India’s Organic Cotton Certification Crisis: Unveiling the Fraud and Its Global Repercussions

Background: The Promise of the National Programme for Organic Production (NPOP)

Since 2001, the government of India has driven organic farming with the National Programme for Organic Production. APEDA, working under the Ministry of Commerce and Industry, runs the program. It certifies organic products for export. In this system, 25 to 500 farmers form an Internal Control System group. These groups, especially those that grow organic cotton, are central to the program. By 2025, there were more than 6,000 groups and 35 certifying bodies across the nation.

The program uses Tracenet, a digital tool that checks organic production. It issues a transaction certificate to each group. This certificate proves that cotton is organic. On paper, the system is sound, but serious flaws have emerged in practice.

The Crisis: Farmer Unawareness and Data Manipulation

Investigations show clear fraud. Many farmers did not know they were listed as organic. Many also grew genetically modified Bt cotton, not organic varieties. Certification bodies and ICS managers are accused of altering farmer data. They did this to win transaction certificates through dishonest means. Conventional cotton is passed as organic. This misrepresentation helps exporters earn higher prices. Genuine farmers face losses as they get the lower conventional price. Exporters now make profits that can be six times the normal rate. The fraud also hides large amounts of income tax and GST, which hurts government revenue.

Financial Scale of the Fraud

The scam is estimated to be worth more than ₹2.10 trillion. Over ten years, about 1.2 million farmers grew cotton worth roughly ₹1.05 trillion at conventional rates. Exporters then sold this cotton as organic at two to three times higher prices. Two entities alone were found to have evaded ₹750 crore in GST. This suggests that the wider fraud may reach around ₹7,500 crore. On small farms that average 2.5 acres with annual incomes near ₹87,500, the loss of organic premiums makes life even harder.

International Consequences: Loss of Trust and Export Restrictions

Several global bodies have taken strong action. In 2020, GOTS found fake certificates and removed recognition of several Indian certifiers. In 2021, the USDA halted India’s automatic organic certification. The European Union also pulled licenses from Indian certifiers after spotting chemical residues. Investigative reports, such as those from The New York Times, say that up to 80% of India’s organic cotton exports may be fake. These moves weaken India’s standing in the global organic market and hurt its farming export trust.

Government Response and Political Pressure

Top leaders, including Congress leader Digvijay Singh, raised the issue with the Prime Minister and the Ministry of Commerce. In 2024-2025, the Ministry admitted that there were problems. It deregistered at least one certifying body and started more investigations and surprise audits. There were also FIRs filed against those involved. Critics say the response was not enough. They point out that the government did not enforce rules set in 2017. They also note that new systems like Tracenet 2.0 were not well used. Some argue there might be collusion within APEDA or the ministry.

Allegations of Collusion and Enforcement Gaps

Some ICS groups that were suspended came back within a month. The reasons for their return were unclear. Complaints to the Enforcement Directorate and the Economic Offences Wing have not led to convictions. There have been FIRs that some say were misused for extortion instead of real investigations. This raises further doubts about the system’s integrity.

Calls for Accountability and Reform

Many stakeholders ask for a Special Investigation Team under the CBI. They want the team to be supervised by a High Court judge. They demand that the rules since 2017 be fully enforced. They call for audits of all ICS groups. They also want harsh punishment for those who broke the law. More inspections and transparent reviews about certification bodies are needed. In addition, they ask for compensation for farmers hurt by the misuse of their identities and land records.

The Way Forward: Rebuilding Credibility in Organic Cotton Production

India strives to lead in organic farming around the world. However, fraud now threatens this goal. Rebuilding trust needs clear governance reforms. It requires strong monitoring and strict enforcement. Genuine farmers must get justice. The integrity of organic certification must be restored. Only a firm and fast reform can rebuild India’s image as a reliable organic cotton supplier. Without such changes, the damage to farmers, exporters, and the economy will continue.

This summary is based on detailed reports and investigations up to July 2025 and compiles verified data for informed readership interested in sustainable agriculture and organic product integrity.

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