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Name-Vikash Kumar Pandey Niche Market

Organic Cotton

Roll no-12PGP051

Definition of Niche for Organic cotton

Area under cultivation- 1.28 lakhs hectare No of farmers involved- 68594 Climatic conditions required - Semi arid climate receiving approx. 800 mm of rain. Demographic - Farmers who are already cultivating cotton.

About Niche
In cultivation of cotton maximum amount of pesticides are used around 57%. It harms fertility of soil as well as environment. Increasing awareness for social and environmental issues among consumers and companies has led to strong growth of the organic cotton market over the past decade. The top ten organic cotton users in 2011 has been H&M, C&A, Nike Inc., Zara, Anvil Knitwear, prAna, PUMA, Williams-Sonoma Inc., Target, Otto Group. Studies have shown a minimum of 32% of growth in this market. In 2011 market size of this segment was $6.2bn. India is already top grower and exporter of organic cotton. Madhya Pradesh leads in growing cotton accounting for 57 per cent of the total organic cotton, followed by Maharashtra (20 per cent). If we compare the economies of growing organic cotton, organic cotton production is cheaper than conventional cotton.

Industry interested in Organic cotton and challenges to this niche

Demand has outstripped supply in this niche. Textile industry is mainly interested in this niche. Main challenges which this niche is facing in india are,

1) No specialised market- Because of this both conventional cotton and organic cotton fetch same price in market for small farmers. 2) Getting certified- getting certified as organic producer is not easy and it takes a lot of time. 3) Reduction in production- In initial year of production, yield goes down and there is no support for farmers in those years.