The sharp fall in prices has pushed market rates well below the Minimum Support Price of ₹8,110 per quintal for medium-staple cotton. Unseasonal rains have damaged crops across several districts, reducing output and causing higher rejection rates under the CCI’s stringent quality standards, forcing farmers to sell to private traders at distress prices.
Published Oct 20, 2025 | 8:00 AM ⚊ Updated Oct 20, 2025 | 8:00 AM
Representational image. Credit: iStock
Synopsis: Cotton farmers across Telangana are reeling from a sharp price crash after the Centre extended its waiver on the 11 percent import duty on raw cotton and the Cotton Corporation of India (CCI) delayed procurement, forcing many into distress sales. Prices in key markets have fallen well below the Minimum Support Price of ₹8,110 per quintal, with farmers losing up to ₹2,500 per quintal as cheaper US imports flood domestic markets.
Cotton farmers across Telangana, India’s third-largest cotton-producing state, are facing steep losses as prices crash following the Centre’s decision to extend its waiver on the 11 percent import duty on raw cotton and delays in procurement by the Cotton Corporation of India (CCI).
Farmers are, on average, losing between ₹900 and ₹2,500 per quintal as cheap cotton from abroad, particularly from the heavily subsidised US sector, floods Indian markets.
The distress has been compounded by the CCI’s delayed procurement operations, which have yet to begin despite heavy arrivals at major markets.
The waiver on the 11 percent import duty on raw cotton was originally introduced to provide relief to spinning mills, garment manufacturers, and small and medium enterprises facing high domestic cotton prices and the impact of a 50 percent US tariff on Indian apparel exports imposed in August 2025. It was initially meant to last till 30 September.
The Centre’s decision to extend it till 31 December has triggered widespread discontent among farmers in Telangana.
Telangana Agriculture Minister Tummala Nageswara Rao described the Centre’s decision as “devastating” for farmers.
“This move prioritizes mills over farmers. The Centre did not even consult major cotton-producing states like Telangana,” he said, accusing the Bharatiya Janata Party (BJP)-led National Democratic Alliance government of succumbing to US pressure.
“Does merely announcing MSPs for all crops double farmers’ income? What steps has the Centre taken to ensure farmers actually receive those prices?” he asked, wondering why BJP leaders from Telangana were not prevailing upon the Centre to protect the state’s cotton growers.
The sharp fall in prices has pushed market rates well below the Minimum Support Price (MSP) of ₹8,110 per quintal for medium-staple cotton.
In key markets such as Warangal and Jammikunta, mandi prices currently range between ₹5,600 and ₹7,303 per quintal, averaging around ₹6,600. Farmers are losing approximately ₹10,000–₹15,000 per acre, with production costs hovering around ₹5,500–₹6,000 per quintal.
At Enumamula market yard, Telangana’s largest cotton trading hub, heaps of cotton continue to arrive daily. Farmers allege that middlemen and mill agents are forcing them to sell below MSP on the pretext of “poor quality.”
Although the CCI is expected to begin procurement on 22 October, officials admit there could be further delays.
Ginning mills have reportedly been reluctant to participate in auctions due to new CCI guidelines designed to curb the role of middlemen and irregularities by mills. So far, 220 of the 343 ginning mills across 22 districts have been notified by district collectors.
Under the revised system, farmers must register on the Kapas Kisan App and book slots before selling their produce.
Telangana’s cotton acreage this season covers 43–44 lakh acres, mainly in rain-fed districts such as Nalgonda, Adilabad, and Warangal.
Unseasonal rains have damaged crops across several districts, reducing the expected output from 29 lakh tonnes to about 25 lakh tonnes and causing boll rot and discolouration in 15–20 percent of the crop.
Furthermore, the CCI procures only around 45 percent of Telangana’s cotton, leaving the remainder exposed to volatile private markets.
Rain-affected cotton often fails to meet the CCI’s stringent quality standards, leading to higher rejection rates and forcing many farmers to sell to private traders at distress prices between ₹5,000 and ₹6,000 per quintal.
At a review meeting held on 18 October, Minister Rao said the state government was extending full cooperation to ensure timely procurement.
“Even when ginning mills did not come forward to participate in auctions due to CCI’s new norms, the state government conducted several rounds of discussions to remove bottlenecks,” he said.
He added that several measures had been taken to safeguard farmers’ interests, including awareness programmes on the Kapas Kisan App, appointment of district-level officials to monitor procurement, quality-awareness drives through Rythu Nestham, and notification of additional collection centres by district collectors.
The Agriculture and Cooperation Department is overseeing procurement operations across the state, with district collectors instructed to address grievances promptly.
The state government insists that it is fully prepared for the CCI’s operations beginning on 22 October and has urged political parties not to politicise the issue.
(Edited by Dese Gowda)
