Effective Incentives and Subsidies for Cotton Cultivators in India

Cotton Cultivators in India Ashok Gulati This paper attempts to quantify the degree of distortions in the trade pricing policies with regard to Indian seed-cotton (kapas) during the 1980s. The region and variety-specific incentive structure of cotton is estimated by adopting a standard methodology Four major varieties of cotton dominant in the regions of Maharashtra, Gujarat, Punjab and Andhra Pradesh are covered. Broadly the results do not support a policy of protection for cotton cultivators in India.