gender and Social inclusion in Nepal's Tea Sector.doc

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Gender and social inclusion in Nepals teasector

Kristie Drucza

Gender and social inclusion adviser

June 2009

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BackgroundSNV Nepal has been working on developing the orthodox tea value chain since 2006. SNV hasassisted to build the capacity of a number of actors associated with the orthodox tea valuechain in four districts: Ilam, Panchthar, Dhankuta and Terhathum. SNV has a policy tomainstream gender and social inclusion in all its operations in all countries. SNVs gender and

social inclusion (GSI) adviser for business development was requested to explore ways SNVsoperations in tea could be more inclusive. To this end, field work was undertaken from 9 June 12 June in Ilam and Panchthar.

A Questionnaire was developed for cooperative leaders, members and the Farmer Federation.A separate questionnaire was developed for factory owners and managers. A mix of focusgroup discussions and in depth interviews were undertaken.

Purpose

To ascertain how SNV could implement more inclusive working practices that promotegovernance for empowerment.1 Paying particular attention to:

Landless seasonal Pluckers;

Permanent farm workers;

Pluckers with their own land;

Existing groups (federations, cooperatives and informal groups); and

Factories.

IntroductionDevelopment interventions have a tendency to benefit the most educated because the costs oftargeting the poorest and marginalized are deemed too high. SNV as a pro-poor organisationthat mainstreams governance, gender and social inclusion (GSI) is committed to targeting themost excluded and vulnerable groups so that allpeople enjoy the freedom to pursue their ownsustainable development.

It is important for women and men and all ethnic and excluded groups to benefit equitablyfrom development interventions. In some cases this may mean that it will be necessary tofocus particularly on one section of society such as women or Dalits, in order to ensure that

overall assistance benefits women and men equally. It may mean that capacity building effortsare required for marginalized groups before they are able to participate in mainstreamdevelopment assistance. It may also mean that behavior change programs are required formen or upper caste members of society so they can create space for, and allow, traditionallymarginalised2 groups to equally participate in development.

In a nation, such as Nepal with low gender and social inclusion indicators 3, it is not sufficientto target men and women in the same ways or even to the same degrees in pursuit ofequitable pro-poor development objectives. Women, men and excluded groups have uniqueneeds. They are not a homogenous group. Equality does not always mean treating men andwomen and other excluded groups the same.

Gender is not synonymous with women; everyone has a gender. Gender involves social andcultural relationships that are changed and formed over time. Gender is a social construct; sex

1 Governance for empowerment (GfE) is SNVs approach to mainstreaming governance and has 5

principles: effectiveness & efficiency; Equity & inclusiveness; Rule of law; Participation & responsiveness;

Accountability & transparency.2Traditionallymarginalised groups are defined as: the poor, women, ethnic groups, and lower castes.

3Nepal ranked 86th out of 93 countries in the 2007 Gender Empowerment Measure (GEM), with a value of

0.351. In terms of the four districts associated with SNVs assistance in tea, Dhankuta ranks 16th on the

GEM out of 75 Districts. Terhathum is 33 rd, Ilam is 34th and Panchthar ranks the lowest at 43. SeeAppendix 1 for more information. For inclusion statistics see 2008 Village Development committee Profileof Nepal: A socio-economic development database of Nepal.

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is a biological function. Nepal experiences group violence, riots and regular bundas (strikes)that disproportionately involve (young) men. This is also a gender issue.

While womens empowerment and gender equality are inextricably linked, gender is more thanthe common assumptions associated with the concept of woman. Gender equality relates toequality of outcomes which are not based upon ones sex but rather the equal treatment ofmen and women. Promoting equality involves recognition that men and women have different

roles and needs and these are factored into development programming and planning.

Discrimination based upon gender affects both women and men adversely. Men whenprompted will sometimes discuss their secret stress and the burden they feel from being themain bread winner. In Nepal all statistical indicators (See Appendix 1) suggest that women areoverwhelmingly more disadvantaged than men and therefore prioritizing strategies thatadvantage women is justified until these statistics change.

Gender inequalities can and should be changed. Equality of opportunity is a basic human right

established by international agreements and conventions such as the ILOs convention 111and 100 and the 1979 Convention on Elimination of Discrimination Against Women. Whatthese conventions illustrate is that gender inequalities cannot be justified by reference tocultural norms.4

Additionally the 1990 constitution of Nepal says that there shall be no discrimination againstany citizen in the application of laws, or on the grounds of religion, caste, race or sex. It alsorequires that employers pay women equal wages with men and give women equal access toproperty. Other laws have also been passed to provide special provisions for women's

education, health and employment.5

Gender mainstreaming is a globally accepted strategy for promoting gender equality.Mainstreaming is not an end in itself but an approach to achieve the goal of gender equality.Mainstreaming involves ensuring that gender perspectives and attention to the goal of genderequality are central to all development related activities. A combination of approaches areneeded to effectively mainstream. For example, targeted programs, gender analysis, genderedstrategies, gender indicators, sex disaggregated data, etc.

SNV Nepal also mainstreams social inclusion and governance. Nepal has some uniquedevelopment challenges as a post conflict society with the Hindu caste system and a newly

emerging democracy.

Governance for empowerment (GfE)According to SNVs website; Governance is at the heart of our work and cuts across all thatwe do. Good governance principles like participation, transparency and accountability, guideour work. Governance for empowerment is the concept we use to underscore the value weplace on gender equity and social inclusion of poor and marginalised groups as the basis ofsustainable development.SNV focuses on 5 dimensions to mainstream governance:

Effectiveness & efficiency

Equity & inclusiveness

Rule of law

Participation & responsiveness

Accountability & transparency

Nepal has been a feudalistic state the only Hindu kingdom until recently. The process ofparliamentary politics was reintroduced in 1991 after years of monarchical rule. Since 1996violent unrest has plagued Nepal. In 2008 a coalition was formed with Maoists at the helm asa result of democratic elections. This changed again in May 2009 when the Maoists stepped

4Mayoux and Mackie 2007. Making the Strongest Links: A practical guide to Mainstreaming Gender

analysis in VCD. ILO.5http://www.nepaldemocracy.org/civic_education/civics/civicedu_chap6.html#place

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down from power. Regular changes of government are common in post conflict countriesstruggling to understand concepts of good governance and democracy.

