Centre’s Import Duty Waiver On Cotton Plunges Local Farmers Into Despair

Bhaurao Bende’s father, and his father’s father grew cotton on the Bende family’s two-acre plot of land. The 28-year-old had thought he would follow in their footsteps. But, he had to give up this dream to become a security guard in Pune. The 28-year-old from Hingoli, Maharashtra, gave up his family business of cotton farming as it did not yield enough income to support his family of four.

“Despite good yields, we rarely get the promised MSP. Government import–export policies hit cotton sales, we are unable to recover even input costs and are trapped in debts. Therefore, I offered my land to a villager for cultivation and I had to migrate to Pune for work." says Bende.

Despite Bende’s education and efforts, government policies, such as the cotton import duty waiver, have exacerbated his family's poverty and making a living off farming has become “impossible,” he adds.

Bende, like many Maharashtra farmers, worries if he will get a fair price for cotton when the Cotton Corporation of India procurement centres open on October 15. The government’s full waiver of the 11 percent import duty on cotton, now extended to December 2025, was billed as a revival measure for the textile industry. Yet for farmers like Bende, it intensifies financial insecurity by threatening already low incomes. This illustrates how a policy favouring industry directly worsens the livelihoods of cotton growers.

Cotton has been a vital Indian cash crop since the Indus Valley civilization. During British rule, the textile industry flourished, and Mumbai was once a textile hub with over a hundred mills.

Cotton, or 'white gold,' is grown in ten states, with Maharashtra leading at 20 percent. Last year's minimum support price was Rs. 7,521 per quintal, and it has been raised to Rs. 8,110 this year. Despite this, with the duty waiver, India will import huge volumes from countries like the US, Brazil, and Australia.

“Huge imports of cotton will be cheaper than domestically grown cotton, leaving farmers without fair prices and worsening their hardships,” says Pune-based agro-economy scholar Dr. Sominath Gholve.

“As imported cotton undercuts local produce, textile entrepreneurs will naturally prefer cheaper imports. While the industry profits, farmers will sink deeper into debt. Government policies favour industrialists and the middle class rather than farmers,” adds Dr. Gholve.

Cotton farmers already face spiralling production costs. Seeds, fertilisers, pesticides, labour for picking, storage after harvest, and transport all drive up expenses. Yet income and MSP have not kept pace.

“GST has made everything costlier—seeds, fertilisers, labour. Picking charges doubled to Rs. Eight to nine per kilo, and yields dropped to about 8–9 quintals per acre. After a year of work, we earn only Rs. 84,000—around Rs. 7,000 monthly. If imports keep rising, how will cotton farmers survive?” asks Bende.

Years of such challenges forced Bende’s family to reduce their cotton acreage nearly a decade ago. Today, they are forced to grow turmeric alongside cotton to make a living. The cotton stalks are reused as organic matter for the cultivation of turmeric. Many farmers in his village, Palsi in Vasmat taluka of Hingoli district, have made similar shifts. However, this is only possible in regions with sufficient water. In large parts of Marathwada and Vidarbha, farmers have no such options.

The crisis is visible in grim statistics: between January and March 2025 alone, 269 farmers in Marathwada died by suicide. The government has admitted in Parliament that suicides have risen over the past three years. The Marathi film Sthal (Marriage Proposal), released in 2025, directed by Jayant Somalkar, powerfully portrays the plight of cotton farmers—their indebtedness, crop failures, adverse climate, and the social consequences, including families unable to educate their daughters and instead marrying them off early. Politically, too, the anger of cotton farmers has had an impact: in the 2024 Lok Sabha elections, cotton farmers in Vidarbha voted overwhelmingly for the INDIA alliance, helping it win 30 of Maharashtra’s 48 seats.

Farmers’ Protests Against Import Policy

The Sanyukta Kisan Morcha (SKM) called for nationwide protests against the cotton duty waiver between September 1 and 3, 2025. Farmers responded by burning copies of the waiver notification. The SKM has also announced upcoming marches to MPs’ offices and state-level agitations.

“Despite intense opposition in cotton-growing regions, the finance ministry has extended the duty waiver till December 31, 2025. In the name of addressing export crises, the Modi government is allowing monopoly textile traders and industrial houses to loot cotton farmers,” said Rajan Kshirsagar of the All India Kisan Sabha.

Over the past 11 years, the Cotton Commission of India - CCI (government undertaking for marketing of cotton) has purchased less than 13 per cent of India’s total cotton output, forcing farmers to sell 87 per cent in the open market at distress prices, SKM points out. Cotton exports to the US account for only six per cent of India’s textile exports and less than 1.5 per cent of the domestic textile industry’s total value. In 2024, India’s textile and apparel industry was worth Rs. 15.13 lakh crore, of which Rs. 12.34 lakh crore was the domestic market.

By denying farmers a profitable MSP of Rs. 10,075 per quintal, as demanded, nearly 60 lakh cotton farmers across the country have already suffered losses estimated at Rs. 18,850 crore, SKM says.

Farmer unions have long demanded MSP based on the Swaminathan Commission’s formula of C2+50 per cent, which covers all production costs (including seeds, fertilisers, implements, land rent, capital investment, including interest, and family labour) plus 50 per cent profit. “At present, MSP is not calculated on this basis, nor is inflation accounted for,” said Dr. Gholwe.

“The government should not permit cheap imports under the pretext of promoting the textile sector, as this will destroy cotton farmers. Instead, cotton should be supplied at subsidised rates to MSMEs, especially the handloom and powerloom sectors, enabling them to compete in export markets and boost domestic trade,” SKM recommends.

Mounting Struggles of Cotton Farmers

For over a decade, cotton crops have been plagued by bollworms and other pests, while climate change has exacerbated yield losses. Moreover, currently available seed varieties are ill-equipped to address these challenges, according to farmers and researchers.

“There has been no research to develop seed varieties capable of withstanding current challenges,” says Dr. Gholve.

Farmers must rely on CCI procurement centres opening from October 15. This year, CCI prices are especially low, says Rajan Kshirsagar of AIKS. Cotton is often rejected if moisture content exceeds 15 percent, and weight and price irregularities occur. Payments are by cheque, allowing banks to deduct loans first. What remains must cover family needs and next season’s costs, forcing many back into debt.

Bende’s mother was recently diagnosed with cancer. Although treatment under the state health scheme covered part of the cost, he had to borrow Rs. two to two and a half lakh at a three percent interest rate from a fellow farmer to cover additional expenses not included in the scheme.

“Banks won’t give us crop loans beyond Rs. 20,000–30,000. Private loans are unavoidable, with interest rates of five percent or higher. We were lucky to get a three percent interest rate only because we work on another farmer’s land under a tenancy. However, with this new import policy, the debt burden will be crushing. When imported cotton sells at a lower price in the market, who will buy ours? I had no choice but to move to Pune for work,” Bende says, his voice heavy with frustration.

For Bende and countless small landholder farmers like him, financial distress erodes not only their livelihoods but also their families' education and health. As a member of the Maratha community, he argues that farmers like him need reservations in education and jobs. Though he earned his MA degree via distance learning from Swami Ramanand Teerth Marathwada University, he feels it does not equip him for professional jobs.

Another challenge faced by cotton farmers is storing cotton. Many try to delay selling their crop, hoping for better prices later. However, cotton is highly flammable and easily damaged by rain, dew, or other forms of moisture. Safe storage requires permanent, enclosed structures—facilities most smallholders cannot afford. “When two-room houses barely keep a roof over our heads, where can we store cotton?” farmers ask. Until solutions are found, the harvest remains exposed, and their hopes for better returns are left vulnerable to the elements.