco Development Board), has been identifi ed as one of the “Associates”

of the project to provide a platform to reach out its extensive network of partners. The

key areas of inputs from Jadavpur University to this project are: (i) Training Need Assess-

ment Report in three States (Kerala, Rajasthan & Uttar Pradesh), (ii) Workbook type training

module design to provide hands on training to facilitate sustainability transition for any

SME unit and (iii) Relevant National and International Publications.

1.2 The Purpose Statement

Wood based SMEs have very high market potential but in the globalised world with chang-

ing trade practices and consumer demand globally any resource based production and

trade need to satisfy sustainability rules. This though at times looked upon as constraint

and threat to sustenance of income, it must also be considered as an opportunity as well

to reduce uncertainty in income and livelihood of population dependent on SMEs. This

needs new information generation and empowerment through new capacity building of

the SMEs and /their associations. This Training Need Assessment (TNA) exercise has been

undertaken on the request of WWF-India to identify gaps and prioritize training needs of

various stakeholders who are direct and indirect benefi ciaries of the European Commis-

sion – Switch Asia Project. Information obtained from this exercise is expected to help

implementing agency (WWF-India) of European Commission – Switch Asia Project for

planning appropriate training remedies to achieve the overall objective of the project that

by 2020, sustainable consumption and production in forest product markets worldwide

predominates as best practice, leading to conservation of forests and supporting sustain-

able development in India.

1.3 Objective

The objectives of the training need assessment exercise are as follows:

1. To familiarize the stakeholders with the changing trade practices and consumer

demand globally and with the concept of sustainability.

2. To identify and prioritize training needs and strategies at professional level in

technology improvement, value addition of standards, labeling and extension of

trade links so as to encourage sustainable and responsible trade practices of forest

products in India.

3. To project road map of transition for wood based SMEs to sustainable and respon-

sible trade practices in cooperation with Forest and Trade Networks in the region.

12

1.4. Area Description

India is one of the important suppliers of handicrafts to the world market. The Indian

handicrafts industry is highly labor intensive cottage industry and decentralized, be-

ing spread all over the country in rural and urban areas. Numerous artisans are engaged

in crafts work on part-time basis. The industry provides employment to over six million

artisans (including those in carpet trade), which include a large number of women and

people belonging to the weaker sections of the society (www.gbe.de).

In addition to the high potential for employment, the sector is economically important from

the point of low capital investment, high ratio of value addition, and high potential for

export and foreign exchange earnings for the country. The export earnings from Indian

handicrafts industry for the period 1998-99 amounted to US$ 1.2 billion (www.gbe.de).

Although exports of handicrafts appear to be sizeable, India’s share in world imports is

miniscule. It is a sector that is still not completely explored from the point of

view of hidden potential areas. Wooden articles in India range from the ornately carved

to the absolutely simple. One can fi nd toys, furniture, decorative articles, etc. bearing the

art and individuality of the craftsman. India is known particularly for its lacquered wood

articles. The major cities contributing to the above export fi gures are Saharanpur, Nagina,

Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Chennai,

Kerala & Behrampur (WB). Wood ware are mainly exported to South Africa, U.S.A., U.K., Germany & France

(www.gbe.de).

In the changing world scenario, craft products exported to various countries form a part

of lifestyle products in international market. The impact is due to the changing consumer

taste and trends. In view of this it is high time that the Indian handicraft industry went

into the details of changing designs, patterns, product development, requisite change

in production facilities for a variety of materials, production techniques and related

expertise to achieve a leadership position in the fast growing competitiveness with other

countries (www.gbe.de).

The 6 million craft persons who are the backbones of Indian handicraft industry as

provided with inherent skill, technique, traditional craftsmanship but that is quite suffi cient

for primary platform. However, in changing world market these craft persons need an

institutional support, at their places i.e. craft pockets for value addition and for the edge

with other competitors like China, Korea, Thailand, etc (www.gbe.de)

The following three states, Rajasthan, Kerala and Uttar Pradesh are been assigned by

WWF India as project sites where the Training need assessment has to be carried.

Specifi cally Jodhpur and Jaipur States in Rajasthan, Kochi and Kozhikode in Kerala and

Nagina and Saharanpur in Uttar Pradesh being exclusively chosen to study the wood

based handicraft industry. The areas of survey for TNA in India is presented in Figure:1

13

Figure 1: Map of the study area

Rajasthan is the largest state of the Republic of India by area. It encompasses most of

the area of the large, inhospitable Great Indian Desert (Thar Desert), which has an edge

paralleling the Sutlej- Indus river valley along its border with Pakistan. The two major

cities of Rajasthan, Jaipur and Jodhpur are chosen for the study as they are famous for

their handicraft industry all over the world (source: www.wikipedia.org).

Jaipur also known as the pink city is the capital of Rajasthan. Jaipur is located at

26°55°N 75°49° E- 26.92°N 75.82°E. It has an average elevation of 431 metres (1417 ft).

Jaipur is the headquarters of the Jaipur district which is situated in the eastern part of Ra-

jasthan. As of 2001 India Census, Jaipur had a population of 2,324,319. Males constitute

53% of the population and females 47%. In Jaipur, 15% of the population is under 6 years

of age (source: www.wikipedia.org).

This pink city has immense variety of handicrafts and to continue the list, here we have

woodwork. The fi ne quality of woodwork in Jaipur embraces carved doors, windows,

drawer chests, picture frames and mirror frames. The delicate handcrafted woodwork of

Jaipur has an antique look as they are crafted on traditional lines. The local markets along

Jauhari Bazaar, Bapu Bazaar, Nehru Bazaar, Chaura Rasta and Tripolia Bazaar will provide

you every handicraft of this pink city. The Federation of Rajasthan Handicraft Exporters is

group of Indian handicraft exporters in Jaipur which looks after the handicraft trade (source:

www.wikipedia.org).

Jodhpur is the second largest city in the Indian state of Rajasthan. It was formerly the

seat of a princely state of the same name, it was the capital of the kingdom known

as Marwar. Jodhpur is a popular tourist destination, featuring many palaces, forts and

14

temples, set in the stark landscape of the Thar desert. Jodhpur is located at 26°17°N

73°02° E-26.29°N 73.03°E. It has an average elevation of 232 metres (761 feet). As of

2001 India Census, Jodhpur had a population of 8,46,408. Men constitute 53% of the

population and women 47%. Jodhpur has an average literacy rate of 67%, higher than

the national average of 59.5%: male literacy is 75%, and female literacy is 58%. In

Jodhpur, 14% of the population is under 6 years of age (www.wikipedia.org).

