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.
• 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 Diversification: The agriculture of Punjab and Haryana are predominantly focused on rice and wheat, 84% of the Gross Cropped Area is dedicated to these two crops. Johl Committee recommended diversification in 1986 and 2002, but they largely remain unheeded. 
• Subsidy and Minimum Support Prices (MSP) Driven Agriculture: 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 which results in increased salinity of soil, high usage of chemicals and increased climate stress on agriculture.

Need for Crop Diversification

• Increase Income on Small Land Holding: Mera Pani – Meri Virasat Scheme of 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: 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. 
• Economic Stability: 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: The Government of India is promoting increase in area under pulses and oilseeds through National Food Security Mission.

Steps Taken to Promote Crop Diversification

• Crop Diversification Programme (CDP): Sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) in Haryana, Punjab & Western Uttar Pradesh.
• Support to State government: Under National Food Security Mission (NFSM) and Mission for Integrated Development of Horticulture (MIDH).
• Public-Private Partnerships (PPP): To promote research, provide financial support, and improve market access for diversified crops.
• Crop Insurance Schemes: Implementation of National Agriculture Insurance Scheme, which covers food crops, oilseeds and yearly commercial and horticulture crops. 

Challenges to Crop Diversification

• Economic Challenges: Small-scale farmers lack the capital needed to invest in new crops, there is a challenge in accessing markets for non-traditional crops, and new crops may be subject to high price volatility.
• Social and Cultural Challenges: Farming communities have a deep-rooted tradition in cultivating specific crops, making them resistant to changing long standing agricultural practices.
• Ecological Challenges: Water scarcity and impact of climate change limits the ability to diversify crops, especially those that are water-intensive.
• 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. 
• Government Support: Pradhan Mantri Fasal Bima Yojana (PMFBY) provide aid and financial surety to the farmer, seed crop insurance covers the risk factors associated with the production of seeds.
• 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. 
• Building Market Linkages: 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.

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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