By Dr. Gyan Pathak
With India’s suspending import duty on cotton, that is expected to benefit the textile sector of the country, AAP supremo Arvind Kejriwal has accused Prime Minister Narendra Modi of ‘betrayal’ to farmers. PM Modi has been claiming for several month’s now, the latest being only three days ago on August 25, 2025, that he will never allow harm to small business and farmers.
Cotton is a sensitive item for India, not only for the textile sector but also for cotton growing farmers in the county. Large number of farmers in the country have committed suicides in India since 1995. The National Crime Record Bureau data shows that during 1995-2014, a total of 296,438 farmers committed suicides, while between 2014 and 2022, the number of their suicides stood at 100,476. It has been reported that majority of the suicides were committed by the cotton farmers, though exact data is not available.
Only two days before the 50 per cent US tariffs on Indian goods that took effect on August 27, 2025, PM Narendra Modi told a gathering in Ahmedabad that the welfare of small entrepreneurs, shopkeepers, farmers and cattle-rearer is his government’s foremost priority.
PM Narendra Modi’s saying this in Gujarat has a political significance, for Gujarat is his home state, which is the top milk producing state in the country, and where election will be held in 2027. Gujarat consistently ranks among the top 10 leading agricultural state in India, currently raked 8th. Apart from dairy it also produces cotton.
AAP Supremo Arvind Kejriwal’s accusation that PM Modi ‘betrayed’ farmers has also a political significance for Gujarat, where AAP has made considerable inroads despite the state being considered as BJP’s formidable political fortress.
Suspension of import duty on cotton by India, especially in the backdrop of the reports that US has been pressing India for lowering the import tax on American agriculture and dairy products, which India reportedly been refusing which led to collapse of the tariff talks between the two countries. Now suspension of import duty on cotton has just altered the political perception about the much-publicized stand of PM Narendra Modi.
Government of India has just said that exemption of import duties on cotton is being extended to “augment availability of cotton for the Indian textile sector.” The exemption of the import duty on cotton will continue till December 31, 2025, in relief to the country’s garment industry, which has been hit hard by a 50 per cent US tariff.
It is worth noting that the first exemption of import duties on cotton was announced in government order on August 18, only eight days before imposition of the US tariff on August 27. The exemption was given for a period until September 30. However, just after one day of the imposition of US tariff, India had extended it until December 31.
India had exported worth over $2 billion (roughly Rs 16,710 crore) in textiles and garments to the US in 2024, and $1 billion (Rs 8,765 crore) more in the first half of 2025. The major US clients for Indian apparel and textile were big American Corporates like Walmart, Target, Costco, and Gap. Major exporters from Indian side included Shahi Exports, Welspun, Indo Count Industries, Trident, and Gokaldas Exports.
National Convenor of AAP Arvind Kejriwal was quick in criticising the Centre’s decision who accused PM Modi of ‘betrayal’ to farmers over removal of 11 per cent duty on US cotton imports. Kejriwal, perhaps not aware of the latest decision of today August 28 extending the exemption until December 31. Even on the basis of Centre’s decision of August 18 of exemption of import duty, Kejriwal has said, “PM Modi has taken some decisions behind our backs which are a huge betrayal of the farmers of the entire country.
Recently, under the pressure of Trump and America, it has been decided that the cotton that comes to India from America, till now, there was an 11% duty on it… In the last few days, the Modi government has decided that the 11% duty that was imposed on the cotton coming from America has been removed. Now, no duty will be imposed on the cotton coming from America from 19 August to 30 September, for 40 days… Now, the cotton that will come or has started coming from America, is roughly cheaper in India than the cotton of Indian farmers by an average of Rs 15-20 per kg leaving domestic farmers at a disadvantage.”
PM Narendra has assured the country in Ahmedabad on August 25, “My government will never allow any harm to come to you … no matter how much pressure is put on us, India will prevail. He had criticised Congress saying the party made the nation dependent on other countries and engages in “import scams”.
AAP supremo Kejriwal has now targeted PM Narendra Modi and said, “In the past few days, PM Modi has taken some decisions that are very harmful for the farmers of our country and 90 per cent of farmers are not even aware. Once these decisions are implemented, they will be left with no option but to commit suicide.”
It is worth knowing that on cotton crop depends the lives of 60 lakh farmers in the country, while Indian cotton gave basis of livelihood to another 4.5 crore strong textile workforce. That is why analysts believe that exemption of import duty on American cotton may destroy agriculture of cotton immediately, and the entire textile industry will be dependent on American cotton in the long run.
The impact of the exemption on import duty on cotton has already impacted the cotton growers since the Cotton Corporation of India has cut its price benchmark by Rs1100 per bale. Indian cotton prices have fallen by over 4 per cent, and farmers are compelled to sell their cotton on less than the minimum support price (MSP) announced by the Centre. Considering the falling cotton production in India in the last decade that has fallen by 24 per cent, and rising imports of cotton that has risen by 73 per cent, the present exemption on American cotton, is being considered by economists as devastating.
When India’s cotton output for the year 2024-25 is at a 15-year low, a million-dollar question is has PM Narendra Modi already bowed down to US Pressure, or just trying to find out one or the other pretext to allow benefits to the US what the Trump is demanding for? India’s purchasing Russian oil seems just a pretext for Trump to pressurise India. (IPA Service)
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