The Handicrafts industry has in recent years eclipsed all other industries in the city. By

some estimates, the furniture export segment is a $200 million industry, directly or indirectly

employing as many as 2,00,000 people. Other items manufactured include textiles,

metal utensils, bicycles, ink and sporting goods. A fl ourishing cottage industry exists for

the manufacture of such items as glass bangles, cutlery, carpets and marble products.

After handicrafts, tourism is the second largest industry of Jodhpur (source: wikipedia.org).

Uttar Pradesh is a state located in the northern part of India. With a population of over 190

million people, it is India’s most populous state, as well as the world’s most populous sub-

national entity. With an area of 93,933 sq mile (243,290 km2), Uttar Pradesh covers a large

part of the highly fertile and densely populated upper Gangetic plain. The two major cities

chosen for the study are Saharanpur and Nagina (source: www.wikipedia.org).

Saharanpur, a industrial city and a municipal corporation in the state of Uttar Pradesh in

northern India is located at 29°58 N 77°33 E - 29.97N 77.55E. It has an average eleva-

tion of 269 metres (882ft). Saharanpur is internationally famous for its wood carving work

cottage industry. A variety of other agro-based industrial enterprises - such as textile, sugar,

paper and cigarette factories - are also located in it. According to Government of India, the

district Saharanpur is one of the Minority Concentrated District in India. The population of

Saharanpur District is 2.9 million which is growing at the rate of 2.59% annually. The district

has an average literacy rate of 64%, higher than the national average of 59.5%: male

literacy is 67%, and female literacy is 60%. About 14% of the population is below 6 years of

age (source: www.wikipedia.org).

Saharanpur is a fl ourishing business city: an important regional centre of wholesale and re-

tail trade, particularly in grain, timber and textiles. The description of Saharanpur’s economy

is incomplete without mentioning the contribution of wooden handicrafts industry, which is

the basis of livelihood for half of the population and source of recognition globally. Beautiful

art and utilitarian woodwork objects are displayed and sold in the sprawling market from

near Ambala Road up to Chilkana Road. The timber market traditionally receives supplies

from the extensive northern hilly forest regions (Uttarakhand, Himachal Pradesh and other

areas in Uttar Pradesh) support the local wood carving cottage industry and other de-

mands.

There are approximately 3500 unregistered SMEs, which function on their domestic prem-

ises on contract basis. Most of the production units are concentrated in Kamela colony,

Sabari-ka-bag, Khattakhedi, Khajur-tala, Pilkhan-tala, Mehandisarai, Ale-kichungi, Sarai-

Mardan-Ali, Sarai Shahji and Purani Mandi area. They use traditional hand tools. These

unregistered SMEs form the backbone of the massive woodcraft industry of Saharnpur

and produce nearly 80% of the products that are sold in the market. The value of exports

of wooden handicrafts from Uttar Pradesh has increased from Rs.793 million in 1997-98 to

Rs.10389 million in 2007-08 (Government of Uttar Pradesh, 2008).

15

Nagina is a town and a municipal board in Bijnor district in the Indian state of Uttar Pradesh

and is located at 29.45°N- 78.45°E. It has an average elevation of 222 metres (730 ft). Na-

gina is famous for its Wooden handicrafts, especially ebony work. Nagina, better known as

Wood Craft City. Mohalla Luhari Sarai, is famous for its wooden items and its world known

artisans. Near about 50000 artisans are working here manufacturing wooden carvings, ship

wheels and other wooden handicrafts items. As of 2001 India Census, Nagina had a

population of 71,310. Males constitute 53% of the population and females 47%. Nagina

has an average literacy rate of 49%, lower than the national average of 59.5%: male

literacy is 53% and female literacy is 44%. In Nagina, 18% of the population is under

6 years of age. There about 50 registered wooden handicraft SMEs in Nagina which have a

sales of nearly 1000 crores (www.wikipedia.org).

Kerala is a state in south India. It was created on November 1, 1956, with the passing of

the States Reorganization Act bringing together the areas where Malayalam is the domi-

nant language. The state has an area of 38,863 sq km and is bordered by Karnataka to

the north, Tamil Nadu to the south and the east and the Arabian sea towards the west.

Thiruvananthapuram is the capital of Kerala. Kochi and Kozhikode are the other major cities

and are also timber hubs (www.wikipedia.org).

Kochi formerly known as Cochin, is a city in the Indian state of Kerala. The city is one of the

principal seaports of the country and is located in the district of Ernakulam, about 220 kms

(137 mile) north of the state capital, Thiruvananthapuram. It has an estimated population

of 6,00,000, with an extended metropolitan population of about 1.5 million, making

it the largest urban agglomeration and the second largest city in Kerala after the capital

(www.wikipedia.org).

Kochi is located on the southwest coast of India at 9°58 N 76°13 E, spanning an area

of 94.88 sq km (36.63 sq mile). The city is situated at the northern end of a peninsula,

about 19 km (12 mile) long and less than one mile (1.6 km) wide. To the west lies the

Arabian Sea, and to the east are estuaries drained by perennial rivers originating in the

Western Ghats. Much of Kochi lies at sea level, with a coastline of 48 km. The current

metropolitan limits of Kochi include the mainland Ernakulam, old Kochi, the suburbs of

Edapally, Kalamassery and Kakkanad to the northeast; Tripunithura to the south east;

and a group of islands closely scattered in the Vembanad Lake. Most of these islands are

very small, varying in extent from six sq km to less than a sq km (1,500 to less than

250 acres) (www.wikipedia.org).

Kozhikode also known as Callicut, is a city in the southern Indian state of Kerala. It is the

third largest city in Kerala and the headquarters of Kozhikode district. During the Middle

Ages, Calicut was dubbed the “City of Spices” for its role as the major trading point of east-

ern spices. Kozhikode was once the capital of an independent kingdom, and later of

the erstwhile Malabar District. Kozhikode is located at 11.25°N 75.77°E. It has an average

elevation of 1 metre (3 ft). There are a number of rivers and lakes in the district. Chaliyar pu-

zha, Kallayi Puzha, Korapuzha, Poonoor puzha and Iravanjhi puzha are some among them.

