Compensation to be provided for selling cotton below MSP.
2026-04-14 11:46:38
Big relief for cotton farmers: Will get direct compensation if sold at a price lower than MSP
With the aim of providing relief to cotton farmers from market price fluctuations, the Central Government has taken a new step under the PM AASHA scheme. Through this system called ‘Gap Support Mechanism’, if farmers sell their produce at less than the Minimum Support Price (MSP), the government will transfer the difference amount directly to their bank accounts.
How will the plan work?
Under this system, if the price of cotton in the market goes below the MSP, the difference between the MSP and the actual selling price will be paid by the government. this payment
It will be deposited directly into the accounts of farmers through Direct Benefit Transfer (DBT), so that they can be saved from financial loss.
For example, if the MSP is Rs 7500 per quintal and the farmer gets only Rs 6500 in the market, then the remaining Rs 1000 will be given as compensation by the government.
Where is it applicable now?
At present this scheme has been implemented as a pilot project in Andhra Pradesh and Telangana. If it is successful, it can be implemented across the country.
What benefit will farmers get?
Protection from falling prices
freedom to sell in the open market
Reduction in dependence on government procurement centers
freedom to choose buyer
What will farmers have to do?
To avail the benefits of the scheme, farmers should:
You will have to register your crop in the ‘e-crop’ system.
Sales receipts must be kept safe
further prospects
If this model is successful, the government can extend it to other cash crops also. This is expected to bring major improvements in the agricultural price support system and make farmers' income more stable.
