Maharashtra’s Ladli Behna Yojna creates labour shortage, drives up cotton harvesting costs

New Delhi: Maharashtra’s Ladli Behna Yojna, aimed at empowering women through financial incentives, is impacting cotton farming in the state by weaning women off farms, creating labour shortage and driving up harvesting costs.

Women form a significant proportion of farm labour but the scheme, under which eligible women receive ₹1,500 per month in financial assistance, has drawn rural women away from farm work.

As a result, cotton growers are struggling to meet their labour needs during the ongoing crucial harvest season in one of the major cotton growing states in the country.

“Even though cotton production and quality are better this season, the populist scheme has pushed cotton picking costs from ₹5 per kg to ₹9 per kg in the first round," said Ganesh Nanote, a cotton farmer in Maharashtra’s Vidharbha region.

“Workers are able to harvest up to 90 kg in a day, earning over ₹800 per day, and costs are expected to rise to up to ₹30 per kg in the next phases of cotton harvesting,” Nanote said.

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The first phase of cotton picking began in October, and it will continue until January next year.

The payment disbursal under the scheme started in July, with the first transfer of ₹3,000 per beneficiary for July and August.

Cotton sowing

Cotton sowing has dropped to 11.27 million hectares from 12.37 million hectares last year, according to data from the Union agriculture ministry.

Sowing of cotton in Maharashtra has also shrunk from 4.2 million hectares in the 2022-23 season to 4 million hectares in the current kharif season, as per the Cotton Association of India (CAI) data.

In FY21, Maharashtra produced 10 million bales of cotton, while in FY22, production dropped to 8.2 million bales. In FY23, production slightly increased to 8.3 million bales.

According to estimates by the CAI, production in FY24 is set to reduce further to 8 million bales.

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"The decline in cotton production in Maharashtra from FY21 to FY23 can be attributed to adverse weather conditions, pest outbreaks, rising input costs, soil health degradation, market fluctuations, water scarcity, and shifts in crop preference. These factors collectively led to reduced cultivation areas and lower yields during this period," said a senior government official on the condition not to be named.

"If farmers have complained about a labour shortage, it may be a part-time issue rather than a regular one. We will investigate whether this has emerged due to the Ladli Behna Yojna or other factors. We will keep a close watch on the matter," this person said.

"It could have improved workers' bargaining power. While there may be some increase in picking costs, it might not be to the extent that farmers are predicting. Moreover, the scheme should not be blamed for these changes,” said N.R. Bhanumurthy, director, Madras School of Economics, Chennai and a noted economist.

Comparatively, total cotton production across India was 35 million bales in FY21, 31 million bales in FY22, and rose to 33 million bales in FY23. Total production in FY24 is estimated to be 32.5 million bales.

As of 25 October, the arrival of cotton in mandis from Maharashtra stands at 162,000 bales (1 bale equals 170 kg), while Gujarat has reported an arrival of 319,800 bales. Cotton picking in both states commenced on 1 October.

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Maharashtra's share in total cotton production has fluctuated over these years. In FY21, Maharashtra contributed about 28.7% to India's total cotton production. This share dropped to 26.4% in FY22 and further decreased to about 24.7% in FY23.

Queries emailed to Maharashtra government and Union agriculture ministry remained unanswered till press time.