Overview of Blog

{ Chandigarh: Agriculture Minister Gurmeet Singh Khudian announced on Wednesday that the Punjab government has allocated Rs 14,524 crore for agriculture and related industries in its budget for FY 2025–2026. This budget aims to finance key measures, including crop diversification, sustainable farming, and residue management, to address the pressing challenges faced by the state’s agricultural sector. }

Punjab, known as India’s breadbasket, has relied heavily on traditional crops like wheat and paddy. However, over the years, the state has grappled with depleting groundwater levels, soil degradation, stubble burning, and financial instability for farmers. This latest budget seeks to tackle these pressing issues and foster a resilient, diversified, and sustainable agricultural ecosystem.

Major Budget Highlights

1. Focus on Crop Diversification

To reduce the overdependence on traditional crops like wheat and rice, Rs 115 crore has been allocated to promote crop diversification. A significant initiative under this plan is the introduction of a scheme to promote Kharif maize cultivation in three districts—Bathinda, Kapurthala, and Gurdaspur—aimed at supporting ethanol production and meeting the national target of 20% ethanol blending by 2025. Approximately 21,000 hectares will be converted from paddy to maize, benefiting about 30,000 farmers. Each farmer making the transition will receive a subsidy of Rs 17,500 per hectare.

2. Support for Sustainable Crop Residue Management

In an effort to combat stubble burning and encourage sustainable crop residue management, the state government has set aside Rs 500 crore. This amount will assist gram panchayats, farmers, and cooperative organizations in promoting sustainable practices. Additionally, custom hiring centers and the acquisition of crop residue management (CRM) equipment will receive financial support.

To further reduce pollution caused by stubble burning, the government has allocated Rs 60 crore in capital subsidies to assist businesses in switching to boilers that use paddy stubble. This initiative aims to utilize approximately 3 million tonnes of paddy stubble annually.

3. Increased Budget Allocation and Key Projects

The allocation for the agriculture sector has increased by 5% compared to the previous year, reflecting the government’s sustained commitment to strengthening the sector. Under the Krishonnati Yojana, Rs 149 crore has been earmarked for several critical projects, including digital agriculture, horticulture, seed development, food security, agriculture extension, and edible oil production. These initiatives are expected to enhance agricultural productivity and support farmers in adopting modern technologies.

4. Continued Power Subsidies

The Punjab government has also set aside Rs 9,992 crore to continue providing free power to farmers. This power subsidy aims to ease the financial burden on farmers while ensuring that they have access to affordable energy for irrigation and other agricultural activities.

Impact on Farmers and the Agricultural Ecosystem

The comprehensive budget allocation seeks to create a more resilient and diversified agricultural ecosystem in Punjab. By promoting crop diversification, sustainable residue management, and technological advancements, the government aims to address longstanding issues such as groundwater depletion, soil degradation, and air pollution caused by stubble burning.

Challenges and the Way Forward

While the budget allocation is a positive step, effective implementation and monitoring will be crucial to achieving the desired outcomes. Ensuring transparency, timely disbursement of funds, and active participation from farmers and local stakeholders will play a pivotal role in the success of these initiatives. Continuous feedback and policy adjustments will also be necessary to address emerging challenges and optimize results.

Conclusion

The Punjab government’s Rs 14,524 crore allocation for agriculture and allied sectors demonstrates a forward-looking approach to revitalizing the state’s agrarian economy. By focusing on crop diversification, sustainable practices, and technological innovation, Punjab is taking significant strides toward a more sustainable and prosperous agricultural future. With the right implementation and collaboration between the government, farmers, and industry stakeholders, the state’s agricultural sector can overcome current challenges and thrive in the years to come.