India being an agrarian economy, has taken a paradigm shift towards science and technology, neglecting the very fundamentals of agriculture and handicrafts to which it owed its glory. Today India has reached a stage where it is unable to revive its rural economy because of inadequate support rendered to its farmers and artisans. It is presumed that a decade down the line, the world will face severe food scarcity resulting in food inflation, food adulteration and extinction of handicrafts and handlooms.
The possible option available at the global level is to encourage the production of Geographical Indications Tagged products which is a mirror for Genuineness and Quality.
A consumer survey undertaken in the European Union in 1999 found that 40 % of the consumers would pay a premium of 10 % for Origin guaranteed products. Despite the fact, these premium products lack market access, the prevalence in the marketing of unauthentic products with false descriptions and are sold at high prices.
The greatest agony is that many of these geographical origin products are on the verge of extinction, thus creating a wide gap in Supply and Demand.
It is unfortunate that though GI Act of India came into force in 2003, the ground reality reveals that India has failed in harnessing potential benefits of GI Act and has not provided economic impetus to the people involved in the production of these products.
The proper implementation of the GI Act would provide tremendous socio-economic benefits to farmers, artisans, women and rural manufacturers facilitating in a vibrant rural India and satisfied consumers globally.
In nutshell, all these factors have paved the way for establishing “Geographical Indications Tagged World Premium Products Private Ltd”.