The German company, Westfalen Fabrics has a very long tradition of producing organic fabric.  Westfalen organic fabrics are compliant with Oeko-tex Standard 100.  They are free from formaldehyde, synthetic dyes and PH neutral to the skin. For other colorful organic and sustainable fabrics see:

Organic Cotton by Harmony Art Umbrella Prints Mod Green Pod

[Images courtesy of Yvonne, Bunte Fabrics LLC]

Cute and Colorful Organic Fabrics and Trim  - 34