Congress Calls for Court-Monitored CBI Investigation into Alleged Organic Cotton Scam in Madhya Pradesh

The Congress party has called for a court-supervised CBI investigation into an alleged scam involving the sale of regular cotton as organic cotton in Madhya Pradesh. Digvijaya Singh, a senior Congress leader and former Chief Minister of Madhya Pradesh, claims this issue has damaged India's global reputation in organic product certification.

Singh alleged that the scam involves selling non-organic cotton as organic, with an estimated value of Rs 2.1 lakh crore. He stated that the Ministry of Commerce and Industry initiated the National Programme for Organic Production (NPOP) in 2001, managed by the Agricultural and Processed Food Products Export Development Authority (APEDA). This programme aims to certify and regulate organic product exports.

Organic Cotton Certification Concerns

Under NPOP, certification bodies (CBs) are accredited to verify internal control systems (ICSs), which consist of groups of 25 to 500 farmers growing organic cotton. As of 2025, there are about 6,046 ICSs and 35 CBs. However, Singh alleged that many farmers listed under ICSs neither cultivate organic cotton nor know they are part of the system.

Singh accused ICS groups of fraudulently adding farmers' names to obtain transaction certificates. Consequently, while farmers struggle for fair prices, some traders profit significantly by selling non-organic Bt cotton as organic. These traders allegedly evade taxes and GST on a large scale.

International Repercussions

At the international level, India is perceived as a centre for fraud in the organic market. This perception has led to global agencies cancelling recognition. Singh mentioned that raids on two commercial entities revealed Rs 750 crore in GST evasion, indicating a Rs 7,500 crore scam from just these two entities.

In October 2020, GOTS (Global Organic Textile Standard) discovered fake transaction certificates in India, banning 11 companies and revoking a major certifier's accreditation. In June 2021, the USDA ended India's automatic recognition for organic certification. By November 2021, the EU withdrew recognition from five Indian certifiers due to restricted chemicals found in products labelled as organic.

Demands for Investigation and Compensation

On August 27, 2024, Singh addressed this issue through a letter to the Prime Minister. He demanded a special investigation team (SIT) led by the CBI under a sitting high court judge's supervision. Singh also called for transparent inspections by certifying bodies and fair compensation for affected farmers.

The Madhya Pradesh government has not yet commented on these allegations. The Congress party insists on accountability and transparency to restore trust in India's organic certification process.

With inputs from PTI