CHAPTER2 AGRICULTURE PROFILE OF PUNJAB
Punjab, the land of five rivers, has progressed leaps and bounds in the field of agriculture after Green Revolution. This speedy progress in agriculture is made possible with the use of high yielding variety of seeds, better irrigation facilities and increased use of nonconventional inputs like fertilizers, machinery and pesticides etc. The rate of progress was quite substantial in the initial years mainly due to exponential increase in agricultural productivity and expansion in gross cropped area. However, in later years, the progress in agricultural production has slowed down and signs of stagnation are quite visible. In this chapter, an effort has been made to present a detailed agriculture profile of the state of Punjab over the years. 2.1. AGRICULTURAL STRUCTURE OF PUNJAB Agricultural structure of the economy of Punjab can be determined from the factors like distribution of operational holdings, cropping pattern and the contribution to Gross State Domestic Product (GSDP). The agricultural structure of Punjab state as depicted by the above stated factors has been discussed in this section as follows: 2.1.1. Distribution of Operational Holdings Table 2.1 shows the figures related to the operational holdings in state of Punjab at two points of time viz. 200506 and 201011. Over the five years, the total operational holdings in state have increased from 10.03 lakh to 10.58 lakh by a margin of 55 thousand. The point worth noting is that there is a marginalization of holdings in the state with proportionate increase in marginal and small farmers. As shown in the table, the proportion of marginal and small holdings was 13.36 and 18.25 percent respectively in the year 200506 and it increased to 15.50 and 18.53 percent, respectively in the year 201011. On the other hand, the share of holdings in case of semimedium, medium and large farmers has declined during this period. The average operational holding size in the state has gone down from 3.95 hectares to 3.78 hectares over the period. 13
Table 2.1 Operational Holding Distribution in Punjab 200506 201011 (p) Number Area Average Number Area Category (000) (000, size of (000) (000, size hectares) holding Hectares) Marginal 134 83 0.62 164 101 (below (13.36%) (2.09%) hectare (15.50%) (2.53) 1 hectare) Small (12 183 258 1.41 196 270 hectare) (18.25%) (6.51%) hectare (18.53%) (6.76%) Semi 319 855 2.68 327 862 medium(2 (31.80%) (21.57%) hectare (30.91%) (21.57%) 4 hectare) Medium(4 296 1,701 5.75 301 1,728 10 hectare) (29.51%) (42.91%) hectare (28.45%) (43.24%) Large (10 71 1,067 15.03 70 1,035 hectares (7.08%) (26.92%) hectare (6.62%) (25.90%) and above) All 1,003 3,964 3.95 1,058 3,996 holdings hectare Average size of holding 0.62 hectare 1.38 hectare 2.64 hectare 5.74 hectares 14.79 hectares 3.78 hectares 2.1.2. Cropping Pattern The post Green Revolution period has seen sea changes in the cropping pattern of Punjab. The changing cropping pattern in Punjab state over the period of time has been depicted in table 2.2. 14
Table 2.2 Cropping Pattern in Punjab (In Percentage) Crop 1970 71 1980 81 1990 91 2000 01 2008 09 2009 10 2010 11 Wheat 40.5 41.5 43.6 42.9 44.5 44.7 44.5 Rice 6.9 17.4 26.8 32.8 34.5 35.5 35.8 Cotton 6.9 9.6 9.3 5.9 6.6 6.4 6.1 Maize 9.7 5.6 2.5 2.1 1.9 1.7 1.7 Sugarcane 2.2 1.0 1.3 1.5 1.0 0.7 0.9 Potato 0.3 0.5 0.3 0.7 1.0 1.0 0.8 Pulses 7.2 5.0 1.9 0.7 0.3 0.2 0.2 Total Foodgrains 69.1 68.8 75.5 79.0 81.6 82.5 82.5 Total oilseeds 5.2 3.52 1.3 1.0 0.7 0.8 0.7 As the table shows, about 40.5 percent of the gross cropped area (GCA) was under wheat in 197071 and it increased to 44.5 percent in the year 200809 and since then revolves around 44.50 percent. The other main crop, rice, occupied around 6.9 percent of the gross cropped area in 197071 and it increased to over 34.5 per cent in 200708, and then it further rose to around 35.85 percent in 201011. The increase in the area of wheat crop cultivation has been at the cost of other crops like grams, rapeseed and mustard, while the increase in the area of rice cultivation is mainly obtained by shifting the area from maize, groundnut, millets, cotton etc. The proportionate area under cotton in 197071 was 7 percent of gross cropped area and it increased marginally to 9.34 percent in 1990 91. After 199091, certain adverse factors like inclement weather and pest attack have adversely affected the cotton crop and its share in GCA went 15
