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Alok & Zameen Organic to develop organic fair trade cotton
11
Sep '08
Alok Industries Ltd, one of the leading integrated textile companies in India has entered into an MOU with Zameen Organic Pvt. Ltd. for developing and promoting organic fair trade cotton. Zameen Organic Pvt. Ltd. is a fair trade cotton company owned by Small Farmers' Associations. About 6000 small cotton farmers from Vidarbha in Maharastra and Adialabad in Andhra Pradesh are members of this company.

Initially Alok Industries would procure 1500 MT of organic and fair trade cotton from Amravati in Vidarbha and Adilabad in Andhra Pradesh during the cotton season 2008-09 beginning from October,2008. The cotton lint is certified by LACON, Germany for organic production standards and FLO Certification for fair trade cotton production standards.

The total size of Organic and fair-trade market globally is at $3.3 billion, growing at 40% p.a. and Zameen promises 10% premium at retail level.

This unique partnership between Alok and Zameen Organic will ensure Fair price of seed cotton to the marginal cotton growers in Vidarbha and Adilabad that covers their cost of production, provide refinancing opportunity to the farmers to cover their cash flow needs during the growing season and achieving village development in the process.

Separate production, procurement, communication and marketing committees will work towards a secure supply of organic fair-trade cotton , ensuring market access to small cotton growers by creating recognition amongst customers, facilitate meaningful communication between customers and farmers and a co-branding of the products.

Alok and Zameen will identify a set of criteria for brands to target for the sale of a special 'Zameen Collection'. Alok and Zameen will jointly design communication tools to reach ultimate consumer. Alok will display the Zameen sample collection along with marketing material in each of its showrooms in Mumbai, London and New York and in international fairs like Premier Vision and Tex World, Paris.

Commenting on this development Mr. Dilip Jiwrajka, Managing Director said that "this is a great effort of us to develop community by ensuring fair price to the produce of

the farmers, which in turn results in village development. This paves way for new era of organic fair-trade cotton in a big way both in domestic and international market trade."

Alok Industries Ltd

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