Aside from at the central level, it is also beneficial to promote good governance at the locallevel within local institutions that people see and encounter daily. When people understandthe principles of good governance and put them into practice, then they are more likely tohold their central government to account and demand stability. They are also more likely to

practice good governance in their everyday encounters.

Social exclusion is a process and a state that prevents individuals or groups from fullparticipation in social, economic and political life and from asserting their rights. It derivesfrom exclusionary relationships based on power.6 Nepals ten years of conflict can be regardedas a result of social exclusion. For this reason inclusive activities and targeting can beregarded as addressing the root causes of Nepals conflict and promoting peace, and shouldconsequently be a mandatory requirement for all development assistance in the country.

Social inclusion is a strategy that actively seeks to ensure development outcomes consider theunique needs of the poor, ethnic groups, lower caste groups and women. Generally men andupper castes are dominant in Nepal and require different levels of assistance from excludedgroups.

Empowerment builds peoples assets and capacity to gain understanding and control overpersonal, social, economic and political forces to act individually as well as collectively to makechoices about the way they want to be and do things in their best interest to improve their lifesituation.7

Discussion and main findings

Empowerment of poor producers in the tea value chain is a key objective of SNVs work.According to SNVs website, we are in a chain not for the product but to help poor peopleincrease production, employment and income. SNVs assistance is based on the knowledgethat successful poverty reduction depends upon the eradication of economic and socialdisadvantage, and the promotion of pro-poor solutions.8 So the main beneficiaries of SNVscapacity building assistance are the poor and disadvantaged involved in the tea sector.

In tea the poor and disadvantaged are those who are landless and often work as seasonallabours and pluckers on other peoples land. These people are often lower caste, women andsometimes from ethnic groups. Tea is not an untouchable crop. This means even Dalits can beinvolved in the growing, harvesting and processing of tea. The next poorest groups arepluckers and farm labourers who have small plots of land and then factory workers, smallholder farmers, larger landholding farmers and then factory managers and factory owners.Within these categories there is also inequality associated with the caste system, gender, ageand ethnicity.Some of SNVs targeted beneficiaries are missing out on assistance. This is a result of unequalsocial relations that are replicated within the tea industry. In tea districts (and Nepal) uppercaste males are more likely to hold management positions in cooperatives and factories andown larger plots of land than Dalits, female headed households and ethnic groups, althoughsome upper caste families can also be poor. It is difficult for SNV to rectify this situation as it

does not work directly with the poor and because upper caste males are more likely toeffectively negotiate better terms and conditions of employment and higher prices for tea dueto language and ease of building rapport with other upper caste males.

Nonetheless, SNV has made some commendable attempts to include GSI in its programs andassignments. For example one of SNV advisers ensured that the recent recruitment of social

6DFID 2005 DFID Social Exclusion Review.

7UNDP HDR

8www.snvworld.org

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mobilisers for client Teasec had equitable representation of marginalized groups, includingwomen. The approach of encouraging equitable representation, participation and accessfor marginalized groups and women should be done across all programs and assignments as acore mainstreaming strategy. Collecting sex, caste and ethnicity disaggregated data is anothereffective way to mainstream.

The capabilities of women and marginalized groups often lag behind their opportunities.

Enabling women and marginalized groups to realize their full potential requires removinginequalities and discrimination which constrain them at every level of the value chain. Theyoften require additional encouragement and opportunities (known as affirmative action) toenable them to rise above internalized and external subordination. They will not just takeopportunities or benefit from value chain development to the same degree as moreadvantaged and empowered groups.

It is easier to target more empowered and higher educated groups. However, if informationand new technology associated with SNVs assistance continues to disproportionately target

upper caste men then the tea value chain will perpetuate inequalities. Men will increase theirknowledge, power and advantage in markets and employment and women and other groupswill increasingly be marginalized and disadvantaged. This has implications not only for equalityand the marginalized groups but also reduces value chain effectiveness, economic growth andperpetuates cycles of poverty.

Until recently people thought only men were heads of household and women did not need toworry about income. However, in modern Nepal there is a lot of migration for employment andthis involves more men than women resulting in a number of female headed households.While a number of migrants send remittances this creates dependency that may not always befulfilled. Women need to be economically independent if they are to prosper in a globalisedeconomy.

Creating space for marginalized groups to benefit equitably from value chains requires animprovement in governance practices. Transparency and accountability lead to greaterinformation flows. Democratic leadership leads to power sharing and capacity building ofmarginalized groups. The below sections discuss some entry points for SNV to consider infuture programming from a GfE perspective.

FARMER, PLUCKER AND LABOUER CONCERNSThe fieldwork found three main concerns for farmers, Pluckers and factory workers:

Health

Access to finance

Income in the tea off-season (Dec March)

Key informants report that Pluckers, factory workers and farmers who use pesticides havepoor health as a result of their working conditions. The number one reason farmers misscooperative meetings are due to illness. Factory workers also expressed concern over theirhealth and requested any assistance possible. Some form of micro health insurance could beexplored as poor health and absenteeism reduces tea productivity and pushes the poor intodestitution. SNV could undertake research on micro health insurance and what options existfor tea labourers. This could be a potential Inclusive Business opportunity.

Factory workers specifically asked for small business training so they can still earn moneywhen the factory is closed. Linking or promoting entrepreneurial skills development in teadistricts will help micro entrepreneurs in the off-season, enhance the business acumen of teaactors and offer more services to the tea industry. It will also assist farmers to access financeas discussed below.All the farmers interviewed complained about the lack of finance available for them to improvetheir tea farm. Farmers wanted money to build new sheds, inputs, improve their productionand invest in organic conversion. They feel that finance is a barrier to the growth of their tea

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farm and the tea sector. In my experience it is not often access to finance that is the realproblem however. The problem is that farmers do not want to pay high interest rates and theylack the business acumen to be given finance by commercial banks.

