Organic cotton is a concept that is gradually gaining popularity in the modern times. People all over the world are becoming more and more aware of issues, such as global warming, pollution and environment protection. The concept of organic cotton has been largely accepted as a solution to these issues.
Organic cotton is cotton that is grown purely on natural lines. The crop is grown using minimal pesticides and fertilizers, if any. Whatever little fertilizers and pesticides are used are natural, and are not harmful to environment. The tools and the various processes used by organic farmers are such that they do not cause any adverse effect on the environment.
During the past few years, organic cotton market has become more global, with improved fiber quality, greater production and trade, more integrated supply chains and rapid growth in demand.
The global organic cotton fiber supply has increased 392% since the 2000-01 harvest to 25,394 metric tones during the 2004-05 crop years.
Supplies are projected to grow to 31,017 metric tones (68,237,400 pounds or 142,161 bales) by the end of the 2005-06 harvest, reflecting an annual growth rate of 22%.
In 2005-06, the four countries namely Turkey, India, United States and China combined are projected to produce 79% of the global organic cotton fiber crop.
The growth in demand for organic cotton is expected to accelerate since the brands and retailers would continue to implement long term commitments to increase the use of organic cotton (estimated global retail sales are projected to grow to $2.6 billion by the end of 2008, reflecting a 116% average annual growth rate). Also the manufacturer demand for organic cotton fiber is expected to grow to 99,662 metric tons in 2008, an average annual growth rate of 75%.
Some of the observations that can be made after analyzing the current scenario:
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