down to 5.97 percent in 200001. With introduction of new varieties of BT cotton, area under cotton started increasing and rose to 6.6 percent in 200809. Although the area under cotton crop is continuously on the decrease and it was just 6.1 percent of the gross cropped area in the year 201011. Areas under sugarcane and potato have not remained stable, whereas the area under pulses and oilseeds has recorded a sharp decline. The respective share of pulses and oilseeds in GCA has decreased from 7.29 and 5.2 percent in 197071 to 0.25 and 0.7 percent in 201011. The interpretation of the data clearly shows that the cropping pattern has tilted towards two main crops viz. rice and wheat, and this imbalance has been increasing continuously despite all efforts on diversification of the state agriculture. The farmers go for these crops because they feel that there is minimum risk in them as compared to other crops. 2.1.3. Relative Share of Different Agricultural Activities in Primary Sector It is an important indicator to know the relative share of different agricultural activities in the primary sector that is being contributed to GSDP. Tables 2.3 and 2.4 show the subsectoral distribution of GSDP of primary sector of Punjab at current prices and constant prices. Table 2.3 depicts that during 200708 at constant prices the primary sector contributed Rs. 34107 crores in GSDP out of which the share of agriculture, livestock, forestry & lodging and fishing was Rs. 21575 crore, Rs. 10923 crore, Rs. 1298 crore and Rs. 282 crore, respectively. During 201011, the total contribution of the primary sector to GSDP was Rs. 35739 crore and the respective share of the above subsectors were Rs 22906 crores, Rs 11002 crores, Rs. 1452 crores and Rs 350 crore. 16
Table 2.3 Share of Different Primary Subsectors in Total Primary Sector Agriculture (at constant prices), Punjab 21575 (63.3%) 22155 (63.6%) 17 (Rs. Crore) Sector 200708 200809 200910 201011 Agriculture and Livestock 32499 (95.3%) 33114 (95.1%) 32925 (94.9%) 33908 (94.9%) 22906 (64.1%) Livestock 10923 (32.0%) 10958 (31.5%) Forestry and 1298 1349 Logging (3.8%) (3.9%) Fishing 282 309 (0.8%) (0.9%) Agriculture & 34079 34772 Allied (99.9%) (99.9%) Mining and 27.27 33 Quarrying (0.1%) (0.1%) 34107 34805 Total primary. 22085 (63.7%) 10840 (31.2%) 1403 (4.0%) 339 (0.9%) 34666 (99.9%) 28 (0.1%) 34694 11002 (30.9%) 1452 (4.1%) 350 (0.9%) 35710 (99.9%) 30 (0.1%) 35740 The table reveals that the share of agriculture and livestock in GSDP declined marginally from 95.3 percent in the year 200708 to 94.9 percent in the year 201011 at constant prices. However, the contribution of agriculture to the primary sector increased marginally from 63.3 percent to 64.1 percent and livestock decreased marginally from 32.0 percent to 30.9 percent during the same period. Over this period, the respective contribution of forestry and fishing subsectors in overall primary sector of the state went up marginally from 3.8 to 4.1 percent and 0.8 to around 1 percent. In table 2.4, the data at current prices shows the fall in the contribution of agriculture towards primary sector from 66.9 percent in 200708 to 64.2 percent in 201011. There is, however, a notable increase in forestry and logging sector the contribution of which has increased from 3.8 percent in 200708 to 8.0 percent in 201011. Otherwise, within the agriculture sector, there were only marginal changes in the respective shares of other components over this time period. Mining and quarrying
sector contribution towards gross state domestic product contribution has remained static over this period for the both. Table 2.4 Share of Different Primary Subsectors in Total Primary Sector (at Current Prices), Punjab: (Rs. Crore) Sector 200708 200809 200910 201011 Agriculture and Livestock 45626 (95.3%) 52431 (94.3%) 57430 (92.6%) 63573 (91.2%) Agriculture 32041 (66.9%) 37400 (67.3%) 40658 (65.6%) 44763 (64.2%) Livestock 13616 (28.4%) 15031 (27.0%) 16771 (27.1%) 18810 (27.0%) Forestry and logging 1835 (3.8%) Fishing 339 (0.7%) Agriculture & 47831 allied (99.9%) Mining and 29 Quarrying (0.1%) Total primary 47860 (100). 2731 (4.9%) 379 (0.7%) 55541 (99.9%) 54 (0.1%) 55595 (100) 2.2. PERFORMANCE OF AGRICULTURE IN PUNJAB 18 4053 (6.5%) 484 (0.8%) 61967 (99.9%) 30 (0.1%) 61997 (100) 5547 (8.0%) 537 (0.8%) 69657 (99.9%) 33 (0.1%) 69690 (100) Punjab is known as the state of hardworking farmers who have made unparalleled efforts to bring the state on the world map. The progress made by the state in agriculture is well applauding because its farmers by dint of their hardwork have transformed the food deficit state into food surplus state. The green revolution started by the state opened the new vistas of development for the whole country. The improvement in the quality of seeds, irrigation facilities, farm technology and inputs and vibrant agricultural policies of the government led the state to get a dominating and role model position in the country. With only 1.5 percent of geographical area of the country, the state besides feeding its growing population has been contributing 3540 percent of rice and 4570 percent wheat to the central pool for the last two decades.
