The government of Punjab is encouraging farmers to cultivate cotton, however the main motive behind this is to distance farmers from paddy cultivation which consumes more water. To boost this Punjab government had announced a 33 per cent subsidy on cotton seeds in April this year.
The allotment of subsidy by govt. is visible as according to the data of the Punjab Agriculture Department, the total area under cotton cultivation in Punjab has increased from 2.49 lakh acres last year to 2.98 lakh acres this year in 2025. Subsidy is applicable only to farmers purchasing BT cotton seeds approved by the PAU. Govt. supported their initiative by stating that cultivation of cotton will promote water conservation and motivate farmers towards modern approach of farming.
India is one of the leading producers of cotton. Cotton is mainly cultivated in states like Maharashtra, Gujarat, Rajasthan, Telangana, Karnataka, and Punjab.