Punjab to restore cotton acreage with 33% subsidies on certified seeds

The Punjab government has implemented a decisive 33 per cent subsidy on certified cotton seeds for the 2026 kharif season, for a restoration of the state’s dwindling ‘white gold’ acreage. This fiscal intervention addresses a three-year decline in cultivation, where land under cotton fell to approximately 1.7 lakh hectare in 2025 due to sustained pest pressure and inconsistent yields. By incentivizing the adoption of high-yield, pest-resistant varieties, the state aims to secure the raw material pipeline for the regional spinning industry, which operates over 4.5 million spindles. Market analysts suggest, stabilizing local production is essential to insulate North Indian mills from the 150 per cent rise in maritime freight costs currently impacting imported fiber.

Operational data indicates that the subsidy will benefit nearly 250,000 farmers across the Malwa belt, potentially pushing acreage back toward the 2.5 lakh hectare milestone. Gurvinder Singh, Director-Agriculture says, the objective is not merely expansion but yield optimization through certified genetics. However, the sector still faces hurdles, including groundwater depletion and the threat of pink bollworm infestations. Success remains contingent on the timely distribution of canal water and the effective integration of integrated pest management (IPM) protocols. This renewed focus on domestic fiber security is expected to strengthen the regional supply chain as Indian apparel exporters capitalize on the zero-duty benefits of the new India-EU FTA.