Farmers Fear Price Drop Due to Potential Extension of Duty-Free Cotton Imports
Amidst cotton crops being affected by scanty rainfall and drought-like conditions, farmers in Vidarbha hope the government will not extend the duty-free cotton import arrangement beyond October 31. Farmers fear that if duty-free imports continue and the influx of foreign cotton rises, it could exert downward pressure on domestic cotton prices. Arrivals of the new cotton crop are expected to begin by mid-October.
Cotton imports into India are currently permitted duty-free until October 31. The textile industry is demanding an extension of this period, arguing that rising cotton prices are increasing production costs and could impact mill operations. Conversely, farmers and agricultural experts believe that continued duty-free imports could weaken domestic cotton prices.
A significant portion of cotton cultivation in Vidarbha relies on rainfall. In Yavatmal district alone, cotton is cultivated over an area exceeding 4.5 lakh hectares. Reports assessing the drought situation indicate that the growth of cotton plants has been hampered by a lack of rain and heat stress. Instances of boll shedding have also been reported in several areas.
According to farmers, a healthy plant typically bears around 40 to 50 bolls, but in many fields, this number has dropped significantly. Shantanu Thakre, a farmer from the Arni tehsil of Yavatmal, stated that his plants are left with barely 10 to 12 bolls each. He added that there is little expectation for a substantial second picking, and future pickings could also be affected by weather conditions.
According to the International Cotton Advisory Committee (ICAC), India's lint yield—the cotton fiber remaining after seeds are removed—is projected to be approximately 431 kilograms per hectare. In comparison, the yield is estimated to be around 2,200 kg per hectare in Brazil and approximately 1,700 kg per hectare in Uzbekistan. This suggests that the availability of cotton in the global market is likely to remain adequate.
Citing the Cotlook Index, cotton sector activist Vijay Jawandhia noted that the global price of cotton stands at around 89 cents per pound. According to him, the price had reached nearly one dollar per pound a week ago but is now showing a downward trend. Farmers fear that under these circumstances, an increase in duty-free imports could exert further pressure on domestic cotton prices.
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