Table 2.5 Performance of Agriculture in Punjab (Area: 000, ha.; Production: 000, metric tonnes Yield: Kg/ha) Crop 1971 72 1981 82 1991 92 2001 02 2009 10 2010 11 Area 450 1,269 2,069 2,487 2,802 2,826 Rice Production 920 3,750 6,739 8,816 11,236 10,819 Yield 2,044 2,955 3,257 3,545 4,010 3,828 Area 2,336 2,914 3,237 3,420 3,522 3,510 Wheat Production 5,618 8,544 12,309 15,499 15,169 16,472 Yield 2,405 2,932 3,803 4,532 4,307 4,693 Area 548 340 176 165 139 133 Maize Production 857 625 345 449 475 491 Yield 1,564 1,838 1,962 2,722 3,414 3,693 Area 475 686 719 606 511 483 Cotton Production 1,030 1,275 2,505 1,305 2,006 1,822 Yield 369 316 592 366 667 641 Area 103 104 109 142 60 70 Sugar Production 403 601 693 925 370 417 cane Yield 3,913 5,779 6,358 6,514 6,167 5,952 Area 17 33 31 57 74 64 Potato Production 222 635 617 1,147 1,918 1,609 Yield 13,430 19,419 19,981 20,054 25,919 25,141 Area 384 325 90 49 18 20 Pulses Production 302 161 75 30 16 17 Total food Grains Yield 786 495 833 612 842 850 Area 3,915 4,999 5,638 6,152 6,498 6,504 Production 7,925 13,156 19,632 23,878 26,947 27,846 Yield 2,024 2,632 3,482 3,881 4,146 4,281 Area 319 225 141 83 62 56 Production 272 173 127 84 84 73 Yield 853 769 901 1,012 1,355 1,304 Total Oilseed Milk(Lac tonnes) Production 21.04 34.94 53.82 79.30 93.89 94.12 Tables 2.5 and 2.6 show the important growth indicators of agriculture in the state. Table 2.5 shows that the production of wheat in the state has gone up by about three times from 5.62 million tonnes to 16.5 million tonnes from 197172 and 201011 and the production of rice has increased by nine times from 0.9 million tonnes to 10.9 million tonnes in the same period. The production of cotton has risen from 1030 thousand bales to 1822 thousand bales in the above period. The total food 19
grain production over this period has grown by more than three and half times. However, there was a reverse trend in the production of pulses and oilseeds which decreased drastically over this period. The production of sugarcane remained almost the same with a little variation. It shows that the farmers in the state have gone for mainly two crop cycle of wheat and paddy and left everything else to a large extent. Yes, some vegetable crops did find some place in the priority of their agriculture production. Table 2.6 highlights the decade wise compound growth rate of major crops and milk production in the state. Table 2.6 Decade wise Compound Annual Growth Rates (CAGR) of Major Crops and Milk Production in Punjab (Percent/Annum) 197172 to1980 81 198182 to1990 91 199192 to 2000 01 200102 to 201011 197172 to 201011 Cro p A P Y A P Y A P Y A P Y A P Y Ric e 12.9 8 17.7 0 4.1 7 4.8 5 5.6 1 0.7 3ns 2.72 2.84 0.1 2ns 1.2 4 2.5 6 1.2 9 4.4 6 5.9 4 1.4 2 Whe at 2.55 5.02 2.4 1 0.9 7 3.7 0 2.7 1 0.41 * 2.54 2.1 1 0.4 0 1.0 0** 0.6 0ns 1.0 2 2.9 6 1.9 3 Mai ze 4.60 4.03 0.6 2ns 5.7 2 7.0 8 1.4 1ns 1.79 ** 1.57 ns 3.4 2* 1.7 3** 3.2 9* 4.8 1 3.8 7 1.7 0 2.2 3 Cott on Sug arcane Pota to Pul ses Tota l food grai ns Tota l oilse eds Milk 3.43 3.35 * 11.7 5 1.64 ns 2.69 5.78 1.62 ** 0.65 ns 17.5 9 3.73 ns 6.04 6.38 1.7 4 2.8 0** 5.1 1 2.1 3ns 3.5 7 0.6 4ns 3.96 1.1 7ns 0.9 5ns 2.7 7ns 7.1 6 1.2 3 6.2 7** 9.8 1** 0.7 8ns 2.2 4ns 4.4 0ns 3.8 8 4.5 7ns 8.5 3 0.1 7ns 0.4 9ns 2.9 7ns 2.6 1 1.8 1ns 4.5 1 3.58 * 2.29 ns 14.1 4 5.67 1.11 6.02 * 11.1 7 2.14 ns 13.9 3 7.97 2.57 6.56 ns 7.8 7** 0.1 5ns 0.0 1ns 2.4 4** 1.4 4 0.5 7ns 4.66 0.1 3ns 8.2 1 2.2 2ns 9.8 4 0.4 9 5.8 6 6.2 2* 8.2 4 4.9 1** 7.4 0 1.5 2 2.4 2* 6.0 8** 0.0 4ns 2.6 5ns 2.4 8** 1.0 3 3.6 6 2.3 3 0.2 2ns 0.1 4ns 3.1 6 8.0 7, A: Area, P: Production and Y: Yield 1.2 5 4.2 3 1.3 7** 0.3 2ns 3.9 6 7.9 4 3.4 0 2.9 4 4.2 7 1.5 9 0.4 6 0.7 5 0.1 2ns 2.1 1 1.3 3 20
2.3 AGRICULTURAL GROWTH DRIVERS A number of growth drivers contributed significantly for the rapid strides made by the state of Punjab in agriculture. These include the facility of tractors and other mechanized equipments, the effective irrigation facilities, high yielding variety seeds, use and availability of chemical fertilizer, pesticide etc. These were further sprinkled with the favourable agricultural policies, expert consultancy and agricultural extension network which helped the farmers of the state to achieve the record productivity levels. Some of the important drivers of the state agricultural growth are highlighted in table 2.7. Indicators/Period Table 2.7 Agricultural Growth Drivers in Punjab 1970 71 198081 199091 200001 200910 201011 2011 12 No. of tractors (Number) 5,281 1,18,845 2,89,064 4,34,032 4,98,517 5,04,310 Number of tractors per 000 ha 1.30 28.34 69.53 102.13 119.89 121.29 No. of tube wells (Lakh) 1.92 6.00 8.00 10.73 13.76 13.82 Number of tube wells per 000 ha 47.37 143.06 189.66 252.47 330.93 332.37 Cropping intensity (%) 140.09 161.37 177.86 186.07 189.69 190 Consumption of chemical fertilizers (000' nutrient tone) 213 762 1,220 1,313 1,866 1,911 1,936 Consumption of chemical fertilizers (kg/ha) 37.50 112.50 162.60 168.33 226 243 246 Consumption of insecticides/pesticide s (technical grade M.T) 3,200 6,500 6,970 5,745 5,600 6,150 Gross cropped area (000 ha) 5,678 6,763 7,502 7,941 7,876 7,872 % of net irrigated area to net area sown 71 81 93 93 97.9 97.9 As table 2.7 shows, the gross cropped area has increased from 5,678 thousand hectares in the year 197071 to 7872 thousand hectares in 201011. The number of tractors in the state increased from a meager 5281 in 197071 to more than 5 lakh in 201011. There was a tremendous increase in irrigation facilities and the net irrigated area increased from 71 percent in 197071 to about 98 percent in the year 21
