Punjab budget: In a first, Punjab to give 33% subsidy on Bt cotton seeds
It is the first time that Punjab has decided to give a subsidy for this cash crop and the state agriculture officials said farmers having up to 5 acres of land under cotton cultivation will be eligible for the subsidy.
After facing two consecutive Kharif seasons of failed cotton crops, the finance minister Harpal Singh Cheema in his annual Budget speech on Friday, proposed a 33% subsidy on Bt cotton seeds to incentivise farmers who suffered heavy losses.

It is the first time that Punjab has decided to give a subsidy for this cash crop and the state agriculture officials said farmers having up to 5 acres of land under cotton cultivation will be eligible for the subsidy.
Protocol of availing subsidy is being finalised, and cotton sowing will commence from April 15, they say. Rates of Bt cotton seeds are finalised by the Centre and it hasn’t announced the price for this Kharif season.
Experts say the step will help in keeping farmers away from buying unapproved seeds that were among one of the key reasons behind crop failure in the 2022-23 Kharif season.
Farmers are recommended to sow cotton between April 15- May 15, and the incentive is only for marginal and small farmers.
In the last Kharif season, 2.47 lakh hectares or about 6 lakh acres was under cotton cultivation in eight districts of south Malwa districts, which was the lowest since 2010.
The traditional crop is considered an economic lifeline in the semi-arid districts of Fazilka, Bathinda, Mansa and Muktsar.
Ahead of cotton sowing from next month, the state government has set a target to take the area under cotton cultivation to 3 lakh hectares in the region.
Punjab state agriculture department’s deputy director, cotton, Jagir Singh, said the subsidy would be only for Bt cotton seeds approved by the Punjab Agricultural University (PAU).
He said PAU recommends sowing two packets of cotton seeds in an acre, but farmers tend to use three packets to cover the risk of poor germination. As per this year’s cotton policy, a farmer will get a subsidy on three packets per acre with an upper limit of 5 acres, he added.
“Punjab has a seeds stock sufficient to cover more than 3.50 lakh hectares. Water resource secretary Krishan Kumar is overseeing work to ensure canal water is made available from April 1,” he added.
Chief agriculture officer (CAO) of Bathinda Dilbag Singh said the incentive on seeds will help in discouraging farmers from buying unapproved seeds from other states.
“Last year, it was seen a sizeable area was under seeds that were not recommended by the PAU. These substandard seeds caused havoc leading to crop failure in Punjab. This time, we hope that the farmers have realised their fault and they will go only with the approved Bt seeds,” he said.
According to Punjab Mandi Board data, from October 1, 2022, to February 6, 2023, a total of 6.77 lakh quintals of cotton was sold in various mandis against the production of 29 lakh quintals in 2021-22.
In 2020-21, Punjab recorded a record production of 49 lakh quintals, and in the next two Kharif seasons, a traditional crop of south Malwa failed due to pest attacks, unfavourable conditions and erratic irrigation support.
Muktsar CAO Gurpreet Singh said inputs taken from farmers and sent to the state authorities stated that cotton growers want assured canal water supply and availability of quality seeds to enhance the area under it.
“Farmers of the semi-arid region have no option than to sow cotton, and an incentive on seeds will work as a significant push. We are confident to enhance the area under cotton from 33,000 hectares in the last season to 60,000 hectares this year,” he added.
CAO of Mansa Satpal Singh said farmers are being advised to complete sowing by May 15.
“Last year, the cotton was sown till the first week of June, and the delay led to stunted growth of plants. Unrecommended seeds and delayed slowing caused dismal yield, and they (farmers) should heed to the experts’ recommendations this time,” he added.

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