Prices for BG2 cotton seeds have been increased by 5% by the government. The government announced that the price of BG2 cotton has been set at Rs 767 for a 450-gm packet, up from Rs 730 last year. Besides this, the price of BG1 cotton for a 450-gm pack has remained constant at Rs 634.
The government's intervention has pleased the Federation of Seed Industry of India (FSI). “While this is less than the 10% increase we demanded, we see it as a positive move on the part of the government. The cotton seed market is becoming unviable for the industry, according to the group, and research investments in creating new varieties have plummeted. Cotton yields and farmer profitability will suffer if this is not addressed immediately, according to Ram Kaundinya, director general of the Federation of Seed Industry of India (FSI) and the Alliance for Agri Innovation.
“The textile industry is looking to expand aggressively. Cotton production would increase from 3.7 crore bales to 5.7 crore bales by 2027. We won't be able to do it unless we improve seed technology. Cotton yields and production have remained stagnant due to a lack of investment in breeding and the implementation of new technologies, he explained.
With plateauing yields, declining farmer incomes, and declining export volume, he said, India was losing competitiveness, enabling other countries to gain market share. According to him, Indian cotton export volumes have decreased by 70% since 2011, while Brazilian cotton export volumes have increased by 80% and African cotton export volumes have increased by 116%. The group has urged the government to abolish price controls entirely in order to encourage further investments in new technology and seed varieties.
