The Government on Sunday (July 27, 2025) termed the allegations by the Indian National Congress that normal cotton was being sold as organic cotton in Madhya Pradesh as being “unfounded, unsubstantiated and misleading”, saying that the Agriculture & Processed Food Products Export Development Authority (APEDA) takes concrete steps whenever wilful violations of organic cotton standards are found.

Former Madhya Pradesh Chief Minister and senior Congress leader Digvijaya Singh on Saturday (July 26, 2025) called for a court-monitored Central Bureau of Investigation (CBI) probe into an alleged ₹2.1 lakh crore scam in the sale of normal cotton as organic cotton in Madhya Pradesh.

“It may be mentioned that in a press briefing by an opposition leader yesterday, unfounded, unsubstantiated and misleading aspersions are being cast against the Organic Certification programme, the National Programme of Organic Production (NPOP),” the Ministry of Commerce and Industry said in its statement.

“Generalised allegations against a robust regulatory system of the country for a particular crop/region/group of operators only serve to undermine the credibility of legitimate regulatory institutions and the broader organic movement in India,” it added.

Mr. Singh said that the objective of NPOP, launched in 2001 by the Ministry of Commerce and Industry and implemented by APEDA, was to certify and regulate the export of organic products. Under this framework, he explained, the NPOP accredits certification bodies, which in turn verify internal control systems.

However, he alleged that most farmers who are shown as registered under the internal control systems (ICS) do not grow organic cotton. He added that the government provides these farmer groups with ₹50,000 per hectare for three years to promote organic cotton.

“In short, ICS groups have deliberately committed fraud by adding farmers’ names to obtain transaction certificates,” Mr. Singh alleged. The government, however, has categorically refuted this.

“It is clarified that APEDA or the Department of Commerce does not extend any subsidy to farmers taking up organic cultivation under the NPOP,” the statement said. “The figure of ₹50,000 per hectare and the further wrongly imputed calculations have no basis.”

While the government did admit that, despite its checks and balances, “there have been reported incidences of malpractices and misuse of grower group certification”, APEDA has taken strict and concrete action against violators.

“Stringent action has been taken against the cases of wilful violation and severe non-conformities of Certification Bodies with the NPOP standards,” the statement said. “The NPOP regulations have been revised, bringing in stricter norms in terms of legal entity of grower groups, close monitoring through ICS offices in the vicinity of the grower group, and inspection of grower groups through a mobile app is going to be started shortly.”

Further, it said that new procedures have been devised for additional checks for certification of organic cotton production, including a manifold increase in the number of unannounced inspections.

“Wherever credible evidence of non-compliances/wilful violation of organic standards has been brought to light, APEDA has undertaken extensive investigation and taken concrete measures,” the government clarified. “All such matters are subjected to structured investigation following principles of natural justice. Any Certification Body or operator found violating norms is penalised as per NPOP regulation.”