The rainy season allows for abundant growth of beautiful vegetation. Kozhikode has a

population of 436,556 as per 2001 census, with an extended metropolitan population

of about 0.9 million, making it the third largest urban agglomeration and the third larg-

est city in Kerala. According to the data compiled by economics research fi rm Indicus

Analytics on residences, earnings and investments, Kozhikode ranked as the second best

city in India to reside in. Indicus considered six parameters– health, education, environment,

safety, public facilities and entertainment – for preparing their ‘reside-in’ index of live ability.

16

As of 2001 India Census, Kozhikode had a population of 436,530. Sex ratio: Females/1000

- 1,057. Males constitute 49% of the population and females 51%. Kozhikode has an

average literacy rate of 92.24%, higher than the national average of 59.5%: male literacy

is 96.11% and female literacy is 88.62%. In Kozhikode, 11% of the population is under 6

years of age (www.wikipedia.org).

1.5. Methodology Adopted / Assessment Exercise

A description of the four step procedure followed in completing the assessment of training

needs of the stakeholders is as follows.

Scanning: It involves collection of secondary data available from records, books, ex-

isting background literature, prior research studies, and interviewing key personnel to build

upon relevant questionnaire to be subjected to the direct stakeholders. This also involves

collection of background information of fi eld, listing of stakeholders through stakeholder

analysis and if possible conducts a Strength Weakness Opportunities Threat (SWOT)

analysis from the existing background information so as to prepare well for the

next step of focusing. The data collection involved attending the awareness workshops

organized by WWF India in the three states project partners meeting in Kerala. Interacting

with the local handicrafts trade association and interviewing key personnel’s, getting intro-

duced to the key stakeholders of the project identifi ed by WWF India, review of secondary

literature available and conducting a stakeholder analysis and SWOT analysis.

Focusing: Focusing is an analytical activity that helps to direct management attention to the

most important strategies. Here training needs are differentiated from non training needs.

Planning for Implementation: The process of identifying and formulating proposals and

strategies to conduct the training according to the above assessment. It mainly involves

developing a strategy for using the resources available within the organization and or from

outside. Here priorities are assigned to various strategies based on criteria Q Sort survey

and stakeholder’s requirements.

Reporting: A written report containing the training and non training recommendations

based on priority has been submitted.

1.6. Scope of Assessment

The TNA exercise was carried out mainly in Saharanpur and Najibabad in Uttar Pradesh,

Jodhpur and Jaipur in Rajasthan and Kochi, Trivandum and Calicut in Kerala. The

TNA exercise was applied, in case of Wood based SMEs , to 30% of the total population

registered under the Local Handicrafts Trade Associations and Local Forest offi cials.

1.7. Time Frame

In order to ascertain the true value of the TNA exercise the following time frame had been

followed. Jadavpur University (RCNAEB and GCP) has successfully signed the contract

with WWF India on 26th July 2009 specifying that the TNA exercise will be completed

in next 6 months. After questionnaire preparation the fi rst on fi eld questionnaire survey

was conducted in September 2009 in two cities of Uttar Pradesh namely Saharanpur

and Najibabad. Further similar surveys were conducted in Rajasthan and Kerala in the

month of November, 2009.

17

A draft report containing Training Need Assessment (Status Report) and Preliminary assess-

ment report for Kochi, Kerala has been submitted earlier to WWF-India. Upon fi nalization

of the draft report and review a draft training workbook type manual would be developed

based on the fi ndings in the next six to eight months of the project tenure.

18

PART – 2

ANALYSIS AND REPORT

19

2.1 Stakeholder Analysis and Institutional Mechanism

Stakeholder Analysis

Stakeholders (and benefi ciaries) are individuals or groups with a direct, signifi cant and

specifi c stake or interest in a given territory or set of resources and, thus, in policies or

projects relating to those resources (www.artemis-services.com).

Stakeholder analysis is a crucial initial step in situation analysis. The following Table 1 below

identifi es all primary and secondary stakeholders who have a vested interest in the issues

with which the project is concerned. The goal of stakeholder analysis is to develop a strate-

gic view of the human and institutional landscape, and the relationship between the different

stakeholders and the objectives under consideration. Stakeholder analysis is a continuing

process, which should engage different groups, as issues, activities, and agendas evolve.

This table will form the basis of the project’s capacity-building strategy.

Table 1: Stakeholder Analysis Table

Stakeholder Type Marg Stake Basis Resources Role CapacityGaps

Tire 1 SMEs Primary No Livelihood Ownership Financial andTechnological Participants

Motivation,Awareness& Training

Tire 2 SMEs Secondary No Livelihood Ownership Financial andTechnological Participants Awareness

&Training

Tire 3 SMEs Tertiary No Livelihood SocialObligations Knowledge No Awareness gen-

eration

PlantationOwners Primary No Livelihood Ownership Raw Material Participants Awareness

&Training

Ministry ofEnvironment Secondary No Responsibilities Administrative

rightsNatural & knowl-

edge capital Facilitator Training

Ministry ofTextiles Secondary No Responsibilities Administrative

rights

Financial & knowledge

capitalFacilitator Training

Ministry ofCommerce Secondary No Responsibilities Administrative

rights

Financial & knowledge

capitalFacilitator Training

1. Type = Primary, Secondary or Tertiary.2. If the stakeholder is a marginalized group, put an “M” in this column; otherwise leave blank3. The nature and limits of the stakeholder’s stake in the initiative – e.g., livelihoods, profi t, lifestyles, cultural values4. The basis of the stake – e.g., customary rights, ownership, administrative or legal responsibilities, intellectual rights, social

obligations.5. Resources that the stakeholder has at their disposal and could bring to the initiative6. The potential role(s) in the initiative, if any, of the stakeholder7. Any capacity gaps that may need to be fi lled so that the stakeholder can fulfi ll their role

20

Stakeholders are further prioritized accordingly with the help of Prioritizing grid (Figure 2)

Tire 1SMEs (15 nos.) are one who would be highly benefi ted by the project and will have

a larger interest.

Tire 2 SMEs (50 nos.) will also be highly benefi ted by the project but have compara-

tively low interest.

