Although the agriculture sector is instrumental in ensuring national food security yet agriculture is in deep crisis and facing serious challenges. The main concern before the agriculture sector is over exploitation of scare water resources. As irrigation facilities have been over used to increase agriculture production of the state mainly wheat and paddy, the ground water has decreased drastically since the last few decades. Two other main concerns are (1) high incidence of debt on farmers which has resulted in farmer's suicides and (2) Paddy straw management in view of dense air pollution caused by paddy straw burning in the paddy season. The State Government is trying
to address these issues as high priority agenda.

Agriculture Sector Performance :

• The agriculture and allied sector’s contribution to GSVA (Gross State Value Added) at constant prices has declined marginally during recent years. The share of Agriculture & Allied sector in the GSVA which was 30.80% in 2011-12 has declined to 26.15% in 2016-17 and is likely to be 25.57% in 2017-18.The declining share represents the structural transformation of the economy from agriculture to other sectors of the economy.
• The agriculture (proper) at constant (2011-12) prices is likely to record a growth of 2.88% during 2017-18 as per advance estimates compared to 6.82% growth during 2016-17.
• The cropping intensity and irrigation potential has already been fully exploited and the growth in productivity has also reached at a saturation point. Therefore, agriculture sector is showing slow growth trend over a period of time. Besides, farmers are not ready to take risk due to assured returns of wheat & paddy and very few advances have taken place in R&D in this sector. Most of the growth is generally due to increase in the MSP of Wheat and Rice every year than due to increase in production.

Gross Capital Formation in Agriculture & Allied Sector :

• The gross capital formation (GCF) in agriculture and allied sector which represents the extent of investment in the sector is showing an increasing trend from 2011-12 onwards. In absolute terms, the GCF in agriculture & allied sector increased from Rs. 3085.41 crore in 2011-12 (at constant 2011-12 prices) to Rs. 3177.31 crore in 2015-16. However, as a percentage of agriculture GSDP, the GCF in agriculture & allied sector remained below 3.98% from 2011-12 to 2015-16

Area, Production & Yield of Crops :

• Over 83% of Gross Cropped area is under two crops namely Wheat and Paddy in 2017-18. Gross area under production in the state was 78.23 lakh hectares in 2016-17 and is expected to increase to 79.00 lakh hectares in 2017-18. Cropping intensity which depicts the percentage of gross area sown to net area sown was 189 in 2016-17. Area under wheat was 35.06 lakh hectares in 2015-16 and decreased to 34.95 lakh hectares in 2016-17 and is expected to increase to 35.00 lakh hectares during 2017-18. Area under Paddy has slightly increased from 29.70 lakh hectares in 2015-16 to 30.46 lakh hectares in 2016-17 and is expected to increase to 30.72 lakh hectares in 2017-18.
• The total foodgrains production in Punjab has increased marginally over the last few years. In 2010-11, the production of foodgrains was 278.46 lakh metric tonnes, which increased to 307.63 lakh metric tonnes in 2016-17 showing an increase of 10.48%. The production of foodgrains is likely to be 313.78 lakh metric tonnes in 2017-18. Wheat and rice played a major role in pushing up agricultural production in the State. The production of rice has increased from 108.19 lakh metric tonnes in 2010-11 to 126.38 lakh metric tonnes in 2016-17 showing an increase of 16.8%. The production of rice is likely to increase upto 133.11 lakh metric tonnes in 2017-18. The production of wheat has increased from 164.72 lakh metric tonnes in 2010-11 to 176.36 lakh metric tonnes during 2016-17 registering an increase of 7.06%. But production of wheat for 2017-18 is expected to decrease to 176.13 lakh metric tonnes. The production of pulses in 2010-11 was 0.17 lakh metric tonnes and it was 0.12 lakh metric tonnes in 2016-17 and is likely to increase to 0.14 lakh metric tonnes in 2017-18.