Greater access to finance could be achieved by partnering with financial institutions,understanding their concerns about lending to farmers and informing them of farmer needs.When cooperative farmers are informed and linked with finance institutions, they will have a

greater opportunity to access a cooperative loan for more investments in their business. Someform of Inclusive Business with a financial institution that includes business skills training forfarmers including business plan development and financial management would be beneficial.

Women workers (Pluckers, factory workers, labourers) are only paid USD1 per day during thetea season. The minimum wage (110NRP USD1.44) is a component of the code of conduct(CoC) which brings labourers over the poverty line of USD1.25 - a tremendous impact if onlymore factories had signed CoC. However, these figures do not account for the non-employment during the tea off season. If combined with an additional income source in the off

season, women Pluckers and factory workers have the potential to reach USD2 per day. Thishas the potential to bring around 15,000 Nepalis (the estimated number of labourers involvedin orthodox tea) out of poverty - a very significant pro-poor development impact directlyrelevant to MDG1.

MONITORING AND INCENTIVESA number of SNVs clients and tea actors have a lack of awareness about monitoring andevaluation. They plan with little reflection on achievement and lessons learnt. When askedhow the Farmer Federation monitors performance according to their strategic plan, the givenanswer was through observation. There was no formal monitoring or performance appraisalprocess in place. During the research, statements from clients included I think or we try towithout substantial evidence or reports available. The culture of reporting and the ability todemonstrate effectiveness is illusive, especially from a GSI perspective.

People often need to see the results or benefits of mainstreaming GfE for them to embrace theissues whole heartedly. This is not currently possible as there is a lack of focus on results andcollecting disaggregated data. Measuring results will demonstrate areas where the client couldimprove. SNVs capacity building assistance would be well placed to address this issue.

It was apparent from the researchers questioning that some of SNVs clients do notunderstand mainstreaming as a strategy. There was a difference of opinion between clientswith some not agreeing with the approach; in the last 45 years women have changed somuch. When I was at high school there werent any girls. Now there are lots. Things arechanging but it should be slowed down. Things are moving too fast. Women want too much.Another person who worked for the same client asked cooperatives to re-nominate theirrepresentatives to the Farmer Federation and to consider their female members asrepresentatives. This led to 6 females being nominated which is a great result especiallyconsidering the first round of nominations only had male nominees. Assisting clients tounderstand mainstreaming and collecting and promoting good practice examples of GfE wouldbe advantageous. This could be done by training, closer capacity building and specifying GfE inassignment agreements.

Additionally, SNV could structure its support around incentives. SNV is working with a number

of organizations to develop business plans and yet SNV practices are not aligned with theprivate sector. SNV dispenses funds to clients regardless of performance. SNV could considerusing its assistance to leverage more effective and accountable behaviour change with GfE

results. Performance based payments could be implemented and a proposal to this effect iswith SNVs management team.OUTREACHSNV and Agriterra have done some great work in mobilizing farmers into cooperatives. Thecooperatives have empowered farmers to secure better prices and transportation for their tea.In some cases cooperatives also have better access to services. For example a number of

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cooperatives sighted receiving training from the Ilam Farmer Federation, Teasec, factories orNGOs (NCDC in Ilam is currently giving organic farming skills training). However, there arecooperatives that do not receive any assistance. One farmer explained that he didnt knowwhere to go for help and there was no management that gives training to farmers. Hemainly gets information from his friends. He said sometimes people come back from Indiawith new knowledge. Another cooperative didnt know there was a Farmer Federation butwanted to know how his cooperative could join.

There are also farmers who are not in cooperatives and who do not receive assistance. Thereare currently 44 VDCs in Ilam who process tea and only 28 of these have tea cooperativesformed. 16 VDCs with farmers not in registered cooperatives and these VDCs are moreremote. It is difficult to mobilise groups that are geographically dispersed, remote, poor anduneducated. Yet geography constitutes a critical part of many peoples experience of poverty.SNV, as a pro poor organisation, could encourage clients to have greater outreach and toprioritise the needs of the poor.

FARMER FEDERATIONSIlam is the only district with a Farmer Federation and SNV is working to establish federationsin other districts. Federations represent farmer needs and offer more bargaining and lobbyingpower at policy levels. They also offer an opportunity for networking and informationdissemination and should be supported.

Lessons from the Ilam Farmer Federation suggest the need for more capacity building supportto federations so they can more effectively lobbying government, bargain with buyers andoffer different training programs for farmers. A representative of the Ilam Farmer Federationcommented, the Federation is in its early stage and isn't strong but tea farmers expectation ishigh. The Federation can't full fill their expectation that is the biggest challenge. We need helpwith market access, information and industrializing professional tea farming.

Some lessons can be learnt from the Ilam Farmer Federation:

Greater networking and information dissemination. Most of the cooperatives the

researcher met with were hungry to be involved in consultations and strengthen their

knowledge networks. The Farmer Federation could promote more networking betweencooperatives and not just the representative members of the Farmer Federation.Widely disseminating market information and trends could be encouraged.

Strengthen service delivery. The Farmer Federation could offer more services to

members by collaborating with Chamber of Commerce, other businesses and NGOswho offer training. They are trying to do everything themselves rather than facilitatingand coordinating with other service providers.

COOPERATIVESCooperatives are beneficial in securing more income for farmers by increasing their bargainingpower. One cooperative chairperson explained, we started a cooperative because one of ourfriends was in one and he said they got a better price for tea. So we copied their idea andformed our own cooperative. We immediately got 16NRP more per kilo. This cooperative wasformed without assistance from SNVs clients and illustrates the ripple effect capacity buildingcan have.

SNV could capitalize on formed cooperatives for greater development gains. SNVs clientscould assist to organize more formal networking opportunities for cooperatives where lessonslearnt, challenges and market information is shared. It would also be advantageous to inviteNGOs and researchers to these networking meetings. Some agricultural research sits inuniversities without dissemination to those who would most benefit and a number of NGOsdeliver training programs on a wide variety of development topics.9

9NGOs that discuss how to address discrimination through affirmative action and how this reduceshousehold and community poverty or discusses development losses due to domestic violence wouldmaximize development gains from cooperative formation.

