Better Cotton, FS impact launch fund for Indian farmers

Better Cotton, the leading sustainable cotton initiative, joins forces with impact investment firm FS Impact Finance to create a new fund for small cotton farms.

This pilot program, initially launched in India, aims to address the financial challenges faced by smallholder farmers, who represent over 90 per cent of the global cotton industry. Traditional limitations on credit history often prevent these farmers' associations (FPOs) from accessing essential funding.

The initiative will provide financial backing to FPOs implementing projects focused on women's empowerment and climate resilience. This support will enhance their creditworthiness and unlock opportunities for future growth. By improving their financial standing, FPOs can create sustainable business plans and gain access to crucial services.

Alan McClay, CEO of Better Cotton, emphasized that the collaboration could greatly enhance their current initiatives in India, particularly for women farmers. He expressed enthusiasm about the potential to improve financial access for these smallholders.

Martin Cremer, Managing Director of FS Impact Finance, also expressed enthusiasm for the project. He highlighted the excitement of developing this innovative solution with Better Cotton and outlined their goal of empowering smallholder farmers and strengthening local cotton value chains.