Guest Column| Punjab’s agriculture policy needs to be more nuanced

The recent draft of the agriculture policy by the Punjab government’s committee attempts to synthesise past recommendations. However, it spreads its focus too thinly across numerous challenges instead of tackling the most pressing agricultural issues. The key question remains: How can we enhance farmers’ incomes while sustaining and deepening national food security?

To address Punjab’s agricultural challenges, the state must ensure targeted interventions, context-specific programmes, and dedicated funding. Greater attention is required in critical areas, including agricultural input efficiency, market reforms, innovative technologies, crop diversification, agricultural extension services, research and development (R&D), environmental sustainability, better governance, and structural reforms. Sensitive issues, such as the legalisation of the minimum support price (MSP), slow diversification, and subsidy viability, also deserve thoughtful responses.

Despite being one of India’s wealthiest agricultural states, Punjab faces stagnating or declining farm incomes, as highlighted by NITI Aayog (2021). To uplift farmer welfare, the state’s agriculture policy must confront these challenges with clarity and resolve, steering clear of political maneuvering. A robust framework based on nine key pillars, discussed here-in-after, is essential and more pragmatic to quell farmer unrest and rejuvenate Punjab’s agricultural leadership.

Input efficiency, subsidies

At present, agri-input efficiency in Punjab is assessed as low to medium. Existing practices, technologies, and policies — especially those concerning subsidised inputs like power, water, and fertilisers — are partly to blame for inefficiencies and environmental degradation. The committee’s omission of free power from the discussion is significant because this policy directly contributes to the overexploitation of groundwater, one of Punjab’s most pressing environmental concerns.

Improving input efficiency necessitates promoting precision agriculture technologies that optimise water usage, fertilisers, and pesticides. For example, drip irrigation has been shown to reduce water consumption by 30-70% while improving crop yields, according to the International Water Management Institute. A shift from free power and water to direct benefit transfers (DBTs), particularly targeted at small, marginal, and ultra-marginal farmers, could help make subsidies more effective and curb wasteful consumption. These measures would also address Punjab’s growing environmental crisis, particularly the depletion of groundwater.

Market access, remunerative pricing

Legalising the MSP has become central to India’s agricultural policy debates. The committee’s response to this politically sensitive issue is inadequate, despite it being crucial for Punjab, where the procurement of wheat and rice under MSP forms the bedrock of farm incomes.

Legalising MSP would guarantee farmers a minimum price for their produce, providing a financial safety net. However, making MSP mandatory for all crops could distort markets, encourage overproduction of water-intensive crops, and strain the state’s finances. It could even harm Punjab farmers. A pragmatic approach would involve phased implementation, with select crops brought under MSP, while simultaneously expanding e-NAM (National Agriculture Market) to improve price discovery and competition. Further, private procurement should be encouraged through stringent regulatory oversight.

Farmers should be incentivised to explore and access remunerative markets. Encouraging market exploration, particularly among progressive farmers, will foster a habit of seeking higher incomes and new opportunities.

Emerging tech, practices

Despite Punjab’s pioneering role in the Green Revolution, the state has fallen behind in adopting emerging agricultural technologies. The committee’s recommendations on this front are too broad. Punjab must aggressively promote precision farming, mechanisation, and digital agriculture platforms. Precision farming techniques, such as satellite-based crop monitoring and moisture sensing, could help lower input costs and boost yields. Furthermore, R&D investments should focus on climate-resilient crops and advanced pest management techniques. ICAR (2020) reports that precision farming can increase productivity by 25-30% while reducing input costs by 20%.

Agricultural diversification

Despite repeated calls for diversification, Punjab’s agriculture remains overly dependent on wheat and rice, primarily due to MSP procurement. This monoculture is both economically and environmentally unsustainable.

Farmers are reluctant to shift to alternative crops due to a lack of market support and infrastructure. The policy must prioritise diversification into high-value crops, such as fruits, vegetables, and pulses, while promoting agro-processing industries that offer better returns. Punjab should invest in cold storage and supply chains to support diversified crops and price incentives to encourage farmers to switch. According to NITI Aayog (2022), Punjab needs to increase cold storage capacity by 45% to facilitate crop diversification. Lessons from states like Maharashtra, where horticulture drives income growth, could be adapted to Punjab’s context.

Subsidiary occupations, value addition

Beyond promoting diversification, the policy must focus on developing subsidiary occupations that can supplement incomes. Livestock rearing, poultry farming, beekeeping, dairy production, and fisheries offer additional revenue streams that reduce dependence on traditional crop production. Encouraging these activities will create a diversified rural economy, which is resilient against agricultural risks like crop failure or market fluctuations. Developing industries such as food processing and rural tourism can further strengthen the economic base of farming communities. Integrating these subsidiary occupations will enhance income security, reduce risks, and improve living standards, while also reducing migration to urban areas.

Extension services, farmer coaching

Punjab’s agricultural extension services are outdated and have not kept pace with the demands of modern, technology-driven farming. The state must invest in next-generation extension services, including digital platforms and AI, to provide real-time advisory support on pest control, weather conditions, and market trends. Establishing farmer coaching schools to train farmers in sustainable practices and advanced technologies is essential. Education and training of agricultural bureaucracy should be prioritised to sensitise them to emerging challenges in global ecosystems.

Research and development

The success of Punjab’s Green Revolution was fuelled by robust research institutions, such as Punjab Agricultural University (PAU). However, recent R&D investments have stagnated. The state should increase R&D funding to at least 1% of its agricultural GDP, focusing on innovations such as climate-resilient seeds and soil health rejuvenation. Collaborating with global institutions and fostering public-private partnerships, particularly with contract research organisations, could significantly enhance innovations. An ICAR report (2021) indicates that every rupee invested in agricultural R&D yields a ₹11 return, underscoring the urgency for increased funding.

Environmental sustainability

Punjab’s reliance on water-intensive crops such as rice has led to environmental degradation, including groundwater depletion and soil fertility loss. While the committee acknowledges these issues, it falls short in proposing bold solutions.

The policy must prioritise sustainable practices such as conservation agriculture, drip irrigation, and organic inputs. The International Food Policy Research Institute (IFPRI) states that these methods can reduce input costs and environmental harm while boosting yields by up to 20%. Financial incentives should be offered to farmers transitioning to sustainable practices. The government must address gaps in agricultural governance to create responsive, agile, and farmer-focused systems.

Structural reforms

Structural reforms should ensure farmers’ meaningful participation in decision-making processes and grievance redressal systems. Establishing a State Agriculture Promotion and Development Bureau with strong farmer representation would foster a bottom-up approach, ensuring that policies are responsive to farmers’ needs and the realities on the ground. This bureau should be an inclusive body that oversees agriculture and allied occupations, driving holistic rural development.

While the Punjab Agriculture Policy Committee has laid a broad foundation, its report needs thorough examination for a more nuanced response. A successful agricultural policy must prioritise raising farm incomes, improving input efficiency, promoting market access and diversification, and boosting R&D investments. It should also aim for environmental sustainability and structural reforms that actively involve farmers in decision-making processes for long-term resilience. The policy should be followed up with a programme for action for its implementation in a time-bound manner.

Punjab’s agricultural future depends on a pragmatic yet visionary policy framework and determined actions that balance both short-term needs and long-term goals. With focused interventions and collaborative efforts from the government, farmers, and the private sector, Punjab can once again emerge as a leader in India’s agricultural landscape, ensuring both economic prosperity and environmental sustainability.