201011. The number of tubewells has also gone up from 1.92 lakh in 197071 to 13.82 lakh in 201011. The proportion of area under high yielding variety seeds to gross cropped area has seen a big rise. Wheat, rice and maize are produced using high yielding variety seeds to the tune of hundred percent. It has raised the consumption of chemical fertilizers and plant protection materials tremendously. Per hectare consumption of chemical fertilizers (NPK) saw a big flight from only 37.50 kg in 197071 to 246 kg in 2011 12. Total consumption of chemical fertilizers in the state increased from 213 thousand tons in 1970 71 to 1936 thousand tons in 201112. Consumption of insecticides and pesticides had also increased from 3200 MT in 198081 to 6150 MT in 2011 12. Overall, there had been a sharp increase in the use of technology and mechanization for agricultural operations. It is pertinent to note that the minimum support price offered by the government for a few crops and assured procurement changed the mindset of the farmers from multiple crops to two crop pattern. They started taking wheat and paddy the most secure and profitable venture. Moreover, the efforts to be put in by them in these crops are also felt easy by them in comparison to other crops. No doubt the environment in the state has been taken as congenial for agriculture by the farmers in Punjab but it has also made them lethargic. It created the barriers for more innovations and they simply stuck to wheat and paddy and that too with more dependence on the migrant labour. The agricultural production in terms of output had an increase but the quality and diversification suffered which ultimately led to failures of the farming community at many places in the state. Thus, the growth drivers played a significant role in the overall improvement in the agriculture but it was primarily restricted to a few crops which was not considered a good sign for the overall development of the state. 22
2.4. MARKETING AND WAREHOUSE FACILITIES Marketing and warehousing play an important role in ensuring better returns to the farmers. They are like a catalyst for the agricultural development of the state. The market charges in Punjab have been regularized under Agricultural Produce Markets Act, 1961 and transactions are conducted by open auction in the regulated markets. The market committees are represented by the representatives of farmers, traders, labourers and officials of agriculture and cooperative departments. The standardization of weights and measures used in the markets is done as per the Weights and Measurement Act. Punjab Mandi Board, the coordinating body for market committees, has been playing a leading role in developing the village approach roads and market yards on priority basis to facilitate the efficient marketing of farm produce and agricultural input delivery system in the state. No. of Regulated Markets No. of sub yards attached Average no. of villages served per regulated market Average area served per regulated market (Sq. km.) No. of focal points Marketed surplus of foodgrains and nonfoodgrains handled (Lakh tones Percent of villages linked with mettled roads State owned storage capacity (Lakh tones) Storage capacity as % to procurement of paddy and wheat) Table 2.8 Marketing and Warehouse Facilities in Punjab 1970 71 1985 86 2000 01 2007 08 2008 09 2009 10 2010 11 88 130 144 145 145 146 146 154 516 519 294 294 294 294 139 94 86 85 85 84 84 573 387 350 347 347 345 345 NA 362 597 597 596 596 596 NA 132.40 270.56 311.44 325.93 332.05 326.96 NA 97.59 99.24 99.90 100 100 100 NA 117.63 251.59 176.39 203.50 251.40 226.33 NA 88.11 121.22 56.23 85.44 83.05 99.66 23
As table 2.8 shows, there is a tremendous increase in the marketing infrastructure in the state of Punjab. The number of regulated market has increased from 88 to 146 and the number of subyards attached with these regulated market has increased from 154 to 294 in the year 197071 to 201011. On the other hand, the average number of villages served per regulated market and the average area served per regulated market in Punjab has decreased from 139 villages to 84 villages and from 573 to 345 sq. km respectively during the same period. The state government has tried to provide all weather metalled roads to all the villages so that the farmers could sell their output throughout the year. Almost all the villages have been provided with good quality roads and effective linkage has been done with the sources of marketing which help in efficient marketing of farm output in the state. The deficiency in the state owned storage capacity was considered as one of the important hurdles in the procurement process of the food grain produce of the farmers. The state government has taken many steps in this regard and as a result the total state owned storage capacity has increased from 176.39 lakh tons in 20072008 to 226.33 lakh tons in 201011. The data given in table 2.9 shows the agency wise state owned capacity in Punjab. It shows that the major share of state owned storage capacity is that of Food Corporation of India. It is providing almost 37% of the total state owned storage capacity. Other agencies like Markfed, State Warehousing Corporation, Central Warehousing Corporation, Punjab State Civil Supply Corporation, Punjab Agro Industries Corporation etc. are also playing an important role in this regard 24
Table 2.9 State Owned Storage Capacity in Punjab: (lakh tones) Agency/Year 200708 200809 200910 201011 Food Corporation of India 63.57 63.18 76.30 83.22 (36.04%) (31.05%) (30.35%) (36.77%) Food Supply Department 6.90 11.79 18.70 18.38 (3.91%) (5.79%) (7.44%) (8.12%) Markfed 19.14 (10.85%) 30.15 (14.82%) 41.52 (16.52%) 44.34 (19.59%) State Warehousing Corporation 51.45 (29.17%) 52.74 (25.92%) 19.54 (7.77%) 16.57 (7.32%) Central Warehousing Corporation 7.00 (3.97%) 7.09 (3.48%) 2.28 (0.91%) 1.29 (0.57%) 32.37 (14.30%) Punjab State Civil Supply 18.48 Corporation (10.48%) Marketing Board 0.54 (0.31%) Punjab Agro Industries 9.31 Corporation (5.28%) Total State Owned Storage 176.39 Capacity 23.02 (11.31%) 0.33 (0.16%) 15.20 (7.47%) 203.50 2.5. EMERGING DEMANDSUPPLY MECHANICS 31.59 (12.57%) 0.12 (0.05%) 19.50 (7.76%) 251.40 0.24 (0.11%) 29.92 (13.22) 226.33 The country is dependent to a large extent on the availability of adequate local supplies particularly from the Punjab state to meet the increasing demand of foodgrains. In order to maintain the momentum of production of food grains, the government of India provides variety of production incentives to the farmers. The farmers in Punjab has done wonderfully well in the production of paddy and wheat because of these incentives. It resulted in that the farmers in Punjab have responded to the country s demand for wheat and paddy and now nearly 80 percent of the gross cropped area in the state is under wheat and rice crops. 25