Tire 3 SMEs (600 nos.) will be comparatively low benefi ted but have high interest in

implications after the project implementation.

Offi cials being the facilitators would be less infl uenced and thus have relatively low inter-

est. The Present training need assessment exercise would focus mainly on the SMEs of all

the three tires.

Institutional Mechanism

Export Promotion Council for Handicrafts (EPCH) under the aegis of Development Com-

missioner (Handicrafts), Ministry of Textiles, Government of India is a non-profi t organiza-

tion, established under the EXIM policy of Government of India in the year 1986-87. It

has created necessary infrastructure as well as marketing and information facilities, which

are availed both by the member exporters and importers.

The Council is engaged in promotion of handicrafts from India and project India’s image

abroad as a eliable supplier of high quality handicrafts. The Council is run and managed

by a team of professionals headed by Executive Director. The Committee of Administra-

tion consists of eminent exporters, professionals.

The Export Promotion Council for Handicrafts has a rarest distinction of being considered

as MODEL COUNCIL that is self-sustaining and where all the promotional activities are

self-fi nanced. Council’s continued pursuit of excellence and the objective of achieving

the hallmark of quality assurance by extending excellent services to all the members and

stake holders has led the Council to become an ISO 9001 : 2000 certifi ed organization.

Interest

High

High

Low

Pro

ject

’s im

pact

/ben

efi t

pote

ntia

l

Tire 2 SMEs

(50)

Offi cials

Tire 1 SMEs

(15) & Plantation

Owners

Tire 3 SMEs

(600)

21

Figure 3: Institutional Mechanism – Wooden Handicraft Industry

EPCH works as the apex organization in India under which many state handicrafts asso-

ciations are registered. All the SMEs member of the state handicraft associations by default

becomes the member of EPCH and gets highlighted. There are many other small trade

associations which individually work in states. The fi gure above (fi gure 3) shows the institu-

tional mechanism under which the SMEs in Rajasthan, Kerala and Uttar Pradesh work.

2.2 SWOT Analysis

Given below is the SWOT analysis of the wood based SMEs of 3 states.

Strengths

Already in market with reasonable share.

Abundant and cheap labor hence can compete on price Low capital investment

and high ratio of value addition Aesthetic and functional qualities

Wrapped in mist of antiquity

Handmade and hence has few competitors

Variety of products which are unique

Exporters willing to handle small orders

Increasing emphasis on product development and design up gradation

Weaknesses

Inconsistent quality

Inadequate market potential study and marketing strategy Lack of adequate

infrastructure and communication facilities Capacity to handle limited orders

Untimely delivery schedule

Unawareness of international standards by many players in the market

Ministry of Textiles

Export Promotion Council for Handicrafts

State Promotion Council forHandicrafts

Trade Association (FORHEX, SWCA, NWCA, JHEA)

Wood Based Small and MediumEnterprises

22

Opportunities

Rising appreciation for handicrafts by consumers in the developed countries

Widespread novelty seeking

Large discretionary income at disposal of consumer from developed countries

Growth in search made by retail chains in major importing countries for suitable

products and reliable suppliers. Opportune for agencies to promote marketing

activities

Use of e-commerce in direct marketing.

Threats

Better quality products produced by competitors from Europe, South Africa,

South Asia, etc. Better terms of trade by competing countries

Consistent quality and increasing focus on R&D by competing countries

Better packaging

Stricter international standards

2.3 Survey Results

A questionnaire was developed for pre-testing in Kerala just after the Kochi workshop in

May 2009. Liaison was made with some of the SMEs during the workshop for face to

face interview at their place. The SMEs along the A.M. Road, Nellikuzhy, Kothamaglam

were visited and interviewed the owners were interviewed during May 2009.

The same questionnaire has been reviewed and restructured according to the response

and with some new additions. The modifi ed questionnaire has been discussed with the

WWF India visiting team at Kolkata on 3rd September. The fi nal questionnaire was used to

collect data from Nagina & Saharanpur, Uttar Pradesh during 4th to 7th September 2009.

Further the questionnaire was discussed at New Delhi meeting on 8th September 2009 and

mutually the latest questionnaire has been fi nalized.

The fi nal questionnaire has been exercised at Kozhikode in Kerala and Jaipur & Jodhpur in

Rajasthan in November 2009. List of target groups was collected from different sources

– WWF- India, New Delhi, Jodhpur Handicraft Association, Export Promotion Council,

Saharanpur and browsing internet.

The basic information needed for training need assessment should come through statisti-

cally sound sampling methods. For representative sampling - Stratifi ed purposive sam-

pling method has been adopted.

State & District/place – indicated by WWF-India – Kerala, Rajasthan, Uttar Pradesh

Stratifi cation –

SMEs – Timber merchant/Sawmill owner (100% sampling as they are very lim-

ited), Furniture makers, Hand curved items – cluster basis (10% sampling)

Forest Offi cials – Study locations (100% sampling as they are very limited), Senior-

ity basis (10% sampling)

Purposive – identifi cation of respondent

List of respondent collected from WWF-India, IFS civil list and other sources

Every 10th name followed by 5th one (if required)

23

The collected data from SMEs in Kochi & Kozhikode, Kerala (22 respondents),

Nagina & Saharanpur, Uttar Pradesh (31 respondents) and Jaipur & Jodhpur, Rajasthan (35

respondents) have been analyzed to assess the Knowledge Ladder of the respondent so

as to fi nalize the training need assessment. The results are accordingly discussed for every

state in detail below.

2.3.1 Rajasthan

The questionnaire has been subjected to 30% respondents (registered SMEs) of Jaipur

and Jodhpur trade associations, Federation of Rajasthan Handicraft Exporters (FORHEX)

and Jodhpur Handicraft Exporters Association (JHEA) respectively. There are nearly 100

wood based SMEs registered under each of these associations. The SMEs are 12 to 40

years old and do business both at national and international market. These 80% of the

SMEs are mostly owned by the proprietor themselves and rest of the 20 % is partner-

ship fi rms. The major wood species used by these SMEs are Dalbergia sissoo, Accacia

sp., Mangifera indica, etc. They also use Acacia nilotica, Pinus spp., Garuga pinnata but in

small quantities. Nearly 15 to 25% of the wood is wasted during the process of con-

verting round wood to fi nal product. The wood is mostly procured from nearby states

viz. Uttarakhand, Uttar Pradesh, Bihar, Punjab, Himachal Pradesh, Madhya Pradesh.

