Punjab Agriculture Policy 2023: Stuck in govt red tape, policy that pushes for farm reforms, offers urgent solutions to agrarian crisis

Indian Express

31-05-2025

As he presented Punjab's case in the 10th governing council of the NITI Aayog in Delhi, Chief Minister batted for crop diversification, urging the Centre to grant an incentive of Rs 17,500 per hectare for maize to replace paddy — the crop that over the years has turned into a bane for state and its aquifers.
Incidentally, promotion of crop diversification is among several bold reforms recommended as urgent solutions to Punjab's deep-rooted agrarian crisis in Punjab Agriculture Policy-2023, a 200-page document that has got thumbs up from even the farmers unions — Bhartiya Kisan Union (Ugrahan), one of the largest farm bodies in state — had even staged a dharna to bring it in the public domain.
Now, 20 months after it was crafted by the 11-member Agriculture Formulation Committee, led by Dr Sukhpal Singh, chairperson of the Punjab State Farmers' and Farm Workers' Commission, the policy — Punjab's first — remains on paper with hardly any meaningful steps taken toward its implementation.
The policy was submitted to the government on October 13, 2023 and was put in public domain in September 2024 and was almost accepted by all the stakeholders.
The policy offers a robust framework to tackle state's long-standing agricultural challenges, and proposes reforms such as a legal guarantee for Minimum Support Prices (MSP), a pension plan for small farmers and farm workers, one-time debt settlements, special debt waivers for marginal farmers, and crop insurance, among other critical measures.
Despite the policy's potential to address pressing issues such as economic distress among farmers and the unsustainable farming practices currently plaguing the state, the government's continued inaction leaves many questioning the AAP dispensation's commitment to agricultural reforms.
Why is its implementation delayed
Senior officials in the Agricultural Department says that major obstacles in the policy's implementation is funding requirements and its 'cooperative nature' while the government's preference is for 'corporative nature'.
To effectively address the agricultural crisis, significant investment is needed — something that the fund-starved and debt-burdened state lacks.
The stakeholders, however, argue that delaying its implementation will only prolong the crisis, aggravating the suffering of the farmers. 'The policy lays out clear and practical solutions. What we need now is the political will to fund and implement these reforms,' said a member of the Agriculture Formulation Committee requesting anonymity.
A senior official in the Agriculture Department, said that the key questions remain. 'How will these recommendations be implemented, especially when past proposals from various committees, including renowned agricultural scientist Dr MS Swaminathan's MSP recommendations and economist Sardara Singh Johl's 'Johl Plan' for diversification and crop rotation, have failed to materialise despite numerous farmer protests? While the policy outlines a roadmap, but how will the necessary funds be sourced?'.
The policy records several things — from the farm suicide data (up till 2018) to farm debt, including Rs 73,673 crore in institutional debt.
It, however, is silent on suicides from 2018 till 2023 and on the issue of non-institutional debt of farmers. It suggests establishing a State Agricultural Costs and Prices Commission to ensure fair prices for all non-MSP crops, dairy products, and eggs.
It further suggests that legal guarantee of procurement at MSP is essential. It suggests that the MSP should be fixed according as per the Swami-nathan Report — at a minimum of C2 + 50 per cent with additional costs outlined in the Ramesh Chand Committee Report.
For instance, it state that the MSP for wheat should have been Rs 2,787 per quintal rather than the Rs 1,925 per quintal set by the Government of India and should have reached around Rs 3,200 per quintal as against the current Rs 2,425 per quintal. 'Such suggestions do not suit the governments,' said an Agriculture Department official.
The policy proposes a 'one-time debt settlement scheme' through cooperative banks. It also proposes a pension plan for farm workers and small farmers (with up to 5 acres of land), starting at the age of 60.
A special debt waiver and debt swapping schemes for small farmers are also outlined, alongside the registration of money lenders to regulate non-institutional credit system.
It suggests creating state's own crop insurance scheme and crop insurance fund and leasing one-third of Panchayati land and other common lands to farm workers under cooperative farming.
It proposes a similar livestock insurance scheme through Milkfed and the Dairy Development Department. To address water scarcity, it recommends growing crops in their natural growing areas (NGA) to improve quality and reduce production costs.
It proposes banning paddy cultivation in 31 dark blocks, where water extraction exceeds the recharge rate by 201 to over 301 per cent, and promoting alternative crops like cotton, maize, sugarcane, and vegetables in a phased manner.
The policy also advocates for timely canal water supply in the cotton belt, discouraging paddy cultivation, incentivizing cotton in designated zones. Water-saving technologies, such as alternate wetting and drying, are recommended to improve paddy yield while using 30-40 per cent less water.
Additionally, it focuses on micro-irrigation methods for several crops and advocates for the ongoing 'Pani Bachao, Paisa Kamao' (PBPK) scheme. It further advocates immediate payment to sugarcane farmers by the sugar mills, promoting ethanol production, and providing maize dryers to farmers.
The policy also calls for intervention in basmati pricing through Markfed's price stabilisation fund and supports organic farming initiatives.
The policy proposes establishing 13 Centres of Excellence (CoE) for different crops and and a hub for seed production with region-specific crops like potato seeds in Doaba.
It further advocates for strengthening agricultural research and extension services and establishing an Agricultural Marketing Research Institute (AMRII) to balance supply and demand.
The policy acknowledges the heavy burden of the free power subsidy (Rs 8,000-9,000 crore annually), noting how the increasing number of tube wells over the past 15 years has driven this cost to over Rs 80,000 crore. It suggests reducing the subsidy through water-efficient farming practices.
It also recommends doubling the mandatory workdays under MGNREGA to 200 and providing Rs 10 lakh in compensation to the families of farmers, farm workers, and rural artisans who have died by suicide. Free healthcare should also be extended to these groups.
The policy discusses forming Progressive Farmers' Societies (PFS) linked to crop CoEs and establishing an Agricultural Marketing Research and Intelligence Institute (AMRII) to balance demand and supply.
An Innovative Agricultural Marketing Society (IAMS) would serve as the apex marketing body for these societies, ensuring advanced planning for high-quality produce, it says.
For horticulture, the policy recommends improving nurseries to provide high-quality planting material and upgrading kinnow value addition infrastructure, including cold chains.
Lastly, the policy proposes building Punjab into a hub for innovative farm machinery manufacturing and strengthening agricultural research and extension services by filling vacant posts and updating land tenancy laws.