Punjab farmers stare at Rs 6,000-crore losses after floods ravage crops on around 5 lakh acres


Recent floods in Punjab have devastated over five lakh acres of farmland, causing crop losses of Rs 5,000–6,000 crore. Paddy, sugarcane, maize, and vegetables were heavily affected. Damage to machinery adds Rs 300–400 crore, and soil restoration may cost Rs 500 crore. Current compensation of Rs 20,000 per acre is insufficient, leaving farmers financially strained.
The recent floods that swept across several districts in Punjab have left the farming community in deep distress, with the Government acknowledging damage to crops on over two lakh hectares, approximately five lakh acres. However, the actual economic blow suffered by the farmers appears to be far more devastating, with estimated losses ranging between Rs 5,000 crore and Rs 6,000 crore, or higher.
A majority of the affected area was under paddy cultivation, the state’s principal kharif crop. Other crops like sugarcane, maize, and vegetables were also grown in some pockets and severely hit.
A breakdown of the economics involved paints a grim picture.
Crop loss per acre: a heavy price
On one acre of paddy, the input cost — including seeds, fertilizers, labour and other expenses — comes to around Rs 15,000-Rs 20,000. The expected yield is approximately 30 quintals per acre, and with the minimum support price fixed at Rs 2,389 per quintal, the gross value of the harvest stands at Rs 71,940. If the entire crop is lost due to floods, this becomes the revenue forgone by the farmer. Adding input costs, the total loss for a land-owning farmer reaches approximately Rs 90,000-Rs 91,000 per acre.
For tenant farmers — who lease land at the rate of Rs 25,000 per acre per crop—the burden is even heavier. Their total loss per acre balloons to around Rs 1.15 lakh, factoring in both investment and lost revenue.
“With an estimated five lakh acres affected, the cumulative crop-related loss ranges from Rs 4,500 crore to Rs 5,000 crore, affecting both land-owning and tenant farmers. Revenue department officials point out that if some part of the area is under high-value crops like vegetables and sugarcane, the losses could go as high as Rs 6,000 crore. From one acre of sugarcane field, the gross loss is estimated at Rs 1.60 lakh to Rs 1.75 lakh, and in the case of vegetables, losses can range from Rs 2 lakh to Rs 3 lakh per acre,” said an officer in Punjab agriculture department, adding that these are minimum losses but the actual losses would be even higher.
Farm machinery and equipment losses
Beyond crops, the floodwaters also wreaked havoc on farm machinery and implements. Tractors, rotavators, harvesters, pump sets, and other essential farm equipment were submerged for weeks. Hundreds of these machines are now beyond repair, rusted beyond use, and essentially turned into junk.
The average loss per major machine — such as tractors and combines — is estimated at Rs 5 lakh to Rs10 lakh. Farmers in affected villages report thousands of such machines being damaged. Even if 10,000 machines are impacted at a conservative average of Rs 3-4 lakh, this translates into machinery losses of approximately Rs 300 crore to Rs 400 crore.
Soil and field restoration costs
Floods have also rendered many fields uncultivable due to heavy deposits of sand and silt. Farmers now face the challenge of removing this debris manually or with the help of bulldozers. The cost of such restoration is estimated at Rs 8,000 to Rs 12,000 per acre. Applying a conservative estimate of Rs 10,000 per acre across five lakh acres, the cost of field restoration alone comes to around Rs 500 crore.
The Government has allowed farmers to sell the sand from their fields, offering a small relief. However, this barely covers the removal expenses and does little to compensate for the total agricultural disruption.
A deepening crisis for farmers
For many farmers — particularly smallholders, semi-medium, medium farmers and leaseholders — the cumulative effect of crop loss, machine damage, and restoration costs is proving existential. With no harvest, unpaid loans, destroyed equipment and fields buried under sand, they now face the added burden of borrowing again just to prepare for the upcoming rabi season.
Krishanpal Bittu, a farmer from Sanyal village in Hoshiarpur district, said, “The losses are always very heavy, and the government compensation is just a consolation. It does not even cover one fifth of the actual losses farmers suffer. We have not included houses damage losses, cattle shed damages as well other losses in the crop and its related damage.”
Kuldeep Singh, a farmer from the flood-prone Mand area of Sultanpur Lodhi, echoed similar concerns. “Several things happen when crops get damaged — you lose your crop, your machines, and all farm implements. It’s a chain reaction of destruction,” he said.
Inadequate compensation and relief measures
The Punjab Government has announced Rs 20,000 per acre as compensation, which amounts to roughly Rs 1,000 crore. Additionally, the state has requested the Centre to raise this figure to at least Rs 50,000 per acre. Free wheat seed distribution for flood-affected five lakh acres has also been announced as a preparatory measure for the rabi season.
Agricultural experts and farmer unions are calling for broader measures — including interest waivers on existing farm loans, dedicated packages for machinery replacement, and support for soil rejuvenation.
As the rabi sowing window narrows, the urgency to rehabilitate affected fields increases. Thousands of farmers are now racing against time, weighed down by financial and emotional turmoil, while the state’s agriculture sector faces a crisis that may have long-term repercussions unless urgent and meaningful aid reaches the ground.
Jaswant Singh, Director, Department of Agriculture, said that a special girdawari (assessment) by the revenue department was underway. “There are definitely huge losses to the farmers in the flood-affected areas,” he said, adding that the amounts would be calculated accordingly.
Meanwhile, the state has calculated around Rs 13,000-crore losses to farm and other infrastructure related losses, which could also go high after completion of assessment.
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Source : The Indian Express