On an average each SME consume 8,503 cubic feet of wood per month. The machines

are electric operated and an average energy cost to run a unit is 3.3 Lakhs annually.

The SMEs procure the round wood from fi xed timber agents generally. Very less or no

wood is procured from forest depots. It is also understood presently there is no scarcity

of wood in the local market but the cost is increasing daily. The cost of wood procured in

Rajasthan is higher than any other states as the state doesn’t have its own wood, but

the quality of the wood procured is very good. The major products include tables, chair,

beds, almirah etc, i.e., big furniture.

Figure 4: Level of Education Vs Internet Use Vs Awareness and Willingness to Forest Certi-

fi cation

Valu

e

Education Vs Internet Use Vs Awareness & Willingness to certification4

Education

3internet use

2 Awareness about certification benefits

w illingness1

01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

24

SMEs

24

The graph (Figure 4) indicates that the SME proprietors are highly educated only one of the

total respondents was not educated. Most of the SMEs have their own website and use

internet very frequently for their trade purposes. As most of the SMEs use internet and do

export they are quite aware of the importance of certifi cation which is also very prominent in

the graph (Blue Line). But surprisingly the willingness graph drops suddenly to zero at many

points even when the education graphs shows that the respondent is highly educated and

maintains a high profi le website. On the other hand it is clearly visible that respondents

who are not highly educated, just completed their primary education are both aware and

willing to go for certifi cation. This is due to their setback approach where they want the

government or any other agency to take the fi rst step while they would follow only when it

becomes compulsory. These SMEs can be categorized under Tire 3 SMEs, those have to

undergo attitudinal change. While other SMEs are aware and willing to undergo certifi cation,

they lack in operational knowledge. Nearly 74% of the SMEs don’t have an annual report,

80% of them do not have process fl ow chart of their plant and nearly 92% of them do not

have any document to show the sourcing and outsourcing chain of raw material and prod-

ucts (Figure 5). About 90% of the SMEs are aware about Global Forest and Trade Network

(GFTN) as GFTN India has already conducted several workshops and through their web

interface, but many do not understand clearly their role in promoting forest certifi cation.

Figure 5: Documentation availability status

The SME units visited do maintain highly decorated manufacturing unit but 80% of them

don’t have any environmental policy or Corporate Responsibility Policy. The SMEs are

highly aware and follow Labor laws which are visible painted on the walls of the unit.

Figure 6 shows a graphical description of the policy they follow. The workers working

in the unit suffer from respiratory problems due to dust the only environmental health

hazard but very less effort are seen to overcome the problem.

perc

enta

geVa

lue

120

100

80

Documentation Status

9692

AnnualReport

Audited Statement

Product Catalouge60

40

20 16

0

20

8

Rajas than

Process FlowChart

Sourcing andOutsourcingFlow Chart

25

Figure 6: Policy Availability status

The survey also enquired about the knowledge ladder of the rules , regulations , laws

and acts that are to be followed by the SMEs in order to export and import wood

products. The graph below (Figure 7) shows their knowledge level about Lacey act and

FLEGT act. It was also seen that rules and regulations related to import of products with-

in EXIM policy are also not clear to the SME proprietors. This would become important

if the SMEs plan to import certifi ed wood from other countries in course of non availability

within the country.

Figure 7: Awareness Status about Lacey Act, FLGET Act & EXIM Policy (Import)

2.3.2 Uttar Pradesh

In Uttar Pradesh the questionnaire has been subjected to 30% respondents (registered

SMEs) of Saharanpur (120) and Nagina (50) trade associations, Saharanpur Wood Carving

Association (SWCA) and Nagina Wood Craft Association (NWCA) respectively. The SMEs in

Uttar Pradesh are 20 to 70 years old and do business both in national and international

market. Of these 85% of the SMEs are mostly owned by the proprietor themselves and

Aw

arne

ss%

Policy Status

120

100

80

60

40

20

96

20 16

EnvironmentalPolicy

CSR Policy

Labour Policy

0Rajasthan

Policy

Awareness about Lacey and FLEGT Act & Exim Policy

A 100w 90a 80rn 70

e 60s 50s 40%

302010

0

64

3528

Rajasthan

Lacey Actt

FLEGT Actt

Exim Policy (import)

26

rest of the 15 % are partnership fi rms. The major wood species used by these SMEs are

Dalbergia latifolia, Tectona grandis, Adina cordifolia, Dalbergia sisoo, Mangifera indica,

Syzygium cumini etc. They also use Garuga pinnata and other local wood in small

quantities. Nearly 25 to 30% of the wood is wasted during the process of converting

round wood to fi nal product. About 50 to 60% wood is mostly procured from Forest

depots, private farms and homestead gardens within the states. Rest of the 40% is

procured from nearby states viz. Uttarakhand, Bihar, Punjab, Himachal Pradesh, Madhya

Pradesh. On an average each SME consume 1772 cubic feet of wood per month else

than Alam handicrafts export international (5,29,720 Cubic feet). The machines are electric

operated and an average energy cost to run a unit is very high than that in Rajasthan

and Kerala. The reason is being non availability of continuous and steady electric supply

from the state electricity board. Majority of the units run by diesel generators. A study

undertaken by Anindita et. al.(2009) shows the amount spent by the SMEs in Saharnpur on

generator as diesel value vs. electricity bill per month by a graph below (Figure 8) .

The SMEs procure the round wood from fi xed timber agents and forest depots directly.

During the interview the SME proprietors claimed that all good quality of wood is taken up

by timber agent and exported outside the state and a ‘C’ category wood is made available

to the SME proprietors in Saharanpur. Measures to rectify the problem are highly recom-

mended. This affects the quality of the product and costing of the fi nished products. The

major products include hand-carved utility goods and showpieces, toys, jewelary, sofa sets,

dining tables and chairs, almirah etc. mostly small items.

