Supply squeeze leads to organic cotton price rise

TEXAS – Supply-side dynamics are leading to increased prices and shortages of organic cotton. Organic cotton costs have increased by more than a quarter since late last year, as the industry grapples with the double whammy of the Xinjiang forced labour scandal and organic cotton fraud being uncovered in India.

The price increases we have seen partly mirror an increase in conventional cotton prices across the board, with brands now under huge pressure to divest cotton sourcing out of Xinjiang after the US government slapped an import ban on products containing cotton from the Chinese province.