Aam Aadmi Party national convener and former Delhi Chief Minister Arvind Kejriwal on Thursday alleged that under pressure of 50% tariff imposed on India by US President Donald Trump, the Modi government has decided to “bow down to Trump” by withdrawing 11% import duty on US cotton.
Addressing a press conference in the national capital, Kejriwal said, “PM Modi has taken some decisions behind our backs which are a huge betrayal of the farmers of the entire country. Recently, under the pressure of Trump and America, it has been decided that the cotton that comes to India from America, till now, there was an 11% duty on it. In the last few days, the Modi government has decided that the 11% duty that was imposed on the cotton coming from America has been removed.”
According to Kejriwal, under the new order, no import duty will be imposed on US cotton between August 19 and September 30, a period of 40 days. He claimed that the removal of import duty makes US cotton cheaper than Indian cotton by an average of Rs 15-20 per kg, and termed the decision to exempt US cotton from duty as a betrayal of the farmers of the country.
“Now, no duty will be imposed on the cotton coming from America from 19 August to 30 September, for 40 days. Now, the cotton that will come or has started coming from America, is roughly cheaper in India than the cotton of Indian farmers by an average of Rs 15-20 per kg… This is a betrayal with the farmers of our country,” he said.
Withdraw 11% Import Duty
The AAP chief demanded that the government immediately withdraw this order and restore the 11% import duty on US cotton to protect Indian farmers.
“We demand from PM Modi that this order of withdrawing 11% import duty on cotton should be withdrawn with immediate effect and the 11% import duty should be imposed again on cotton coming from America and farmers of our country should be saved,” he said.
Impose 100% Tariff On America
Kejriwal further argued that instead of succumbing to US pressure, India should take tough steps and impose 100% tariff on America.
“If US President Donald Trump has imposed a 50% tariff, we should impose a 100% tariff on America,” he said.
Finance Ministry Order On US Cotton
Kejriwal’s remarks come soon after the central government on Thursday announced the extension of the exemption in import duty on US cotton till December 31. The government said the decision has been taken to ensure an adequate supply of cotton for the domestic textile industry.
“To augment the availability of cotton for the Indian textile sector, the Central Government had temporarily exempted the import duty on cotton from 19th August 2025 till 30th September 2025. In order to support exporters further, the Central Government has decided to extend the import duty exemption on cotton (HS 5201) from 30th September 2025 till 31st December 2025,” the Finance Ministry said in a statement.
Earlier, the Central government had allowed a temporary duty-free period between August 19 and September 30, 2025. With the latest decision, the exemption has now been extended for another three months to provide additional relief to exporters and the textile industry.
