Punjab may hold the third position in the country in paddy yield, but the central government including the state government is spending thousands of crores of rupees to maintain this place. The Punjab government is spending a huge amount of Rs 8275 crore in the form of free electricity for irrigation to paddy producing farmers. Similarly, the Center is also spending Rs 5000 crore to subsidize fertilizer.
Paddy has a higher minimum support price (MSP) than the wheat crop, hence Punjab's farmers are placing more emphasis on paddy production than wheat and other crops. Punjab produces about 1.4 million tonnes of paddy every year. The farmers are benefiting from this, but the Punjab government is being bankrupt.
Every year the government is spending a large part of the budget on the subsidy being given to the farmers. Arrangements have been made to provide free electricity of Rs 8,275 crore to 1,90,000 farmers of Punjab during the current financial year. Apart from this, a subsidy of Rs 5000 crore is being given to the farmers separately from the central government. In addition to the subsidy on free electricity and fertilizers, the farmers of Punjab are also being subsidized by the government for purchasing agricultural equipment, pesticides, and seeds.
In Punjab, the area (area) irrigated by tubewells is increasing every year due to the free electricity available to farmers. According to a report of the Indian Council of Agricultural Research, the area under irrigation from tubewells, which was 2233 thousand hectares in 1990-91, has increased to 2907 thousand hectares in the year 2018-19. Due to this the level of groundwater has fallen significantly. The first task of the government is to provide relief to the farmers and they are doing it. However, farmers are being motivated by the government to grow basmati excessively. Now the results of this have started. Basmati rice yield has increased in the state compared to last year.
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