Context

Despite having high productivity in rice and wheat, Punjab ranks low in agricultural value creation among Indian states.

About Agricultural Productivity 

• Agricultural Productivity refers to the ratio of agricultural outputs to inputs. It is measured by the production (crops, livestock) per unit of input (land, labour, fertilizer, seeds) used in agricultural production.

• • Higher productivity indicates more efficient use of inputs.
• There are two ways to estimate agricultural productivity:
  • Dividing State Agri-GDP by Net Sown Area (NSA): In this, Andhra Pradesh (AP) has the highest productivity (Rs 6.43 lakh/ha), followed by West Bengal (Rs 5.19 lakh/ha). 
    • Punjab ranks 13th with productivity of (Rs 3.71 lakh/ha).
  • Dividing Agri-GDP by Gross Cropped Area (GCA): In this too, Andhra Pradesh (5.30 lakh/ha) has the highest productivity followed by Tamil Nadu (3.97 lakh/ha). Punjab has productivity of Rs 1.92 lakh/ha.

Reasons behind Low Agri Value Creation in Punjab

• Lack of Crop Diversification: 

• • The agriculture of Punjab and Haryana are predominantly focused on rice and wheat due to policy incentives by the state. Furthermore, 84% of the Gross Cropped Area is dedicated to these two crops.

• Minimum Support Prices (MSP) Driven Agriculture

• • Government-promoted Green Revolution cropping pattern: The Green Revolution  cropping pattern of rice-wheat-rice, MSP regime and open-ended procurement encourage the status quo towards the cropping pattern.
  • Subsidy Dependency: Reliance on free power and subsidized fertilizers disincentivizes diversification and shifts to high-value agricultural practices.

• Lack of Sustainable Agricultural practices: 

  • 76% of Punjab’s blocks face over-exploitation of groundwater resources due to high GCA allocation to water-guzzling crops like rice. This results in increased salinity of soil, high usage of chemicals and increased climate stress on agriculture.
    • Moreover, the same cropping pattern for years extracts the specific nutrients from the soil, resulting in soil deficiency.

Furthermore, Johl Committee Recommendations advised crop diversification in 1986 and 2002, but they largely remain unheeded.

About Crop diversification 

• Crop diversification refers to the traditional approach of low input-based extensive and diversified agricultural practices. It is a strategy applied to grow more diverse crops from shrinking land resources with an increase in productivity in the same arable land.
• It includes addition of new crop(s) as intercrop and / or predecessor or successor crops, changing numbers of the crop (multi-cropping), modified cropping system and adopting a new, integrated cropping pattern with changing agronomical practices. 

Need for Crop Diversification

• Increase Income on Small Land Holding

  • Growing high value crops: The declining landholding size (more than 70% farmers with < 2 hectare land), requires diversification in existing cropping patterns with high value crops such as maize, pulses, etc. to augment income. 
  • Mera Pani – Meri Virasat Scheme: The Government of Haryana is incentivizing farmers to switch to other alternate crops instead of paddy by paying Rs. 7000 per acre.

• Increase resource-use efficiency:

  • Shift from Mono cropping practice: Mono-cropping pattern reduces resource-use efficiency. Thus there is a need to introduce diverse crops and cropping patterns to revive the soil health and increase resource-use efficiency. 
  • Traditional pattern of agriculture in India has wider crop diversity. In the Garhwal Himalayan region of India, Barahnaja is a crop diversification system for cultivating 12 crops in a year and is the traditional heritage of the area. 

• Prevent Soil Health Degradation

  • The repetitive rice-wheat cropping pattern depletes specific soil nutrients and diminishes the microfaunal population. This impacts the soil’s self-sustaining capabilities and leads to nutrient deficiencies.

• Economic Stability

  • Aligning production with consumer demands: Crop diversification, including the adoption of high-value cash crops, can potentially increase farmers’ incomes by aligning production with changing consumer demands, as observed in the increased production of fruits and vegetables in India.
  • Mitigate price fluctuation: Crop diversification can better tolerate the ups and downs in price of various farm products and it may ensure economic stability of farming products.

• Food and Nutritional Security:

  • Improve nutritional security: Crop Diversification can help in improving the socio economic status by adding quality to the food basket and addressing malnutrition, anemia, etc.
  • National Food Security Mission: The Government of India is promoting increase in area under pulses and oilseeds through NFSM.

• Conservation:

• • Reduction in usage of chemicals: Adoption of crop diversification helps in reduced application of pesticides and insecticides. 
  • For example, introduction of legume in the rice-wheat cropping system has the ability to fix atmospheric Nitrogen to help sustain soil fertility.

