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Social, Economic and Environmental Impact Assessment of Cotton Social, Economic & Environmental Impact Assessment of Cotton Farming in Madhya Pradesh THOMAS DE HOOP, JAMIE MCPIKE, SRINIVASAN VASUDEVAN, CHINMAYA UDAYAKUMAR HOLLA, MAHIMA TANEJA AND THINKSTEP INDIA (DR. RAJESH SINGH, RITESH AGRAWAL, ULRIKE BOS, HIRANMAYEE KANEKAR) OTHER CONTRIBUTORS: AISALKYN BOTOEVA, OLATUNDE OLATUNJI, APOORVA BHATNAGAR AND PRATYUSH DWIVEDI Social, Economic & Environmental Impact Assessment of Cotton Farming in Madhya Pradesh STUDY COMMISSIONED BY ACKNOWLEDGEMENTS We would like to acknowledge the contributions of several organizations that were critical to the successful completion of this study and this final report. September 2018 Specifically, this study would not have been possible without the generous support of the C&A Foundation Authors: Thomas de Hoop, Jamie McPike, Srinivasan and the guidance of Foundation staff and the study’s Vasudevan, Chinmaya Udayakumar Holla, Mahima Steering Committee (comprised of diverse experts Taneja, and Thinkstep India (Dr. Rajesh Singh, from the sustainable cotton sector) throughout the Ritesh Agrawal, Ulrike Bos, Hiranmayee Kanekar) process. We would like to thank researchers at the American Institutes for Research and Thinkstep India Other Contributors: Aisalkyn Botoeva, Olatunde Olatunji, for their empirical contributions to this report. AIR Apoorva Bhatnagar, and Pratyush Dwivedi was responsible for leading the social and economic Critical Review Panel Members (Life Cycle Assessment) study of cotton farmers for this study (and drafting these sections of the report) and Thinkstep India was Review Panel Chair (Life Cycle Assessment) responsible for the environmental assessment of cotton Mr. Matthias Fischer farming for this study (and for drafting these sections Fraunhofer Institute for Building Physics of the report). Outline India was also critical for the Panel Members (Life Cycle Assessment) completion of this study; their team not only led the collection of data in the field, but also contributed to Dr. Senthilkannan Muthu, Head of Sustainability, the report write-up. SgT group & API, Hong Kong Mr. Simon Ferrigno, Cotton and Sustainability Expert Mr. Rajeev Verma, Project Manager, Cotton Connect, India Advisory Panel Members Textile Exchange Ms. Liesl Truscott Mr. Amish Gosai Better Cotton Initiative Ms. Kendra Pasztor C&A Ms. Charline Ducas Internal Review Panel Members C&A Foundation Ms. Anita Chester Ms. Ipshita Sinha Mr. Litul Baruah Copyright © 2018 American Institutes for Research. All rights reserved. Contents Executive Summary 4 Introduction 14 Background 16 Literature Review 19 Theory of Change 21 Research Questions 25 Methodology 26 Data Collection Process 31 Data Analysis 33 Ethical Considerations 37 Results 38 Conclusion 98 References 100 Annex A: Reasons for Non-Participation in the Survey 102 SOCIAL, ECONOMIC & ENVIRONMENTAL IMPACT ASSESSMENT OF COTTON FARMING IN MADHYA PRADESH Executive Summary American Institutes for Research (AIR) and its partner Thinkstep India (Thinkstep India, 2018). Triangulating Outline India designed and implemented a social the results of the social and environmental impact impact assessment on the characteristics of 1) organic assessment enabled AIR to synthesize findings on cotton farmers, 2) cotton farmers licensed by the Better the socio-economic and environmental outcomes of Cotton Initiative (BCI), and 3) conventional cotton organic cotton farmers, cotton farmers licensed by BCI, farmers in the Khargone district of Madhya Pradesh, and conventional cotton farmers. India. For this assessment, we used a survey with a large sample of 3,628 households to draw comparisons BACKGROUND in socio-economic outcomes between 1) organic cotton farmers and conventional cotton farmers and 2) The worldwide demand for products that meet cotton farmers licensed by BCI and conventional cotton certification standards (e.g., organic cotton farming farmers. The statistically representative sample allowed standards, cotton farming principles and criteria of BCI, for drawing conclusions on the characteristics of these fair trade etc.) has grown: the production of organic farmers across a wide range of outcome measures and cotton increased from around 250,000 quintals in other observable characteristics. We also conducted 2005 to 1,079,800 quintals in 2016, while production qualitative research to understand the experiences of cotton lint by farmers licensed by BCI reached of organic cotton farmers, farmers licensed by BCI, 26 million quintals in 2015 (Textile Exchange, 2016; and conventional cotton farmers in the same region. Textile Exchange, 2017; BCI, 2015). India is, by far, Triangulating the results of the qualitative research with the largest producer of organic cotton, accounting the findings