Cotton Farmers Oppose Import Duty Removal, Cite Economic Risks

Quick Summary

• Policy Change: The Union government removed the 11% import duty on cotton from August 19 to September 30,citing benefits for public interest and agricultural development.
• Reactions from Farmers: The Andhra Pradesh Tenant farmers Association called this decision a “severe blow” to India’s cotton growers.
• Concerns Raised:

– Fear of market manipulation by importers/traders using cheaper foreign cotton stockpiles during the Indian harvest in October.
– Potential negative impacts such as depressed domestic prices,increased farmer debt,and higher suicide rates among small and marginal tenant farmers.
– Criticism of this year’s Minimum Support Price (MSP) for cotton-₹7,710 per quintal-as inadequate compared to the ₹10,075 recommended under the C2+50% formula.

• Appeals Made by Farmers’ Associations: Demands include restoration of import duties, ensuring MSP at C2+50%, and active intervention by Cotton Corporation of India (CCI) to purchase domestic cotton.

Indian Opinion Analysis

The central government’s removal of import duties on cotton poses notable challenges for India’s domestic agriculture sector.while intended as an infrastructural benefit or public-interest move, critics point out possible unintended consequences that may disproportionately harm tenant farmers, notably those reliant on October harvests. If foreign imports depress domestic prices further amid already insufficient MSP levels, vulnerable farming groups could face severe financial destabilization.

Given that Andhra Pradesh alone has approximately 15 lakh acres dedicated to cotton farming-the livelihoods of numerous families are intertwined with equitable market conditions. The call for reforms like a higher MSP based on the recommended C2+50% formula reflects broader demands within India’s agricultural landscape seeking stability against fluctuating global markets. Active participation from entities like CCI in purchasing local produce could mitigate potential fallout while promoting farmer welfare.

Policymakers must carefully evaluate measures balancing global trade incentives with sufficient safeguards ensuring rural sustainability-a domain critical not just economically but socially due to its impact on marginalized communities.

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