India has shown flexibility on cotton imports. Now the U.S. must do the same
2025-09-01 14:41:33
India opened cotton import, now it's America's turn
India has allowed duty-free import of cotton until December 31, 2025. This “temporary” exemption from the earlier 11% duty comes at a time when domestic production of cotton in 2024–25 (October–September) is projected to fall to 31.14 million bales, compared to 33.65 million bales in the previous marketing year and the all-time high of 39.8 million bales in 2013–14. But it is not just lower output – a 2.6% drop in the sown area during this kharif season – that may have prompted the Narendra Modi government’s decision. The move also sends a significant signal to the U.S., where the value of cotton exports has dropped from $8.82 billion in 2022 to $4.96 billion in 2024, mainly due to reduced Chinese purchases (down from $2.79 billion to $1.47 billion). With China slashing imports further to just $150.4 million during January–June 2025, the market impact has been severe.
No surprise then that the U.S. wants other countries to buy more. Vietnam, Pakistan, Turkey, and India have all stepped in. India alone imported $181.5 million worth of U.S. cotton in January–June 2025, compared to $86.9 million in the same period of 2024. With duties removed, imports are set to accelerate. The U.S. Department of Agriculture has welcomed this move. The department sees it not only as boosting U.S. cotton bookings but also as helping Indian textile exporters access cheaper and contamination-free fiber. The agency claims that nearly 95% of imported U.S. cotton is processed and then re-exported as yarn, fabric, and apparel. But above all, in this otherwise disappointing phase of Delhi–Washington ties, the development is encouraging. Keeping trade talks frozen serves neither side. By making cotton imports duty-free and improving raw material availability for its textile industry, India has shown a willingness to negotiate and flexibility. Now the U.S. must reciprocate by scrapping its unfair and irrational 25% “penalty” on India’s imports of Russian crude oil.
However, there is another side to the story. After the introduction of genetically modified Bt hybrids, which raised average lint yields from 302 kg to 566 kg per hectare between 2002–03 and 2013–14, Indian cotton farmers have been left without access to any new crop technology. Since then, yields have dropped to below 450 kg, while cotton has become vulnerable to so-called secondary pests like pink bollworm and whitefly, as well as boll rot fungal pathogens. The lack of investment in breeding research and development is reflected in the record 3.9 million bales of imports projected for 2024–25. This double blow of import dependence and technology denial has also been seen in mustard and soybean. The Indian farmer can compete – and should be enabled to do so – but not with hands tied behind his back.
