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Crores Looted in Organic Cotton Scam in Kalahandi, Probe Begins

Itishree Sethy by Itishree Sethy
February 2, 2026
in Odisha
Reading Time: 1 min read
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Organic cotton scam
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A major controversy has erupted in Kalahandi district over allegations of massive corruption in the name of organic cotton.


Authorities launched investigations after complaints that several companies misused farmers’ names to obtain organic certification. APEDA, the central body issuing organic certificates, and OSACA, the state licensing authority, began inquiries in Karlapada and other areas. Early findings revealed forged documents and irregularities.

Reports suggest that many farmers listed under organic cotton schemes never cultivated organic cotton. Some companies allegedly inflated land records and seed usage to secure licenses. Farmers discovered their names in records without consent, while actual cultivation figures did not match the paperwork.

Several firms, including Sumitra Agro, Pratima Agro, Ambika Agro, Spestum Agro, Amina, Aditya Agro, Prime Agro, Asha Organic, and Chetna, face allegations of manipulating the Internal Control System (ICS). Instead of supplying organic seeds and fertilisers, they allegedly fabricated records to show compliance.

Organic cotton fetches nearly 30 per cent higher prices than non-organic cotton. Companies reportedly bought non-organic cotton cheaply and sold it as organic, earning crores of rupees. Investigators found that 95 per cent of cotton seeds sold in the district were Bt cotton, raising questions about how organic cotton claims were made.

After discovering fake seed records, the Agriculture Secretary suspended the operations of one licensed company. With mounting evidence of widespread fraud, demands for a CBI investigation have intensified.

ALSO READ: Viral Beef Distribution Video Sparks Outrage in Bhawanipatna

Tags: APEDAcotton fraudFarmersKalahandiOdisha Newsorganic cotton scamOSACA
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