Cotton

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Overview

Some three quarters of cotton is produced in five countries – China, India, the US, Brazil and Pakistan. Cotton is also important for many communities in Sub-Saharan Africa, where some 15 percent of the global cotton exports originate (OECD-FAO, 2021).

Smallholder farmers are estimated to produce over 70% of the world’s cotton (Solidaridad, 2023). It is estimated that overall, cotton is produced by some 32 million farmers (FAO, 2023). Fairtrade works with smallholder cotton farmers, mainly in India but also in Central Asia and West Africa.

Cotton farming is a first step in many long, complex and opaque textile supply chains, where farmers and farm workers bear high risks while an overwhelming share of value stays in the hands of international companies and brands.

Salient issues

Smallholder cotton farming is labour-intensive and farmers typically do not earn a living income.

At worst, low incomes can spur negative coping mechanisms, such as the use of child labour, overuse of low-cost pesticides instead of more sustainable practices, and dependency on high-interest credit sources. Cotton is one of the most common commodities produced with child labour (ILAB, 2022) and among the largest markets for agrochemicals (PAN UK, 2018).

While the share of cotton farmed under voluntary sustainability schemes has increased, few schemes address low cotton prices (Voora et al. 2023).

It takes concrete collaboration among producers, companies sourcing cotton, governments and civil society to change these risks and their root causes.

The salient issues in the cotton sector (in the order of saliency):
Living income, living wage

Small-scale cotton farmers typically do not earn a living income. In Africa, the vast majority of cotton producers live in poverty.

Health

Pesticides are largely applied by hand and pesticide poisoning is common among cotton farmers and farm workers.

Water and biodiversity

Cotton is a heat resistant plant grown in many seasonally dry regions. Irrigation is needed throughout the growing season on nearly half of cotton farms, which can burden local water sources.  

Child rights

Child labour is a significant risk in cotton production, particularly in labour-intensive small-scale production. 

Gender rights

Almost every second cotton farmer is a woman, but women face disproportionate barriers in access to land, inputs, services and decision-making (FAO, 2023). 

Forced labour

Bonded labour is a risk in poor cotton production areas. Several cases of state-led forced labour have also been documented in the cotton industry.

More information on risks in cotton

Root causes

Inequal power relations: Fast fashion and increased seasons are causing a race to the bottom and pushing the prices of textile materials lower. The low and volatile prices that many cotton farmers gain for their crop, curb investments in training and better farming practices.

Climate change: Changing climate is already devastating cotton crops and the farmers who grow them. Rise in temperatures, droughts, floods, limited freshwater, and unpredictable rain patterns threaten the world’s cotton production. For farmers the arising challenges translate to crop losses and higher costs.

Weak Regulation: Small-scale farmers, farm workers and seasonal workers lack legal protection in many cotton producing countries. They are often not included in labour laws or minimum wage regulation.

Background data on cotton (*Global Volume / **Fairtrade Volume)

Largest producer countries*

  • China (36%)
  • India (22%)
  • USA (12%)
  • Brazil (8%)
  • Pakistan (4%)
  • Others (18%)

2020, FAO

Dominant production model*

75%

of all cotton is produced on smallholder farms, Solidaridad

Global production*

82

million tonnes, 2020, FAO

Fairtrade certified producer organisations**

21

Data from 2022. Updated in March 2024.

Fairtrade certifiable production**

61,900

metric tonnes, 2022. Updated in March 2024.

Farmers in Fairtrade organisations**

44,500

Data from 2022. Updated in March 2024.

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