Lok Sabha Question No. 4098 (UNSTARRED), answered on 2025-03-25
Subject: Distress among Cotton Farmers in Telangana
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Vamsi Krishna Gaddam

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 4098

TO BE ANSWERED ON THE 25 TH  MARCH, 2025

## DISTRESS AMONG COTTON FARMERS IN TELANGANA 4098.  SHRI VAMSI KRISHNA GADDAM:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष एवं ͩकसान कãयाण मंğी be pleased to state:

- (a) the steps being taken to address the growing distress among cotton farmers in the State of Telangana, particularly in districts like Peddapalli, Warangal and Khammam, who are facing mounting losses due to fluctuating market prices and input costs;
- (b) whether the Government has assessed the impact of inadequate insurance coverage and delayed claims on the financial well-being of these farmers;
- (c)  the  measures  being  implemented  to  enhance  access  to  credit  and  input  subsidies  for cotton farmers, especially in remote rural areas; and
- (d)  whether the Government is considering any long-term strategies to stabilize the cotton market in Telangana and prevent recurring farmer suicides linked to crop failure and financial strain?

## ANSWER

THE MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कãयाण राÏय मंğी

(SHRI RAMNATH THAKUR)

- (a) to (d):   Every year, Government fixes Minimum Support Prices (MSPs) for 22 mandated agricultural  crops  including  Cotton  based  on  the  recommendations  of  Commission  for Agricultural Costs & Prices (CACP).  The MSP is fixed at least 50 percent margin over the cost of production. The rise in inputs cost are accounted in the cost of production calculations.

To safeguard the cotton farmers from distress sale, the Cotton Corporation of India Ltd. (CCI) is appointed as a Nodal Agency for undertaking procurement from cotton farmers in the event market prices fall below MSP. To ensure the benefits of MSP scheme reaches to all farmers in the State of Telangana, CCI has opened 110 procurement centres in 30 districts. Among that 3 centres in Peddapalli, 4 centres in Warangal and 5 centres in Khammam have been opened to cover maximum cotton farmers.

During current cotton season 2024-25, CCI has procured about 210.19 lakh quintals kapas  (equivalent  to  40.37  lakh  bales),  valuing  Rs.  15,556  crore  in  Telangana  upto 17.03.2025 and about 9 lakh farmers have been benefitted. Out of above, 0.63 lakh bales (valuing Rs. 239 crore) have been procured in Peddapalli district, 3.26 lakh bales (valuing Rs. 1260 crore) have been procured in Warangal District and 1.04 lakh bales (valuing Rs. 406 crore) have been procured in Khammam District. Government has taken steps to strengthen implementation of Pradhan Mantri Fasal Bima Yojana (PMFBY) to bring transparency and ensure timely settlement of claims. National Crop  Insurance Portal (NCIP)  is single  source of  data  ensuring  subsidy  payment, coordination, transparency dissemination of information and delivery of services. In order to rigorously  monitor  claim  disbursal  process,  a  dedicated  module  'Digiclaim  Module'  for payment of claims from Kharif 2022 onwards is operational. To further improve grievance redressal mechanism, Krishi Rakshak Portal and Helpline (KRPH) has been developed. Modified Interest Subvention Scheme (MISS) provides short-term agricultural loans at concessional interest rates through Kisan Credit Cards (KCC). Under this scheme, farmers including tenant farmers receive KCC loans at a subsidized interest rate of 7%. To facilitate this,  an  upfront  interest  subvention  (IS)  of  1.5%  is  provided  to  financial  institutions. Additionally,  farmers  who  repay  their  loans  promptly  receive  a  3%  Prompt  Repayment Incentive (PRI), effectively reducing the interest rate to 4% per annum. Apart from input subsidies provided by the State Governments,  the  Central Government implements schemes such as Per Drop More Crop, Sub-Mission on Agricultural Mechanization (SMAM) etc., also support farmers. Government also ensures availability of subsidized fertilizer to the farmers. Under Cotton Seeds Price (Control) Order, 2015, prices of Bt cotton is fixed every year to make availability of seeds at reasonable price to the cotton farmers. Government also implements cotton development programme Under National Food

Security and Nutrition Mission (NFSNM) to enhance production and productivity of cotton.

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