India’s Organic Cotton Certification Crisis: A Deep Dive and Global Implications

Background: The National Programme for Organic Production (NPOP)

Since 2001, India’s government has pushed organic farming. The government manages the National Programme for Organic Production (NPOP) through APEDA. The programme certifies products for export. It focuses hard on organic cotton. Certification depends on internal control systems (ICS). These systems unite 25 to 500 farmers. Certified bodies check the groups. By 2025, over 6,046 ICS groups and 35 certified bodies served the country. The Tracenet platform digitally tracks production and then issues certificates.

Exposing the Fraud: Farmer Disconnection and Data Fabrication

Even with formal checks in place, fraud is clear. Many ICS farmers learn too late about their registration. They do not use organic methods. They grow conventional Bt cotton instead. Certification bodies and ICS administrators change data. This fraud secures false certificates. Cotton grown with conventional methods is sold as organic. The cotton earns a price much higher than usual. Genuine organic farmers miss out on extra premiums. Exporters can earn six times more money. Fraud also lets them avoid income tax and GST.

Financial Magnitude of the Scam

The scam is very large. In ten years, 1.2 million farmers grew cotton valued at ₹1.05 trillion. Farmers got prices meant for conventional cotton. Each farmer earned about ₹87,500 each year for 2.5 acres. Exporters sold the cotton with an organic label. This step doubled or tripled its price. GST evasion by two companies reached ₹750 crore. Overall, estimates suggest the scam may total ₹7,500 crore in illicit deals. Fraud-related transactions might reach more than ₹2.10 trillion.

International Response and Loss of Credibility

Global regulators have acted strongly. In October 2020, GOTS removed accreditations from several Indian companies. This step came after forgery of certificates was discovered. In June 2021, USDA ended automatic recognition of Indian organic certifications. The US now reviews each export more strictly. Later in 2021, the European Union cancelled licenses for five Indian certifiers. Chemical residues in cotton sparked the cancellations. A 2022 New York Times investigation said that up to 80% of Indian organic cotton exports could be fraudulent. The report found document theft and fake ICS group identities. These actions hurt India’s standing as a credible supplier.

Domestic Political and Regulatory Responses

Pressure from the public and Parliament is mounting. Senior leader Digvijay Singh raised the issue with the Prime Minister in August 2024. He pointed to serious problems in Madhya Pradesh. Commerce Minister Piyush Goyal admitted irregularities by late 2024 and removed one certified body. Surprise audits were done. FIRs were filed against ICS officials. Critics argue that the government’s actions are only surface-level.

Systemic Failures and Allegations of Collusion

Concerns remain strong. Regulatory agencies did not enforce CIDR-linked Aadhaar checks since 2017. Tracenet 2.0, launched in January 2025, did not solve many issues. Fraud suspensions were quickly reversed, which hurt accountability. Formal complaints did not lead to prosecutions. In some cases, FIRs seem to be misused for extortion. Accusations claim that regulatory bodies, including APEDA, may have colluded or acted negligently.

Calls for Structural Reform and Farmer Justice

Stakeholders demand clear reforms. They call for a Special Investigation Team led by the CBI and overseen by a High Court judge. They urge strict enforcement of all pending directives. A robust digital tracking system must be put in place. Independent and transparent audits of over 6,000 ICS groups are needed. Individuals and bodies tied to the fraud must be prosecuted. Farmers exploited without their consent should receive just compensation. Improved transparency and tighter rules can rebuild trust in the certification process.

Conclusion: Rebuilding India’s Organic Cotton Credibility

India seeks leadership in organic cotton. Yet, system failures and fraud now hurt its ambitions. These issues damage farmer welfare, exports, and global trust. Without clear, honest enforcement and deep reforms, India faces long-term exclusion from premium organic markets. Together, government, certifiers, farmers, and international stakeholders must act to secure the future of India’s organic cotton.

Sources: Global Agriculture Magazine, Government of India reports, GOTS and USDA regulatory notices, The New York Times investigative reports (2022).

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