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Removal of 11% duty on cotton may impact domestic price and farmers
The New Indian Express Tiruchy
|August 20, 2025
Amid Tariff Row
TO appease the US government amid unilateral Trump tariffs, the Centre has removed the cumulative import duty of 11% on cotton, just a month before the new crop is set to enter the domestic market.
The import duty is removed with immediate effect, from August 19 to September 30. This decision may lead to an estimated loss of around ₹170 crore for the state exchequer and adversely affect farmers, as it is likely to flood the Indian market with cheaper cotton from the US. India primarily imports cotton from the United States, Australia, and Egypt.
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