Andhra Pradesh: Cotton farmers shocked by removal of import duty
2025-09-06 11:36:39
Andhra pradesh : cotton farmers hit hard by Centre’s duty lift on imports
Vijayawada: Cotton farmers in Andhra Pradesh are facing fresh uncertainty following the Centre's decision to lift import duties on cotton. With mills expected to import large volumes in the coming weeks, growers fear a sharp drop in domestic prices during the upcoming season.
Andhra Pradesh ranks among the top cotton-producing states in India, after Gujarat, Telangana, and Maharashtra. While the Centre's move aims to ease the US-imposed tariff burden on the textile industry, it has come as a blow to farmers already grappling with years of low market prices.
Despite the Cotton Corporation of India (CCI) entering the market, its stringent procurement rules have failed to support growers over the past two years. Farmers have been forced to sell to middlemen at Rs 4,000–Rs 5,000 per quintal — far below the Centre's declared Minimum Support Price (MSP) of Rs 7,110.
In anticipation of further market distress, the Centre has increased the Minimum Support Price (MSP) for the 2025–26 cotton season, raising the rate for medium staple cotton from Rs 7,121 to Rs7,710 and for long staple cotton from Rs 7,521 to Rs 8,110.
However, CPM leader P Ramarao criticized the removal of import duties, warning it would depress domestic prices and deepen farmer debt.
Industry analysts echoed the concern, calling the decision a "knee-jerk reaction" that benefits textile exporters at the cost of cultivators.
With the kharif harvest approaching, farmers fear the market will be flooded with cheaper imported cotton. Many worry that CCI may delay procurement to minimize its own losses, leaving growers vulnerable.
"Duty-free imports will flood the market and crush prices. Farmers who've already invested heavily will face severe financial strain," said former MP M Venugopala Reddy. He warned that the decision could worsen distress and trigger more suicides among AP's cotton-growing communities.
