Bharatiya Kisan Sangh Challenges Cotton Import Duty Exemption Extension

The Bharatiya Kisan Sangh (BKS) has formally requested the Union government to reconsider its recent decision of extending the duty exemption on cotton imports until December 31. In a letter to Finance Minister Nirmala Sitharaman, the BKS warned that the move could negatively impact domestic farmers and drive India towards greater dependence on cotton imports.

The organization's letter noted a discrepancy between India's cotton production, pegged at roughly 320 lakh bales, and the domestic demand, which is around 391 lakh bales. Ordinarily, between 60 and 70 lakh bales are imported annually, comprising nearly 12% of India's total cotton consumption. The BKS drew attention to a decline in the area under cotton cultivation, down 3.2% from the previous year.

Highlighting economic concerns, the BKS reported that cotton prices have dropped from Rs. 7,000 to Rs. 6,000 per quintal after the policy announcement. They warned that continued duty-free imports could further destabilize prices. General Secretary Mohan Mitra urged the government to revoke the exemption to support local farmers and maintain self-reliance in the cotton sector, stressing the need for immediate policy reversal.

(With inputs from agencies.)