Like his father before him, Khima Ranchhod has farmed cotton in Gujarat, India all his life. He used to sell his seed cotton to local traders: "We would deliver the cotton by bullock cart but the trader would always find a reason to give us a bad price."

The history of cotton is interwoven with social upheaval - from plantation slavery to Gandhi's call to Indians to wear clothes made from khadi or homespun cotton - and today continues to symbolise the inequalities of the global agricultural trading regime and the real hardship suffered by smallholders worldwide. As many as 100 million rural households are involved in cotton production and some of the world's poorest countries such as Mali and Senegal are highly dependent on cotton production and exports. But, as with other commodities, the past decades have seen cotton prices fluctuate and fall. In 2001/02, prices fell to $0.92/kg, the lowest level in 30 years. The downward prices experienced by farmers, especially in West Africa, can be linked to the government subsidies granted to US and EU cotton farmers.

In 2004/05, US cotton farmers were paid almost as much in government subsidies as they earned from the crop, with payment concentrated among the biggest agri-businesses: in 2004, the 10 top recipients received 61% of all cotton subsidies. While campaigning for changes in World Trade Organisation rules is essential, a fundamental change in the way cotton is traded is required. Extending Fairtrade certification to cotton is one way to tip the balance of power in favour of producers. In November, the Fairtrade Foundation launched Fairtrade certified cotton at the Royal Horticultural Halls in London. "For too long cotton farmers have been invisible at the end of long supply chains and at the sharp end of injustice in international trade - and that has to change," said Harriet Lamb, Director of the Fairtrade Foundation. "Today we are setting a whole new pattern for international trade - one that puts cotton farmers first not last. We are determined that this will become the trend in the cotton industry and will continue to work towards meeting the needs of cotton farmers."

For Khima, extending Fairtrade certification to his four acres of cotton means that he now gets a higher, stable price for his crop. He has also decided to convert to organic production to improve the quality of the soil and eliminate harmful pesticides. Khima sees a brighter future now that he can supply his cotton to the UK Fairtrade  market. "We will be able to buy more organic manure to improve the soil and then we will be able to make improvements to our house," he says. "We will benefit economically, but more than this we will be able to improve the education of the children in the village."