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The governance and formation of cooperatives could be strengthened. During the researchthere was no evidence of anonymous voting for executive committee members andinformation dissemination to non leaders appeared poor. Transparency and accountabilitycould be strengthened as one informant could not tell me how the treasury is spent or whodetermines this. Another member thought people were punished if they didnt attend meetingsbut didnt know what that punishment was. In one cooperative group only 2 of the executive

members had read the cooperative ACT and the other members were unsure what it was. Thisillustrates the need to strengthen the governance and leadership of cooperatives.

Cooperatives are prone to elite capture. Some cooperatives hire people to sell their tea andmanage the treasury. These employees are often from executive member families. Memberswho were politicians or village leaders were reported as the most challenging cooperativemembers as they always wanted their opinions or ideas implemented. Some cooperativesdiscussed strategies to mitigate these big personalities by encouraging a broader range ofmembers to speak but some cooperative chairs were unsure of what to do about this inequity.

Facilitation and leadership skills are required.

The Farmer Federation and Teasec would benefit from understanding the multi layered powerrelations that poor and excluded groups confront in their daily lives and how these powerrelations play out in cooperatives. A train the trainer leadership for change program would

assist but this will not occur before 2010; meanwhile Rudra Sapkota (SNV governanceadviser) could give power analysis training and offer techniques on facilitation skills toencourage others to speak.

Cooperatives could also benefit from more bargaining and negotiation training. As one farmerexplains, Our buyers are the most difficult people to deal with. Sometimes they dont pay ontime or pay what they promised. Bargaining and negotiations skills are key entry points forwomens empowerment. Women often lack experience in negotiating favourable outcomes,especially associated with their caring responsibilities. Women work triple roles as paidemployees (productive), caring (household chores, firewood collection) and reproductive(childcare, maternity). Learning to negotiate ways to have these duties more evenlydistributed (where feasible) among household members would go some way to increasingwomens life expectancy.10

Cooperative groups are generally formed around market access. As one cooperative memberexplains, A factory will send a vehicle to collect a bulk amount of tea and so we formed acooperative for this purpose. So farmers who are in close proximity, selling to the samefactory or have committed to the code of conduct for tea (CoC) or organic agriculture form acooperative.

According to one key informant, some farmers are not in groups. Especially those that sell atthe local market, or who live close to a factory, or who are planning their own factory andthose who are in remote areas. While this makes sense, cooperatives serve a larger purposethan just market access. They also provide information, technical support and a networkingopportunity to farmers. The same informant articulated that the farmers outside cooperativesare poorer to a certain extent than those in cooperatives because they have little bargainingpower over price. A targeted program in 2010 could be to research the poorest farmers andassist them with cooperative formation.

Sometimes farmers excluded from cooperatives request training from Teasec. Teasec explainsto farmers that they need to be in a cooperative to receive training and Teasec suggests that

they start a cooperative and then Teasec will help them. For many farmers forming their owncooperative is unrealistic. Perhaps they do not live near farmers with similar size plots orcannot afford certification. Or perhaps they do not know other farmers not already in acooperative and they cannot join the one closest to them. This policy of Teasecs could be

10Nepal is one of the few countries in the world where womens life expectancy is lower than mens. SeeUNFPA Gender Equality and Womens Empowerment 2007.

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changed so that all farmers, especially the poor, can benefit from Teasec and other forms ofservice delivery.

MARGINALISED GROUPS AND WOMEN IN COOPERTAIVES AND FEDERATIONThere appeared to be a lack of understanding about cooperative practices and participation byfemale members. One member of the Farmer Federations said it is difficult to get women tobe active because they are too busy with the household or childcare. None of the

cooperatives talked about organizing meetings at times appropriate to women, shifting themeeting venue closer, or allowing children to be brought to the meetings. Some of the womeninterviewed had never read the Cooperative Act and many could not explain the cooperativesgovernance arrangements and management practices.

GoN has mandated 30% female members in order to register a cooperative which iscommendable. Most cooperatives meet the bear minimum number of females required forregistration. However, many females are token members and infrequently attend meetings.One informant explained that most of the female members were farmer wives or teachers who

were not fully engaged in tea. Their name was on the list for the purpose of cooperativemembership requirements only. SNV could assist Teasec to promote meaningful and activefemale participation in cooperatives.

Currently only one cooperative has a female chair. This cooperative has the highest number of

active female members at 48%. The women in this cooperative are not just token figures likein other cooperatives. They are actually empowered to speak out and attend more meetings,illustrating the impact a female chair can have as a role model and motivator for otherwomen. Promoting female leadership is crucial for equality and participation of other women.The same arguments apply for promoting marginalized groups into leadership positions.

It was reassuring to discover that most cooperatives had some ethnic groups and Dalits asmembers. However, closer inspection revealed that very few of these marginalized groupswere elected to be executive committee members. For example the Farmer Federation has 5Brahmins, 2 Chetri, 2 Rai, I Newar, 1 Gurung and 1 Magar and no Dalits. Only 2 of the 13members are women and only 3 of the 13 members are from marginalized groups. Thesemembers are nominated by cooperatives. Evidence shows a critical mass of one third isneeded for marginalized groups to find their voice and feel empowered to be active members.More encouragement and promotion of marginalized groups and capacity support to ensure

they are active participants is needed in cooperatives.

YOUTHVery few young people or people with a disability are involved in Farmer Federations orcooperatives. Young people and those with a disability are often excluded from cooperativesbecause they do not own land. Interested local youth could be given intern opportunities atthe Farmer Federation, HIMCOOP, HOTPA and Teasec. Their assistance to cooperatives couldalso be invaluable as the younger generation is more educated than their parents. Thepromotion of youth internships, especially if connected to university degrees in agriculture, willassist Teasec, HIMCOOP, HOTPA, federations and cooperatives with their outreach andeffectiveness. The role of people with a disability in the tea industry requires further study.

