There is a Mismatch Between the Calendar Cycles of Cotton Production and Fashion Industry

Assuming that your ideas were different as was also your approach, how difficult was it to sell your idea? Did you find immediate takers?
Imran Asghar: Sourcery was established in a highly competitive and fast-paced environment where the challenge of finding the first taker was constant. We identified a gap in the market for a more streamlined and efficient approach to connecting buyers and sellers in real-time.

Our goal with Sourcery was to correct the inefficiencies and delays often associated with traditional procurement processes by providing a solution that brings visibility and trust to the cotton value chain. We wanted to do things differently by leveraging technology to create a seamless and empowering experience for all parties involved, ultimately revolutionising the way business transactions are conducted.

What has been the growth story and what is the target set for the next two years?
Imran Asghar: Our growth story began as a consulting firm in 2020, where we initially worked on solo customised projects for selected brands. Last year, we transitioned into a membership-based supplier-driven and brand support organisation. Our focus shifted towards the goal of providing a digital trading platform that empowers supply chain stakeholders to secure cotton fibre with access to assurance and impact data through a paid subscription model.

We are embarking on a three-year journey that will also bring to market the Sourcery Bluechip Exchange data marketplace later this year followed by our flagship products Connect—a digital global co-op connecting our partners around the world, and Transfer – our smart digital trading platform that will enable more growers, traders, manufacturers and brands to transform trade for good.

Over the next three years, our target is to expand our Direct-to-Grower programme and services to facilitate unlimited transactions of Direct-to-Grower fibre on a global scale. We aim to onboard more grower organisations, manufacturers, brands, and strategic partners. With this strategic growth plan in place, we are confident in our ability to make a significant impact in the industry and drive positive change for all involved parties.

There is an issue with transparency-traceability. But there are as many explanations and interpretations as there are people. How does Sourcery look at the subject? How does Sourcery itself ensure full transparency, traceability across the cotton value chain? Could you take us through the process?
Imran Asghar: To rewrite the rules of trade—we had to serve as commercial neutral trade facilitators to build mutual trust between our partners and gain deep insights into not just *where* products are made and transacted, but *why*, *when* and *how* products are made and transacted. This is because we believe trust is a prerequisite for transparency and traceability. At Sourcery, we prioritise building trust first—among all stakeholders involved in the value chain.

One way we ensure transparency and traceability is by providing equal opportunities and incentives to all growers everywhere, regardless of the standards they adhere to, their singular agronomic practices or geographic region. Through the Sourcery Connect App we ensure that all growers are recognised and rewarded for demonstrating commercial and environmental excellence. By providing tangible incentives (owning their data) for growers and manufacturers to collect and share their primary data downstream into the chain, we are enabling them to gain additional financial value to sustain their practices and actually grow and process cotton more sustainably.

Additionally, we implement robust tracking and monitoring systems to trace the cotton from the grower to the final product. This allows us to track the journey of the cotton at every stage, ensuring transactional transparency and accountability throughout the value chain.

By fostering a culture of trust, fairness, and transparency, Sourcery ensures that all stakeholders are committed to upholding the highest standards of integrity and accountability in the cotton value chain.

If I am a cotton farmer, how can Sourcery help me – first, sustain myself better with a better and superior yield; and second, get buyers at the right price?
Imran Asghar: As a cotton farmer, Sourcery can help you sustain and get a fair price from buyers by providing you with valuable tools and opportunities through the Sourcery Connect App.

Firstly, the app allows you to capture and input essential farm data related to agronomy practices and pest/disease assessments, which can help you make informed decisions and improve your crop yield and quality. This data is owned by you, the grower, and can be monetised by selling it to interested parties such as financial institutions, brands, or government organisations for their studies, lifecycle assessments, or greenhouse gas emissions analysis. This additional income source can help you sustain your farming operations and potentially increase your profits.

Furthermore, through the app, you can communicate with experts and receive timely information and advice on how to address any crop issues or improve your farming practices. This support can help you optimise your operations and ultimately fetch a fair price from buyers who value high-quality cotton produced sustainably and efficiently.

By leveraging the Sourcery Connect App, you can not only enhance your farming practices and profitability but also contribute to the larger ecosystem of sustainable agriculture and data sharing.

How many farmers, in which geographies, and how many manufacturers make the Sourcery membership? How does it work? Do you prefer to work with individual farmers, or with farmer organisations?
Imran Asghar: At the moment, Sourcery has a strong presence in India with 5 grower organisations as members representing over 250,000 farmers. These farmers are spread across various regions in India. In addition, Sourcery has signed a MoU with Rizq in Pakistan to start a pilot project, expanding its membership geographically. The membership is open to individual farmers as well as farming cooperatives. As of now, the exact number of farmers and manufacturers in Sourcery's membership from different geographies is not specified, but we’re actively increasing our membership base through a Provisional membership option.

