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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
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Copyright noticeReproduction is authorised, provided the source is acknowledged, save where otherwise stated.
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Internal draft for discussion: Not to be quoted
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Training Need Assessment on Strategic Knowledge Management, Advisory Support and Capacity Building for Wood Based Smes to Enhance MarketPotential through Sustainable Business Practices
2010
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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/
39
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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