FARM LABOURPluckers require more training on plucking according to farmers and factory owners who are

increasingly concerned by the slow, poor quality plucking. One farmer explained that I dontknow what makes a good Plucker so I cant teach my Pluckers. The factory always complainsabout the quality of the leaf so I know its a problem but what to do? No one trains Pluckers

they teach each other and some are slower than others. Pluckers also do other farm worksuch as weeding and pruning. The farmer did not know how to motivate Pluckers to be moreproductive or more reliable as frequent sick days were a problem. The farmer was unaware ofwhere to go for training in plucking techniques. There appears to be little attention to thissector of the value chain.

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Many stories were heard about the challenges and demand of plucking. Unfortunately theresearcher was unable to interview Pluckers directly. Plucking is a difficult job and apparentlynormally done by poor lower castes. People pluck to survive. Factories with gardens andfarmers confessed that they do not pay Pluckers the minimum wage. Pluckers have regularsick days and suffer a number of health consequences from working in tea such as strain onthe neck and cervical spine from carrying the tea basket, abrasions to the hands andprolapsed uterus. One factory manager told me Pluckers bring political problems to work.

The social issues associated with bundas can be brought to the field and cause problemsbetween workers.

It is estimated that 10% of the total labour force on Nepal tea farms is composed of childrenbetween 8 -15 years of age.11 While this is discouraged in the code of conduct it is not enoughas many factories will not commit to the code. There is a shortage of labour available for teaand many youth 18 24 appear disinterested in working on farms according to farmers andfactories interviewed.

It would be beneficial to explore the feasibility of an association for Pluckers. Currently farmershave problems sourcing good reliable Pluckers and training for Pluckers. A Pluckers associationcould be a service provider to farmers that trains and maintains a database of potential highquality Pluckers. Additionally, the association could lobby for better worker rights and promotebetter occupational health and safety practices for Pluckers.

There is need for more research into the lives of Pluckers and what is required to increaseproductivity and cooperation. The average amount of tea plucked per day in India ranges from20-28 kilograms.12 According to one farmer his pluckers pluck between 15 20 kilograms perday and this is decreasing with organic conversion. Further discussion about these issuesoccurs in the productivity section.

FACTORYSFactories appear to have a diverse workforce, although there are clear gender roles. Womenwork in low paid, repetitive labour intensive tasks, while men hold leadership positions.Factory owners and farmers admitted that women are not often offered higher paying jobs inthe factory or on the tea estate so their access to more lucrative employment is limited. This isthe same for lower castes. Most factory and garden supervisors and managers are upper castemales although there are exceptions. Factories say this is because women and lower castes

are illiterate and cannot keep the records required of a supervisor.13

The governance and human resource management within factories could be improved. Factoryworkers and owners reported that there were no options or provisions for women when theybecame pregnant. Women just quit at some point during their pregnancy. Holiday and sickpay appeared to be paid although not all workers have formal contracts outlining terms andconditions. Everyone receives the same Hindu public holidays regardless of religion and aHindu temple is on sight at most factories. Consideration of other religions could bestrengthened. The minimum wage is not paid in all tea factories but apparently men andwomen receive equal pay for equal work. This is surprising given women earn about four fifthsof what men earn in the agriculture sector (NLSS, 1995/96). Perhaps equal pay for equal workis more of an issue with informal employment on farms.

There is varying degrees of informal social dialogue between workers and managers but no

formal feedback or grievance processes in place. Some union negotiation has occurred butunions are regarded as over politicized and trouble makers by some of the factory ownersinterviewed. A number of factories have had their doors closed due to worker protests.

Workers maybe confused or unsure of their rights because factories comment that they makeunrealistic demands but this requires further exploration. Putting the code of conduct on the

11See ILO 2002. Labour and Social Issues in Plantations in south Asia: Role of Social Dialogue, p58.

12See ILO 2002. Labour and Social Issues in Plantations in south Asia: Role of Social Dialogue.

13The overall literacy rate of Nepal is 52.74 percent but the female literacy rate is only 42.49 percent

(CBS, 2001).

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wall of factories and outlining the labour laws would be a useful accountability mechanism.Factories appear to offer little incentives or consideration of workers or suppliers. One farmersaid all factories do is complain about the tea they bring and try and get the cheapest price.The relationship between farmers and factories was acknowledged by most interviewees,including Teasec, as a problem. Some factory owners even alluded to these tensions. Bettercommunication and multi stakeholder dialogue along with more formalized staff andmanagement feedback mechanisms could assist to improve these tensions.

Heath and safety is another issue requiring focus by factory owners. There were reports ofopen defecation and access to clean drinking water is doubtful although it requires closerinspection. The use of protective clothing especially when using pesticides is another area forconcern, especially on smaller farms. During interview a number of factory owners had to askwhat are health and safety issues? their reply was along the lines of Im sure we dowhatever the government says we should do.

Some factories have terrific practices in place. Kanchanjangha Tea Estate has on sight

accommodation which is largely taken by the landless or those who live far away. They have acommittee that discusses the welfare of workers and they have a small fund to manage forcommunity development activities. They pay the salary of a school teacher and the school feesof all their staff. They offer 45 days paid maternity leave and allow the husband or child (ifolder than 16) to work in her place if she needs extended leave. This factory has fair trade

certification and consequently has the best labour standards. Jun Chiyabari Tea Estate givesscholarships to female students at the local school. They also actively encourage and trainwomen into leadership positions and have discovered ways to mitigate illiteracy challenges.However, neither Tea Estate pays the minimum wage. SNV is well placed to document some ofthe good practices of orthodox factories and include them as minimum standards in the codeof conduct manual.

A lesson from India is that successful companies with high proportion of labour owe theirsuccess to the level of recognition and motivation they have given to their workers byproviding them with enhanced responsibilities, participation in profit sharing and opportunitiesfor promotion.14 SNV could do more to enhance the labour standards and human resourcepractices within factories.

