Toolkit for capacity building for organic cotton farmers - Projects
Updated : October 2020
Growing consumer awareness towards sustainable fashion sector has led to many leading brands exploring organic cotton as a sustainable option. However, several challenges exist in increasing the demand for organic cotton - lack of price premium for the farmers, lack of adequate working capital, lack of adequate extension services, global market price volatility and more. This has led to several smallholder farmers restricting to conventional cotton farming.
In order to assist the various scales of farmers to profitably benefit from the organic cotton cultivation, GIZ in collaboration with German Cooperation, NABARD and Bankers Institute of Rural Development (BIRD) has developed a ‘Farmer Producer Organisation (FPO) Capacity Building Toolkit' which provides guidelines on how to develop a profitable organic cotton business model while also maintaining the sustainability standards.
The guidelines have been developed based on the successful results of a program Umbrella Programme for Natural Resource Management (UPNRM). Details on the sustainability and economic benefits of the program have been provided. The economic analysis shows that under the proposed business model the FPO would incur nearly break even in the first year (excluding capital costs) and in the second year, is expected to get a modest revenue.