The Government of Punjab has announced an allocation of INR 14,524 crore for agriculture and allied sectors in the state budget for the financial year 2025-26, reflecting a 5% increase compared to the previous year. The budget was presented by Finance Minister Harpal Singh Cheema in the state assembly, emphasizing initiatives aimed at crop diversification, sustainable farming practices, and farmer welfare.
Agriculture and Farmers Welfare Minister Gurmeet Singh Khudian stated that the budget represents the government’s commitment to improving farmers’ income and ensuring long-term prosperity for the agrarian community.
Crop Diversification Initiatives
As part of efforts to encourage farmers to shift from water-intensive paddy cultivation, a new scheme will promote kharif maize cultivation in Bathinda, Kapurthala, and Gurdaspur districts. The scheme aims to diversify 21,000 hectares of farmland and provide a subsidy of INR 17,500 per hectare to approximately 30,000 farmers. This initiative aligns with the central government’s ethanol production strategy, targeting 20% ethanol blending by 2025. In addition, INR 115 crore has been earmarked to support various crop diversification programs across the state.
Measures for Sustainable Agriculture
To address the environmental impact of stubble burning, the Punjab government has allocated INR 500 crore for sustainable crop residue management. This includes financial assistance for purchasing specialized machinery and establishing custom hiring centers to help farmers manage paddy stubble effectively. Additionally, INR 60 crore has been designated as capital subsidies to industries adopting paddy stubble-based boilers, with over 25 stakeholders already showing interest in utilizing more than three million tonnes of stubble annually.
A new initiative promoting natural farming practices will be introduced in the districts of Amritsar, Shaheed Bhagat Singh (SBS) Nagar, Rupnagar, SAS Nagar (Mohali), and Hoshiarpur. This program aims to educate farmers on alternative, eco-friendly agricultural techniques to reduce reliance on chemical inputs.
Infrastructure and Land Reclamation Projects
A large-scale underground pipeline network is set to be developed in Sangrur, covering over 38,000 hectares and benefiting approximately 20,000 farmer families. In Fazilka district, a land reclamation project is being planned to restore waterlogged areas and improve agricultural productivity.
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Financial Support and Free Power Subsidy
To further strengthen the agricultural sector, INR 149 crore has been allocated under the Krishonnati Yojana. The funds will be directed towards key activities such as agricultural extension services, food security measures, horticulture promotion, seed development, edible oil production, and digital agriculture initiatives.
A major portion of the budget, INR 9,992 crore, has been allocated to provide free electricity to farmers. This subsidy will cover approximately 14.5 lakh agricultural tubewells, ensuring uninterrupted power supply for irrigation.
Punjab Balancing Agricultural Growth with Environmental Sustainability
The Punjab government’s budgetary focus on crop diversification and sustainable agricultural practices is expected to help reduce the excessive dependence on paddy cultivation, which depletes groundwater resources. The push for ethanol production through maize farming, combined with measures to curb stubble burning, reflects an integrated approach to environmental and economic challenges in the agricultural sector.
By increasing financial support and introducing new initiatives, the Punjab government aims to make agriculture a more viable and profitable sector while addressing key environmental concerns.
