Farmers worried as cotton prices plunge amid cuts in import duty

India's decision to suspend a duty on cotton imports to allow for cheaper inbound shipments has caused prices to crash in a year of anticipated robust output, farmers and growers' unions have said.

- Zia Haq

In several states, including Maharashtra and Punjab, cotton is selling between ₹6,700-7,000 on average against a federally fixed floor rate of ₹8,110 (long staple variety) per quintal, data compiled at mandi (market yards) for the week ending on Saturday showed.

Farmer organisations have alleged that imports have quickened in view of the exemption and a flood of cheap imported fibre is poised to cause heavy losses in a year of good monsoon.