What are the implications for organic cotton to address in a period of crisis?
By Alfonso Lizarraga
Distrust in the system that moves
consumers to focus spending on essentials (food, education, health). People
may decrease their spending on clothing according to their perceptions about
the scale of the crisis. Textile companies may lose sales, generating some decline in
their operations (in some cases with reduced labour and investment).
Businesses tend to reduce the planting areas scheduled with
farmers. Farmers do not receive credit due to the volatility of the market
and have less money to invest in crops linked to the textile industry. The sustainability of projects and their capacity to
produce organic fiber is put at risk .
However, all production projects so far continue to
develop in
1. Ask directly for some type of State support for rural programs
affected by this crisis (tax cuts, tax exemptions for the sale of some inputs,
reduction of sales tax, among others). Obviously as an emergency measure.
2. Continue with the promotion of organic clothing. The crisis will reduce the
pressure to grow fast and when the situation changes ,
those who have made any effort to win some of the market (future demand), will
benefit most .
3. Renegotiate the prices of various organic certificates (fiber
production and processing of industrial products), or seek ways to lower costs.
4. Develop strategies aimed at the sustainability of processes which
are felt to really benefit the weaker players in the market chain.
5. Require the State to be "very efficient" in matters within its
jurisdiction: tax auditing , logistics support for export,
dissemination of excellence in textile products made of organic cotton, etc..

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