India’s removal of the 11% import duty on cotton in 2025 has sparked protests from farmer unions. The textile industry welcomed the move, facing 50% tariffs from the US. This decision reflects deeper issues in India’s cotton trade, production, and research. The sector’s challenges include price parity, declining acreage, and outdated technology. The following notes explain the current scenario and key trends.
of Cotton Import Duty Removal
The government eliminated the 11% import duty on cotton to ease costs for textile mills. The sector suffers under US tariffs imposed during the Trump administration. This move aims to reduce costs and protect jobs in garment manufacturing, especially for women workers. However, farmers oppose it fearing lower prices and loss of income.
Trends in Indian Cotton Production and Trade
India’s cotton growth accelerated after 2004-05. Earlier, post-independence efforts focused on increasing output despite losing key regions in Partition. The Intensive Cotton Production Programme and hybrid seeds boosted yields. The Technology Mission on Cotton (1999-2014) improved quality and productivity. Bt cotton was introduced in phases from 2002 to 2006, covering over 95% of acreage . India shifted from exporting mainly short-staple cotton to medium and long-staple varieties. Exports surged due to international demand, while domestic supply reduced import dependence.
Price Parity and Import Trends
Despite growth, raw cotton imports rose sharply by 77% in 2024-25. Domestic cotton is costlier than global prices, causing import surges. The cotton supply chain links farmers to global markets, making prices volatile. The Minimum Support Price (MSP) acts as a benchmark but often fails to protect farmers fully. The Cotton Corporation of India procures cotton only when prices fall below MSP, signalling supply-demand imbalances. High domestic costs stem from declining acreage, lower productivity, and rising cultivation expenses.
Declining Acreage and Productivity Challenges
Cotton acreage fell by 8.7% in 2024-25 as farmers switched to more profitable crops like paddy, soyabean, and groundnut. Productivity improved post-2004 but remains below global averages. India’s lint yield is 437 kg/hectare, less than half of the world average and far behind Brazil and China. Bt cotton helped reduce pest attacks initially but has lost effectiveness due to resistance and prolonged use.
Research, Technology, and Innovation Gaps
India’s cotton R&D spending is low compared to other developing countries. Globally, countries like Brazil and Australia use advanced Bollgard-III seeds, and China employs CRISPR gene editing. India lags in adopting new seed technologies adapted to diverse conditions. Public research must focus on improving lint output, pest resistance, and sustainability. Strengthening farm-to-firm linkages requires better technology and investment.
Need for Revitalising Cotton Supply Chains
The cotton sector’s future depends on balancing quantity and quality. Addressing price parity is crucial but must not undermine domestic demand or production. Public investment can boost innovation and support farmers. Revitalising supply chains will help India compete globally and sustain its large textile workforce.
Questions for UPSC:
- Critically analyse the impact of global trade policies on India’s agricultural exports with suitable examples.
- Explain the role of biotechnology in Indian agriculture and discuss the challenges of pest resistance in genetically modified crops.
- What are the factors influencing crop diversification in India? How does it affect farmers’ income and food security?
- Comment on the significance of public research and development in enhancing agricultural productivity and sustainability in developing countries.
