Modi govt 'betrayed' farmers by extending import duty exemption on cotton: Punjab Congress chief

Punjab Congress president Pargat Singh on Sunday criticised the central government's decision to extend the exemption from 11 per cent import duty on cotton until December 31, calling it a move against the interests of Indian farmers.

Centre extends cotton import duty exemption

At a time when Punjab's farmers are bringing their cotton crop to mandis after six months of hard work, the Central government is opening up the Indian market to foreign cotton, further aggravating the difficulties faced by domestic farmers, Singh said in a statement.

Citing raw material requirements of the domestic textile industry, the Union textile ministry on Saturday said that the Centre had extended the existing customs duty exemption on cotton imports until December 31.

In May, the government had exempted cotton imports from customs duties for five months, till October 31, 2026.

Pargat Singh alleges betrayal of farmers

Singh termed the decision a "betrayal" of Indian farmers and said the prime minister had promised to double farmers' income, but his government's decisions are instead making it easier for foreign farmers to access the Indian market.

"The import duty exemption, initially granted in the name of the off-season, has now been extended into the domestic harvesting season as well. This will make American and other imported cotton more competitive in the Indian market, putting further pressure on the prices received by Punjab's farmers," said the Jalandhar Cantt MLA.

Despite inadequate rainfall, pest attacks and declining cotton production, he said, farmers were hoping to receive remunerative prices for their produce, but the central government has dashed their hopes.

"Cotton imports have increased by 63 per cent during the first half of the current financial year, reaching approximately USD 1.1 billion," he said.

Concerns over MSP and India-US trade agreement

Referring to the import duty exemption granted in September 2025, Singh pointed out that during that period, cotton was sold in Punjab's mandis at prices ranging between Rs 5,600 and Rs 5,800 per quintal, against an MSP of Rs 7,710 per quintal.

He said on the one hand, the central government encourages farmers to shift away from paddy cultivation and adopt alternative crops such as cotton, while on the other, it introduces policies that undermine the economic interests of farmers who choose crop diversification.

Raising concerns over the India-US trade agreement, Singh said that any reduction in tariffs on agricultural products could create further challenges for Indian farmers and expose them to increased competition from foreign producers.

Singh demanded that the central government withdraw its notification and immediately restore the 11 per cent import duty on cotton.