‘Conflict cotton’ raises manufacturers’ worries

Islamic State militants have taken control of a significant portion of Syrian cotton production, worrying some textile manufacturers, although there appears little risk that IS-linked clothing will end up on the catwalk or in customers’ closets.

After seizing oil and grain fields to fund their offensive, jihadists also assumed control of “three-quarters of the production of cotton” in Syria, which was a relatively important exporter before the war, said Jean-Charles Brisard, a specialist on the financing of extremist groups.

Syrian cotton is an issue at the vaunted fashion houses in Paris. A buyer for haute couture collections at a top label said on condition of anonymity that they have become more vigilant over the origin of their fabrics.

“Our regular supplier sent us bolts of cloth without a tag of origin, and we asked our work shops not to touch them until we had all the required certificates,” the buyer said.

Companies are keenly aware of the impact of a public relations disaster in the clothing industry after the Rana Plaza factory in Bangladesh collapsed, killing 1,138 people. Foreign labels that had subcontracted work were accused of failing to push for safe labor conditions.

The key concern with Syrian “conflict cotton” is that it could make its way to international markets via Turkish wholesalers, who would buy the cotton at cut-rate prices from IS fighters desperate for cash.

IS-controlled areas of Syria are close to Turkey, which is the European Union’s No 2 supplier of fabric and third for clothing, according to data compiled by the UIT, a French textile trade association.

Turkey, a net importer of cotton for clothes manufacturing, includes among its main suppliers — the United States, Greece, Uzbekistan, Egypt ... and historically Syria, said Emmanuelle Butaud-Stubbs, head of the trade association.

According to industry insiders, IS has been sending to Turkey raw cotton grown in the Raqqa and Deir ez-Zor regions. But Turkey has now officially refused to accept this cotton, possibly due to pressure from Washington, industry sources said.

IS militants next began to sell the raw cotton to intermediaries who transport it to processing centers located in areas under the control of Syrian President Bashar al-Assad’s regime. Processing and export of cotton has long been a state monopoly in Syria.

Due to the conflict, “the situation in Syria is very fluid, and it is difficult to have a precise picture of what is actually happening on the ground,” said Jose Sette, executive director of the International Cotton Advisory Committee, a group that brings together cotton producing and consuming countries.

He said the committee’s understanding is that most Syrian cotton is being used by the country’s domestic textile industry, with very little left over for export.

It is difficult to have a precise picture of what is happening on the ground.”

Jose Sette, executive director of the International Cotton Advisory Committee