Farmers eye better cotton prices despite import duty exemption

Though they suffered losses in several areas due to continuous rains over the last six weeks, farmers expect yields up to eight quintals an acre.
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NAGARA GOPAL

As the procurement season for cotton begins on October 22 in the South, farmers in Telangana expect a better deal this time despite the set back in the form of the suspension of duties on the import of cotton a few months ago.

Though they suffered losses in several areas due to continuous rains over the last six weeks, farmers expect yields up to eight quintals an acre.

The Union Government exempted all customs duties on raw cotton imports from August 19, 2025, to December 31, 2025. This measure was aimed at stabilising domestic cotton prices and supporting the textile industry. Farmers expressed concern over the decision as it could push the domestic prices down.

“We are hoping that prices will be good this year. We are also expecting good yields too,” S Malla Reddy, a leader of All-India Kisan Sabha, told businessline.

He, however, wanted the Cotton Corporation of India (CCI) to relax the norms and allow cotton up to 18 per cent. 

The CCI stipulates the moisture level at 8 per cent to make the produce eligible for the full MSP. It, however, procures cotton up to 12 per cent moisture level but pares the price accordingly. It refuses to purchase the cotton lots that come with moisture levels beyond 12 per cent.

Meanwhile, Telangana Agriculture Minister Tummala Nageswara Rao has asked the District Collectors in the cotton-growing districts to notify the ginning centres and get ready for the purchases.

Farmers in Telangana grew cotton in 18.61 lakh hectares as against the normal area of 20 lakh hectares.

Union Minister Coal and Mines Minister G Kishan Reddy has asked the farmers to shift to high-density plantation to get more yields. Citing the example of farmers in Maharashtra, he said that farmers in the Akola region could significantly increase yields by following this method.

He said nearly half of the ₹1.37 lakh crore that the CCI spent on cotton procurement over the last 10 years went to Telangana and Andhra Pradesh. The Agricultural Market Intelligence Centre of Prof. Jayashankar Telangana Agricultural University said the cotton import duty exemption till Dec 31, 2025, would help in stabilising raw cotton prices and lower costs for textiles mills.

“However, higher imports may depress domestic prices, pressuring farmers, making CCI’s support vital,” it said.

Published on October 19, 2025