Impact of Government Schemes (NFSM, RKVY, and MSP) on Cotton Farmers: Awareness, Utilization, and Effects on Productivity and Income

Abstract

Government interventions play a critical role in shaping the production environment of cotton farmers in India. Schemes such as the National Food Security Mission (NFSM), Rashtriya Krishi Vikas Yojana (RKVY), and the Minimum Support Price (MSP) aim to improve production efficiency, stabilize farmer income, and strengthen the overall agricultural value chain. This study examines the extent of awareness, level of utilization, and the measurable impact of these schemes on cotton farmers in a representative cotton-growing district in Telangana. Using a semi-empirical approach supported by simulated field-based data from 180 farmers, the study assesses the influence of these schemes on productivity, cost of cultivation, marketing choices, and income stability. Findings indicate that awareness levels vary significantly across schemes, with MSP being the most widely known, while NFSM and RKVY display gaps in both awareness and accessibility. The results show that farmers who engage meaningfully with these schemes-especially through NFSM demonstrations and RKVY-funded extension programs-experience measurable improvements in yield and gross income. However, challenges persist in scheme dissemination, credit linkages, bureaucratic delays, and market access. Policy recommendations emphasize strengthening last-mile extension delivery, simplifying documentation, enhancing transparency in MSP procurement,
and promoting digital platforms for scheme communication.