Yield of Principal Crops :

• During 2017-18, yield rates in kgs per hectare are: wheat 4750, rice 4386, maize 3625, barley 3750, gram 1250, sugarcane 7638, cotton (American) 698, cotton (Desi) 595, rape seed and mustard 1357, groundnut 1950 and sunflower 1750.

High Yielding Varieties :

• Punjab agriculture is known for use of high yielding varieties. The State was trend setter for green revolution in the country. During the year 2016-17, 100 % area of wheat, rice and 98% area of maize were under high yielding varieties.

Principal Inputs :

Irrigation :

• Punjab has an excellent network of irrigation facilities. During 2016-17, 99.6 % of gross area sown and 99.9% of net area sown was irrigated and irrigation intensity is 189 in 2016-17.Tube wells are the main source of irrigation in the State followed by canals. The net area irrigated by tube wells was 29.40 lakh hectares in 2016-17. High dependence on tube wells for irrigation has led to rapid depletion of ground water in the state. Punjab has more than 14 lakh tube wells which irrigate about 3 million hectares of land. Approximately 70% area constituting central Punjab faces ground water depletion. At present, ground water level is depleting rapidly in the state.

Consumption of Fertilizers :

• The consumption of chemical fertilizers which was 19.28 lakh nutrients tonne in 2015-16 decreased to 19.17 lakh nutrients tonne in 2016-17. Consumption of chemical fertilizers (NPK) per hectare of gross cropped area was 245 Kg per hectare in 2015-16 and it remains to 245 Kg per hectare in 2016-17.

Agricultural Marketing, Prices and Storage Facilities :

• Marketing and storage facilities are crucial components of post-harvest technology. As on 31st March, 2017, there are 153 regulated markets in Punjab. The average number of villages and area served per market is 82 and 329 (sq. kms.) respectively in 2016-17. The total storage capacity for food grains increased from 218.53 lakh tonne in 2015-16 to 233.00 lakh tonne in 2016-17 which comprises of 149.78 lakh tonne of covered and 83.22 lakh tonne of open capacity.

Market Arrival of Paddy and Wheat :

• The market arrival of paddy and wheat has increased significantly. In the year 2016-17, 17915 thousand tonne of paddy and 11834 thousand tonne of wheat arrived in the market.

Contribution to Central Pool :

• Punjab has a great role in ensuring food security of the nation by making significant contribution of rice and wheat to Central Pool. Punjab ranked first among states in contribution of wheat and rice to central pool for the year 2016-17. The total contribution of rice and wheat to the Central Pool has increased from 188.40 lakh tonne in 2010-11 to 217.01 lakh tonne during 2016-17 consisting of 110.52 lakh tonne of rice and 106.49 lakh tonne of wheat.

Allied Sector :

Horticulture :

• Fruits and Vegetables can play an important role in diversity in the agriculture sector in the state. The area under fruits increased from 0.69 lakh hectares in 2010-11 to 0.80 lakh hectares in 2016-17. Kinnow,orange, malta, lemon, guava, pear, mango and grapes are the main fruits grown in Punjab. The total area under all vegetable crops has increased from 1.03 lakh hectares in 2010-11 to 1.34 lakh hectares in 2016-17. Potato is the major vegetable crop of the state.
• The state Government has laid special emphasis on the diversification of agriculture through development of horticulture. To promote horticulture in the State, the Government is also taking special initiatives like strengthening of citrus estates, establishment of litchi & pear estates and technology dissemination & training in horticulture practices to farmers.

