Cotton is the backbone of India’s textile industry and the livelihood of nearly six million farmers. Recently, the government announced the suspension of the 11% import duty on cotton until September 30, 2025.

This duty was first imposed in 2021 to protect farmers when India produced more cotton than it required. But now, production has fallen sharply to 294 lakh bales, the lowest in 15 years, against a requirement of 318 lakh bales. Imports have therefore surged, rising by over 100% last year, with major supplies coming from Australia, the U.S., Brazil, and Egypt.

For textile mills and garment exporters, removing the duty means cheaper raw material and a better chance to compete globally. Without it, they faced higher costs compared to international rivals.

However, farmers are worried. Many argue that this discourages cotton cultivation, especially when they already struggle with low government support. While the Cotton Corporation of India has stepped in with MSP purchases, growers say duty-free imports reduce their incentive to farm cotton.

Experts suggest a long-term solution: adopt a stable seasonal policy, suspending duty only in non-peak months, and provide credit support for mills. This, they say, could balance both farmers’ and industry’s interests.