The cotton industry

Cotton is a heavily traded agricultural commodity with over 150 countries involved in exporting or importing it. Although production spans 75 countries around the world, China, India, the US, Pakistan and Brazil produce the majority of cotton harvested each year.

Heavy subsidies in wealthy countries intended to shield farmers from market volatility create a global market with artificially low prices. This puts pressure on small-scale farmers in countries where governments lack the resources for similar subsidies to compete. This, along with climate change, rising costs of production and fluctuating market prices, is making it hard for many small-scale cotton farmers to earn an income they can depend on. Cotton farmers are at the end of a long and complex supply chain in which they are virtually invisible and wield little power or influence.

Current challenges

Cotton is one of the world’s biggest crops and a commodity many of us rely on. But there are a number of challenges threatening its long-term sustainability. 

• Low incomes. Many cotton farmers depend on the middlemen who buy their cotton, often at prices below the cost of production. Cotton prices on the international market are also volatile.
• Environmental issues. For example, agrochemicals, such as herbicides and pesticides, and the excessive use of water put fresh water supplies for local communities at risk.
• Climate crisis. Unpredictable weather conditions, higher temperatures, pests and diseases can make cotton farming unpredictable and costly.
• Health and safety. The incorrect handling of hazardous chemicals among farmers and workers can result in major health issues. There are also unsafe and unfair labour conditions in cotton processing and textile factories.
• Child labour and forced labour. Child labour is most prominent on small-scale farms, particularly at planting and harvesting times. State-controlled forced labour has also been documented.

“Cotton is like gold for us. Our living is dependent on cotton cultivation. This has given us many benefits.”

Munnalal Makwana, Fairtrade cotton farmer, India

How Fairtrade makes a difference

There are more than 40,000 Fairtrade cotton farmers. Many Fairtrade cotton organisations can be found in West Africa, but it's India that grows the most Fairtrade certified cotton.

• The Fairtrade Minimum Price provides a safety net in times of price volatility, while the Fairtrade Premium is paid on top of the selling price. Farmers decide together how to invest their Premium.
• The Fairtrade Standards. The Fairtrade Standards encourage sustainable cotton production with protection for the environment. A lot of Fairtrade cotton is also organic, which helps to protect land, soil and biodiversity. Requirements in the Fairtrade Standards also protect farmers’ health and safety.
• Labour conditions. In 2016, Fairtrade introduced the new Fairtrade Textile Standard and Programme to reach people at all stages of the textile production chain – from seed cotton to finished garments. This includes improving wages and educating workers on their rights.
• Environment and health. Fairtrade works with farmers to stop or reduce usage of agrochemicals, and supports them to adapt to changing climate patterns.

Fairtrade cotton is good for people, planet and business. Find out how your company can get involved.