CODE OF CONDUCT

Only a couple of factories are CoC certified. According to one factory owner, I refuse to payfor CoC because the audit process is not well established and there is no ownership by HOTPA.If you want my honest opinion it is donor driven and I can think of better ways to spend mymoney.

In an African study on codes of conduct the best auditing process was a participatory multistakeholder review.15 A participatory approach puts greater emphasis on involvement ofworkers and workers organisations in the process of code implementation and assessment. Itis based on developing partnerships between different actors (companies, trade unions, NGOsand preferably government) in developing a locally sustainable approach to the improvementof working conditions. This approach is sensitive to uncovering and thus addressing morecomplex issues such as gender discrimination and sexual harassment. These are issues morelikely to be experienced by insecure non-permanent workers, who are often women, whosevoices snapshot audits usually fail to pick up.16This would be a useful approach for SNV to

explore with CoC auditing given the low capacity in HOTPA to adequately audit CoC.

LANDLESS

Anecdotal evidence during the research suggested that landlessness is an issue for the mostimpoverished in the tea sector. They have no ability to improve their assets and little

14See ILO 2002. Labour and Social Issues in Plantations in south Asia: Role of Social Dialogue, p20.

15Smith et al 2004. Ethical trade in African Horticulture: gender, rights and participation. IDS UK.16For more information see Auret 2004. Participatory social auditing: a practical guide to developinga gender-sensitive approach. IDS, UK.

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employment options to acquire wealth. They cannot live subsistence lifestyles without landand are often forced to trade work for food. They travel from farm to farm in search ofemployment and this means they may have to travel great distances for a little cash. Farmersexploit their poverty by offering them less food than an equivalent monetary payment. Thelandless have a lot of knowledge in tea as they have often worked on tea farms. With landthey would be able to grow tea and support their basic consumption needs. How can SNV helpthe landless benefit more from the tea value chain?

SNV may not be able to allocate land; but it can try to mobilize the landless into groups sothat they have access to information and services. This appears to be working well withlandless forest groups which have a landless lease sharing program worth replicating ifpossible. If SNV creates an association for Pluckers then the landless will also benefit from thetraining offered and the database created.

Women also often lack formal land title.17 According to one informant 80% of the land in Ilamis registered in male names, so it is not surprising that most cooperative members are men.

The government is offering a 25% discount on land title registered in womens name which isproving to be a successful affirmative action initiative. SNV could promote and mirror thisinitiative by offering incentives to farmers with female land title or other incentives such asdiscounted membership to the Farmer Federation for all cooperatives with 1/3 Dalit members.Forming the landless into cooperatives and other initiatives that include further exploration

into land title could be considered.

ORGANICMany factory owners reported seeing organic teas as the way of the future for Nepals teaindustry. They feel that the market is demanding pesticide free tea. Because there is a verystrong demand for organic training and capacity building, this provides SNV with a uniqueopportunity to also push for more inclusive and pro-poor tea industry practices. For examplefactories who pay minimum wage receive organic training only.

If SNV plans on supporting the tea industry to implement organic practices then the enablingenvironment will be critical. Farmers would benefit more if they are sensitized on the availableopportunities in organic agriculture. Farmers will also stand a better chance of acquiring andpurchasing organic farm inputs from input-suppliers at affordable prices if they are incooperatives, sensitised and collectively share costs of transportation. Many farmers who have

tried to go organic have dropped out of their cooperatives due to low crop yields, poorunderstanding of the organic agricultural inputs required and increased labour costs. This is arisk requiring management if SNV is to adopt an organic tea strategy. Many farmers who tryand fail at something do not revisit the issue.

17Nepali Females own only 8.1 percent of total land holdings and only 4% of households have female

ownership of both houses and land (UNDP, 2004).

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Orthodox factories may want to convert to organic tea but unless there is proper support andadequate service delivery for organic practices, their intentions may be unsustainable.Factorys should be able to afford to train their associated farmers and offer incentives to goorganic such as distribution of cows for organic fertilizer and increased price of green tea leafin the conversion years or organic tea farming is unlikely to be sustainable. One factory ownersaid, It doesnt reduce your yields if you know how to do it properly. Yet he appeareddisinterested in assisting farmers with understanding what is required to convert to organics oroffering any incentive to do so. There are some factories that have converted to organic andgive very intensive training to their associated farmers as well as free cows and micro loans.

SNV would be well placed to undertake research on farmer requirements for going organic,

associated costs, coping strategies and lessons learned. This research would assist factoriesunderstand the demand organic conversion places on farmers and provide SNV with somesolid information for which to base future market support.

SNV could ensure all training and assistance associated with organic tea involves at least 30%women and the associated caste and ethnic population representation. For example if thepopulation of Ilam has 8% Dalits then 8% of trainees should be Dalit.18If the future of theorthodox tea industry is to be organic then this will place marginalized groups in morepowerful positions, enabling them to benefit upfront from market demand rather than later.

SNV could assist organic tea by offering some training in veterinary skills. Farmers will needmore cows to generate manure for organic fertilizer and without access to vets and affordablemedicines; a significant financial blow could reduce the income increases associated withorganic.19 If SNV chooses to train vets then SNV could insist on the trainees being femaleDalits. In some instances affirmative action or positive discrimination is the most effective wayto bring about social change and inclusion.

The shared vision of HOTPA and HIMCOOP is undeveloped and this has caused delays in SNVprogramming. Whether going organic or code of conduct the members of HOTPA andHIMCOOP would benefit from the leadership for change program and its direction setting,strategic planning components.

PRODUCTIVITY

18For this type of information see 2008 Village Development committee Profile of Nepal: A socio-economicdevelopment database of Nepal.19Organic agriculture offers a 15 20% premium.

Case study organic farmer in convergence

Tilak Yonjon from the Bodour Dam Tea Producer Cooperative Ltd. Used fertilizer but itwasnt good for his health and it was costly so he and his cooperative decided to tryorganic tea farming. His problems now include, more diseases and plants havebecome dry. There is less tea coming now. I currently get 27RP per kilo but I need to

get 50-60RP per kilo or it isnt worthwhile being organic.