Table 2.10 Market Arrival of Major Crops in Punjab (000, tonnes) Crops 200708 200708 200910 201011 Wheat 7,911 10,584 10,994 10,278 Paddy 12,802 13,234 14,237 13,136 Table 2.10 reveals the quantum of market arrivals of paddy and wheat crops in the state over the period starting from the year 200708 onward. During the years 201011, market arrival of paddy and wheat crops were at 131.36 and 102.78 lakh tones, respectively. As the data indicates, market arrival of paddy crop has increased remarkably. Due to decentralization of procurement, although the share of the state in central pool of foodgrains has been declining for the last few years; still Punjab is the largest contributor. Table 2.11 Contribution of Punjab Towards the Central Pool of Food Grains (Lakh Tonnes) Crops 200708 200809 200910 201011 Rice 92.8 86.3 79.8 (27.8%) 85.5 (25.1%) (28.9%) (25.3%) Wheat 107.3 102.1 67.8 (60.9%) 99.4 (43.8%) (42.2%) (45.4%) Table 2.11 shows that although the quantitative contribution of wheat and rice crops of Punjab state towards the central pool is increasing yet the percentage contribution of the state towards this pool has been decreasing in the recent years. During 201011, the state contributed about 25 per cent of rice and 45 per cent of wheat towards the central pool (Table 2.11). There has been, however, a steep fall in the case of rice crop contribution which has fell from 60.9 percent in 200708 to 45.4 percent in the year 201011. Looking at agencywise procurement, it can be seen from Table 2.12 that since 200708, the role of government agencies in procurement has increased in a major way which pushed the private traders out of paddy and wheat trade in the state. 26
Table 2.12 Procurement of Paddy and Wheat by Different Agencies in Punjab (000, tones) Agency 200708 200809 200910 201011 Paddy State government 2,674 (20.89%) 3,627 (27.41%) 4,155 (29.18%) 4,073 (31.01%) FCI 132 (1.03%) 205 (1.55%) 671 (4.71%) 517 (3.94%) Markfed 2426 (18.95%) 2775 (20.97%) 2864 (20.12%) 2707 (20.61%) PUNSUP 2611 (20.40%) 2714 (20.51%) 3171 (22.27%) 3021 (23.00%) PSWC 1356 (10.59%) 1502 (11.35%) 1687 (1.85%) 1488 (11.33%) Traders 2470 (19.29%) 1133 (8.56%) 371 (2.61%) 209 (1.59%) Punjab Agro Industries Corporation (PAIC) 1133 (8.85%) 127 (89.66%) 1318 (9.26%) 1121 (8.53%) Total 12802 13234 14237 13136 Wheat State government 1279 (16.17%) 1847 (17.45%) 1682 (15.30%) 1707 (16.61%) FCI 726 (9.18%) 1074 (10.15%) 1716 (15.61%) 1654 (16.09%) Markfed 1886 (23.84%) 2481 (23.44%) 2557 (23.26%) 2382 (23.18%) PUNSUP 1781 (22.51%) 2369 (22.38%) 2392 (21.76%) 2301 (22.39%) PSWC 771 (9.75%) 1279 (12.08%) 1403 (12.76%) 1122 (10.92%) Traders 704 (8.90%) 334 (3.16%) 22 (0.20%) 61 (0.59%) Punjab Agro Industries Corporation (PAIC) 764 (9.66%) 1200 (11.34%) 1222 (11.12%) 1051 (10.23%) Total 7911 10584 10994 10278 The above table shows that 98.41 and 99.41 per cent of the total market arrivals of paddy and wheat respectively were procured by the government agencies in the year 20101. As the government is playing a 27
major role in procuring rice and wheat crops in the state, private traders are reluctant to enter the market for the same. The demand for the third main crop of the state, i.e., cotton, comes mainly from private mills and traders. However, in odd years significant quantities were purchased by state owned Cotton Corporation of India also. 2.5.1 Contract Farming Many companies have entered the Punjab market to buy the farm output under the contract farming scheme. These companies enter into a contract with farmers to purchase the specific quantity of specific quality produce at a pre decided price. Table 2.13 shows the main crops grown under this scheme as under: Table 2.13 Area under Different Crops under Contract Farming Scheme in Punjab (in Hectares) Year Hyola Malting Barley Basmati Rice Maize Green Pea Potato Seed 200708 13,273 3,020 33,614 45,405 200809 14,216 2,488 33,606 32,827 448 200910 7,254 3,277 31,966 33,028 449 1,625 201011 3,051 28,322 254 1,671 2.6 NATURAL RESOURCES MANAGEMENT Population of India is increasing at a rapid speed. Demand for agricultural products is also increasing. The government of Punjab is laying emphasis on the production of foodgrains without giving any importance to its natural resources. The net sown area in the state has continuously risen up. Punjab state has recorded tremendous growth in agricultural sector. Above 97 percent of the cultivated area is under assured irrigation. Mono culture of production of wheat and paddy is imposing pressure on its natural resources like water and soil. There should be proper management of natural resources so that these can be 28