Steps Taken to Promote Crop Diversification

• Crop Diversification Programme (CDP): 

• • The Department of Agriculture & Farmers Welfare is implementing the Crop Diversification Programme (CDP), a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) in Haryana, Punjab & Western Uttar Pradesh since 2013-14 to divert the area of water intensive paddy crop to alternative crops like pulses, oilseeds, coarse cereals, nutri cereals, cotton etc.

• Support to State government: 

  • Government of India is also supplementing the efforts of state governments to encourage diversified production of crops under National Food Security Mission (NFSM) and Mission for Integrated Development of Horticulture (MIDH).

• Public-Private Partnerships (PPP): 

  • Encouraging partnerships between the government, private sector, and NGOs to promote research, provide financial support, and improve market access for diversified crops.

• Extension Services: 

  • Financial assistance is being provided to the State Governments, Krishi Vigyan Kendras (KVKs), Indian Council of Agricultural Research (ICAR) Institutions, Central Government Institutions, Public Sector Undertakings (PSUs) etc. for Information, Education and Communication (IEC) activities for creating awareness on crop residue management and crop diversification.

• Crop Insurance Schemes: 

  • Implementation of National Agriculture Insurance Scheme, which covers food crops, oilseeds and yearly commercial and horticulture crops. 
    • Seed Crop Insurance Pilot Program (PSSCI) has also been introduced  addressing the risk associated with seed production.

Challenges to Crop Diversification

• Economic Challenges:

  • Lack of Financial Support: Small-scale farmers often lack the capital needed to invest in new crops, which can include the cost of seeds, new farming equipment, and technology.
  • Market Accessibility: There’s a significant challenge in accessing markets for non-traditional crops, including transportation logistics and finding buyers willing to pay fair prices.
  • Price Volatility: New crops may be subject to high price volatility, deterring farmers from diversifying due to the risk of financial loss.

• Social and Cultural Challenges

  • Resistance to Change: Many farming communities have a deep-rooted tradition in cultivating specific crops, making them resistant to changing long standing agricultural practices.
  • Knowledge and Skills: There’s often a lack of knowledge and skills required to cultivate new crops, including understanding their specific needs and best practices for cultivation.

• Ecological Challenges

  • Water Availability: Water scarcity in many parts of India limits the ability to diversify crops, especially those that are water-intensive.
  • Climate Adaptability: With the impact of climate change, crops that were once suitable for certain areas may no longer thrive, making diversification a moving target.

• Policy and Institutional Challenges

• • Lack of Supportive Policies: There’s often a lack of government policies that actively support and incentivize crop diversification, including subsidies, insurance, and technical support.
  • Infrastructure Deficiencies: Poor rural infrastructure, including roads and storage facilities, can hamper the distribution and sale of diversified crops.

Way Forward to Increase Agricultural Productivity in India

• Embracing Agroforestry: 

  • Agroforestry combines trees, crops, and/or livestock, optimizing ecological and economic benefits through resource-efficient utilization. 
    • It produces a diverse range of products such as food, feed, fiber, fuel, etc., enhances food and nutritional security and supports livelihoods and fosters resilient agricultural environments.

• Government Support: 

  • Policies that encourage market access, provide subsidies for diverse crops, and invest in infrastructure can incentivise diversification.
    • Pradhan Mantri Fasal Bima Yojana (PMFBY): Central government scheme to provide aid and financial surety to the farmer.
    • Seed Crop Insurance: The government has launched a pilot program for seed crop insurance, which covers the risk factors associated with the production of seeds.

• Research and Development: 

• • Breeding programs and the development of climate-resilient crop varieties can reduce risks and improve the economics of diversified agriculture.

• Collaboration and Knowledge Sharing: 

  • Farmers’ networks and cooperatives can support knowledge exchange, market access, and collective bargaining, making diversification more viable.
    • National Mission for Sustainable Agriculture: In 2014-15, the NMSA was launched to improve the efficiency of farming, the use of water, and soil health management. It also aims to synergize resource conservation across all parts of the country.

• Building Market Linkages: 

  • Facilitating connections between farmers and reliable buyers, including supermarkets, restaurants, and direct-to-consumer channels, can improve market access and price stability.
    • The Shanta Kumar Committee recommended that Private players procure and store food grains to strengthen market linkages.

• Investment in Infrastructure: 

  • Strengthening cold storage, transportation facilities, and processing plants is crucial to ensure efficient and cost-effective management of diverse crops.
    • Gramin Bhandaray Yojana: A program created in 2001 to provide storage facilities for agricultural products in rural India and to promote grading, standardization, testing, and quality control to make the products more marketable.

Conclusion

The path towards revitalizing Indian agriculture and boosting farmers’ incomes requires moving beyond traditional staples. Punjab and Haryana need to embrace a demand-driven high-value agricultural system and need to shed the mindset of an MSP-based cropping system.

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