Telengana will discourage cultivation of cotton from this year. Reason: fears that the cotton prices in the international market will come down and Telengana farmers may suffer. Cotton cultivation area will be reduced from the present 42 lakh acres to 15 to 20 lakh acres.
The decision is to discourage cultivation of cotton and encourage crops like soybean and maize. Arrangements will be made for sufficient seed of soybean and maize. Irrespective of cultivation area, soybean seed subsidy will be extended to all farmers. Earlier the subsidy on seeds was given only to farmers having five acres. Implements needed to sow soybean seeds would also be given to farmers on subsidy.
The World Trade Organisation passed a resolution on cotton exports in a recent meeting at Nairobi to which India was a signatory. India will remove export subsidies on cotton exports from next January. Though the Union Ministry of Commerce and Industry clarified that the Nairobi ministerial decision on elimination of export subsidies on cotton will, in fact, be good for Indian exports, as it will create a level playing field for farmers, Telengana fears cotton prices in the international market will come down.