The Aam Aadmi Party (AAP) government in Punjab allocated ₹11.560 billion for the agriculture sector in its first budget, of which ₹6.947 billion (or exactly 60%) will be used to pay for the free electricity supply for more than 14 lakh agriculture pump sets. In comparison to the ₹4,778-crore allocated to agriculture in the previous fiscal, the allocation increased by 150%.
The other considerable share, or ₹450 crores, has been set aside for the state's paddy growers' previously announced incentive of ₹1,500 crores for implementing direct seeding of rice (DSR). The incentive is intended to be granted for DSR cultivation over 12 lakh hectares (30 lakh acres), however, just one lakh acres of paddy have been grown using this water-saving non-conventional approach. There is a risk that the allocation will need to be transferred to other sector heads.
Punjab's agricultural industry is at a turning point. Increasing farmer income is necessary, but we also have a responsibility to prevent Punjab from becoming dry, according to finance minister Harpal Singh Cheema, who read out his budget speech. Additionally, he paid tribute to the farmers who lost their lives during the last year's protests against the Centre's farm laws, which have since been abolished.
According to the FM, the National Agricultural Cooperative Marketing Federation of India (NAFED) has agreed to partially purchase green grams (moong dal) from the state under its Price Support System. Farmers will soon be able to earn an extra $30,000 per acre thanks to the state government's MSP of ₹7,275 per quintal.
"The AAP government has undertaken a historic step by purchasing green grams at MSP. According to the FM, this would inspire farmers to switch from the traditional rice-wheat cycle of two crops to three crops.
Stubble burning
For the purpose of preventing the burning of paddy stubble during the Kharif harvest season, a budgetary allocation of ₹200 crores has been requested. The FM said that the state government will only take specific steps to restrict it since it "causes air pollution, impacts people's health, and is bad for soil health."
For the purpose of providing 32,000 farmers with subsidized machines for in-situ management of the paddy stubble, the state department has already requested ₹474 crores from the center.
Additionally, Cheema declared that the fund allocation for the horticultural industry would be doubled in order to foster diversification. To ensure that farmers may profit from modern technological advancements, he also advocated for digitization in the agricultural industry.
An integrated hi-tech vegetable production-cum-technology dissemination center in Malsian, Jalandhar, with a fund allotment request of 11 crores, and a new fast freezing center at Verka village in Amritsar with an outlay of ₹7 crores were recommended by the government.
Cooperation sector
The government has allotted 1,170 crores for the department of cooperation, claiming a rise of 35.67% from the previous fiscal year.
According to the budget proposal, Markfed will build additional food grain godowns at 13 locations as part of a NABARD-assisted scheme, for a total cost of ₹56 crores.
The state government has previously provided a state guarantee in the amount of ₹400 crores to support Marked for green gram procurement, helping the state cooperative federation in obtaining loans. Cheema suggested spending ₹688 crore to pay off all liabilities in order to save the Punjab State Cooperative Agricultural Development Bank (PSCADB).
Water Resources
According to Cheema, the state needs proper irrigation facilities for its agriculture to thrive. The budget has been set up to ₹2,547 crores for water resource projects, including ₹189 crores for the Shahpur Kandi Dam Project over the River Ravi, which is expected to be completed next year.
A budget of ₹780 crores was recommended for the relining of the Sirhind and Rajasthan Feeders, and a budget of ₹18 crores has been proposed for the relining of the Kotla Branch's Phase 2. The project will help irrigate 1.43 lakh hectares of land in Bathinda, Mansa, Sangrur, and Barnala when it is finished in 2025.
For conservation and productive use of run-off water, pond water, rainwater harvesting, and augmentation of groundwater recharge, four new schemes were proposed with a fund allocation of ₹21 crores.
