Import duty removal not likely to hurt farmers’ interests: Textile Ministry

While some critics, including opposition leaders, fear that the removal of 11 per cent import duty on raw cotton will hurt local farmers, the Textile Ministry insists, it will not harm their interests. Pointing to the Minimum Support Price (MSP) program, managed by the Cotton Corporation of India, the ministry says, the program guarantees at least 50 per cent more earnings to farmers than their production costs.

The ministry believes, more affordable, high-quality cotton will strengthen India's position in the global export market, helping small and medium businesses and boosting the country's textile-apparel value chain, which employs over 45 million people. With 95 per cent of domestic cotton being used by the textile industry, the ministry argues that a stronger industry will ultimately lead to mills paying better prices to farmers.