Bt Cotton Hybrid Seed Subsidy (Punjab)
A 33% subsidy on PAU-recommended Bt cotton hybrid seed, up to 5 acres or 10 packets a farmer, to bring cotton back to the cotton belt.
Run by: Department of Agriculture and Farmers' Welfare, Government of Punjab
- Subsidy
- 33% on Bt cotton hybrid seed
- Per-farmer cap
- Up to 5 acres / 10 packets
- Allocation
- ~₹20 crore (2025)
- Condition
- PAU-recommended hybrids only
Quick Summary
The key points from this page in about two minutes — read it or have it read aloud.
Quick Summary
This is a Punjab state subsidy that cuts the price of Bt cotton hybrid seed by a third, aimed squarely at the south-western cotton belt where cotton acreage had been shrinking as farmers shifted to paddy. The state's worry is twofold: paddy is draining groundwater, and a thinning cotton area weakens the whole ginning-and-textile chain built around it. So the government pays part of the seed cost to make cotton attractive again.
The subsidy is 33% on Bt cotton hybrid seed — but only on hybrids recommended by Punjab Agricultural University (PAU), Ludhiana, not just any packet in the market. That condition is deliberate: cheap, unrecommended or spurious seed from neighbouring states has burnt cotton growers before, so the state ties its money to tested varieties. The benefit is capped per farmer — up to five acres, or ten packets — so it spreads across many smallholders rather than a few large farms.
A farmer buys the PAU-recommended seed through the approved channel, keeps the original purchase bill, and the subsidy is adjusted or transferred per the department's procedure for the season. Because the scheme is tied to the cotton sowing window, the rules and the list of recommended hybrids are notified fresh each year — check the current season's notification and recommended-variety list with your Block / Chief Agriculture Officer before buying.
Overview
Punjab announced the Bt cotton hybrid seed subsidy in April 2025 as part of its crop-diversification push. The state will meet 33% of the cost of Bt cotton hybrid seed, but only for hybrids recommended by Punjab Agricultural University (PAU), Ludhiana. The Agriculture Minister put the allocation at about ₹20 crore, and the department set a target of taking the state's cotton area to at least 1.25 lakh hectares that year.
The benefit is capped per farmer at a maximum of five acres, or ten packets of cotton seed (each packet about 475 grams) — a deliberate ceiling so the money reaches many smallholders in the Malwa cotton belt rather than a handful of large farms. Farmers are asked to keep the original purchase bills, and the department was directed to monitor and inspect sales to keep out spurious seed coming in from neighbouring states.
The scheme sits inside a wider diversification effort meant to pull area away from water-guzzling paddy — the same budget cycle carried incentives for maize and direct-seeded rice. Because it is tied to the cotton sowing season, the rate, the per-farmer cap and the list of PAU-recommended hybrids are notified afresh each year, so the exact current terms should be confirmed from the season's official notification.
What you get
The benefit as the state notifies it — nothing here is an estimate.
- 33% off the cost of Bt cotton hybrid seed for the kharif cotton crop.
- Applies to PAU, Ludhiana-recommended hybrids — tested varieties, not unverified packets.
- Lowers the input cost of returning to cotton in the water-stressed Malwa belt.
- Per-farmer cap (5 acres / 10 packets) spreads the benefit across many smallholders.
Who is eligible
State schemes usually state their criteria as prose rather than a checklist. This is that prose, unpacked — the department’s verification is what decides.
You qualify if
- Cotton-growing farmer in Punjab, chiefly the south-western cotton belt
- Buying a Bt cotton hybrid recommended by PAU, Ludhiana
- Within the per-farmer limit of 5 acres / 10 packets
- Keeping the original seed purchase bill
Not covered
- Cotton hybrids not on the PAU-recommended list
- Purchase beyond the 5-acre / 10-packet per-farmer cap
Documents you need
Have these ready before you start — most rejections are a missing paper, not a missing right.
- Aadhaar card
- Land record (cotton area)
- Original seed purchase bill
- Bank passbook
How to apply
Fewer steps than a central scheme, and usually one office rather than a portal.
- 1
Check the season's recommended-variety list
Confirm which Bt cotton hybrids PAU recommends this season and the current subsidy terms with your Block / Chief Agriculture Officer.
- 2
Buy through the approved channel and keep the bill
Purchase the PAU-recommended seed and retain the original purchase bill — it is required for the subsidy.
- 3
Claim the subsidy per the department procedure
The 33% subsidy is adjusted or transferred as the department notifies for the season, within the 5-acre / 10-packet cap.
If something goes wrong
Missing from the list, or payment stuck — here is the channel the department itself publishes for it.
- For a subsidy not adjusted or paid after a valid purchase, or if you were sold seed that was not PAU-recommended, raise it with your Block Agriculture Officer and the Chief Agriculture Officer of the district, Department of Agriculture and Farmers' Welfare, Punjab (agri.punjab.gov.in). Keep the original bill and the variety name.
- Beyond the department, use Punjab's unified grievance route — Connect Punjab (connect.punjab.gov.in), the single helpline 1100, the m-Sewa app, or any Sewa Kendra, which covers all line departments.
Frequently asked questions
How much is the subsidy?
33% of the cost of Bt cotton hybrid seed, announced in April 2025 with an allocation of about ₹20 crore. The exact per-packet value depends on the seed price for the season.
Can I buy any Bt cotton seed and get the subsidy?
No. The subsidy applies only to Bt cotton hybrids recommended by Punjab Agricultural University (PAU), Ludhiana. This is to keep out cheap, unverified or spurious seed from neighbouring states.
Is there a limit on how much I can claim?
Yes — up to five acres, or ten packets of seed (each about 475 grams) per farmer. The cap is meant to spread the benefit across many smallholders.
Why is Punjab subsidising cotton seed?
To revive cotton in the south-western belt and pull area away from water-guzzling paddy. The department set a target of taking cotton area to at least 1.25 lakh hectares in 2025.
Do I need to keep the purchase bill?
Yes. Farmers are asked to keep the original purchase bill for the seed — it is used to verify the claim and to track that recommended seed was bought.
Where do I confirm this year's terms?
With your Block or Chief Agriculture Officer. The rate, cap and the PAU-recommended hybrid list are notified afresh each cotton season.
Facts checked against agri.punjab.gov.in on 8 October 2026. editorial policy.