Chandigarh, March 26, 2025: The Punjab government’s 2025-26 budget has earmarked ₹14,524 crore for agriculture and allied sectors, aiming to boost crop diversification, provide power subsidies, and introduce new initiatives for farmers. However, the big question remains—will these measures be enough to address Punjab’s long-standing agricultural challenges?
One of the key highlights is the ₹500 crore allocation for crop residue management, a step towards controlling stubble burning, which has been a major environmental concern. The government is also focusing on crop diversification with a new scheme in Bathinda, Kapurthala, and Gurdaspur to encourage maize cultivation in the Kharif season. Farmers switching from paddy to maize will receive a subsidy of ₹17,500 per hectare, benefiting around 30,000 farmers. This move aligns with the Centre’s ethanol-blending target, making maize a lucrative alternative.
In addition, the budget includes ₹9,992 crore for power subsidies in agriculture, ensuring free or reduced-cost electricity for farmers. While this is a significant support, concerns remain over Punjab’s growing power subsidy burden. The government has also announced a ₹250 crore allocation for sugarcane purchase, signaling an effort to support diversification beyond wheat and paddy.
An ambitious proposal for a hi-tech shrimp processing plant in waterlogged fields is another step towards non-traditional farming. If implemented effectively, this could offer new income opportunities to farmers struggling with declining groundwater levels.
While these initiatives promise relief, experts caution that without long-term structural reforms, Punjab’s agricultural sector will continue to face issues like over-reliance on wheat and paddy, depleting water resources, and unsustainable farming practices. The success of these budgetary measures will depend on their execution and how well the government supports farmers in adapting to new crops and technologies.
