While the prices of conventional cotton have more than doubled compared to the beginning of the second quarter of 2020, the prices of organic cotton have also grown and these, particularly the Indian and Turkish varieties, are now selling at a premium. This is largely due to the growing demand for organic cotton post the COVID-19 pandemic.
Indian organic cotton is currently traded between $1.65/lb and $1.70/lb (CIF Far Eastern Ports – October shipment). Compared to conventional cotton, the price has increased 20-fold from three per cent a year ago to around 60 per cent now, according to Otto Stadtlander GmbH, the Bremen, Germany-based cotton trading company.
On the other hand, the premium for Turkish organic cotton has increased 3-fold from 20 per cent to 65 per cent during the past 12 months, and is trading in the range of $1.85/lb and $1.90/lb.
The prices of organic cotton are increasing due to the accelerated sustainability efforts in the global textiles and clothing industry. Initiatives like the Partnership for Sustainable Textiles in Germany, and the 2025 Sustainable Cotton Challenge initiated by the Textile Exchange are also pushing up the demand for organic cotton.
Currently, organic cotton constitutes only one per cent of global cotton production. Hence, if the present premium prices sustain, it will encourage more farmers to switch to organic cotton.
Source: fibre2fashion