Figure 8: Money spent on electricity and generator annually by each unit. (Src: Anindita. at.

al., 2009)

700000

600000

500000

400000

300000

200000

100000

0

Electricity vs Generator Use

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29

Amount Spent as Electricity Bills Amount Spent in Generator

Electricity vs Generator Use

27

Figure 9: Level of Education Vs Internet Use Vs Awareness and Willingness to Forest Certi-

fi cation

The graph (Figure 9) indicates that there are less highly educated SME proprietors.

Many are educated only till primary level and there are few who are not even educated.

Most of the SMEs don’t have their own website and are not aware of internet use in both

Nagina and Saharanpur. Here (Saharanpur) the graph clearly indicates that with education

and, internet use the awareness (blue line) also drops. Most of them are not aware about

forest certifi cation in Saharanpur. Similar is not the case in Nagina. 100% of the people

are aware about certifi cation and are willing to go for it. This is due to the workshop con-

ducted by WWF India prior to the survey. The line of willingness (green) is straight showing

that 100% of the respondents are willing to take forest certifi cation but in Sharanpur

it drops with the education (pink line) and internet use (orange line). The people in

Sharanpur have lack of information, and hence need awareness about the certifi cation

to understand its importance and implications. These SMEs would be included in the Tire

2 SMEs of our classifi cation. Still there are few SMEs those who are aware, proactive

and willing to undergo certifi cation, they lack in operational knowledge. Only 23% of

the SMEs have a annual report in both Nagina and Saharanpur, 30 % and 36% of them

have process fl ow chart of their plant and nearly 15% & 10% of them have any docu-

ment to show the sourcing and outsourcing chain of raw material and products (Figure

10) respectively. About 90% and 20% of the SMEs are aware about Global Forest and

Trade Network (GFTN) in Nagina and Saharanpur. GFTN India has already conducted

several workshops in Nagina but none in Saharanpur.

Figure 10: Documentation availability status

Leve

l

Education Level, Internet Use, Awarness and Willingness to Certification of SME Propriters4

Nagina Saharanpur

3EducationInternet Use

2 AwarnessWillingness

1

01 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 SMEs

100.00

Documentation Status UP

90.00 93.3384.62 84.62

80.00

60.00

40.00

20.00

23.08 23.3330.77

36.67

15.3810.00

Nagina

Saharanpur

0.00A nnualReport Audited Statement Product Catalouge Process Flow Chart Sourcing and

OutsourcingFlow Chart

28

Most of the SME units in Saharanpur are located in a very shabby environment and about

more than 70% of the SMEs don’t have any environmental policy or corporate social

responsibility policy. They even do not follow the labor laws though they are aware of it.

Similar is not the case of Nagina. Nagina being a small area and less number of SMEs are

much highly clean, follow environment, and labor laws strictly. Figure 11 shows a graphi-

cal description of the policy they follow. The workers working in the unit suffer from res-

piratory problems due to dust the only environmental health hazard but very less effort

are seen to overcome the problem.

Figure 11: Policy Availability status

The survey also enquired about the knowledge ladder of the rules , regulations , laws

and acts that are to be followed by the SMEs in order to export and import wood

products. The graph below (Figure 12) shows their knowledge level about Lacey act

and FLEGT act. It was also seen that rules and regulations related to import of prod-

ucts within EXIM policy are also not clear to the SME proprietors. This would become

important if the SMEs plan to import certifi ed wood from other countries in course of non

availability within the country.

Figure 12: Awareness Status about Lacey Act, FLGET Act & EXIM Policy (Import)

36.666716.666713.333

Nagina Policy Status Saharanpur Policy Status

1008060 46.1538540200

ENVPolicy

0

CSRPolicy

38.46154

LabourPolicy

ENV Policy

CSR Policy

Labour Policy

100

80

60

20

0ENV

PolicyCSR

PolicyLabourPolicy

CSR Po licy

Awareness about Lacey Act, FLEGT ACT & Exim Policy

100.0090.0080.00

P 70.00er 60.00c 50.00e 40.00nt 30.00a 20.00g 10.00e

0.00

46.15

23.08 21

6.6715

0.00

Lacey Act

FLEGT Act

Exim Policy (Import)

Nagina Saharanpur

Area

29

2.3.3 Kerala

The questionnaire has been subjected to 30% respondents (registered SMEs) of Nellikuzhy,

Kochi & Kozhikode .There are nearly 50 each wood based SMEs registered in these ar-

eas. The SMEs are 14 to 20 years old and do business mainly in national market. These

90% of the SMEs are mostly owned by the proprietor themselves and rest of the 10%

is partnership fi rms. The major wood species used by these SMEs are Dalbergia

latifolia, Tectona grandis, Swietenia mahagoni, Terminalia paniculata, Grewia tilifolia, Terminalia bellirica,

Hevea brasiliensis, Grevillea robusta, Artocarpus integrifolia wood etc. Nearly 15 of the wood are

wasted during the process of converting round wood to fi nal product. The wood is mostly

procured from homestead garden, private plantations and very few from govt. depot within

the state. The machines are electric operated with an average consumption of 3500

unit. The SMEs procure the round wood from fi xed timber agents generally. It is also

understood presently there is no scarcity of wood in the local market. The major products

include Sofa Sets, Dining tables and Chairs, Cots, Dressing tables, Almirah and some

artifacts. All furniture’s are sold either in local market or within the state.

Figure13: Level of Education Vs Internet Use Vs Awareness and Willingness to Forest Cer-

tifi cation

The graph (Figure 13) indicates that the SME proprietors are highly educated. Most of

them have completed their secondary education. About 50% of the SMEs have their

own website and use internet very frequently for their trade purposes but others do not.

Most of the SMEs are not aware about certifi cation (Blue Line) but still few are willing to

undergo certifi cation process (green line). The state needs intensive awareness and train-

ing programme with some motivational inputs to drive forest certifi cation. These SMEs

can be categorized under Tire 2 SMEs. About 100% of the SMEs don’t have an an-

nual report, 100% of them don’t have process fl ow chart of their plant and nearly 80%

of them do not have any document to show the sourcing and outsourcing chain of raw

material and products (Figure 14). About 100% of the SMEs are not aware about Global

Forest and Trade Network (GFTN) and their role in promoting forest certifi cation.

Valu

e

Education Vs Internet Use Vs Awarness & Willingness to certification4

3Education

internet use2

Awarness aboutcertification benefitswillingness

1

01 2 3 4 5 6 7 SM8

Es9 10 11 12 13 14 15

30

Figure 14: Documentation availability status

The SME units maintain good environmental and health conditions within their campus,

but 80% of them don’t have any environmental policy or Corporate Responsibility Policy.

