SKM writes open letter to PM, demands withdrawal of import duty removal on cotton

New Delhi, Sep 3 (PTI) In an open letter addressed to Prime Minister Narendra Modi on behalf of cotton farmers, the Samyukta Kisan Morcha (SKM) demanded on Wednesday an immediate and unconditional withdrawal of a notification that nullifies the 11-per cent import duty on cotton.

The SKM also demanded that an import tariff of up to 50 per cent be reimposed.

"We, the farmers producing cotton and contributing to the wealth creation of this great nation, express our profound outrage at the systematic betrayal of farmers by the Union government under your leadership," the open letter said.

It added that cotton farmers are already in distress due to collapsing prices and a heavy debt burden.

"The elimination of import duty will have a direct impact on the domestic price of cotton. Cotton prices have started falling and farmers are facing further distress and indebtedness," the letter said.

"The elimination of import duty on cotton will further eliminate the livelihood of 60 lakh cotton farmer households across India," it added.

The SKM said the number of farmer suicide cases is increasing alarmingly.

"In the first three months of 2025, Maharashtra's Vidarbha region alone recorded 767 farmer suicides," the umbrella body of farmer unions said.

"The burgeoning cost of production and the distress sale of agricultural produce are the reasons behind these 'manmade tragedies'.... So far, more than 4.5 lakh farmers have committed suicide as per the government data," it said in the letter.

The SKM also pointed out that the Maharashtra government gives Rs 1 lakh as assistance to the legal heirs of the farmers who die by suicide.

"We strongly demand you, the Union government and all the state governments, immediately enhance the compensation to the families of the peasant suicide victims to Rs 25 lakh with retrospective effect from 2014," it said.

The farmers' body also said that over the last 10 years, an average of only 13 per cent of cotton has been procured through the CCI and NAFED, while 87 per cent of products were forced to be sold below the declared minimum support price (MSP) based on the A2+FL formula.

The SKM said the C2+50 per cent price of cotton, according to calculations, should be Rs 10,075 per quintal, which implies a potential loss of approximately Rs 2,365 per quintal for cotton farmers.

It demanded an "immediate and unconditional withdrawal of the notification dated August 19, 2025, which nullifies the 11-per cent import duty on cotton, re-impose import tariff up to 50 per cent".

The SKM also demanded Rs 10,075 per quintal to be fixed as the MSP for cotton, based on the C2+50 per cent formula, immediate restructuring of the Cotton Corporation of India (CCI) and establishing adequate procurement centres in each block of cotton-growing districts, with payment within eight hours.

A special relief package for the families affected by farmer suicides since 2014 was also demanded.

"This must include adequate compensation of Rs 25 lakh, complete educational support for children, livelihood support and a full waiver of the deceased's debts," it said.

Along with these, the SKM demanded a loan waiver for farmers and regulation of the micro-finance sector, with a cap on interest rates at 2 per cent per annum.

For agricultural workers and small peasants, the SKM demanded providing adequate funds to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to make 200 days of work compulsory and Rs 600 as wage, and linking the scheme with agriculture production to enable cotton farmers to reduce the cost of production. PTI AO RC