“Sourcery facilitates the formation of vertical coalitions” – could you expand on this?
Imran Asghar: In the fashion industry, one of the biggest challenges is the mismatch in the calendar cycles between the agricultural segment, specifically cotton production, and the fashion industry's development cycle. This misalignment often results in brands and retailers not being able to secure the sustainable cotton they need for their collections, as farmers have already grown the cotton that may not fit the brand's calendar cycle.

Sourcery, through its vertical coalitions, addresses this issue by facilitating collaboration between brands, retailers, spinners, and farmers. We enable parties to come together and share their demand upfront through Sourcery's Fibre Commitment Agreement. This agreement is a non-binding tri-party agreement involving the spinner who receives the demand from the buyer, the buyer initiating the demand, and the farmer committed to growing the cotton.

By having a clear understanding of the exact volume, quantity, and timeline of cotton needed, the entire supply chain can work more efficiently. Purchase orders can then be placed to match the demand, ensuring that the required cotton is available when needed for the fashion industry's development cycle.

How can a spinning mill or  vertical manufacturers for apparel, denim and home textiles enrol for Sourcery’s Direct-to-Grower programme? In what ways is it advantageous over current processes?
Imran Asghar: To enroll in Sourcery's Direct-to-Grower Programme, spinning mills or vertical manufacturers from the manufacturing segment can simply send their interest through the website or email us. This allows them to express their willingness to participate in the programme and take advantage of the benefits it offers.

One key advantage of participating in the Direct-to-Grower Programme is the opportunity to make an upfront fibre commitment with individual grower co-ops. This can help ensure a stable and consistent supply of high-quality cotton for the spinning mill or vertical manufacturer. By directly partnering with growers, the Programme can also provide added traceability down the supply chain, allowing for more transparency and integrity in the sourcing of raw materials.

Additionally, by working directly with growers and committing to purchasing their cotton upfront, spinning mills and manufacturers can help alleviate some of the financial constraints faced by farmers. This can ultimately lead to a more sustainable and ethical supply chain, as well as potentially lower pricing due to a more direct and transparent procurement process. Overall, enrolling in Sourcery's Direct-to-Grower Programme can bring numerous benefits for spinning mills and vertical manufacturers looking to establish a more transparent and sustainable sourcing strategy.

Based on your interaction with key stakeholders in the cotton industry from field to shelf, what are the issues that cotton farmers face? What can be done to protect them?
Imran Asghar: Cotton farmers face a multitude of issues in the supply chain, including lack of support from the industry, limited access to resources and technology, as well as challenges in keeping up with emerging legislative changes and certifications. One major issue is the neglect by industry stakeholders to provide necessary support and opportunities for farmers to enhance their knowledge and skills in the ever-evolving agricultural sector.

To protect cotton farmers and ensure their sustainability, it is essential to address these issues through programmes like Direct-to-Grower. Our Programme provides a platform for closer collaboration between stakeholders and farmers, allowing for open discussions on the challenges they face. By providing customised training, tools, and knowledge on new techniques and legislative changes, farmers can better navigate the supply chain and improve transparency and traceability in their operations.

Going Direct-to-Grower can help protect cotton farmers by empowering them with the necessary tools and resources to thrive in a competitive market and ensure their well-being in the long run–being recognised and financially rewarded for demonstrating their commercial and environmental excellence. This collaborative approach can lead to a more sustainable and resilient cotton farming industry, benefiting both farmers and the wider supply chain.

We believe that the future of commercial, social, and environmental impact lies with growers and manufacturers who have the knowledge, skills, and expertise to solve the challenges facing the industry. They are the true problem solvers, and we want to empower them to drive the industry forward, giving them the needed resources through data monetisation to deliver meaningful and measurable impact at scale. Yet, this also requires growers and manufacturers to take ownership and lead the transformation that can deliver sustained value for everyone from growers to retailers.

How do you look at the organic vs GM debate?
Imran Asghar: The debate between organic and genetically modified (GM) crops is intricate, touching on various aspects such as environmental impact, health effects, food security, and ethical considerations.

Organic farming prioritises minimising environmental harm by eschewing synthetic pesticides and fertilisers, though it often requires more land and water than conventional or GM farming to achieve equivalent yields. Conversely, GM crops can be engineered to resist pests and diseases, potentially reducing reliance on chemical pesticides.

Regarding health effects, while numerous studies find no evidence of harm from consuming GM crops, concerns persist regarding long-term risks and allergenicity. Organic foods, produced without synthetic inputs, may not necessarily be more nutritious or safer.

In terms of food security, proponents argue GM crops can boost yields and nutritional content, yet critics fear they could deepen inequalities in access to food and seed sovereignty, particularly in developing nations.

Ethical dimensions encompass ownership and control of agricultural resources, with critics cautioning against the constraints of patented seeds and restrictive licensing agreements associated with GM crops. Organic farming, emphasising biodiversity and traditional practices, aligns more closely with sustainability and social justice principles.

Ultimately, the organic vs. GM debate involves navigating trade-offs between environmental sustainability, food safety, security, and ethical considerations. The optimal approach may vary based on local conditions, cultural norms, and socioeconomic factors, necessitating a nuanced understanding to inform decisions about agricultural practices and food systems.