In a move aimed at stabilizing cotton prices and supporting growers, the Indian government is set to pilot the Bhavantar Bhugtan Yojana (BBY) for cotton farmers in the Adilabad district of Telangana next month. This price support scheme compensates farmers for the difference between the market price and the Minimum Support Price (MSP) when market prices fall below the government-set floor.
A committee, led by agricultural economist and Niti Aayog member Ramesh Chand, recently convened to finalize the pilot program. The committee, comprised of industry representatives, growers, and state government officials, selected Adilabad due to the readily available online records of farmers, a crucial component for the scheme’s implementation.
While most farmers in the region have already sold their October harvest, the pilot program will proceed after consultations with Telangana state officials. The initiative follows government promises made prior to the Maharashtra assembly elections last month, where concerns over cotton and soybean prices falling below MSP were prominent.
The BBY pilot aims to address the price volatility that often impacts cotton farmers. By providing a safety net when market prices decline, the scheme intends to ensure more stable incomes for growers. However, challenges are anticipated. Ganesh Nanote, a cotton farmer from Maharashtra, highlighted the potential difficulties in implementing the scheme for cotton, emphasizing the need for thorough study and careful execution. This pilot program will provide crucial insights into the practical application of the BBY in the cotton sector and inform future policy decisions.
