On August 31, 2025, a state-level panchayat in Jind, Haryana, organised by the Samyukt Kisan Morcha (SKM), strongly opposed the Union government’s decision to scrap the 11% tariff on cotton imports till December 31, 2025. The farmers’ union alleged that the move was taken under U.S. pressure and would devastate the livelihoods of lakhs of cotton growers across India.
The SKM warned that nearly 60 lakh cotton farmers could face financial ruin as cheaper imported cotton would flood the domestic market, reducing prices for locally grown produce. The panchayat also raised additional concerns—particularly opposition to smart meters in electricity supply and the land pooling project—seeing them as steps towards corporatisation and privatisation of essential sectors.
The Core Issue: Cotton Import Tariff Withdrawal
Background
- Cotton is a vital cash crop in India, particularly in Maharashtra, Gujarat, Telangana, Punjab, and Haryana.
- India is one of the world’s largest producers of cotton, supporting millions of farmers.
- The government traditionally imposes tariffs on imports to protect domestic producers from global price fluctuations and cheap foreign cotton.
Government’s Move
- On August 19, 2025, the government announced scrapping of the 11% import duty on cotton till September 30.
- Later, this relief was extended till December 31 through a notification.
- The stated objective: ensuring adequate supply for the textile industry, which is facing raw material shortages and rising costs.
Farmers’ Objection
- Price Crash Risk: Farmers fear that the arrival of cheaper cotton from abroad, particularly from the U.S. and African nations, will depress market prices at a time when the new harvest is arriving in Indian mandis.
- Allegation of U.S. Pressure: SKM leaders claim the move was influenced by the United States, which is one of the largest cotton exporters globally.
- Devastating Impact: With around 60 lakh farmers dependent on cotton, the union warns of widespread rural distress, rising debt, and even a possible spike in farmer suicides.
Protests Planned by SKM
The Jind panchayat unanimously adopted a resolution calling the decision “anti-farmer” and “anti-people.”
- Farmers resolved to burn effigies of U.S. President Donald Trump and Prime Minister Narendra Modi between September 1–3.
- They plan nationwide demonstrations demanding immediate restoration of the tariff.
- The agitation is being framed as part of a broader struggle against policies that allegedly favour corporations over small farmers.
Smart Meter Controversy
Alongside the cotton issue, the panchayat also rejected the government’s scheme to install smart prepaid electricity meters.
Farmers’ Concerns
- Privatisation Fear: SKM alleges smart meters are a step towards handing over the electricity sector to private players.
- Unaffordable Power: Prepaid billing could increase tariffs beyond the reach of small farmers, traders, and poor households.
- Essential Service Argument: Electricity is a public utility, not a profit-making sector, farmers argue.
- Transparency Doubts: Farmers worry about technical manipulation and billing errors in smart meters.
Voices of Support
- Suresh Rathi, President of the Electricity Employees Union, and Dharam Pal Badala addressed the panchayat, warning that power reforms would burden ordinary citizens.
Opposition to Land Pooling Project
The SKM also opposed Haryana government’s land pooling scheme, under which farmers are encouraged to voluntarily contribute their land for development projects.
- Violation of Land Acquisition Act, 2013: Farmers argue that fertile land cannot be acquired for non-agricultural purposes.
- Fear of Losing Livelihood: For many farmers, land is their only source of survival; surrendering even a small portion could destabilise families.
- Collective Resistance: The panchayat resolved not to sell “even a small piece of land” under the scheme.
Political and Economic Context
U.S. Angle
The U.S. has long been a major exporter of cotton, and American industry groups have often pushed for greater access to India’s textile market. With Trump’s aggressive trade policies continuing, farmers believe New Delhi may have conceded ground under external pressure.
Government’s Position
The Union government has not officially cited U.S. influence. Its justification remains tied to ensuring a steady supply of raw cotton for India’s textile and apparel industries, which employ millions and generate export revenue.
Farmers’ Counter-View
While acknowledging the textile sector’s importance, farmer leaders argue that protecting producers should take precedence. They demand policies that balance the interests of industry with those of cultivators.
Implications for Farmers
- Price Depression: Cotton arrivals from October onwards may coincide with increased imports, leading to lower mandi prices.
- Debt Cycle Worsening: Already indebted farmers may have to sell at distress prices, deepening the rural credit crisis.
- Shift Away from Cotton: Many farmers may abandon cotton cultivation in future, impacting India’s agricultural diversity.
- Social Unrest: With lakhs of farmers impacted, the risk of mass protests and prolonged agitations is high.
Broader Farmer Unrest in Haryana & Punjab
The Jind panchayat reflects a larger trend of farmer mobilisations in North India. After the historic 2020-21 farmers’ movement against farm laws, groups like SKM remain highly organised and capable of mounting significant pressure campaigns.
- Symbolic Resistance: Burning effigies of global and national leaders reflects frustration at policies shaped by global trade dynamics.
- Intersection of Issues: Cotton tariff, electricity reforms, and land pooling show how multiple grievances are converging.
Possible Outcomes
- Government Backtracking: If protests gain momentum, the Centre may review the tariff decision, as seen during the rollback of farm laws.
- Negotiated Settlement: The government could attempt a compromise, such as partial tariff reinstatement or direct subsidies to farmers.
- Escalation: If ignored, SKM may scale up the agitation, leading to sit-ins, blockades, and rallies across states.
Conclusion
The Jind panchayat marks a critical moment in India’s ongoing debates over agriculture, trade policy, and privatisation of essential services. By linking the cotton tariff issue with smart meters and land pooling, the SKM is weaving together a broad coalition of rural concerns.
At its core, the farmers’ resistance highlights a fundamental dilemma: should India prioritise global trade obligations and industrial growth, or safeguard the livelihoods of its millions of small farmers?
The coming weeks, especially the protests scheduled between September 1–3, will test how far farmers are willing to go—and how responsive the government will be in addressing their anxieties.
