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Japanese program to support organic cotton sector of India

30 Aug '12
4 min read

The conversion process to organic cotton remains financially unfeasible for most farmers, despite the financial and health benefits. Certification takes three years during which time farmers experience a 20 to 30 percent decrease in crop yields. Moreover, they are unable to sell the organically produced crops at organic prices due to the lack of certification. In addition to lost revenue, the certification process entails additional fees which are prohibitive for many farmers, especially in developing countries.

Through its commitment to BCtA, ITOCHU — which has114 offices in 65 countries — will work with Indian companies to identify farmers who are interested in switching to organic cotton farming. ITOCHU will then supply farmers with the necessary training and certified organic cotton seeds. The company also provides a guarantee to purchase the pre-organic cotton at a higher price than what farmers would have received for uncertified cotton. ITOCHU further assists farmers by funding their certification fees and aiding them with administrative support during the conversion process.
 
“Through implementation of the POC Programme, ITOCHU is able to integrate ecologically sustainable business practices in the supply chain, thereby maintaining corporate social responsibility,” said Hitoshi Okamoto, Director and Managing Executive Officer at ITOCHU Corporation.
 
The BCtA commitment scales up the companies’ existing four-year partnership with Indian farmers, enabling an additional 6,000 families to transition to organic cotton production by 2015. The initiative will also rid 30,000 acres of land from harmful agricultural chemicals while improving the farmers’ health.
 
Since this initiative’s initial phase started in 2008, ITOCHU’s annual sales of pre-organic cotton have more than tripled. As a result of the programme, kurkku’s sales increased by 30 percent since 2007. ITOCHU and kurkku currently sell organic cotton to 60 Japanese apparel brands. This number is expected to grow to 250 brands by 2015, with 5,000 tonnes of pre-organic cotton produced by farmers waiting for certification.
 
“In the past four years, the POC Programme has demonstrated clear benefits for people in need, and we have been able to build trust between the different programme partners” said Takeshi Kobayashi, President of kurkku. “I hope that our membership in the BCtA will encourage more people to support this important initiative, which helps to improve living standards for farmers in India.”

Business Call to Action (BCtA)

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