Mr Yonjon saves NRP 15 16000 per year on fertilizer but his labour costs haveincreased. Pluckers use to pluck up to 20 kilos per day for 80RP. Now there is less teaso they only pluck about 7kilos but I still have to pay them the same.

He sells his tea to CTC factories even though it is orthodox tea. He explains, orthodoxonly buy young leaf but CTC will buy the older longer leaf and pay more for it.

Mr Yonjon has never had training in organic. He has learnt some tips from friends andwould really like to learn how to make organic fertilizer so he can make it himself andgrow more tea.

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It is clear from farmers and factories that productivity is a big issue. Factories do not operateat capacity because they cannot get enough green leaf and both discuss poor work ethic andabsenteeism as problems. Productivity issues are a problem for the sustainability andcompetitiveness of the Nepal tea industry.

Some lessons can be learnt from other countries grappling with similar issues. A pluckingincentive scheme was introduced in Tamil Nadu with endorsement by state government. A

payment was made for every kilogram over and above the base output. Its introductionbrought about a 36% improvement in the plucker intake in their first 5 years and earningsincreased by up to 25% - impact. Plantations reported that the scheme brought the cost ofharvesting back to profitable levels.20

A 1992 study done on tea pluckers in South India showed that domestic demands on workingwomen with children below 6 years of age were detrimental to their productivity. When thechildren reached school age their mothers productivity increased highlighting the need forchildcare facilities and adequate schooling. In Sri Lanka more evidence is available. A one

percent increase in childcare attendance puts up worker out turn (that is the converse ofabsenteeism) by 0.22 percentage points and daily productivity (intake) by 0.07 kilograms ofgreen leaf.21Another interesting link established in the 1992 South India study was betweenanemia and productivity. Productivity increased by 20% when a course of 100 iron tablets wasadministered to a cross section of tea pluckers.

There are two tools available that could assist farmers and factories understand the economicbenefits of welfare programs. Both are designed with large tea estates in mind but they willstill serve a useful purpose if adapted to the Nepali context. One is a health and welfare auditwhich assesses the actual health and welfare situation for workers. A pro forma has beendeveloped by the ILO which assists to objectively arrive at the welfare status of workersthrough a process of quantification. The pro forma assist factories and farmers to plan futurestrategies and priorities to upgrade their standards.

The other tool is the Estate Social Development Index (ESDI) which is an off-shoot of the UNsHuman Development Index (HDI).22 The ESDI incorporates

human development (survival of workforce, adult literacy and earnings),

gender development (male-female disparities as well as gender empowerment issues),

basic services (housing, water supply, sanitation, electricity, health care and access to

education),

child development (survival, immunization, childcare facilities),

community mobilization (political empowerment, access to recreational, cultural and

religious activities, households with savings accounts and vocational training), and

career development (earnings, proportion of permanent and casual workers, technical

training and promotion opportunities).These tools could become a component of code of conduct compliance but could also betaught to all factories and farmers.

Further research in south Asia concluded that aside from problems associated with fertilizationand organic conversion, low productivity is primarily due to:

a) High average age of tea bushes and slow pace or replantation23

b) Inadequate attention to human resource development

c) And above all productivity is a function of sound industrial relations.24

In Nepal there are a huge issues associated with industrial relations. A number of new unionshave emerged since the Maoist insurgency. These unions do not function effectively and arehighly politicized causing problems for factories. Some donors have shied away from tackling

20See ILO 2002. Labour and Social Issues in Plantations in South Asia: Role of Social Dialogue, p67.

21See ILO 2002, p66-7.

22See ILO 2002 p69.

23Tea bushes achieve optimum output of green leaves from age 5-30 years. Many bushes on small farms

are found to be unto 50 years old See ILO 2002.24

See ILO p32.

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the challenges of unionization but there are good lessons from India that can be applied toNepal. Factories may initially resent SNV building the capacity of unions but exploring thisissue could prove fruitful in the long term.

What the lessons from India clearly illustrate is that GfE affects the productivity of the teavalue chain. When GfE issues are mainstreamed and given adequate attention the value chainwill function more effectively.

RecommendationsIt is important for SNV to think more strategically about GfE issues if it wants to effectivelymainstream in cash crops and improve the productivity of the sector. Mainstreaming can bedifficult to do well, as participants often regard it as something outside or different to theirnormal work. Value chain development requires identifying strategies to change existingpower relations within the chain for these cause inefficiencies, bottlenecks and monopolies.GfE analysis provides a starting point for more accurate poverty analysis and integration ofkey dimensions of extra market factors such as power relations and motivations that all effect

value chain development and economic growth. This paper has illustrated how GfE canenhance value chain development.

It is not possible to have one simple gender tool or GfE approach that can be effortlesslytacked onto a value chain development process. At different stages of the value chain and at

different levels there will be different GfE needs. This paper was the result of a quick GfEanalysis. To be more effective a thorough GfE analysis is required. Best practice suggests thatundertaking a GfE analysis at the time of the value chain analysis can improve effectiveness.25Many of the complex issues highlighted by a GfE analysis are often not confined to GfE itselfbut are reflection of value chain bottlenecks.

The below recommendations read like a set of aspirations for SNV to adopt depending on howeffectively SNV wishes to focus on these aspects of value chain development.

25See Mayoux and Mackie 2007. Making the Strongest Links: A practical guide to Mainstreaming Genderanalysis in VCD. ILO.

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Issue Recommendation Responsibleclient/

LCB/partner

Comments

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2009

GSI mainstreaming

requiresstrengthening

Governance of

producer groups isweak

High cost of organicconversion, lack of

organic inputs andlack ofunderstanding byfactory owners of the

effects of organicconversion on

farmers.

Poor performance byclients, LCBs and

contractors

Encourage equitable representation, participation

and access for marginalized groups and womenacross all programs and assignments

Producer Group Strengthening

There has been a lot of group formation but littlegroup strengthening. It is time to focus on the

governance of these groups.26

Organic researchResearch farmers needs, service delivery short

falls, opportunities and challenges from convertingto organic tea.

