Centre to Boost MSP Cotton Purchases to Protect Farmers Amid Trump’s Tariffs

Centre to Boost MSP Cotton Purchases to Support Farmers Amid US Tariffs.

The Centre will increase purchases of cotton at the federally-fixed minimum support price (MSP) to shield farmers from falling local rates, following its decision to waive import duties on cotton and support an apparel sector facing Trump’s 50% tariff.

Domestic cotton growers have been under pressure as textile manufacturers prefer cheaper imported fibre. To balance the interests of both the labour-intensive apparel industry and cotton farmers, the government has directed the state-run Cotton Corporation of India (CCI) to purchase as much cotton as farmers bring to its procurement centres. Farmers often rely on the CCI for floor prices when market rates dip.

For the 2025–26 season, the MSP for medium-staple cotton is set at ₹7,710 per quintal, up ₹589 from last year. Imported cotton currently costs between ₹5,000-6,200 per quintal, making domestic cotton less competitive.

India extended the 11% import-duty exemption on cotton until December 2025 to stabilise garment prices, ease raw-material shortages, and support small and medium enterprises. The CCI plans to expand its procurement centres to over 500 to accommodate increased purchases.

Domestic cotton production, affected by pest attacks and reduced GM cotton efficacy, has fallen to a 15-year low of 25 million bales. Despite being the world’s second-largest producer, India imported 2.71 million bales in 2024–25, up from 1.52 million the previous year, highlighting the pressure on local farmers.

Lalit Kumar Gupta, CCI Managing Director, said: “We are ready to buy as much as farmers want us to, and the CCI is there to help cotton growers.”