The SMEs are highly aware of Labor laws but do not follow the same. Figure 15 shows a

graphical description of the policy they follow. The workers working in the unit suffer from

respiratory problems due to dust the only environmental health hazard but very less effort

are seen to overcome the problem.

Figure 15: Policy Availability status

The SME proprietors were completely ignorant about Lacey Act, FLEGT and Import EXIM

policy and its implication on their business.

2.4 Q Sort Survey.

A Q sort survey method is used to gather and organize data on viewpoints and feelings

in relation to a specifi c problem. The Q sort is administered one by one using a 3*5

cards, each containing a statement. The Respondents sort the card and then prioritize

the important cards in rank order sequence. The data is then recorded for consolida-

tion, analysis and reporting. The Q sort analysis can be administered to single personnel

or even a group of people. The identifi ed 18 training needs from the above survey were

written in to cards and administered to the SME proprietors both in groups and individu-

als to prioritize the trainings in every state. The results are given below as ranked and

perc

enta

geVa

lue

0

g y

100

Documentation Status

90

8073 Annual Report

70 Audited Statement

60Product Catalouge

Process Flow Chart

50Sourcing and Outflow

40

30

20 2020

10

0 Kerala 0

Aw

arne

ss%

Policy Status

100

80 Environmental Policy

60 Labour Policy

2620

20 13

0Keralla

31

It is clearly visible from the above results that training on Lacey act and FLEGT and its im-

plication on their trade is of utmost importance to all the states. Further they have ranked

Forest certifi cation (basics and/ or advanced) as second most important topic for training

and thirdly Carbon benefi ts and accounting.

“N” stands for Not Required.

Sl. No Topics Rajasthan Uttar Pradesh Kerala

1Forest Certifi cation, awareness programme basics (about

importance, fair trade why and how it works)

N 2 2

2Forest certifi cation advanced (FSC principles, and

its implications, certifi cation procedure and calculation)

2 N 13

3 GFTN awareness workshops 5 15 3

4 Lacey Act and FLEGT 1 1 1

5 EXIM Policy (Import factor) 6 12 N

6 CITES and illegal trade of wood species 12 13 4

7 Annual Report 4 5 12

8 Product Catalogue N 6 N

9 Sourcing and Outsourcing Flow Chart 8 7 8

10 Process Flow Chart 9 8 9

11 Environment Policy N 11 11

12 Health & Safety Rules and Regulations N N N

13 Corporate Social Responsibility Policy 10 14 10

14 Labor Laws N N N

15 Effi cient Wood Waste Management 7 9 5

16 Energy and Fuel Effi ciency N 4 N

17 Wood & Wood Quality Identifi cation 11 10 7

18 Carbon Benefi ts and Accounting 3 3 6

32

PART – 3

RECOMMENDATION

33

3.1 Strategies and Priorities

The Strategies and Priorities have been drawn by the TNA study, as tabulated below:

Key Priority: E= Essential, D= Desirable, N= Not necessary.

Level: 1= Basic, 2= Intermediate, 3= Advanced

Priority and level of training required for each audi-

ence

Training Topics

Tire

1 S

ME

s

Tire

2 S

ME

s

Tire

3 S

ME

s

Fore

st O

ffi ci

als

Oth

er o

ffi ci

als

Pla

ntat

ion

Ow

ners

Rajasthan

Sustainable Trade Processes

Forest Certifi cation, awareness programme about importance,

fair trade why and how it works D3 D1 E1 E2 E2 N

Forest certifi cation (FSC principles, and its implications, certifi -

cation procedure and calculation) E3 E2 D1 E3 E3 N

GFTN awareness workshops E3 E1 N D2 D2 N

Lacey Act and FLEGT E3 E2 E1 E1 E1 N

EXIM Policy (Import factor) E3 D1 N N N N

CITES and illegal trade of wood species E3 E3 E1 D1 D1 N

Policy and Documentation

Annual Report E3 E1 D1 N N N

Product Catalogue E3 E1 E1 N N N

Sourcing and Outsourcing Flow Chart E3 E1 N N N N

Process Flow Chart N D3 N N N N

Environment Policy N E1 N N N N

Health & Safety Rules and Regulations N E1 N N N N

Corporate Social Responsibility Policy E3 D3 N N N N

Labor Laws N D1 N N N N

Technical

Effi cient Wood Waste Management E3 E1 D1 N N N

Energy and Fuel Effi ciency E3 E2 E1 D1 D1 N

Wood & Wood Quality Identifi cation E3 E3 E1 D D N

Carbon Benefi ts and Accounting E3 E1 N E1 E1 N

34

Key Priority: E= Essential, D= Desirable, N= Not necessary.

Level: 1= Basic, 2= Intermediate, 3= Advanced

Priority and level of training required for each audience

Training Topics

Tire

1 S

ME

s

Tire

2 S

ME

s

Tire

3 S

ME

s

Fore

st O

ffi ci

als

Oth

er o

ffi ci

als

Pla

ntat

ion

Ow

ners

Uttar Pradesh

Sustainable Trade Processes

Forest Certifi cation, awareness programme about importance,

fair trade why and how it works

N E3 E1 E1 E1 E3

Forest certifi cation (FSC principles, and its implications, certifi ca-

tion procedure and calculation)

E3 E2 N N N E3

GFTN awareness workshops E1 E1 N D2 D2 E1

Lacey Act and FLEGT E3 E2 E1 E1 E1 E2

EXIM Policy (Import factor) E3 D1 N N N N

CITES and illegal trade of wood species E3 E3 E1 D1 D1 E3

Policy and Documentation

Annual Report E3 E3 N N N N

Product Catalogue E3 E2 N N N N

Sourcing and Outsourcing Flow Chart E3 E3 N N N N

Process Flow Chart E3 E3 N N N N

Environment Policy E3 E2 N N N N

Health & Safety Rules and Regulations E3 E3 E1 N N N

Corporate Social Responsibility Policy E3 E2 N N N N

Labor Laws E3 E1 E1 N N N

Technical

Effi cient Wood Waste Management E3 E1 D1 N N N

Energy and Fuel Effi ciency E3 E1 D1 D1 D1 N

Wood & Wood Quality Identifi cation E3 E2 E1 D D E1

Carbon Benefi ts and Accounting E3 E2 N D D E3

35

Key Priority: E= Essential, D= Desirable, N= Not necessary.

