Duty-Free Cotton Imports: AIKS Criticizes Impact on Farmers

New Delhi, Jun 2 (PTI) The All India Kisan Sabha (AIKS) on Tuesday criticised the Centre's decision to suspend the 11 per cent import duty on cotton for five months, alleging that the move would adversely impact domestic cotton growers and primarily benefit large textile corporations.

In a statement, the farmers' organisation said the duty exemption, effective from June 1 to October 30, could lead to the import of around 40 lakh bales of cotton and put downward pressure on domestic prices at a time when farmers are preparing for the sowing season.

The AIKS alleged that the BJP-led NDA government had "capitulated before big business interests" and sacrificed the interests of cotton cultivators. It claimed the move reflected a policy preference for trade liberalisation over the protection of domestic agriculture".

The organisation noted that cotton prices had improved between February and April this year after a prolonged period of volatility and losses for farmers. However, prices reportedly fell by around 3 per cent following the announcement of the duty waiver, triggering concerns among growers about fresh losses.

Questioning the rationale behind the decision, the AIKS said there was no conclusive evidence of a severe shortage of cotton in the country and claimed that industry representatives had acknowledged that domestic availability remained adequate.


The farmers' body also expressed concern that the timing of the decision coincided with the May-June sowing season, when cultivators make substantial investments in seeds, fertilisers, pesticides and labour amid rising input costs.

According to the AIKS, the move could also affect the functioning of the Cotton Corporation of India (CCI), which procures cotton from farmers at the minimum support price (MSP). It said a decline in market prices due to imports could force the agency to dispose of stocks at lower rates, weakening farmer-support mechanisms.

The organisation further argued that a weaker rupee and increasing climatic uncertainties, including the possibility of El Nino-related weather disruptions, were adding to the challenges faced by cotton growers. More than 65 per cent of India's cotton cultivation is rain-fed, it said.

Calling the decision "anti-farmer", the AIKS demanded that the government focus instead on ensuring remunerative prices, strengthening procurement, improving storage infrastructure and protecting farmers from market and climate-related risks.

The organisation also urged cotton farmers and agricultural workers to intensify protests against the suspension of the import duty.