Cotton famously called “white gold” is the backbone of India’s textile industry and the livelihood of millions of farmers. Kapas ki Kheti (cotton farming) not only drives rural income but also contributes significantly to exports and industrial growth. But recently, the government announced a duty waiver on cotton imports, which has sparked mixed reactions while the textile sector welcomed it, farmers see it as a threat to their income. Let’s break down the policy, its impact, and what farmers across India are saying.
The Role of Cotton Farming in India
Cotton farming, or Kapas ki Kheti, shapes India’s agricultural and industrial landscape. Farmers cultivate the crop on more than 100 lakh hectares, mainly in Maharashtra, Gujarat, Telangana, and Punjab, making India one of the world’s largest cotton producers. Cotton is not just an agricultural commodity but the backbone of India’s textile industry, which employs millions of people and contributes significantly to exports.
Spinning mills, weaving units, and garment manufacturers consume nearly 95% of the cotton produced in India, making it a critical raw material for the economy.
For farmers, cotton is a high-value cash crop that provides livelihoods to millions of rural households. However, the crop is also highly sensitive to policy decisions, global price fluctuations, and climatic challenges.
Thus, cotton farming in India is both an economic driver and a symbol of the deep connection between agriculture and industry, shaping the livelihoods of farmers while fueling one of the largest textile markets in the world.
Government’s New Policy: Cotton Import Duty Waived
In August 2025, the Indian government announced a major policy decision by waiving the 11% import duty on raw cotton, which earlier included Basic Customs Duty, AIDC, and a Social Welfare Surcharge.
The government initially planned the exemption to end on September 30 but later extended it until December 31, 2025. The primary aim of this move was to ease raw material costs for textile mills, support exporters facing steep U.S. tariffs, and maintain India’s competitiveness in the global textile market. The textile industry welcomed the decision and immediately gained from cheaper imports, higher profit margins, and renewed export opportunities.
However, the policy has also sparked strong criticism from cotton farmers and unions, who argue that an influx of duty-free imports will depress domestic prices and push them below the government’s Minimum Support Price (MSP). While the industry celebrates reduced costs, farmers fear this decision could severely affect their income and long-term sustainability of Kapas ki Kheti (cotton farming) in India.
Industry Reaction: A Big Relief
The textile and garment industry has strongly welcomed the government’s decision to waive the 11% import duty on cotton, calling it a much-needed relief at a time of rising global competition. Mills and exporters have gained immediate benefits through lower raw material costs, which reduce production expenses and help Indian textiles remain competitive in international markets. Many companies quickly placed large import orders, and estimates suggest that imports may touch 4.2 million bales this season under the duty-free regime. The positive impact was also reflected in the stock market, with major players like Vardhman Textiles witnessing a surge of nearly 9% in share value. Industry leaders believe this move will boost exports, protect jobs, and strengthen India’s textile value chain, even as farmers continue to voice their concerns.
Farmers’ Reaction: Strong Opposition
While the textile industry celebrated the cotton import duty waiver, farmers’ reaction has been one of strong opposition and deep concern. Across key cotton-growing states such as Maharashtra, Gujarat, and Telangana, farmers reported that mandi prices dropped below the MSP of ₹8,110 per quintal, with many receiving only ₹6,500–₹7,000 per quintal. Farmer unions, including the Sanyukt Kisan Morcha (SKM), condemned the move, calling it a “death warrant for cotton growers” and accusing the government of prioritizing industrial interests over rural livelihoods.
The Bharatiya Kisan Sangh (BKS)also urged the Finance Ministry to revoke the policy, warning that continued cheap imports could make India dependent on foreign cotton. Protests and demonstrations have been staged in several cotton belts, with farmers demanding strict MSP enforcement and protection from imported cotton undercutting their produce. For many growers, the timing of the decision right at the start of the harvest season felt like a direct attack on their income, worsening the uncertainty already faced in Kapas ki Kheti cotton farming
Protests by Farmer Unions
The government’s decision to waive the cotton import duty has triggered widespread protests by farmer unions across India’s cotton belts. The Sanyukt Kisan Morcha (SKM) was among the first to raise its voice, calling the policy a “death warrant for cotton farmers” and organizing rallies in Maharashtra, Gujarat, and Haryana. Farmers blocked roads, burnt effigies, and staged demonstrations at district headquarters, demanding the immediate rollback of the duty exemption.
