Punjab tides over dip,with 5.08 pc agri growth

While the buoyancy is a result of a number of factors ranging from record production of crops to increased investment in agriculture,the high minimum support price (MSP) for the main crops of wheat,paddy and cotton in the last two years has played the most determining role in the course correction.

The state produced 16.72 million metric tonnes (MT) of paddy and about 15.73 million MT of wheat in 2008-09,accounting for nearly 30 per cent and 45 per cent of total contribution to the central pool.

The high production,also a result of increase in the area under these crops by nearly one lakh hectares in case of paddy and 50,000 hectares for wheat coupled with good MSP of Rs 850 for paddy and Rs 1,080 for wheat,led to manifold increase in the net income from agriculture sector.

Though the area of cultivation under other crops such as cotton and sugarcane suffered last year from diversion towards more remunerative paddy,the MSP of Rs 2,800 per quintal for cotton offset the impact on the net income derived by the state from the crop.

The area under maize remained constant at 1.5 lakh hectares. The productivity of crops such as wheat,maize and cotton also witnessed a jump owing to seed replacement taken up across the state. Almost 95 per cent of area under maize is now under hybrid variety and 100 per cent of cotton under Bt and hybrid varieties.

Also,as part of diversification efforts,nearly 4,000 hectares per year is being brought under horticulture,mainly high-paying fruits and vegetables. The allied sectors of agriculture such as dairy have also shown better performance as commercial diary farms are being promoted in a big way.

At the government level,though allocation for agriculture in the state budget is still not proportionate to the contribution of this sector to the state’s gross domestic product,the allocations have grown from an average of Rs 70 crore during the period of 2003-04 to 2005-06 to Rs 142 crore and Rs 165 crore in the 2007-08 and 2008-09,respectively.

With additional funds coming under the Rashtriya Krishi Vikas Yojana (RKVY),Rs 34 crore and Rs 87 crore for the last two years,the total investment in the sector touched Rs 250 crore in 2008-09.

Increased mechanisation of farm operations is also helping to bring down cost of production and tide over the crisis of labour shortage. Agricultural machines are being promoted through both government subsidy for equipment such as laser levellers and paddy transplanters and making them available on rent through the 479 agriculture machine service centres set up in the state.