# Why Removing Cotton Import Duty Now Could Hurt India More Than It Helps

Mr Manish Daga, President, All India Cotton Farmer Producer Organisation Association and MD of Cotto
At first glance, removing cotton import duty may seem like a practical step. It can offer short-term relief to spinning mills by lowering raw material costs and easing pressure on the textile value chain. 

But policy decisions in cotton cannot be judged only by what helps mills today. They must also be judged by what they signal to farmers tomorrow. 

If import duty is removed during the current season, the biggest risk is not only cheaper imports. The bigger risk is weaker farmer confidence. 

Cotton farmers are already dealing with rising cultivation costs, climate uncertainty, and unstable returns. In many cases, they do not fully benefit even when prices improve, because they are forced to sell early due to urgent cash needs, debt repayment, and limited 
storage options. If, after all this, policy opens the door to cheaper imports just when domestic prices begin to strengthen, the message to farmers is deeply discouraging: whenever the market turns in their favour, that upside may not last. 

That kind of signal can affect more than sentiment. It can influence sowing decisions, reduce willingness to invest in cotton, and weaken the long-term confidence needed to sustain India’s fibre base. 

This is why the debate is bigger than import duty alone. It is about how India balances the interests of farmers, mills, and the wider cotton economy. 

A healthy textile sector is important. Mills do need support when input costs rise and market demand remains weak. But that support should not come at the cost of undermining cotton growers and the rural economy built around them. Farmers, ginners, and the domestic cotton value chain should not bear the burden of solving industrial stress alone. 

A better approach is balanced support. 

If relief is needed for the textile industry, the government can consider targeted measures such as interest subsidy, power tariff relief, export incentives, technology upgradation support, and faster implementation of a well-designed **Bhavantar Yojana**. This can protect farmer interests while also ensuring smooth cotton fibre flow in the market. 

That is the real policy need today: not a choice between farmers and mills, but a framework that protects both. 

Cotton is not just a raw material. It is the livelihood base of millions, the backbone of rural trade, and the foundation of India’s textile strength. If India wants true fibre security, it must begin by protecting the confidence of those who grow that fibre. 

Because in the end, a strong cotton economy cannot be built by weakening the farmer. 
#cottonguru
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