Authorities have launched a renewed investigation into possible fraud within India’s organic cotton sector following allegations of forged documentation and misuse of farmer identities in certification processes.
The Agriculture Processing Export Development Agency (APEDA) and the Odisha State Organic Certification Agency (OSOCA) have initiated inquiries into reports that firms in the Kalahandi district of Odisha secured organic certification and represented conventionally grown cotton as certified organic. Local sources suggest that names of legitimate cotton farmers were used without proper consent to falsely label non-organic fibre as organic.
The issue has drawn wider attention after local media reported that significant sums may have been misappropriated in connection with the alleged scheme, prompting concerns among policymakers, farmers and sustainability advocates alike.
Organic cotton, prized for its reduced environmental impact and growing global demand, remains a relatively small portion of India’s vast cotton output but is strategically significant to the textile and apparel supply chain. Industry analysts say credible certification is critical for maintaining buyer trust and achieving export premiums in international markets.
The probe comes against a backdrop of increasing scrutiny of supply chain transparency and compliance in textile raw materials. Studies have highlighted links between counterfeit certification and wider compliance risks, including labour abuses, adding pressure on regulators and brands to uphold due diligence standards.
APEDA has previously defended its organic certification framework, emphasising that certification under the National Programme for Organic Production is monitored across states and subject to audits. Government sources have asserted that investigations are launched when substantive violations are reported, and penalties imposed where non-compliance is established.
As the fresh inquiry progresses, stakeholders in the organic cotton value chain are awaiting further detail on the scope and findings of the investigations, which could have implications for certification integrity and export credibility in one of the world’s largest cotton-producing countries.
