Farmers protest on cotton import tax: On the one hand, while the government talks about increasing the income of farmers, on the other hand, the Bharatiya Kisan Sangh, a farming organization associated with the Rashtriya Swayamsevak Sangh (RSS), has raised an issue which has raised questions on the policies of the government. The organization has strongly objected to the government to increase the tax exemption on cotton imports by 31 December. The farmers union says that this step is not only ‘suicidal’ for Indian farmers, but will make India a big importer in the long run.
Farmers will suffer loss due to import
The Bharatiya Kisan Sangh has written a letter to Finance Minister Nirmala Sitharaman in this regard. In the letter, the organization has stated that India produces 320 lakh bails annually, while domestic demand is from 391 lakh Bells. Currently, India imports only 60 to 7 million bails every year, which is about 12 percent of the total consumption.
The farmers union has warned that if the government continues to give tax exemption on imports, then India will become a major importer instead of being a cotton exporting country in the next few years. The organization said that the area of cotton production this year has reduced by 3.2% compared to the previous year, and if the availability of domestic cotton seeds does not increase, India will be completely dependent on imports.
Fear of fall in price
Farmer Union General Secretary Mohan Mitra said that the prices of cotton have already come down from Rs 7000 per quintal to Rs 6000. If tax free imports continue, the prices may decrease further, which will cause huge loss to the farmers. He wrote in the letter, “If cotton will come from outside for Rs 2000 per quintal, then why would you buy no one from Indian farmers for Rs 5000 per quintal?”
The government had given tax exemption on cotton imports from August 11 to September 30, which has now been increased to the end of the year. Mitra says that the government should reconsider this decision. He said that if the subsidy on such imports continues, then in the coming time, India will become a big market for foreign cotton, while we will lag behind in indigenous production.