The Bharatiya Kisan Sangh (BKS), which usually supports government policies, also opposed the move and submitted memorandums to the Finance Ministry, warning that the decision would make India increasingly dependent on imported cotton and devastate rural incomes. Many unions have demanded strict MSP enforcement and ban on cotton imports during the harvest season, arguing that the timing of the waiver is disastrous. These protests highlight the growing anger among farmers, who feel that policies are being framed to protect the textile industry at the expense of those engaged in Kapas ki Kheti (cotton farming
Digital Procurement: Kapas Kisan App
To bring transparency in cotton procurement and ensure farmers get the Minimum Support Price (MSP), theCotton Corporation of India (CCI) recently launched the Kapas Kisan App. The app is designed to help farmers digitally register their produce and sell directly to CCI procurement centers without depending on middlemen. Registration began on September 1, 2025, and procurement operations started from October 15, 2025. Through this digital system, farmers can check procurement schedules, upload details of their cotton crop, and receive payments directly into their bank accounts. The government claims this step will make Kapas ki Kheti (cotton farming) more profitable by cutting delays and ensuring transparency in the entire process.
Price Impact & Market Dynamics
The removal of cotton import duty has had an immediate and visible impact on market prices. Within days of the announcement, domestic cotton rates fell by nearly ₹2,500 per candy (356 kg), dropping to around ₹55,000 per candy in several mandis. This sharp decline has directly affected farmers, as the rates they receive in local markets are now well below the MSP of ₹8,110 per quintal. Private traders and mills are increasingly preferring imported cotton from countries like Australia and Brazil, citing both better fiber quality and lower prices. As a result, farmers in states such as Maharashtra and Madhya Pradesh have been forced to sell their cotton for as low as ₹6,500–₹7,000 per quintal, creating frustration and financial stress.
Production Outlook for 2025
- The Cotton Association of India (CAI) estimates production at 311.4 lakh bales for 2024–25.
- While acreage is shrinking, yields are improving thanks to hybrid seeds and better irrigation.
- Still, heavy reliance on imports may undermine domestic cotton farming in the long run.
Pros and Cons of the Duty Waiver
| Stakeholder | Benefits | Challenges |
| Textile Industry | Lower costs, competitive exports, global demand met | Dependency on imports may rise |
| Farmers (General) | MSP available via CCI | Market prices below MSP, loss of income |
| Punjab Farmers | Subsidy, diversification, better profitability | Long-term stability needs government backing |
Farmers’ Voices: What They Are Saying
Farmers across cotton-growing states have reacted with anger and disappointment to the import duty waiver, saying it has pushed mandi prices below the MSP of ₹8,110 per quintal. Many are selling at just ₹6,500–₹7,000 per quintal, which barely covers their costs. Farmer unions call the move “anti-farmer”, while cultivators from Vidarbha and Gujarat say imported cotton is being preferred over their own produce. Their demand is clear: strict MSP enforcement and protection from cheap imports to keep Kapas ki Kheti (cotton farming)viable.
Final Thought
The government’s cotton import duty waiver highlights a sharp divide:
- For the textile industry, it is a lifeline that reduces costs and supports exports.
- For farmers, it has meant plummeting prices, weaker demand, and financial distress.
The cotton import duty waiver has created a divide a relief for the textile industry but a setback for farmers, who face falling prices and shrinking demand. Yet, Punjab’s cotton revival shows that with subsidies, diversification, and digital support, Kapas ki Kheti (cotton farming) can remain sustainable. Going forward, India needs a balanced policy that protects farmers while keeping textiles globally competitive.