Thali to Plow: Increasing farmers’ income in Punjab

From top policy makers to farmers in Punjab, everyone knows that rice cultivation is rapidly depleting water levels, emitting methane and other greenhouse gases, harming the environment; Millions are suffocating due to stubble burning. (representative image)

By Ashok Gulati and Ranjana Roy

According to the latest Situation Assessment Survey (SAS) of agricultural households conducted by the National Statistical Office (NSO), the average Indian farmer earned Rs 10,218 per month in 2018-19 (July-June). Meghalaya has the highest income (Rs 29,348) for a farming family, followed by Punjab (Rs 26,701), Haryana (Rs 22,841), Arunachal Pradesh (Rs 19,225) and Jammu and Kashmir (Rs 18,918). West Bengal had the lowest income (Rs 6,762), followed by Odisha (Rs 5,112) and Jharkhand (Rs 4,895).

But this is not a fair comparison as the size of the holding varies widely across states. Normalizing these incomes by holding the size given in the SAS, Punjab’s income rank per hectare comes from second to 11th and Haryana from third to 15th. J&K, Kerala, Meghalaya- All these states earn more from fruits and vegetables (F&V), spices and livestock etc., which are high value in nature, do not receive MSP business, and have more market- and demand- operated. Here is a lesson for farmers of Punjab and Haryana to increase income in a more sustainable way.

Interestingly, the average land holding data is collected by both SAS and Agriculture Census (latest 2015-16), but there is a big difference between the two sets of data, especially for states like Punjab, Rajasthan, Haryana and Gujarat. . According to the SAS, the average operated area per holding for Punjab is 1.44 hectares (used in the accompanying graphic), but the census gives an average operating holding of 3.62 hectares. If we normalize the income of agricultural households using the census value for the average holding size, Punjab ranks 21st out of 28 states (with Rs 7,376 per hectare) and less than Bihar (with Rs 19,338). It becomes This means that the farmers of Punjab and Haryana are earning more income mainly because of the larger holding size as compared to other states.

From top policy makers to farmers in Punjab, everyone knows that rice cultivation is rapidly depleting water levels, emitting methane and other greenhouse gases, harming the environment; Millions are suffocating due to stubble burning. Recently, Captain Amarinder Singh approached the Center with the idea of ​​creating a fund of about Rs 25,000 crore to move farmers from paddy to maize. We feel that the Center should seriously consider this with the following modifications: (a) It is to be under the five year plan to transfer at least one million hectares (maize) out of the total 3.1 million hectares of paddy in Punjab needed. ; (b) the Center and the State should contribute equally over five years; (c) Since Punjab wants MSP for maize, a Maize Corporation of Punjab (MCP) should be formed to procure maize from farmers at MSP; (d) MCPs should enter into contracts with ethanol companies, and most of the maize should be earmarked for ethanol as poultry and starch will not be able to absorb the maize surplus once one million hectares of paddy are shifted to maize; (e) The productivity of maize in Punjab should be as competitive as that of paddy and the best seeds should be used. This is to ensure that ethanol is produced from maize in a globally competitive manner.

Center’s ethanol blending policy (20% ethanol in petrol) should come in handy. In the process, Punjab will prevent water table depletion as maize requires less than one-fifth of what paddy needs. In addition, Punjab will save on electricity subsidy for agriculture, Rs 8,275 crore was budgeted in the FY 2011 budget, as paddy irrigation accounts for this subsidy. This savings can be used to fund a portion of the state’s contribution to the MCP. This can be a win-win for all the farmers, the Punjab government and the country as it will reduce methane emissions and reduce stubble burning. In addition, ethanol will also reduce GHG emissions by vehicles.

Other parts of the diversification strategy should be in line with the growing sector under F&V, and a more focused policy to create efficient value-chains in F&V, livestock and fisheries. They are all more nutritious, and SAS data shows that the profitability of these enterprises is much higher than in crop cultivation, especially cereals. This sector needs to be supported by proper processing, grading and packaging infrastructure to realize its full potential. Can Punjab and the Center come together on this? Punjab was at the forefront of food security in the late 1960s and early 1970s, but today the farmer of Punjab is caught in the trap of low rice-wheat balance with open procurement by the government. It needs to grow to higher levels of income per hectare, that too in a sustainable way, and to produce more nutritious food. Punjab can shine again in terms of nutritional security with sustainable and climate resilient agriculture.

respectively, Infosys Chair Professor for Agriculture and Fellow, ICRIER