The growth rate of Punjab’s agriculture fell to 3% between 1987 to 2005 and it went durther down to 1.6% between 2006 and 2015.
This is less than half the all-India average of 3.5%.
What is the problem?
Punjab is endowed with one of the best possible infrastructures for agriculture in the country.
The network of regulated mandis in Punjab is one of the best in the country.
A robust and fast-moving procurement system has reduced the market risks of wheat and paddy growers in the state.
Almost 90% of the market arrivals is procured at the minimum support price (MSP).
So, this system has made Punjab’s farmers risk averse.
This also discourages farmers from diversifying the wheat-rice cycle e.g Diversification from common rice to hybrid maize.
Farmers are reluctant to switch as there is no effective procurement system for this crop.
Lack of diversification poses a threat of ecological imbalance.
What could be done?
With the GST coming into force, the processing industry could be incentivised to prefer Punjab over other states in purchasing agricultural raw material.
There should be vigorous efforts to increase productivity and procurement of rice in the eastern states.
Simultaneously, Punjab should promote the use of micro-irrigation, especially for sugarcane and fruits and vegetables.
The dairy and meat industries are other sources of diversification for Punjab’s agriculturalists.
They can also diversify towards fruit and vegetables.
The government will also need to invest in marketing infrastructure for fruit and vegetables, as it did for grains by creating a robust mandi infrastructure.
A modern expressway from Khanna (Punjab) to Kandla (Gujarat) could be helpful in the faster transportation of fruit and vegetables.
