PM Narendra Modi 'Betrayed' Farmers By Scrapping Import Duty On US Cotton: Arvind Kejriwal Amid Trump Tariff Row

(MENAFN- Live Mint) Aam Aadmi Party (AAP) chief Arvind Kejriwal on 28 August accused Prime Minister Narendra Modi of dealing the farmers a devastating betrayal by waiving import duty on US cotton, allegedly under pressure from US President Donald Trump.

Kejriwal's remarks came hours after the Narendra Modi-led Union government extended the exemption on raw cotton import duty and agriculture cess until 31 December 2025. The extension came a day after the US 50 per cent tariffs on Indian goods took effect.

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Kejriwal, the former chief minister of Delhi , said that the Narendra Modi government had extended the waiver from the earlier 30 September deadline to 31 December, ensuring that American cotton -15–20 per cent cheaper than Indian produce -would flood the market before Indian farmers bring their harvest to mandis.

Kejriwal warned that the textile industry would have already bought its supplies, leaving Indian farmers no choice but to sell their cotton at throwaway prices.

“So the Modi government has waived the duty on American cotton until December 31. Modi ji has committed a massive betrayal of the farmers. Modi ji has completely bowed down before Trump. This is not only dangerous for farmers, industries, and employment but also an assault on the dignity of 140 crore Indians," Kejriwal said in a post on X.

Kejriwal demanded that the Modi government immediately withdraw the order scrapping the 11 per cent duty on American cotton and restore it to protect Indian farmers.

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The import duty relief, which was initially notified for the period between 19 August and 30 September , has now been expanded to cover the last three months of the year, according to the finance ministry. Before the exemption, cotton imports into India attracted a combined duty of around 11 per cent.

"Why is Modi ji bowing before Trump? The country wants to know what his compulsion is? The more you bow before Trump, the more he will make you bow. Give him a befitting reply at least once. Then see how he turns into a meek cat. Whichever country has bravely responded to Trump, Trump has had to bow before them,” Kejriwal said.

Later, addressing a press conference, flanked by Delhi Unit President Saurabh Bharadwa and Delhi Assembly Leader of Opposition (LoP) Atishi, slammed the Union government for taking decisions in 'complete secrecy.'

“In recent days, under pressure from President Trump , PM Modi decided to waive import duty on cotton coming from the United States between August 19 and 30 September. Then, on 28 August, the central government went a step further and surrendered to Trump by extending this waiver until December 31. Until now, cotton imported from the US was subject to an 11% duty. This is nothing but a deep fraud against our farmers,” Kejriwal said at the press conference.

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Kejriwal noted that while the MSP was ₹7,000 per quintal, farmers were unable to sell their cotton at that rate and were forced to eventually at less than ₹6,000 by the end of the season.“This year, even that will not be available,” he cautioned. He said that across the country, lakhs and crores of farmers and their family members will be affected, with cotton farmers in Gujarat, Vidarbha, Telangana, and Punjab being the worst-hit, he said.

The AAP chief criticised PM Modi over what he called Trump's bullying tactics and levying tariffs on India.

“The US imposed 50 per cent tariffs on India. What should India have done? We should have raised the duty on US cotton from 11 per cent to 50 per cent. That is exactly what other countries did,” Kejriwal said.

(With agency inputs)

Key Takeaways

• The waiver on U.S. cotton import duty is viewed as a betrayal to Indian farmers.
• Kejriwal emphasizes the need for India to retaliate against U.S. tariffs to protect its farmers.
• The decision may lead to significant economic challenges for cotton farmers across India.

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