Congress targets government over ‘organic cotton scam’, demands probe

Alleging a “scam” of over ₹2.1 lakh crore in the name of organic cotton in India, the Congress on Saturday (July 26, 2025) demanded the formation of a Special Investigation Team (SIT) led by the Central Bureau of Investigation (CBI) under the supervision of a High Court judge.

The party said that the scam has severely harmed the global credibility of India’s organic products and caused significant damage to farmers.

Speaking at a press conference at the All India Congress Committee headquarters, senior Congress leader and former Chief Minister of Madhya Pradesh, Digvijaya Singh, alleged that certain traders are falsely labeling non-organic cotton as “organic” and earning six-fold profits, while genuine farmers struggle to get even the minimum support price. He added that the scam involved massive tax and GST evasion.

The Congress leader said the government has been aware of irregularities in the certification process and the scam since 2017 but has not taken any strict action.

Mr. Singh explained that in 2001, the Ministry of Commerce and Industry launched the National Programme for Organic Production (NPOP), which is implemented by the Agricultural and Processed Food Products Export Development Authority (APEDA). The goal is to certify and regulate organic exports. Under this programme, NPOP accredits certification bodies that verify Internal Control Systems (ICS). After ICS verification, a transaction certificate is issued, declaring the group as organic.

These ICSs are clusters of 25 to 500 farmers growing organic cotton and presently there are about 6,046 ICS groups and 35 certification agencies. He added that these farmer groups receive ₹5,000 per hectare for three years to promote organic farming. Certification is crucial in this process, as it significantly increases the international market value of the produce.

“Most farmers shown as registered in these ICS groups neither grow organic cotton nor are aware of their inclusion in the system. These ICS groups have deliberately committed fraud by including farmers’ names to obtain transaction certificates,” he said. “Fake groups were also formed in Madhya Pradesh, and farmers were unaware they had been made members,” he added.

He further said some powerful traders are making six times the profit by selling non-organic cotton as organic.

Citing instances where the U.S. Department of Agriculture, the European Union, and the Global Organic Textile Standard revoked the accreditation of Indian certifiers, Mr. Singh said India is now seen as a hub of fraud in the organic product market. He said that he had written to the Prime Minister in August 2024, flagging the organic cotton fraud in Madhya Pradesh.

“I got a reply from Commerce Minister Piyush Goyal acknowledging the irregularities, (but) no appropriate action was taken,” Mr. Singh said. He demanded criminal proceedings against all 192 fraudulent ICS groups, an investigation into these groups, and fair compensation for the exploited farmers.