Punjab Budget: Agri & allied sectors see 5% growth in allocation, get ₹14,524 cr; boost to maize
Punjab’s Finance Minister Harpal Singh Cheema has unveiled a ₹2.36 lakh crore budget for 2025-26, allocating ₹14,524 crore to agriculture and allied sectors—a 5% increase from the previous year. Key initiatives include a ₹17,500 per hectare incentive for farmers shifting from paddy to maize cultivation, with ₹115 crore earmarked for crop diversification. Additionally, ₹500 crore is set aside for crop residue management to combat stubble burning. The budget also provides ₹9,992 crore for free power to 14.5 lakh agricultural tubewells.
In the budget presented by finance minister Harpal Singh Cheema on Wednesday for the upcoming financial year 2025-26, an allocation of ₹14,524 crore has been made for the agriculture and allied sectors, witnessing an annual increase of 5%, as compared to the budget for current financial year that ends on March 31.
Announcing the allocation, Cheema said that the Aam Aadmi Party (AAP) will fulfil all genuine demands of the farmers. “Our government has always upheld a farmer-first approach, standing firmly with our farmers in support of their just demands,” he told the House.
Cheema announced to offer a per hectare incentive of ₹17,500 to farmers who shift to cultivating maize from paddy. The scheme has been launched in three districts – Bathinda, Kapurthala and Gurdaspur. Initially a total of about 21,000-hectare area will be diversified from paddy to kharif maize to encourage the production of ethanol to achieve the target of 20% blending of ethanol by year 2025 set by the Centre.
About 30,000 farmers will be covered under the scheme, offering them a total of ₹115 crore which has been earmarked in the budget for crop diversification.
A sum of ₹149 crore has been allocated under the Krishonnati Yojana to support agricultural activities such as agriculture extension, enhancing food security, promoting horticulture, seed development, boosting edible oil production, and digital agriculture.
The finance minister announces ₹500 crore for crop residue management (CRM) particularly for paddy stubble in the kharif harvest. Financial assistance will be provided farmers, cooperatives, and gram panchayats for the purchase of CRM machines; establishment of custom hiring centers; and for the development of paddy straw supply chain centres.
In the budget a sum of ₹60 crore has been committed for capital subsidies to support industries transitioning to paddy stubble-based boilers. This initiative is expected to utilize 3 million tonnes of paddy stubble annually, significantly curbing air pollution while promoting renewable energy solutions.
Free power to farmers
A provision of sum of ₹ 9,992 crore has been made in the budget for providing power subsidy to the agriculture sector. Under this, the government will cover 14.5 lakh agriculture tubewells by not charging bills on them and the government will pay up on their behalf to the Punjab State Power Corporation Limited.
Horticulture and soil & water conservation
The government has earmarked a budgetary allocation of ₹137 crore for promoting horticulture in the state. To promote natural farming practices in the state, it has been proposed to cover Amritsar, Nawanshahr, Ropar, SAS Nagar (Mohali), and Hoshiarpur districts for conducting awareness programmes, cluster formation, Krishi Sakhi support, input resource centres, farmer incentives, certification, training and starter kits.
To strengthen canal irrigation in Sangrur district, a pilot project has been proposed for laying of extensive underground pipeline network, covering over 38,000 hectares and benefiting 20,000 farmer families. For this project ₹100 crore has been earmarked.
Animal husbandry, dairy & fisheries
To enhance animal health services and improve livestock breeds, Cheema proposed launching in-patient ward services and a Blue Cross store in six district veterinary polyclinics as a pilot project. A sum of ₹704 crore has been earmarked for the development of this sector.
A state-of-the-art shrimp processing unit is being proposed to support shrimp farming in waterlogged areas, generate revenue for farmers, and create employment opportunities.
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Source : Hindustan Times
