Cotton Duty Cuts: Relief for Industry, Worry for Farmers
India’s move to waive the 11% import duty on raw cotton—extended until December 31, 2025—has divided stakeholders. Textile firms welcome the decision, saying cheaper imports help reduce costs, improve global competitiveness, and protect jobs in yarn and garment industries.
However, cotton farmers fear falling domestic prices during the harvest season. With imported cotton flooding the market, they worry about failing to receive even the Minimum Support Price (MSP), further straining already debt-ridden rural households.
Farmers argue that the policy benefits large textile corporations at their expense. Protests have erupted in regions like Gujarat and Maharashtra, where cotton is a key crop.
The government says MSP procurement through the Cotton Corporation of India (CCI) will protect farmers, but many remain unconvinced.
This growing rift highlights the classic “farms vs. firms” dilemma—balancing industrial needs with farmer welfare remains a tough policy challenge.
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