Overview

• The Centre has extended the temporary exemption of roughly 11% import duty on raw cotton from August 19 through December 31, 2025, citing the need to ensure availability and support exporters.
• Arvind Kejriwal said removing the levy would make American cotton cheaper by ₹15–₹20 per kg versus Indian cotton and warned of sharp price pressure on domestic growers at harvest.
• He demanded restoring the 11% duty, setting a ₹2,100 per 20 kg minimum support price with procurement, and offering input subsidies for seeds and fertilizers.
• Calling for retaliation to U.S. measures, he urged a 75% tariff on goods from the United States after Washington imposed around 50% tariffs on Indian exports.
• The government’s rationale emphasizes relief for textile and export-oriented units, while Kejriwal pressed his case at a Gujarat press conference after a planned farmers’ meeting was postponed due to heavy rain.