TN cotton farmers demand production subsidy as prices face sharp decline

Chennai, Aug 21
Cotton farmers in Tamil Nadu have urged the Centre to provide a production subsidy, warning of severe financial distress following the temporary removal of the 11 per cent import duty on the fibre crop.

Farmers fear that the decision, taken to support textile manufacturers, will significantly depress cotton prices and push growers into heavy losses.

According to estimates, the market price of cotton could fall by nearly Rs 2,000 per quintal, leading to an average loss of Rs 30,000 per acre for cultivators.

With no government procurement currently taking place in Tamil Nadu, the impact is expected to be harsher on local farmers compared to their counterparts in other states.

Esan Murugasamy, founder of the Tamilaga Vivasayigal Pathukappu Sangam, said the Central government’s move was prompted by pressure from the textile industry after the US imposed a 50 per cent tariff on Indian goods.

“The Centre has now exempted cotton import duty till September 30 to shield textile manufacturers. But this could be extended indefinitely, worsening farmers’ plight,” he warned.

Murugasamy demanded that the Centre compensate farmers with a production subsidy of Rs 30,000 per acre to offset the projected losses.

He also criticised the low Minimum Support Price (MSP) for cotton in Tamil Nadu, pointing out that the official MSP of Rs 7,710 per quintal is not being realised in the state, where farmers are forced to sell for as low as Rs 6,500.

He further alleged that the Cotton Corporation of India (CCI), which actively procures cotton at MSP in other states, has stopped purchases in Tamil Nadu.

“In states like Gujarat and Maharashtra, the respective governments cover the cost of vehicle hire for procurement and transport to mills. But in Tamil Nadu, the absence of such support has left farmers stranded,” he said.

Farmers cautioned that if immediate relief is not provided, many cotton cultivators may abandon the crop altogether. They stressed that a production subsidy would be the only way to ensure sustainability for cotton growers until market stability returns.