Punjab facing stagnancy in agriculture: State's Economic Survey

According to Economic Survey of the state, contribution of primary sector in the GDP of state is continuously declining since 2004-05

Having distinction of being the pioneer of Green Revolution, Punjab is facing stagnancy in agriculture production and constant decline in primary sector’s share in state GSDP. According to Economic Survey of the state, contribution of primary sector(which comprises mainly agriculture and allied activities) in the GDP of state is continuously declining since 2004-05 when it was 32.67% and it is likely to come down to 21.83% in 2012-13(advance estimates), despite of the fact that majority of the population are dependent on agriculture for their livelihood.

Further, the GSDP from primary sector is  expected to decline to Rs. 35,934 crore in 2012-13 showing a negative growth of 0.34%, over the previous year. While, at constant prices 2004-05, the GSDP from primary sector, which comprises mainly of agriculture and livestock activities, would be Rs. 36,058 crore during 2011-12(quick estimates).

It is worth mentioning that the economy of the Punjab is largely dependent on agriculture and the state has contributed to the central pool significantly towards strengthening  India’s self-sufficiency. During 2011-12(P), 38.7% wheat and 22.1% rice to the central pool was contributed by the state. Though the state is the pioneer of Green Revolution in the country and is among top ranking states in terms of per capita income and high monthly per capita expenditure, yet to continues to face certain problems. The main concerns before the agriculture sector according to the Economic Survey of the state are:

Saturation in Agriculture and Erosion of Soil Health

The Agriculture production in the state has reached a plateau. The soil health in the state has been deteriorating with the continuation of rice-wheat rotation by farmers due to assured profits as compared to other crops. The higher yield realization per unit area is also responsible for reduction of nutrients in the soil. In nut shell, domination of wheat-paddy in food grains, stagnating productivity, in the absence of breakthrough in new high yielding varieties, strains on marketing infrastructure, dwindling ground water resources and decline in profitability etc. are problems which requires immediate attention.

Over exploitation of scare water resources

As irrigation facilities have been over used to increase agriculture production of the state mainly wheat and paddy, the ground water has decreased drastically since the last few decades. The water table in 9.058 square km of Central Punjab has gone down more than 20 metres during the last decade and similar trend is continuing in some other districts also.

High Incidence of Debt on Farmers

After Green Revolution cost of cultivation under high yielding varieties agriculture continued to increase while productivity or  hectare stagnated in case of major crops, as a result the majority of cultivators are cash strapped. In addition to it, financial position of rural families is upset either due to crop failure or high expenditure on social ceremonies such as marriage, birth or death. This is reflected in huge debt burden on farmers. As per NSSO survey, the peasantry of Punjab is most heavily burdened in the country next to Andhra Pradesh and Tamil Nadu . The rural debt in Punjab is estimated to be more then Rs. 35000 Crore which has resulted in farm suicides.As per the latest survey conducted by Punjab Agriculture University, Ludhiana, about 5000 farmers and farm labourers have committed suicides during the last 10 years. The high debt burden on small and marginal farmers has destroyed many and they have had either to sell or mortgage their land. This has ultimately triggered instances of suicide by many farmers.

Poverty

As per latest definition of Poverty , 15.9 % of population was still living below Poverty line in Punjab. Although this poverty ratio of Punjab was nearly half of National level (29.8 %) yet there is need to change the policy orientation toward inclusive growth model focusing on upliftment of poor and under privileged sections of the State.