Cotton Imports Surge After Customs Duty Removal

22-Dec-2025 11:05 AM

Bathinda. Previously, a 11 percent customs duty was levied on cotton imports from abroad, but the government abolished it through a notification issued on August 19, 2025. This led to a rapid increase in cotton imports into the country.

Lower prices in the international market also encouraged importers to import large quantities. Although cotton prices in most wholesale markets in the country are below the Minimum Support Price (MSP), importing it from abroad is still proving economically beneficial.

In the 2023-24 marketing season, 13.20 lakh bales of cotton were imported into the country, which jumped to 41.40 lakh bales in the 2024-25 season.

Each bale of cotton weighs 170 kg. The import of large quantities of cheap cotton from abroad has caused domestic prices to fall from Rs. 57,000 per candy to Rs. 52,000 per candy (356 kg), affecting farmers' income. 

Farmers' associations and organizations have started demanding immediate government intervention in the market. It is noteworthy that even when the decision to abolish the import duty on cotton was taken, it was opposed by farmer organizations, but the government had to take that step to protect the domestic textile industry from the adverse effects of high American tariffs.

To ensure a profitable return for Indian farmers on their produce, the government agency, the Cotton Corporation of India (CCI), is aggressively procuring cotton at the Minimum Support Price.

According to official figures, between October 1 and December 8, 2025, the corporation procured 24.92 lakh bales of cotton,

which is 8.53 percent of the total estimated production of 292 lakh bales. In the entire 2024-25 marketing season, the corporation procured approximately 100 lakh bales of cotton. The procurement process is still ongoing.