Punjab allocates Rs 14,524 crore for agriculture, boosts crop diversification and farmer welfare

To strengthen the agricultural sector and ensure prosperity for farmers, the Punjab government has allocated ₹14,524 crore for agriculture and allied sectors in the Budget for FY 2025-26. 

Several initiatives have been introduced to promote crop diversification and make farming a sustainable and profitable venture, said Agriculture and Farmers Welfare Minister Gurmeet Singh Khudian.

The minister stated that the "Badalda Punjab" budget, presented by Finance Minister Harpal Singh Cheema in the state assembly, reflects the government's commitment to the welfare of the farming community. The budget includes measures aimed at increasing farmers' income and securing long-term prosperity.

A new scheme will be launched in Bathinda, Kapurthala, and Gurdaspur districts to encourage Kharif maize cultivation as an alternative to paddy. Approximately 21,000 hectares will be diversified from paddy to maize to support ethanol production, aligning with the target of 20% ethanol blending by 2025. Farmers opting for maize cultivation will receive a subsidy of ₹17,500 per hectare, benefiting around 30,000 farmers.

An amount of ₹115 crore has been allocated for various crop diversification initiatives, while ₹149 crore has been earmarked under the Krishonnati Yojana to support key activities such as agricultural extension, food security, horticulture, seed development, edible oil production, and digital agriculture.

To promote sustainability and environmental responsibility, the Punjab government has committed ₹60 crore in capital subsidies for industries transitioning to paddy stubble-based boilers. This initiative is expected to utilize three million tonnes of paddy stubble annually.

For sustainable crop residue management, ₹500 crore has been set aside to support farmers, cooperative societies, and gram panchayats. The funds will be used to assist in purchasing crop residue management (CRM) machines, setting up Custom Hiring Centers, and developing Paddy Straw Supply Chain Centers. The government aims to implement eco-friendly alternatives to curb stubble burning, ensuring environmental protection and farmers’ well-being.

The government has also continued its commitment to providing free power to farmers. An allocation of ₹9,992 crore has been made in the FY 2025-26 budget for power subsidies in the agricultural sector.