SKM called eliminating the 11% duty on cotton imports a death warranty to cotton farmers and accuses PM Modi of duplicity and betrayal.

Groundxero | Aug 19, 2025

The Sanyukt Kisan Morcha (SKM), a platform of farmer unions, has strongly protested the union government’s decision to withdraw the 11% import duty on cotton with immediate effect. SKM called scraping duty on cotton imports a death warranty to cotton farmers.

A notification eliminating tariff on cotton imports was issued by the union finance ministry on Monday and it came into effect from toady 19th August 2025 and shall remain in force up to and inclusive of September 30.

The Union government has said that the “elimination of import duty on cotton as well as Agriculture infrastructure Development  Cess (AIDC) is necessary in the public interest” to overcome the impact of the 50% tariff imposed on export of goods from India to the USA. The move is been justified as necessary to protect the domestic manufacturers in the textile sector which is largely dependent on exports to the USA market.

“The elimination of import duty will have direct impact in the domestic price of cotton. Cotton price will definitely fall and farmers will face further distress and indebtedness,” SKM stated in a press release accusing the Prime Minister Narendra Modi of duplicity and betrayal of farmers’ interest.

SKM claimed that cotton farmers are not given the Minimum Support Price (MSP)@C2+50% being demanded by the farmers. The MSP announced by the Commission for Agriculture Cost (CACP) for Khariff crops in the year 2025 for cotton is Rs.7710 per quintal, which is less by Rs.2365 compared to Rs. 10075 per quintal — the MSP if it was calculated based on the C2+50% formula.

In India, the area under cotton cultivation is around 120.55 lakh hectares, which represents about 36% of the world’s total cotton area. The country is the world’s largest in terms of cotton acreage. Among the states, Maharashtra has the largest area dedicated to cotton cultivation, followed by Gujarat and Telangana. Approximately 67% of India’s cotton cultivation relies on rain-fed areas.

The entire cotton growing area is the highest peasant suicide prone region of India. Specific to cotton farmers, issues like the high cost of Bt cotton seeds, susceptibility to pests (like the pink bollworm), and price fluctuations in the global market has contributed to their vulnerability. The elimination of import duty on cotton will depress the prices of cotton in the domestic market and further endanger the livelihood of lakhs of cotton-farmer households, said SKM.

The PM did not fulfill the promise made in the 2014 election manifesto of BJP of Minimum Support Price @ of C2+50% for all crops with guaranteed procurement as recommended by MS Swaminathan, chairman of National Farmers Commission. The lack of remunerative prices and spiraling input costs have put Indian agriculture in an acute crisis. Farmers are facing abysmal indebtedness and distress migration is rampant. As per the government data, daily 31 farmers commit suicide in India. The farmers are demanding debt relief scheme but in contrast, corporate debt amounting to Rs.16.11 lakh crore has been waived during the last 11 years by the Modi government.

The textile industry is for long demanding removal of import duty on cotton so that domestic prices of cotton allign with international prices. The industry has naturally welcomed this move of the government. The 50% tariff story is also not true. The additional 25% tariff annouced by President Trump as penalty for India buying Russian crude is to become effective only from 27 August. With a peace treaty on Ukraine under negotiation with Putin, sanction on Russia are most likely to be withdrawn.

SKM called this step as betrayal of the Prime Minister’s rhetoric of giving “welfare of the farmers highest priority” in the trade deal negotiations with the USA. The statement in the context of US Tariffs being raised to 50 % and arm-twisting for a bilateral Free Trade Agreement (FTA) is an attempt to find favour with the farmers.

But for the last three decades, advocates of trade liberalisation patronised by this government have pushed the false promise that export opportunities would benefit Indian farmers while progressively opening Indian markets to agricultural imports from developed countries. This is clear from the government’s policy of increased import dependence for edible oils, pulses, fruits, rubber and many other commodities including cotton. The ASEAN FTA has devastated the cash crop sector especially natural rubber, tea and coffee. FTAs has the potential to open the Indian economy to the vagaries of international trade and speculation and endangering peasantry and the entire working people to face the intensifying agrarian crisis and domination of foreign agri-business on the domestic industry. Imports at zero duties will lead to price crash for Indian farmers and not ensure remunerative prices for farm products.

The need of the hour is to rebuff the anti- people Modi Government that compromises and fails to resist the bullying by the US Imperialism. SKM and several farmer organisations had consistently demanded the Union government must table the details of negotiations in Parliament and no FTA should be signed without the House’s approval.

The SKM has called upon cotton farmers all over India to hold village level meetings and adopt resolution and send it to the Prime Minister Modi urging him to withdraw the notification immediately and announce MSP@C2+50% for cotton at the rate of Rs.10075 per quintal and keep the promise to farmers made in the manifesto of BJP in 2014 General election.