Japanese Firm Provides Aid to Indian Farmers for Organic Cotton

August 26 2010

Japanese Firm Provides Aid to Indian Farmers for Organic Cotton

Itochu Corp., a general trading firm based in Tokyo, has announced that it will provide financial aid to growers in India who agree to forego the use of chemicals and produce organic cotton. Because being accredited for organic cotton requires a minimum three-year period of chemical-free cultivation, farmers would see a decrease in their production. Itochu has offered to pay a 20 percent to 30 percent premium over regular cotton prices to ease the farmers through that period.

In 2009, Itochu purchased 400 tons of pre-organic cotton from 900 farmers in northern India. This year that total will increase to 500 tons from 1,100 farmers. Because there are approximately 4,000 farmers who want to make the switch to organic cotton, the company expects its purchase will double to 1,000 tons, purchased from 2,000 growers, by 2012.

The organic cotton trend has been gaining steam in recent years, and Grassroot -- India’s first eco-friendly line of clothing – was established in 2007. The pre-organic cotton purchased by Itochu will be made into clothing that emphasizes its eco-friendly origins.

Source: Cotton International