Farmer Groups Oppose Abolition of Cotton Import Duty, Raise Concerns

Farmer organizations have opposed the central government’s decision to abolish the 11 percent import duty on cotton from August 19. Terming the move as anti-farmer, they have demanded the government to roll it back. The All India Kisan Sabha issued a statement saying this step is against the interests of farmers. Meanwhile, the Samyukt Kisan Morcha (SKM) will hold a press conference in New Delhi on August 25 to reveal its further strategy and build pressure on the government over the issue.

Raju Shetti, president of Swabhimani Shetkari Sanghatana and former Member of Parliament, told Rural Voice that this decision is detrimental to the interests of cotton-growing farmers. On this matter, he has written a letter to Prime Minister Narendra Modi demanding the withdrawal of the government’s decision to abolish the import duty. According to Shetti, since the removal of the import duty, cotton prices have fallen by ₹1,100 per candy. He also pointed out that while PM Modi had spoken about protecting farmers’ interests from the Red Fort on August 15, just three days later, on August 18, the government issued a notification abolishing the cotton import duty.

The All India Kisan Sabha has said that the immediate impact of this decision will be very serious because farmers in most cotton-producing regions of the country had already sown their crops two months ago. They had invested heavily in anticipation of a fair price for their produce. The government’s decision has come at a time when farmers are preparing to harvest their crop. India’s cotton-producing regions are already infamous for agrarian distress and farmer suicides. This decision will push farmers deeper into debt and worsen their financial condition.

Farmer leader and former president of Shetkari Sanghatana, Anil Ghanwat, also told Rural Voice that the government’s decision is against farmers’ interests. He said that duty-free imports would also include medium and short staple cotton, which is likely to cause a further decline in prices. Therefore, the government should withdraw this decision and must not extend it beyond September 30.

Farmer organizations said that imports during this 40-day period will lead to a fall in cotton prices in the country, which will in turn affect the upcoming crop. Hence, they have demanded that the government must ensure procurement of the entire crop at MSP. Meanwhile, industry sources have confirmed that cotton prices have already started to fall after the announcement of duty abolition.

On August 18, the central government issued a notification abolishing the 10 percent import duty on cotton as well as the additional 10 percent agriculture infrastructure cess. The effective import duty was 11 percent. According to the finance ministry’s notification, duty-free cotton imports have been allowed from August 19 to September 30, 2025.

The textile sector had been demanding relief from the government following the Trump tariffs. With the imposition of a 50 percent tariff on Indian exports by Trump, the textile sector feared severe consequences. Industry representatives said that after this tariff, their products would no longer remain competitive.