To reach the cotton fields, we drove six hours from Hyderabad to a rural part of central India on the boarder of Madhya and Andhra Pradesh. The scenery was rustic and peaceful, but the area has a tragic history. Since 1997, more than 25,000 Indian farmers have committed suicide and in the last seven years in Andhra Pradesh alone, 4,500 cotton producers have taken their own lives.

Damaged cotton seeds, drought and costly pesticides triggered debts that forced farmers to take out large loans, which needed to be repaid quickly at extortionate rates of interest. Unable to pay back these loans, farmers kept borrowing until they had nothing left and could see no other way out. Organic production has had a hugely positive impact on this problem. Farmers don't buy pesticides or pay for seeds upfront, so the cycle of debt is broken. All of Epona's cotton is currently produced in Andhra Pradesh as we felt this was an area where Fairtrade and organic cotton production could really benefit small-scale producers.

In the village we visited, 120 farmers converted to Fairtrade and organic earlier this year and their first harvest was in November. Many 'prepesticide' farming techniques had been forgotten and needed to be re-taught. Several liaison officers who teach these skills were making a routine inspection while I was there. Some of the methods they teach include using natural fertilisers made from cow urine, introducing natural predators and inter-planting crops that attract harmful insects.

Each organic farmer in the village has around one acre of land and is required to build a bund, or boarder area, that stops pesticides from surrounding fields affecting their crop. The producers I met were very enthusiastic about using organic agricultural methods and were keen to build underground rainwater storage to help with irrigation when they have the finances available. Going organic doesn't just help to break the debt cycle – pesticide free production also improves soil quality, prevents water contamination and has significant health benefits for the farmers.

To convert to Fairtrade and organic, the producers need to make a lot of changes to the way they farm. There is a large amount of trust involved as the only guarantee the farmers have that they will receive a fair price are the cotton seeds they are given in advance. To ensure there is enough Fairtrade cotton to meet demand, buyers decide how much cotton they need for the following year upfront and as demand increases, more farms convert. Although it can be hard for buyers to do this, they have a big responsibility to stick to their original agreement or farmers who have recently converted could potentially loose out and be forced to sell their Fairtrade, organic cotton on the conventional market. Most of the farms Epona works with are second or third year conversion, so we are developing a trusting relationship where the producers know they will receive the price they've been promised.

One change the farmers need to make is to form a co-operative (in this village the cooperative has 10 groups of 12 producers), where each group has its own representative.We met with the representatives to find out how converting to Fairtrade and organic has affected their lives. One of the many positive aspects of the co-operative set up is that the group is recognised by, and can borrow from, local and national banks, meaning individual farmers no longer need to borrow from unscrupulous loan sharks.We were shown their new bankbooks and there was just £10 worth of savings in the account; that's an average of 0.08p for each producer and their families. The farmers hadn't received payment for this year's Fairtrade and organic crop and it's easy to see how the higher price and additional Fairtrade premium will really make a difference to their lives. The co-operative group have decided to save the money from the premium to offer out loans and a longer-term aim is to get a fresh water supply in the village.

In India, there are still huge social problems despite the economic boom that's created a very wealthy middle and upper class. It was recently reported that 77% of India's population earn less than 20 rupees per day. To put into context, this is the equivalent of the total populations of the US, Brazil, Russia and Indonesia trying to survive on less than 20p per day. With such overwhelming poverty, it is easy to see how exploitation occurs. When people are desperate, they can be manipulated to accept unlawful working practices such as 'bonded labour', where garment workers are employed for several years with the promise of a large payout at the end (which more often than not they don't actually get). A report this year also alleged that some high street retailers are paying workers just 40p per hour for 70 hour weeks. In order to make garments using Fairtrade certified cotton, each element of the manufacturing process has to be certified by the Fairtrade Licensing Organisation (FLO). Over the last few years, Epona has worked closely with the factory to improve working conditions, and to make this easier to monitor, all aspects of the production process have been vertically integrated under one management.

Significant improvements have come about as a result of bringing the production in-house. At the spinning mill, 30 members of staff are employed, a canteen has been set up to provide free lunches and a lady is on site to provide medicine to staff if it is required. Clean, secure dorm rooms have been built for unmarried women with a communal area to relax in. This is a real benefit as there is a huge housing problem in India. Driving through the countryside in the surrounding area, it was common to see makeshift tents made from blue tarpaulin where people were living.

The factory has now set up its own dye unit outside in the shade with good health and safety equipment, and where fresh air reduces the fumes.We were shown how the water is treated and recycled and where the azo-free dyes are mixed. As water is a precious resource in the area, it is essential to re-use the water and prevent chemicals going back into the water system.

In the current retail fashion climate, seasonal purchasing means there are inevitably periods of intensive production leading up to the Spring/Summer and Autumn/Winter selling seasons. But in the promotional market production is spread throughout the year, providing steady work rather than huge peaks, where employees can be overworked, and dips, where there is the possibility that there is not enough work to go round.We've worked hard to establish good working hours and wages for staff, and a recent external audit carried out by SAVE (the Indian arm of the Clean Clothes Campaign) gave very positive feedback on the manufacturing set up.

It was amazing to visit the cotton farmers, see the production process and really understand how the ethical movement is having a direct impact on people's lives. Let's hope it keeps growing from strength to strength in 2008 and Fairtrade, organic and sweatshop free garments move from being a niche to the norm.

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