Farmers Fear Losses as Cotton Prices Plunge Amid Policy Shift
NEW DELHI
Aam Aadmi Party (AAP) chief Arvind Kejriwal on Sunday accused the Modi government of betraying farmers by “secretly” removing the 11% import duty on US cotton. Addressing a press conference in Ahmedabad, the former Delhi chief minister warned that the move would push Indian cotton growers into a severe crisis, even risking farmer suicides.
Kejriwal explained that farmers had already sold their produce in June-July and borrowed money to sow the next crop. Their harvest, expected in October-November, was sown with loans taken for seeds, fertilizers, and labor. “Farmers believed they would get fair prices during harvest. But with the Centre’s decision, American cotton will now be ₹15–20 cheaper per kilo, leaving Indian cotton unsold,” he said. He alleged the government’s decision was taken without transparency and in favor of corporate interests, while farmers were left to suffer. “The Modi government has stabbed farmers in the back. Now, god forbid, many may be forced into suicide,” he added.
The Ministry of Finance, however, defended the move. In a press release, it said the decision to exempt duty on cotton imports from August 19 to September 30 was aimed at ensuring sufficient supply for the domestic textile industry. It further announced the exemption had been extended until December 31, 2025, to support exporters and stabilise prices.
The issue is expected to spark sharp political debate, with opposition parties projecting the measure as anti-farmer, while the government argues it is necessary to safeguard India’s textile sector.