Congress Demands Probe into Alleged ‘Organic Cotton Scam

Quick Summary

• Congress leader Digvijaya Singh alleged a ₹2.1 lakh crore scam in the organic cotton sector in India, calling for an SIT led by the CBI under High Court supervision.
• Traders are accused of falsely labeling non-organic cotton as organic to earn six-fold profits, while farmers face difficulties obtaining minimum support prices.
• The scam involves tax and GST evasion and has harmed India’s global credibility in organic products export markets.
• Organic product certification under the National Programme for Organic Production (NPOP) is managed by APEDA, accrediting certification bodies that oversee farmer groups called Internal Control Systems (ICS).
• over 6,046 ICS groups exist; however, many farmers allegedly do not grow organic cotton nor know they are included in these systems. Fraudulent practices within these groups have enabled traders to exploit regulatory loopholes.
• International organizations such as the USDA and EU have revoked accreditation of Indian certifiers due to fraudulent practices, impacting india’s reputation as an organic hub.
• Singh previously flagged these issues directly with Commerce Minister Piyush Goyal and wrote to Prime Minister Modi but claims no strict action has been taken so far.

Indian Opinion Analysis

The allegations of widespread fraud within India’s organic certification system raise critical concerns regarding institutional oversight and governance. If substantiated, this could significantly impact India’s standing in global agricultural export markets-notably its position as a major exporter of textiles based on sustainable farming principles. While Mr. Singh’s demand for aggressive investigative measures reflects urgency from a political outlook, the broader implications point toward systemic weaknesses that may harm both farmer interests and international trade partnerships.

Correcting these discrepancies will likely require strengthened mechanisms for certification accountability alongside increased openness around taxation policies related to agriculture exports.Moreover, compensating affected farmers is essential not just for fairness but also to reconstruct trust among local stakeholders whose livelihoods depend upon ethical trade practices.

Such investigations could benefit if handled independently rather than through solely partisan channels; hence judicial monitoring alongside CBI involvement appears reasonable if it helps restore both domestic confidence and international reliability in India’s certifications.

Read more at: the Hindu