Level: 1= Basic, 2= Intermediate, 3= Advanced

Priority and level of training required for each audience

Training Topics

Tire

1 S

ME

s

Tire

2 S

ME

s

Tire

3 S

ME

s

Fore

st O

ffi ci

als

Oth

er o

ffi ci

als

Pla

ntat

ion

Ow

ners

Kerala

Sustainable Trade Processes

Forest Certifi cation, awareness programme about importance,

fair trade why and how it works

E3 E1 E1 E1 E1 E3

Forest certifi cation (FSC principles, and its implications, certifi ca-

tion procedure and calculation)

E3 E1 N E1 E1 E1

GFTN awareness workshops E2 E1 N D D D2

Lacey Act and FLEGT E3 E1 D1 D1 D1 E2

EXIM Policy (Import factor) E1 N N N N N

CITES and illegal trade of wood species E3 E3 E1 D1 D1 E3

Policy and Documentation

Annual Report E3 E3 N N N N

Product Catalogue E3 E2 N N N N

Sourcing and Outsourcing Flow Chart E3 E3 N N N E1

Process Flow Chart E3 E3 N N N N

Environment Policy E3 E2 N N N E1

Health & Safety Rules and Regulations E3 E2 N N N N

Corporate Social Responsibility Policy E3 E2 N N N N

Labor Laws N D3 N N N N

Technical

Effi cient Wood Waste Management E3 E1 D1 N N D3

Energy and Fuel Effi ciency E3 E1 D1 E1 D1 N

Wood & Wood Quality Identifi cation E3 E1 E1 N N E1

Carbon Benefi ts and Accounting E3 E3 N D D E3

36

3.2 Conclusion

There are 18 topics identifi ed on which training is requested by the SMEs of three states.

The major trainings (fi rst importance) that are to be organized immediately and are com-

mon to all the three states and all the stakeholders are

a. Lacey act and FLEGT and its implication on their trade

b. Forest certifi cation (basics and/ or advanced)

c. Carbon benefi ts and accounting processes.

Further Annual Report making, Process Flow Chart design and drawing out the Flow

Chart for Sourcing and Outsourcing of products are of second importance in Rajasthan

and Uttar Pradesh. While in Kerala training on CITES and Illegal Trade of Wood Species

and Effi cient waste Wood Management are listed out.

During the process of TNA many non training need has been identifi ed. Some of them

are listed below

a. Motivational requirement of some Tire 3 SMEs, those that are owned by educated

owners but have shown a setback behavior. Some of these SMEs are of high impor-

tance as they are major market players.

a. At some places a training or workshop will not be very effective, rather a B2B meet-

ing for positive trade incentives is expected from the GFTN team. This is mostly

seen in Tire 2 SMEs.

a. Major policy and political initiatives are to be infl uenced in Kerala to drive certifi cation

processes

a. There are many people who have impression that forest certifi cation can bring in

carbon fund which is not very true. Further research on this aspect should be initi-

ated for better understanding.

a. The training or workshop when conducted should also address their local problems

linked to sustainable and responsible trade processes. This would help local

people getting more attached to the GFTN network.

3.3 Insight Gained in TNA

Wood based SMEs have very high market potential but in the globalised world with chang-

ing trade practices and consumer demand globally any resource based production and

trade need to satisfy sustainability rules. This though at times looked upon as constraint

and threat to sustenance of income it must also be considered as an opportunity as well

to reduce uncertainty in income and livelihood of population dependent on SMEs. Further

studies on topics below should be undertaken

Assessment of fi nancial need, role of economic instruments and value addition of stand-

ards, labeling and extension of trade link to facilitate income enhancement of the SMEs

through sustainability transition is needed.

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Assessment of co-benefi ts from sustainable wood based economic activity practices

on forest conservation and development of indices for monitoring welfare gain of those in

business should be undertaken.

Model for wood based Small and Medium Enterprises sector and their role in sustainable

forest policy with consideration of energy, global warming, risk and regional development

should be developed.

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References

1. http://www.wikipedia.org/

2. http://www.artemis-services.com/downloads/Stakeholder_analysis_0504.pdf

3. Sarkar, Anindita Bhattacharyya and T.R. Manoharan, 2009; Benefi ts of Carbon Markets

to Small and Medium Enterprises (SMEs) in Harvested Wood Products: A case study from

Saharanpur, Uttar Pradesh, India, African Journal of Environmental Science and Technol-

ogy, vol. 3(9), pp. 219-228

4. http://www.wwfi ndia.org/

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Annexure 1: Glossary of Terms

CSR : Corporate Social Responsibility

EPCH : Export Promotion Council for Handicrafts

FORHEX : Federation of Rajasthan Handicraft Exporters

FSC : Forest Stewardship Council

GCP : Global Change Programme

GFTN : Global Forest and Trade Network

GoI : Government of India

JHEA : Jodhpur Handicraft Exporters Association

JU : Jadavpur University

MoEF : Ministry of Environment and Forests

NAEB : National Afforestation and Eco-development Board

NWCA : Nagina Wood Carving Association

RC : Regional Centre

SME : Small and Medium Enterprise

SWCA : Saharanpur Wood Carving Association

SWOT : Strength, Weakness, Opportunities and Threat

TNA : Training Need Assessment

UP : Uttar Pradesh

WWF : World Wide Fund - for a living planet

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Annexure 2 : Photographs

View of Wood based SME in Nagina, UP Process of cutting of wood in SME, UP

Stocks of wood at Star paper Mill Questionnaire survey at Star Paper Mill

Processing of wood into paper Stock of furniture

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Questionnaire survey at Jaipur, Rajasthan Questionnaire survey at Jodhpur, Rajasthan

Questionnaire survey at Jodhpur, Rajasthan Quality Wooden furniture

Machine use for cutting of wood Machine use for cutting of wood

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Stock of wood in SMEs of Keralla Wood Processing in Keralla

Wood cutting machine Wood cutting in a Sawmill

Cutting in proper size of wood Inside view of a Wood based SMEs

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