Maharashtra: Cotton Import Policy Raises Farmers' Concerns; Fears of Pressure on Prices
Duty-free import period extended until December 31, 2026; hopes for better prices dampened amidst declining production and rising costs.
In major cotton-producing states, including Maharashtra, crops have suffered damage due to natural disasters. Despite this, the central government has extended the period for duty-free cotton imports until December 31, 2026. This decision has heightened concerns among farmers, who fear that continued imports—even as domestic production declines—could exert downward pressure on cotton prices.
Cotton production has been impacted this year in Maharashtra, Karnataka, Telangana, and Andhra Pradesh. Industry estimates suggest that domestic production for 2025-26 will be around 28 million (280 lakh) bales, while consumption is projected at approximately 36 million (360 lakh) bales. During the same period, cotton imports are expected to reach around 7.2 million (72 lakh) bales. These are industry projections, and actual figures may vary.
Due to the decline in production, farmers had hoped for better prices; in some markets, cotton prices had already reached ₹10,000 per quintal. However, the extension of the duty-free import period is likely to limit any further rise in domestic market prices. The combination of lower yields and increasing production costs could negatively impact farmers' profit margins.
The average cotton productivity in India is approximately 430–440 kg per hectare, compared to a global average of about 815 kg per hectare. Improving productivity will require the adoption of better seeds, agricultural research, and technologies tailored to local conditions.
According to industry sources, cotton imports may remain limited to around 2.5 million (25 lakh) bales through December, influenced by factors such as international prices, import costs, and the weakening of the rupee. Nevertheless, the extension of the import window could increase pressure on the domestic market. Farmers demand that duty-free imports not be extended and that policies promoting domestic cotton production be adopted. The government should prioritize the interests of cotton producers alongside the needs of the industry.
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