Litul Baruah

Analytics Officer (Global), Sustainable RawMaterial, C&A Foundation

Cotton is the most important crop for the fashion industry. It constitutes 26% of the raw material used by the industry. However, while it provides livelihood to millions of farmers worldwide, its intensive farming practices also have severe environmental and social impacts. In response to an increasing awareness of these ethical and environmental issues, alternative cotton cultivation systems are being set up worldwide.

The Better Cotton Initiative (BCI) and organic cotton farming are two systems helping to address the social, economic and environmental sustainability issues related to cotton agriculture in India – the world’s leading cotton producing country. And yet, despite the growing demand for products that meet organic cotton and BCI certification standards, little evidence exists on the social and environmental impact on farmers who adopt these practices.

To address this gap in evidence, we conducted a socio-economic impact assessment study and an environmental Life Cycle Assessment (LCA) to understand the socio-economic and environmental impacts of cotton farming in Madhya Pradesh. Findings indicate that organic and BCI have fewer negative environmental impacts than conventional cotton farming. Other key findings include:

·Organic cotton production has 5% less effects on climate change than conventional farming, while BCI has no significant difference from conventional cotton.

·The acidification potential of soil is 95% lower for organic cotton and 1% lower for BCI when compared to conventional cotton.

·The eutrophication potential of soil is 101% lower for organic cotton compared to conventional cotton.

· Consumption of blue water (water obtained through ground, lakes and other freshwater resources) is 60% lower in organic cotton cultivation compared to conventional cotton cultivation.

But while the environmental differences are vast, findings show that farmers who adopt these practices are not making a significantly higher economic return. In fact, of the farmers involved in the socio-economic impact assessment study, approximately 50% made a loss from sustainable cotton farming in 2017.

Sustainable farmers put themselves into debt expecting a higher economic return. But when farmers are forced to except lower than fair market price for the goods they produce, they find themselves caught in a vicious debt cycle. One farmer said: “We are not getting the right rate on the cotton we grow. I sold 5 kilograms of cotton for the same prices of peanuts. If we are paid proper rates then we can repay some loans, but until that point, what is a farmer to do? I can I feed my children of repay my loan?”

Another farmer reiterated his frustration: “Farmers don’t want to be forgiven for their loans; we only ask for good rates for our crops. If we get decent rates for our crops then we don’t have to beg. The entire world is being fed by farmers, and yet we are the ones in crisis… what have we done wrong?”

The socio-economic impact assessment study and LCA highlight the need for stronger economic incentives for farmers and an increase in oversight in the supply chain to understand how cotton quality and price is determined. Clearly, multi-stakeholder initiatives that provide both innovative solutions and certification standards, as well as resilience training for farmers are crucial in the path towards sustainable cotton farming.

The LCA and full reports can be read here:

- C&A Foundation’s LCA of Cotton Cultivation Systems

- Social and Environmental Impact Assessment of Cotton Farming in Madhya Pradesh

- Socio-economic and Environmental Impact Assessment of Cotton Farming in Madhya Pradesh