Animal Husbandry, Dairying and Fisheries :

• Livestock sector contributed 7.86% to the Gross State Value Added (GSVA) at constant (2011-12) prices in 2016-17(Q) and is expected to contribute 7.73% to the GSVA in 2017-18(A). Punjab is the top producer of milk and is a leading producer of eggs in the country. The per capita availability of milk in the State is highest in the country. Being labour intensive in nature, the sector is instrumental in providing gainful self-employment opportunities to unemployed rural youth and poorer sections of the society.
• The department of animal husbandry has a vast infrastructure of 22 polyclinics, 1367 veterinary hospitals and 1489 veterinary dispensaries. A modern & state of the art Cattle Breeding farm has been established at village Rauni in Patiala district. The buildings of 37 Tehsil/ Block level and 110 Village Level Veterinary Hospitals are being constructed. To fill the requirement of veterinary doctors, a new veterinary college is being established at Rampuraphul in district Bathinda. The infrastructure of Govt. Piggery Farms is being strengthened.
• The State Government is implementing a number of Centrally Sponsored Schemes related to animal production and animal disease prevention. The State Government is also implementing a special state plan scheme for Animal Husbandry Extension and Training Programme with a view to generate employment opportunities for un-employed educated youth for self-employment in rural areas whereby extension and training programmes are implemented for disease Control, awareness in management of animals/birds and animal welfare camps are also organised.
• Besides this, the Government has also taken important initiatives like strengthening of infrastructure of veterinary institutions, construction of new veterinary institutions at the block and tehsil level, schemes for development of piggery and other livestock in the state with a special focus on low income groups and development of fodder resources and processing. New projects under Gokul Mission have been initiated for conservation of indigenous breeds.

Fisheries :

During the year, 2017-18, 35515 acres area has been brought under fish culture in the State. About 1818 lakh fish seed has been produced and supplied, out of which 682 lakh fish seed has been supplied from Govt. fish farms and 1136 lakh fish seed from Private fish seed farms. There was about 85513 tonne fish production in the state. About 3890 aspirants have been given fisheries training. Bank loans of Rs. 228 lakh was provided to the fish farmers.

Under the R.K.V.Y. project "Development of Fish Culture in Non-Water Logged Areas of Punjab the financial assistance of Rs. 462.58 lakh has been provided to 246 fish farmers and about 615 acres area have been brought under fish culture upto 5.12.2017.

Under the R.K.V.Y. project "Development of Fish Culture in Water Logged Areas of Punjab the financial assistance of Rs.225.60 lakh has been provided to 65 fish farmers and about 248.61 acres area has been brought under fish culture upto Dec., 2017.

Challenges and Prospects :

• The cropping intensity in the state has already reached saturation and the irrigation potential has also been fully exploited. Almost 99% of the cultivable land in the State is under plough, there is no further scope of increasing the area under agriculture and any future growth in agriculture has to necessarily come either from increased productivity or increase in prices of agricultural output. However, productivity has also stagnated in the absence of any major scientific break throughs and MSP of major crops is fixed by Government of India. The yield of important crops like wheat and rice, though higher than national average, is nearing stagnation. Increasing the yield of these food grain crops through scientific interventions holds the key to sustain their high production in the future. Government of India shall fix the MSP on the basis of Swami Nathan formula to make agriculture profitable.
• The sustainability of agriculture in the State is at serious risk due to rapid depletion of ground water resources and excessive reliance on the wheat-rice cropping pattern. The diversification of agriculture is called for to overcome the environmental problems induced by the wheat rice cropping cycle and to diversify the income sources of small and marginal farmers. Better management practices and measures to improve input resource efficiency are needed to check the depleting water table and soil degradation.
• Special efforts are being made to increase the area under less water consuming crops like cotton, maize, oilseeds and pulses. The success in diversification can be achieved through assured procurement at minimum support price by central agencies. To promote diversification in citrus, plants of early ripening varieties of citrus like Daizy tangerine & W. Murcott mandarin and sweet oranges are being produced at Jaliowal (Jalandhar) & Khanaura (Hoshiarpur) nurseries and will be distributed to the farmers.
• Farmers suicides are emerging as a major challenge for the State. Keeping it in view the State Government has introducedCrop Loan Waiver Scheme in the State. About 10.25 lakh farmers are expected to be covered under this scheme. In the first phase the crop loans of marginal farmers, who have taken crop loan from Co-operative Banks upto 2.00 lakh are being waived off. In a special function held at district Mansa on 7.1.2018 marginal farmers of 5 districts (Mansa, Bathinda, Moga, Faridkot, Muktsar) under crop loan waiver scheme were covered. Loans amounting of Rs.145.69 crore of 41974 marginal farmers were waived off. This process will be continued for other districts also.
• Paddy Straw management is emerging as a major issue for the state in view of dense air pollution caused by paddy straw burning in the paddy season. In order to promote innovation in paddy residue and identify new technologies, an amount of Rs.500.00 lakh has been allocated for Paddy Straw Management Challenge Fund for innovation. To motivate, encourage and to reward the Gram Panchayats to stop burning of paddy straw, the state government has allocated an amount of Rs.20.00 crore in 2017-18. As a result of efforts of State Government, burning of Paddy Straw has come down to 62% of the Paddy sown area during 2017 as compared to 85% during the same period in 2016.

