By Naysa Shrivastava
The Central Government’s recent move to abolish the 11 per cent import duty on cotton has left the owners of gin and press in Maharashtra in a state of uncertainty. The relief, which was originally till September, has now been prolonged up to December 31, 2025. The action, which has been welcomed by the textile sector for providing cheap raw material during September-October cotton sowing period, will take India’s cotton imports to an all-time high of 42 lakh bales (1 bale = 170 kg ginned pressed cotton), said the Cotton Association of India (CAI).
But Indian ginners contend that the policy is at the disadvantage of Indian manufacturers. Cotton in India is bought at the government-announced Minimum Support Price (MSP) Rs 7,710 per quintal this season which increases the end price of candy (340 kg of pressed, de-seeded cotton). Indian candy, therefore, is selling at Rs 55,000–56,000, against imported candy selling between Rs 51,000–52,000. With the waiver of duty, local candy prices have already declined by Rs 1,000 per quintal.
Pradeep Jain, founder director of the Khandesh Cotton Gin Press Factory Owners Traders Welfare Association, cautioned that the larger issue is that of farmers’ earnings. He pointed out that while gin owners and traders will definitely incur losses on account of cheaper imports, farmers will be hardest hit unless the Cotton Corporation of India (CCI) steps in early.
The warning signals are already out. In Khandesh, the Muhurt cotton trade of Rs 7,600 per quintal short of MSP opened on Thursday. Traders are apprehensive that once arrivals grow stronger, prices can slide even lower. This is despite conducive crop conditions, and no reports of heavy loss or pest infestation. Cotton sowing has been done on 108.47 lakh hectares this year, marginally down from last season’s 111.39 lakh hectares.
Farm body chief Vijay Jawandhiya has denounced the Centre’s action as “suicidal,” warning that it will grossly push farmers’ incomes back. He reminded the government of its promise that farmers shall not be allowed to suffer at the hands of such measures.
Keywords: Cotton imports, MSP, ginners, textile industry, duty waiver, CCI, Maharashtra farmers, cotton prices, CAI.