With just days remaining for a new cotton harvest the Modi government has decided to gift the Prime Minister’s and “India’s friend Do-land Trump” (Donald Trump) our cotton farmers. Apparently, under the US’s pressure of 50% tariffs, India has decided to remove 10% import duty on cotton from 19th August to September 30th 2025. This import duty effectively increased the price of foreign grown cotton by 11%.
Interestingly, the elimination of the import duty comes within a fortnight of Prime Minister Narendra Modi had said that India will never compromise on the interest of farmers.
The elimination of import duty and the 40 day relaxation for foreign cotton importers is being welcomed by industries as they get access to cheaper cotton for their machines, and further pushes the local prices down. Meanwhile the government loses around Rs. 170 crore in revenue.
21/08/2025