taken care of properly. The natural resources management can be discussed as under: 2.6.1 Land Use The Punjab state is surrounded by Pakistan on the west, J&K on the north, Himachal Pradesh on the north east and Haryana and Rajasthan on the south. The land use classification of the state for years 200708 to 201011 is presented in table 2.14 as under: Table 2.14 Land Use Pattern in Punjab (000, hectares) Area/Period 2007 2010 200809 200910 08 11 Geographical area 5,036 5,036 5,036 5,036 Forests 287 296 295 294 Barren and uncultivable land 24 23 25 24 Net area sown 4,187 4,171 4,158 4,158 Net area sown as percentage to total area 83 83 83 83 Area sown more than once 3,683 3,741 3,718 3,724 Gross cropped area 7,870 7,912 7,876 7,882 The table shows that the net sown area was at 41.87 lakh hectares in 200708 and it declined to 41.58 lakh hectares in the year 201011. The reason for this decline is the continuous urbanization. However, during this period the increase in cropping intensity from 187.9 percent to 190 percent led to increase in gross cropped area in the state from 78.70 lakh hectares to 78.82 lakh hectares. The forest wealth of the state is in a miserable plight. The area under permanent barren and uncultivable land has been almost found to be stable at 0.47 percent of the state area for the last many years. 2.6.2 Soil Management The nature of the soil of Punjab is alluvial and deep, varying from sandy to salty clay. It contains pollution from agro chemicals, sewerage and industrial waste. Low biological oxidation and slow rate of 29
decomposition of crop residues are the major problems being faced by the state of Punjab. The problem of water logging is particularly acute in southwestern districts (Ferozepur, Fazilika, Muktsar and Faridkot) of the state occupying lower topographic positions. Introduction of salt resistant crops and good drainage system may overcome this problem to some extent. The mass production of paddy and wheat has exhausted the vital nutrients of the land of the state. Nitrogen and phosphorus are also found low to medium in most of the state soils. The soils in general are medium to high in available potassium. Micronutrient deficiencies in large areas have also been noticed adversely affecting the crop yield. The soils contain sufficient calcium and magnesium. It is being felt seriously that there should be crop diversification in the state otherwise the land is bound to get unproductive because of the paddy and wheat cycle which is eating into the very vitals of the state land. Thus, it is more important to preserve existing cultivated areas in the state from degradation due to water logging, soil salinity and sodicity, besides soil erosion due to intensive cropping and its attended manifestations. 2.6.3 Cropping Intensity Cropping intensity signifies the extent of multiple cropping. The cropping intensity has been growing continuously in the state of Punjab and it has become a common feature now to get two crops from the same field. Table 2.15 highlights the level of cropping intensity from the year 200708 to 201011. It signifies that the cropping intensity has increased marginally in state from 188 percent in 200708 to 190 percent in 2010 11. However, this high intensity of cropping is a clear indicator that that in Punjab state the vertical expansion of area in future has become increasingly limited. 30
Table 2.15 Cropping Intensity in Punjab Year Percentage 200708 187.9 200809 189.6 200910 189 201011 190 2.6.4 Water Management Punjab has the best irrigation facilities and about 98 percent of the net sown area is irrigated. The sources of irrigation include canal irrigation, tubewell irrigation, and other sources. Table 2.16 shows the irrigated area in Punjab over the years. No doubt, the ground water level is going down, yet the surface and groundwater irrigation infrastructure is quite good in the state. Surface irrigation distribution network comprises 1,45,000 kilometers of canals, including branch canals and minor distributaries, and one lakh kilometers of field channels or water courses. The canal irrigation system irrigated 1,116 thousand hectare in 201011 accounting for the 27.40 per cent of the net irrigated area in the state. Year Table 2.16 Sourcewise Net Area Irrigated in Punjab (000, ha) Govt. Private Tube Other Total %age of net canals canals well & sources irrigated area to wells net area sown 200708 1,142 2,922 4 4,068 97.2% 200809 1,110 3 2,950 1 4,064 97.4% 200910 1,111 3 2,955 2 4,071 97.9% 201011 1,113 3 2,954 4,070 97.9% 31
While canal irrigation has been declining over the years, tubewell irrigation, particularly in the central and northern region of Punjab has been on the increase and during 201011, there were about 13.82 tubewells providing irrigation to about 2954 thousand hectares of land accounting for nearly 73 percent of the net irrigated area in state. 2.6.5 Rainfall The land use pattern and crop production also depends on the level of rainfall to a great extent. Table 2.17 shows the level of average rainfall in the state as under: Table 2.17 Average Annual Rainfall in Punjab Year Rainfall ( In Millimeters) 2007 438 2008 529.2 2009 384.9 2010 472.1 The table shows that the average annual rainfall over the years has been varying. 2.7 FARM INPUT MANAGEMENT The tremendous increase in agriculture of Punjab is due to the use of inputs like fertilizers, improved seeds, irrigation, plant protection chemicals; machinery, credit and technology back up. Punjab became the leading state because of the timely availability and efficient delivery system of these vital inputs required for agriculture. Consequently, the state got the status of the food basket of the country. The trends in use/requirement of important farm inputs in Punjab are discussed as under: 32
2.7.1 Seeds High yielding varieties of seeds has played the most important role in increasing agricultural production in Punjab. The supply of these seeds is ensured by Punjab Agricultural University, Various Seed Corporations, and State Department of Agriculture. Many farmers keep their own seeds, particularly of cereals in which the seed rate is exorbitant. The farmers are continuously made aware about the new varities of seeds through agricultural extension and various agricultural fairs and festivals by Punjab Agriculture University and other state agencies. 2.7.2 Fertilizers and Manures The use of fertilizers and manures transformed the agriculture production to a great extent. The use of these fertilizers and manures started with the advent of the Green Revolution in the state. Table 2.18 shows the fertilizer consumption in the state as under: Year Table 2.18 Consumption of Fertilizers in Punjab (000, nutrient tones) Nitrogenous Phospetic Potassic Total Consumption (N) (P) (K) (NPK) per hectare (kg) 200708 1,317 341 37 1,695 213 200809 1,332 379 55 1,766 223 200910 1,348 383 56 1,787 226 201011 1,403 435 73 1,911 243 2011 1,409 455 72 1936 246 12(p) Source: Agriculture at a glance, Department of agriculture, Government of Punjab, Chandigarh Table 2.18 highlights that the total consumption of Nitrogen (N), Phosphorus (P) and Potash (K) nutrients in the state during the year 2007 08 was 16.95 lakh tons which increased by about 7 per cent to 19.36 lakh 33
