Economic Viability of Crop Diversification in Punjab

Crop diversification is essential for an agricultural based economy like Punjab. With only 1.53 per cent of the total geographical area of the country, Punjab state produces about three per cent of rice, two per cent of wheat and one per cent of cotton of the world. During 2017–18, Punjab's share in central pool was about 32.5 for rice and about 36 per cent for wheat. However, its contribution has been declining over years because of the increased contribution of rice to the Central Pool from other states. The area under rice has increased by six times in the state i.e., from 6.9 per cent (1970–71) to about 39 per cent of total cropped area in 2016–17. With increased irrigation facilities R-W monoculture has replaced others crops from Punjab's cropping pattern. To meet increased irrigation requirement of paddy, the rising dependence on groundwater resources has led to widespread decline in water table, increased operation and maintenance cost, more power consumption, and deterioration of groundwater quality affecting the socio-economic conditions of the farmers. Also, fertiliser consumption has increased from 37.5 kg/ha (1970–71) to about 245 kg/ha in 2016 17. The excess use of fertilizers above the recommended dose in wheat, paddy and cotton led to an additional expenditure of about Rs 250 crore. Assured purchase of wheat and rice at MSP by the public agencies along with lack of marketing infrastructure for other crops explains the concentration on wheat paddy monoculture. Area under paddy may be replaced either by raising the MSP or by raising the productivity of competing crops. Therefore, investment in Research and development, marketing infrastructure for alternate crops to paddy-wheat and strengthening of food processing and value addition industry is need of the hour.