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 Latin America,  but they are vigilant and making some modifications, adjustments, and so on. However, there are still some adjustments that could be  made such as:


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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