tons in the year 201112 whereas the consumption per hectare of NPK rose from 213 kg to 246 kg in the same period. However, the ratio of NPK is highly uneven in the state. 2.7.3 Pesticides The use of pesticides and insecticides played an important role in agricultural production. The greater reliance on pesticides has been shown by the crops like cotton, sugarcane, paddy, oilseeds and vegetables. Cropping intensity and fertilizer use also increased the problem of weeds. The consumption of pesticides and insecticides is shown in the table 2.19 as under: Table 2.19 Consumption of Pesticides in Punjab (In Metric Tons) Year Consumption 200708 5,900 200809 5,760 200910 5,745 201011 5,600 201112(p) 6,150 Source: Agriculture at a Glance, Department of Agriculture, Government of Punjab, Chandigarh. The table shows that there has been a continuous rise in the consumption of pesticides in the state of Punjab. 2.7.4 Farm Machinery and Equipments Mechanization of agriculture has played a significant role in the growth of agriculture and the state of Punjab has reaped great dividends from the mechanization of agriculture. Table 2.20 gives a detailed analysis of the farm machinery and equipments used by the farmers for their agricultural operations. 34
Table 2.20 Agricultural Machinery and Implements in Punjab (In Numbers) Machinery 200708 200809 200910 201011 Tractors 4,20,000 4,25,200 4,25,200 4,34,000 Disk Harrow 2,20,000 2,24,000 2,24,300 2,10,000 Seed cum fertilizer drills 1,78,000 1,83,000 1,83,400 1,66,489 Spray pumps 6,55,000 6,65,000 6,55,000 6,00,000 Vertical conveyer reapers 5,518 5,522 NA NA Tractor operated 6,570 6,670 6,270 6,056 combines Selfpropelled combines 7,600 8,400 8,400 8,130 Threshers 9,10,400 8,22,000 8,02,000 7,40,000 Straw reapers 21,848 32,666 32,900 33,678 Maize shellers/threshers 1,890 1,893 1,850 1,832 Potato planters 5,160 5,330 5,250 5,228 Tubewell electric/ diesel run 12,46,000 12,76,200 13,75,517 13,81,606 Sugarcane cutter planter 340 290 290 NA Strip till drills 215 195 NA NA Zero till drills 9,083 10,141 10,300 10,465 Rotavators 3,309 6,419 6,720 8,691 Aeroblast Sprayers 70 70 70 NA Source: Agriculture at a Glance, Department of Agriculture, Punjab, Chandigarh No doubt, the state is progressing at a very fast pace in terms of mechanization of agriculture. But at the same time, it is felt that there is over mechanization in the state. Particularly, the number of tractors in the state is much more than the requirements. This over capitalization in farm mechanization and its underutilization leads to higher cost of production and lower net income to farmers, making it economically unviable. 35
2.7.5 Irrigation Water is the elixir of life and agriculture too. The state has an effective network of irrigation facilities and about 98 percent of the net sown area in the state is irrigated. The following table highlights the irrigation facilities of the state: Table 2.21 Gross Cropped and Irrigated Area in Punjab (000, ha) Year Gross cropped Gross Irrigated %age of gross area area irrigated area to gross cropped area 200708 7870 7689 97.7% 200809 7912 7723 97.6% 200910 7876 7714 97.9% 201011 7882 7723 98.0% The state has an excellent irrigation distribution network of canals, branch canals, minor distributaries and field channels. Over the time, canal irrigation has been declining whereas tubewell irrigation has been on the increase and about 73 percent of the total irrigated area is being irrigated by underground water pumped out by about 13.80 lakh tubewells. This is mainly due to the availability of cheap credit and free supply of electricity in the state. However, this has led to the decline the level of the underground water which is at present a serious concern for the state. 2.7.6 Labour and Agricultural Wages It is estimated that 75 percent of the population in Punjab is directly or indirectly dependent on agriculture. With green revolution, there was felt an increase in the agricultural labour but after eighties and particularly after nineties, the reverse trend started because of heavy 36
mechanization of agriculture and demand for labour weakened. It has created an imbalance in the rural economy and the farmers in the state hesitate to shift to other areas of employment. 2.8 ANIMAL HUSBANDRY, DAIRYING AND FISHERIES Animal husbandry, dairying and fisheries are considered important subsidiaries to the agriculture. But in the state it has not received the attention which it should have received. After the tremendous success in food grain production, the government at the national and state level started many initiatives for milk revolution. It has been felt that these subsidiary sources of income along with agriculture can add a lot to the existing revenue of farmers. Livestock is one of the most important components of the primary sector of the economy; contributing about 8.36 percent of the Gross State Domestic Product (GSDP) and about 27 percent share in agriculture. The data on livestock population in Punjab is presented in table 2.24. Table 2.22 Number of Livestock in Punjab, 1997 2007 (000 head) Particulars 1997 2003 2007 Change (%age 1997 to 2007) Cows 2,639 (26.77%) Buffaloes 6,170.7 (62.60%) Sheep 436 (4.42%) Goat 414.1 (4.20%) Pigs 93.7 (0.95%) Total Livestock 9,857.3 2,038 (23.68%) 5,994.57 (69.64%) 220.1 (2.56%) 278.2 (3.23%) 29.00 (0.34%) 8,607.5 37 1,760.9 (23.91%) 5,035.63 (68.37%) 210.6 (2.86%) 286.39 (3.89%) 24.09 (0.34%) 7,365.27 33.27% 18.39% 51.70% 30.84% 73.33% 25.28% The figures reveal that people of the state are losing interest in livestock enterprise as livestock population in Punjab has been decreasing
