Probe Launched Into Alleged Organic Cotton Certification Fraud

Authorities have initiated investigations into alleged large-scale irregularities in organic cotton certification after complaints that several companies misused farmers’ identities to obtain licenses.

The Agricultural and Processed Food Products Export Development Authority (APEDA) and the Odisha State Organic Certification Agency (OSACA) have begun inquiries in Karlapada and nearby areas, where preliminary findings indicate forged documents and serious procedural lapses.

Investigators reported that many farmers listed under organic cotton schemes had never cultivated organic cotton and in several cases their names were included in official records without their knowledge. Authorities also found discrepancies between declared cultivation areas and actual production figures, along with inflated land records and seed usage claims.

Multiple firms including Sumitra Agro, Pratima Agro, Ambika Agro, Spestum Agro, Amina, Aditya Agro, Prime Agro, Asha Organic and Chetna, have come under scrutiny for allegedly manipulating the Internal Control System (ICS), a key compliance mechanism for organic certification. Instead of supplying approved organic seeds and inputs, some companies are suspected of fabricating records to show compliance.

The alleged fraud appears to have been driven by the price premium for organic cotton, which can sell for about 30% more than conventional cotton. Investigators believe some companies purchased conventional cotton at lower prices and marketed it as organic, generating significant profits.

Officials also noted that Bt cotton accounted for about 95% of seeds sold in the district, raising serious questions about the authenticity of organic cotton production claims.

Following the discovery of falsified seed records, the Agriculture Secretary has suspended the operations of one licensed company, and further action is under consideration. With evidence of potential widespread malpractice emerging, calls for a CBI investigation into the matter have intensified.