Inclusive Business

Explore Inclusive Business opportunities withorganic fertilizer/input supply companies.

Tax incentives for organic farmers and factoriesLobby the government to give factories and

farmers tax breaks for organic agriculture.

Improve effectivenessWork with clients to develop some key GfE

indicators to evaluate their performance. Forexample: number of women on cooperativeexecutive boards, sex disaggregated data, numberof landless cooperatives established, outreach, etc.

All clients,

advisers andLCBs

TEASEC and

other NGOs

OCN, HOTPA,NTCDB

FNCCI

Ministry ofAgriculture,NTCDB, DADO,

clients

All clients

HOTPA

Advisers to encourage equitable representation,

participation and access for marginalized in training andother assignments.

There is a need for leadership, GfE, financial literacy,

gender (especially for men), change management,facilitation, power relations, assertiveness, marketing,

bargaining and negotiation skills training.27

It is importantthat this training be given to all members of the

cooperative, especially marginalized groups and women.Some of this training can be given by SNVs GfE advisersimmediately. LCBs could deliver the rest in 2010.

An LCB could be contracted for this work and theinformation widely disseminated with factory owners and

farmers.

A lot of research has been completed internationally about

successful organic fertilizers and pest control methods thatcould be brought to Nepal.

Link AAs, contracts and payment to performance acrossSNV Nepal.

26A lot of lessons have been learnt from Forestry User groups and how poor governance can lead to group conflict, destruction and elite capture that could be drawn upon.

27Most of this training is covered in the leadership for change program but will need to be adapted to the tea industry. A ToT leadership for change training program is envisaged for many LCBs inNepal in Dec/Jan 2010. SNVs advisers will then assist an LCB to adapt the leadership for change program for farmer groups. A roll out of this training program will hopefully occur in 2010.

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2010

Poor access to

accurate informationabout market trends

Poor communicationand a lack ofunderstanding about

different actors inthe tea value chain

Poor business

acumen, access tofinance and income

during the tea off-season

There is a shortageof good quality,

reliable Pluckers andfarm labourers.

Poor health offarmers, labourers,

factory workers andpluckers and low

productivity

Improve market information dissemination

Establish tea newsletter, seek sponsorship and selladvertising rights and widely disseminate.

Establish a Multi Stakeholder PlatformImprove networking between clients, research andagricultural organizations, government, the private

sector and tea labourers.

SME training

Inclusive Business with financial institution

Establish a Plucker/ farm laborer association thattrains and records pluckers and farm labourers on

a database. This association will become a serviceprovider to factories and farmers.

Explore Inclusive Business opportunities with ahealth insurance provider.

HIMCOOP

All tea actors

Financial

serviceprovider and

chamber ofcommerce

ILO, LCB

FNCCI

Factories

Develop linkages with a national university offering

journalism. Establish a rolling journalism intern program in2010. These interns will be responsible for developing atea newsletter covering tea trends (farmers, internationalmarkets), update on the India tea industry, standards,

new technologies, new products as researched on theinternet and acquired through interviewing farmers and

other tea actors. The newsletter could be largely pictorialso illiterate farmers and laborers can still benefit.

The platform could have the objective to organize anannual tea fair in Ilam that displays new technologies,inputs and products and seeks sponsorship and advertising

for the event.This group could also be responsible for auditing the CoC

but financial sustainability issues require furtherexploration.

Contract LCB, or include as a component of an Inclusive

Business with a financial institution, to provide SMEtraining to Pluckers, labour, factory workers, farmers and

their wives. Include how to use the internet for marketresearch.

Undertake a feasibility study that explores the concerns offarmers in terms of labour and the livelihood strategies of

Pluckers. It could consider where to house a plucker/farmlaborer association.

Link with WASH sector to ensure farms and factories haveaccess to latrines and clean drinking water.

Explore HR issues with factories and health and safety

issues such as protective clothing during pesticide use andregular rest breaks.

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Clients lack a

coherent vision andconsensus for thefuture.

Landless farmlaborers live in

poverty and havelimited means at

their disposal toimprove theirsituation.

Youth unemployment

Women are often toobusy to attend

cooperative meetingsand are frequentlyabsent from work.

Deliver Leadership for Change training

Improve access to land for pluckers and farmlabourers in tea districts.

The productivity of the tea industry would beimproved if these experienced tea labourers had

access to land.

Youth internship programExplore the idea and potential of a youth

internship program

Free up womens time burdens

LCB and all

clients

LCB

Factories andclients

Clients andfactories

SNV to contract a LCB to deliver the leadership for changetraining program. This program will need to be adapted to

different clients.

Contract LCB to undertake research into landless labourersand explore avenues to increase their bargaining power

and access to land and market information.

On the job skills training would be advantageous to youthand employees. It would provide meaningful alternatives

to politicized youth and entice the younger generationsinterest in tea.

This could be done in a number of ways and a combinationis required:

Coordinate with the wash sector to provide greater

access to water in tea districts.

Give men training on changing gender roles and

the need for them to assist more with housework

Give women training on bargaining andnegotiation within the household

Encourage cooperative meetings to be held at

times suitable for women with full time

employment, household chores and childcareresponsibilities

Explore childcare options for workers.

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APPENDIX 1 The Gender Empowerment MeasureThe gender empowerment measure (GEM) is one of the five indicators used by the UnitedNations Development Programme in its annual Human Development Report. GEM revealswhether women take an active part in economic and political life. It tracks the share of seatsin parliament held by women; of female legislators, senior officials and managers; and offemale professional and technical workers- and the gender disparity in earned income,reflecting economic independence. The GEM exposes inequality in opportunities in selected

areas. Nepal ranked 86th out of 93 countries in the 2007 GEM, with a value of 0.351. Below isthe 2001 GEM ranking for each district in Nepal taken from the census.

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22
http://en.wikipedia.org/wiki/Human_Development_Reporthttp://en.wikipedia.org/wiki/United_Nations_Development_Programmehttp://en.wikipedia.org/wiki/United_Nations_Development_Programme


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gender and Social inclusion in Nepal's Tea Sector.doc

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