continuously since 1997. It declined tremendously by about 25 percent from about 98.57 lakh in 1997 to only 73.65 lakh during 2007. The number has decreased for all the livestock animals. Due to consumers preference towards buffalo milk, the reason being its high fat content, Punjab is dominated by buffalo population. While at the national level the cows outnumber the buffaloes, in Punjab buffaloes outnumber the cows. Share of buffaloes in the total livestock population of the state was found out to be about 68 per cent during 2007. The buffalo population showed decline in number from 61.70 lakh in 1997 to 50.37 lakh in 2007. The respective share of sheep and goat in the total livestock population over this period went down from 4.42 and 4.20 percent during 1997 to 2.86 and 3.89 percent. Similarly, the data regarding fisheries in the state is presented in table 2.23 Table 2.23 Fisheries Statistics in Punjab Year Area where No. of Fish seeds and Fish fish Fingerlings nurseries Production stocked (000 ) production (in (tones) (Hectare) thousands) 200708 9,941 1,42,281 46,562 78,730 200809 10,058 1,39,481 52,794 1,04,770 200910 10,247 1,53,179 34,129 1,22,860 201011 10,857 1,64,474 53,217 NA and Agricultural Statistics at a Glance The area where fish is stocked has been increased from 9941 ha in the year 200708 to 10857 ha in the year 201011. During this period, production of fish seed and nurseries increased from 465.62 lakh to 532.17 lakh. Fish production in the state increased remarkably from 78.73 thousand tons in 200708 to 122.86 thousand tons in 200910. 38
2.9 MAIN CHARACTERISTICS OF AGRICULTURE SECTOR OF THE STATE OF PUNJAB From the above discussion, the main characteristics of agriculture sector in Punjab can be summarized as below: 1. The total geographical area of the state is 50.36 lakh hectares. During 201011, the net sown area was at 41.58 lakh hectares which indicated that about 83 per cent of the area in the state is already under cultivation. This is the highest in the country and the state is virtually comparable to a farmstead where most of the area is under cultivation leaving little land for other activities. 2. The total operational holdings in state have increased from 10.03 lakh to 10.58 lakh by a margin of 55 thousand. The average operational holding size in the state has gone down from 3.95 hectares to 3.78 hectares over the period. 3. The cropping pattern has tilted towards two main crops viz. rice and wheat, and this imbalance has been increasing continuously despite all efforts on diversification of the state agriculture. The farmers go for these crops because they feel that there is minimum risk in them as compared to other crops. 4. The share of agriculture and livestock in GSDP declined marginally from 95.3 percent in the year 200708 to 94.9 percent in the year 201011 at constant prices. The data at current prices shows the fall in the contribution of agriculture towards primary sector from 66.9 percent in 200708 to 64.2 percent in 201011. 5. The production of wheat in the state has gone up by about three times from 5.62 million tonnes to 16.5 million tonnes from 197172 and 201011 and the production of rice has increased by nine times from 0.9 million tonnes to 10.9 million tonnes in the same period. The production of cotton has risen from 1030 thousand bales to 1822 thousand bales in the above period. The total food grain production over this period has grown by more than three and half times. 6. The gross cropped area has increased from 5,678 thousand hectares in the year 197071 to 7872 thousand hectares in 201011. The number of tractors in the state increased from a meager 5281 in 197071 to more than 5 lakh in 201011. There was a tremendous 39
increase in irrigation facilities and the net irrigated area increased from 71 percent in 197071 to about 98 percent in the year 201011. The number of tubewells has also gone up from 1.92 lakh in 197071 to 13.82 lakh in 201011. The proportion of area under high yielding variety seeds to gross cropped area has seen a big rise. 7. There is a tremendous increase in the marketing infrastructure in the state of Punjab. The number of regulated market has increased from 88 to 146 and the number of subyards attached with these regulated market has increased from 154 to 294 in the year 197071 to 2010 11. 8. The cropping intensity has increased marginally in state from 188 percent in 200708 to 190 percent in 201011. However, this high intensity of cropping is a clear indicator that that in Punjab state the vertical expansion of area in future has become increasingly limited. 9. The net sown area was at 41.87 lakh hectares in 200708 and it declined to 41.58 lakh hectares in the year 201011. The reason for this decline is the continuous urbanization. However, during this period the increase in cropping intensity from 187.9 percent to 190 percent led to increase in gross cropped area in the state from 78.70 lakh hectares to 78.82 lakh hectares. 10. The people of the state are losing interest in livestock enterprise as livestock population in Punjab has been decreasing continuously since 1997. It declined tremendously by about 25 percent from about 98.57 lakh in 1997 to only 73.65 lakh during 2007. REFERENCES: 1. Government of India, Agricultural Statistics at a Glance, Various Issues. Ministry of Agriculture, New Delhi. 2. Government of Punjab, Statistical Abstract, Various Issues. Economic Advisor to Government, Punjab, Chandigarh. 3. Government of Punjab, Agriculture at a Glance, Various Issues. Department of Agriculture, Chandigarh. 40