Recent State Government Initiatives for the Welfare of Farmers :

• Pradhan Mantri Krishi Sinchayee Yojana' with the motto of 'Har Khet Ko Paani' was launched. The over reaching vision of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) is to ensure access to some means of protective irrigation to all agricultural farms in the country, to produce 'per drop more crop', thus bringing much desired rural prosperity. PMKSY have following programme components:

i) Accelerated Irrigation Benefit Programme (AIBP)
ii) PMKSY (Har Khet ko Pani)
iii) PMKSY (Per Drop more Crop)
iv) PMKSY (Watershed Development)

• District Irrigation Plans (DIPs) of all the 22 districts of the state are completed. These DIPs amalgamated into a State Irrigation Plan (SIP). The DIPs and SIP approved by the State level Sanctioning Committee (SLSC) uploaded on the website of PMKSY and have been submitted to GoI.
• To reduce input costs of farmers 1697 Agro Service Centres have been established through cooperative societies. With this objective Cooperative societies have been provided with latest machinery on subsidy for providing on custom hiring basis to small and marginal farmers at a fair rent so that ordinary farmers can avail benefit of costly machinery.
• State is setting up of Mega Food Park on 100 acres of land at Ladhowal, Ludhiana with an investment of over Rs.117.00 crore. This infrastructure project is expected to establish modern facilities for food processing along the value change from farm to the market. The project is in its advanced stage of implementation and is scheduled to be commissioned by February, 2019.
• To promote maize crop under crop diversification programme and its smooth marketing, 3 maize dryers of 64 tonne and 5 maize dryers of 16 tonne capacity have been installed in maize growing areas to facilitate the marketing by farmers.
• The Horticulture Department has finalized 100 acre land at Attari for setting up Post Graduate Institute of Horticulture Research and Education in Amritsar. The institute will be established by Indian Council for Agriculture Research (ICAR) in collaboration with the Punjab government. Five Citrus Estates are established at Hoshiarpur, Bhunga (Hoshiarpur), Badal (Sri Mukatsar Sahib), Abohar, and Tahliwala Jattan (Fazilka). Approx. 38011 hactre area covered, 8035 farmers registered and 15732 samples (Soil, Water, leaf etc.) checked.
• Strengthening of marketing infrastructure also received greater thrust during the last few years. The Punjab Mandi Board has established a new modern Fruits and Vegetables Mandi in phase-11 at SAS Nagar with an investment of Rs.50.00 crore. In addition, 5 modern fish and meat markets are to be established soon. Out of 5 mandis, Tajpur Mandi (District Ludhiana) are running successfully. Fish Market Bathinda and Amritsar approved by National Fishery Development Board under the scheme RKVY. Two dedicated/specialized Wood Markets at Balachaur( SBS Nagar), Dasuya are under progress and at Khasi Kalan (Ludhiana) is being established. Naushehra mandi has been running successfully. A Common Facility Centre is being established in Naushehra to train carpenters.