Declaration on raw cotton imports contradicts claim: 'Agriculture outside US trade deal'

By A Representative

The All India Kisan Sabha (AIKS) has alleged that recent remarks by Union Commerce and Industry Minister Piyush Goyal on raw cotton imports from the United States contradict the government’s claim that agriculture is not part of the proposed India–US trade arrangement.

In a statement issued by General Secretary Vijoo Krishnan and President Ashok Dhawale, AIKS referred to the Minister’s declaration that India has the facility to purchase raw cotton from the US and that finished textile exports from India would be accepted at zero per cent reciprocal tariff. The Minister also reportedly stated that once the India–US Free Trade interim agreement is finalised, India would receive concessions similar to those extended to Bangladesh.

AIKS described the proposal to import raw cotton from the US as “anti-farmer” and warned that it could further depress already low domestic cotton prices. The organisation said cotton farmers across several states are facing mounting indebtedness, rising input costs and limited procurement at the minimum support price calculated at A2+FL. According to AIKS, additional imports could intensify financial distress in cotton-growing regions that have historically reported high incidences of farmer suicides.

The farmers’ body argued that the Minister’s remarks expose what it called “misleading assurances” that agriculture would remain outside the ambit of the US trade deal and that farmers’ interests would not be compromised. It claimed that encouraging imports from highly mechanised and subsidised US cotton producers would place Indian farmers at a disadvantage in global competition.

AIKS rejected the argument that limited US export volumes would not significantly affect domestic consumption. It contended that even moderate import volumes can influence market prices, citing past experiences of commodity price fluctuations following trade agreements. The organisation expressed concern that further price declines could compel many farmers to abandon cotton cultivation.

India’s cotton production for 2025–26 is estimated at 29.22 million bales, while US production for 2024–25 stood at 14.41 million bales. India reduced the import duty on cotton to zero between September 30 and December 31, 2025, during which US cotton exports to India reportedly increased by 95 per cent. AIKS said that exposing Indian farmers to unrestricted competition from subsidised producers in countries such as the United States, Australia and China would likely deepen agrarian distress.

According to industry data cited in the statement, the value of India’s textile industry in 2024–25 is estimated at $179 billion (approximately ₹16.29 lakh crore), with nearly 80 per cent of production consumed domestically. Textile exports total about $37 billion, of which exports to the United States account for $10.7 billion, or 6.2 per cent of the industry’s total value.

AIKS reiterated its demand for the resignation of the Commerce Minister and called upon farmers to organise protests and campaigns in cotton-growing villages against what it termed a betrayal of their interests.

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