Alok Ind Ties Up With Zameen To Promote Fair-Trade Cotton - Sep 13, 2008

Alok Industries Ltd, one of the leading integrated textile companies, has inked a memorandum of understanding with Zameen Organic Ltd, a cotton trade company owned by Small Farmers'' Associations, for promoting organic fair-trade cotton. About 6,000 small cotton farmers from Vidarbha in Maharashtra and Adialabad in Andhra Pradesh are members of this company. Alok Industries will procure 1,500 tonnes of organic and fair-trade cotton from Amravati in Vidarbha and Adilabad in Andhra Pradesh in the cotton season 2008-09 beginning next month. The plan paves way for new era of organic fair-trade cotton in a big way both in domestic and international market trade. The total size of organic and fair-trade market globally is at $3.3 billion, growing at 40 per cent a year and Zameen promises 10 per cent premium at retail level. The alliance between Alok and Zameen Organic will assure fair price of seed cotton to marginal cotton growers in Vidarbha and Adilabad that covers the cost of production, provide refinancing opportunity to the farmers