157
Good Practice
Development
Global Compact International Yearbook 2013
India accounts for nearly 70 percent of
total world production of organic cotton,
yet organically grown cotton accounts for
only 1 percent of all cotton cultivated in
India. The issues confronting farmers
provide the context for the low numbers
of farmers shifting to organic farming.
Most cotton farmers could not wait the
three years required for their farmland
to be certified as organic and to receive
financial and health benefits. During this
period, farmers usually experience a 20
to 30 percent decrease in crop yields. In
addition, they are unable to sell the or-
ganically produced crops at higher prices
due to the lack of certification. In addition
to lost revenue, the certification process
requires additional fees that are prohibi-
tive for many farmers. Thus, switching
to organic cotton cultivation is no easy
matter for those farmers who have been
farming conventionally for years.
From identifying issues to creating
initiatives
Conventional cotton and organic cotton
are well known to the world; however,
the transitional period to organic and
the producers’ living situations during
that period is rarely recognized. In the
first few years of organic farming, cot-
ton production will usually be unstable,
because of the rapid change in farming
methods. Also, transitional cottonwill be
sold as conventional cotton, even when
it is produced using the organic method.
Recognizing this situation, ITOCHU real-
ized that drawing attention to this little-
known reality has the potential to greatly
change awareness in the textile industry.
As a solution for improving the living
conditions of cotton farmers, ITOCHU
Corporation conceived a system called
the Pre Organic Cotton Program with
kurkku, a company that promotes sus-
tainable lifestyles by selling eco-friendly
products. Initiated in 2008, this program
puts value on the cotton that is grown
without the use of agrochemicals or
chemical pesticides during the tran-
sition period. The main supports for
the program include (1) undertaking
purchase guarantees in volume before
seeding, (2) providing organic farming
education to farmers, and (3) helping
farmers to get their land certified. This
scheme reduces the economic burden
on farmers, since they no longer need to
purchase agrochemicals and pesticides.
At present, more than 40 apparel brands
that are eco-friendly and conscious about
product origin use Pre Organic Cotton
as the key material for cotton products
such as clothing, towels, and bedding.
Commitment to the Business Call
to Action
Today, the private sector is expected to
have a substantial impact on the develop-
ment agenda of the UN through business.
For example, it is possible to achieve sus-
tainable development through “inclusive
business” by fairly engaging people in
developing countries as producers and
business partners in the value chain.
In August 2012, the Pre Organic Cot-
ton Program was approved by the BCtA,
which is led by the UNDP. The BCtA is a
global initiative to encourage the private
sector to develop innovative business
models that achieve both commercial
success and sustainable development.
It is organized by several international
organizations, including the UNDP. As a
part of its commitment to BCtA, ITOCHU
pledged to improve the economic condi-
tions, health, and farming environment of
low-income farmers in India by increasing
the number of participating farmers and
fields in the Pre Organic Cotton Program.
Contributing by connecting people
with the world
So why is ITOCHU Corporation involved
with the Pre Organic Cotton Program?
Because it believes the program has the
power to connect people, and because the
program brings happiness and positive
sustainable changes for those involved–
from service providers to consumers
around the world.
Through this program, ITOCHU hopes
that people become more aware of the
issues surrounding the poorest segments
of the population. It believes that con-
sumers of Pre Organic Cotton products
will pay greater attention to the social
issues surrounding the farmers in de-
veloping countries. By increasing both
production and consumption of Pre Or-
ganic Cotton, ITOCHU hopes that more
cotton farmers will switch to organic
farming to improve living conditions and
the natural environment. This is why it
continues to support the expansion of
the Pre Organic Cotton Program.
Unique to Japan, a general trading com-
pany such as ITOCHU – with its multi-
faceted corporate activities in regions
around the world and its extensive areas
of operations – has both the potential
and the responsibility to contribute to
countries and society by connecting peo-
ple and building bridges among different
segments.
By POC Program Team,
ITOCHU Corporation
“
Companies such as ITOCHU and kurkku demonstrate the potential of innovative
business partnerships to generate value for companies as well as communities.
This new commitment to the BCtA, the first in recent
years by a company from Japan, supports environ-
mentally sustainable agriculture while at the same
time increasing income for farmers in India.”
Sahba Sobhani,
BCtA Acting Program Manager