Chandigarh, March 9: Punjab Finance Minister Harpal Singh Cheema has proposed an outlay of ₹15,377 crore for agriculture and allied sectors in the state Budget for 2026–27, aiming to strengthen crop diversification, sustainability and farmer welfare.
Presenting the Budget in the Punjab Assembly, Cheema said the allocation would support targeted interventions in agriculture, including improved cropping patterns, mechanisation and better market opportunities for farmers. The government has also prioritised measures to address environmental challenges linked to agriculture.
To encourage diversification away from water-intensive paddy cultivation, the government has launched a pilot project promoting a shift from paddy to kharif maize in six districts — Pathankot, Gurdaspur, Bathinda, Sangrur, Jalandhar and Kapurthala. Farmers participating in the programme will receive an incentive of ₹17,500 per hectare, with ₹15 crore allocated for the initiative in the upcoming financial year.
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The Budget also focuses on tackling stubble burning, a major environmental concern in north India. The state will continue to offer 80% subsidy to panchayats and 50% subsidy to individual farmers for purchasing crop-residue management machinery. While ₹402 crore was utilised in 2025–26 for such subsidies, the government has proposed an enhanced ₹600 crore allocation for 2026–27.
Punjab Agriculture Minister Gurmeet Singh Khudian highlighted the increasing adoption of Direct Seeded Rice (DSR) and other water-saving technologies, noting that these measures would help conserve groundwater and reduce cultivation costs.
The Budget also includes support for allied sectors such as dairy, horticulture and fisheries, which the government sees as key to diversifying farm incomes and strengthening the rural economy.
However, some farmer groups and experts have argued that the allocation may still be insufficient to address deeper structural issues facing Punjab’s agriculture sector.
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