AIKS Opposes Duty-Free Cotton Imports, Says Move Could Impact Small Farmers

Farmers’ body raises concerns over suspension of 11 per cent cotton import duty from June 1 to October 30 and its potential effect on domestic prices and growers.

The All India Kisan Sabha (AIKS) has expressed opposition to the Union Government’s decision to suspend the 11 per cent import duty on cotton for the period from June 1 to October 30.

In a joint statement, AIKS President Ashok Dhawale and General Secretary Vijoo Krishnan said the decision could place lakhs of cotton farmers and workers at risk. They stated that farmers are already facing exploitation and alleged that the government’s move prioritises trade liberalisation and free trade commitments over the interests of Indian farmers and national agricultural priorities.

According to the statement, India could import around 40 lakh bales of cotton during the five-month duty-free window. AIKS said such imports could adversely affect domestic cotton prices and increase dependence on imports rather than encouraging self-reliance.

The organisation noted that cotton prices had increased between February and April 2026 following several years of unstable prices, rising cultivation costs, and repeated losses faced by farmers. However, it said prices declined by 3 per cent shortly after the duty exemption was announced.

AIKS argued that farmers could once again bear the burden of protecting industry profits. The statement also said there is no clear empirical evidence indicating a serious cotton shortage in the country.

The statement further said, “In this situation, opening the door to cheaper imports exactly during the sowing season of May-June sends a distressing signal to farmers who are making major investments in seeds, fertilisers, pesticides, and labour, the costs of which are rising hugely. The majority of Indian cotton farmers are small and marginal and receive negligible state support when compared to American or Australian farmers. The suspension of the import duty may also hurt the Cotton Corporation of India (CCI), which has already bought cotton from farmers at MSP.”