from the representative sample enabled for 56% of the world’s production (Textile Exchange, AIR and Outline India to draw conclusions on the 2017). Furthermore, approximately 409,000 farmers socio-economic outcomes of organic cotton farmers, licensed by BCI in India cultivated 638,000 hectares cotton farmers licensed by BCI, and conventional cotton and 3,730,000 quintals of cotton lint (BCI, 2016). farmers and to examine why cotton farmers do or do Madhya Pradesh, a state in central India, is a significant not adopt organic farming practices and cotton farming producer of cotton in India. In 2012-13, Madhya Pradesh practices recommended by BCI. produced 11,626,200 quintals of cotton, and it is also the state with the most organic cotton farming in India, In addition to this study, Thinkstep India conducted an with 46,511 hectares currently under organic cotton environmental impact assessment of cotton farming by cultivation (Government of India, 2015). implementing a screening Life Cycle Assessment in line with the principles of the ISO 14040/44. Thinkstep India In India, certification standards for organic cotton also constituted a panel to peer review its report. This farming are very strict and certification requires a panel consisted of four independent experts: Matthias three-year conversion, which is overseen by the Fischer, Dr. Senthilkannan Muthu, Simon Ferrigno, and Agricultural and Processed Food Products Export Rajeev Verma. Thinkstep India also ensured that a Development Authority (APEDA). APEDA works with panel of interested parties conducted a critical review several accredited certification agencies to ensure to decrease the likelihood of misunderstandings or that certification criteria are being met. Along with negative effects on external interested parties. For this other broader guidelines pertaining to diversity in crop assessment, Thinkstep India used a modelling approach production and management (in addition to convincing in the GaBi Software based on primary data of 100 farmers to convert to organic methods), organic cotton organic cotton farmers, 100 cotton farmers licensed by standards prohibit the use of chemical pesticides and BCI, and 100 conventional cotton farmers. This approach specify standards for the use of natural methods for pest enabled Thinkstep India to quantify the environmental and weed management. These standards recommend outcomes of organic cotton farming, cotton farming the use of preventive methods (to avoid pest attacks) in line with the principles and criteria of BCI, and practiced locally, planting crops that are adapted to the conventional cotton farming (Thinkstep India, 2018). local environment, and avoiding synthetic/chemical herbicides, fungicides, and other pesticides. The first This report discusses the social impact assessment column of Table 1 depicts a summary of the certification conducted by AIR and Outline India and the standards for organic cotton and the licensing standards environmental impact assessment conducted by of BCI cotton farming. 4 SOCIAL, ECONOMIC & ENVIRONMENTAL IMPACT ASSESSMENT OF COTTON FARMING IN MADHYA PRADESH Table 1: Certification Standards of Organic Cotton Farming and Licensing Standards of BCI Cotton Farming ORGANIC COTTON FARMING BCI COTTON FARMING Facilitate biodiversity through landscape management Use Integrated Pest Management (IPM) practices Use certified organic seed and plant material Pesticides not applied by vulnerable groups Crop rotation Water management practices Use only biomass-based fertilizers Soil management practices Ecological pest management practices Conservation of natural habitats Buffer zones between conventional farms Collective bargaining Sustainable soil management practices Prohibition of child labour Prohibition of discrimination or workers Elimination of forced labour Source: APEDA (2014) Source: BCI (2013) The principles and criteria of BCI are comparatively In Madhya Pradesh, farm groups and implementing less restrictive on crop inputs and allow farmers to use partners educate farmers on the principles and benefits genetically modified seeds and certain agrochemicals. of organic farming practices and farming practices BCI describes itself as “technology neutral”, but is recommended by BCI. Apart from creating a market for more restrictive on social and labour standards and organic cotton, they engage farmers through in-person specifies a prohibition on child labour and individual or trainings as well as other forms of messaging (e.g., group discrimination (BCI, 2013). Farmers licensed by texts, phone calls, pamphlets, etc.) to disseminate BCI commit to decent work principles – conditions that information about organic farming practices and support workers’ safety and wellbeing (BCI, 2017). The farming methods recommended
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