CPI Opposes Cotton Import Duty Removal, Warns Of Severe Impact On Farmers
The Communist Party of India has strongly opposed the Centre’s reported move to remove the 11 percent import duty on cotton, warning that such a decision could severely impact domestic cotton farmers and deepen the agrarian crisis.
CPI State Secretary G. Eswaraiah has urged Andhra Pradesh Chief Minister N. Chandrababu Naidu to intervene and press for the withdrawal of proposals related to cotton import duty relaxation and restrictions on cotton exports.
In a letter to the Chief Minister, Eswaraiah referred to reports indicating that Union Minister Piyush Goyal had recently discussed cotton price stabilisation measures with Union Minister Kinjarapu Rammohan Naidu, MP Lavu Sri Krishna Devarayalu and other stakeholders. The discussions reportedly included proposals to remove import duty on cotton and regulate exports.
Eswaraiah alleged that a similar decision taken in 2025 had caused heavy losses to cotton growers nationwide, with cotton prices falling sharply to nearly Rs 6,000 per quintal, significantly below the Minimum Support Price of Rs 10,075 per quintal.
He claimed the price decline had resulted in losses exceeding Rs 36,000 crore for cotton farmers, while cheaper imported cotton benefitted traders, spinning mills and textile corporations.
The CPI leader also expressed concern over losses incurred by the Cotton Corporation of India due to unsold cotton stocks following the market downturn.
Describing the proposed measures as anti-farmer and pro-corporate, Eswaraiah warned that any further relaxation of cotton import duties or export restrictions during the 2026 kharif season could intensify farmer distress and worsen the crisis in the cotton sector.
