Punjab, India’s “breadbasket,” stands at a crossroads. Its fertile plains have fuelled the nation’s food security. They produce over 20% of India’s wheat and 10% of its rice. This is thanks to the Green Revolution and sustained government support. Policies like the Minimum Support Price (MSP) and procurement systems have played a role. Yet, this agricultural prowess comes at a steep cost: depleting groundwater, soil degradation, and air pollution from stubble burning. As of March 10, 2025, the Indian government’s agricultural policies are reshaping Punjab’s agrarian landscape. These policies range from the Kisan Credit Card (KCC) Scheme to the National Mission for Edible Oil seeds and Pulses. These initiatives aim to bolster farmer incomes while nudging the state toward sustainability. But can they reconcile Punjab’s economic lifeline with its ecological limits?

The Backbone: MSP and Procurement

The MSP regime remains Punjab’s economic bedrock. In 2019-20, 92% of its rice and 72% of its wheat were procured by the Food Corporation of India (FCI) at MSP, a policy that ensures farmer prosperity but locks them into water-intensive wheat-paddy cycles. For 2024-25, MSP stands at Rs 2,425 per quintal for wheat and Rs 2,300 for paddy—lucrative incentives that dwarf alternatives like maize (Rs 2,225/quintal) or mustard (Rs 5,650/quintal). This skew is evident: Punjab’s groundwater extraction exceeds recharge by 66%, with paddy alone requiring 3,000-4,000 litres per kg compared to maize’s 500-800 litres.

Punjab’s  Agricultural Diversification Dreams

The National Mission for Edible Oilseeds and Pulses (NMEO) and the Crop Diversification Program (CDP) under Rashtriya Krishi Vikas Yojana (RKVY) signal the Centre’s intent to break this cycle. Punjab’s farmers receive Rs 4,000/quintal for mustard seeds and Rs 1,500/acre incentives to shift from paddy. Districts like Bathinda and Ferozepur have seen marginal increases in mustard acreage, yet paddy remains king. Why? Limited procurement for oil seeds and pulses—unlike wheat and rice—leaves farmers wary. The NMEO aims to bolster market linkages, but without guaranteed buyers, Punjab’s risk-averse farmers hesitate.

Financial Lifelines

The KCC Scheme and PM-KISAN provide crucial support. Punjab’s 25 lakh KCC holders’ access Rs 40,000-50,000 crore annually at a subsidized 4% interest rate, while PM-KISAN injects Rs 1,380 crore yearly into 23 lakh farmers’ accounts. The 2025-26 Budget’s increase in KCC loan limits from Rs 3 lakh to Rs 5 lakh promises further relief. Yet, these funds often perpetuate the wheat-paddy status quo rather than incentivizing diversification, as tenant farmers—lacking land titles—struggle to access credit.

Sustainability in Focus

The Crop Residue Management (CRM) Scheme, with Rs 4,391.80 crore allocated since 2018, has cut Punjab’s stubble burning by 57% (2024 vs. 2023), thanks to subsidized machinery like Happy Seeders. The National Mission for Sustainable Agriculture (NMSA) promotes direct seeding of rice (DSR), reducing water use by 30%, with Rs 17,500/ha incentives. The Soil Health Card Scheme’s 24 labs in Punjab guide fertilizer use, tackling soil degradation. Yet, adoption lags—farmers cite machinery costs and awareness gaps.

The Road Ahead

Punjab’s agricultural paradox—prosperity tied to ecological ruin—demands bold reform. MSP must extend robust procurement to maize, pulses, and oil seeds, not just wheat and rice, to make diversification viable. The Centres Rs 1,500/acre incentive is a start, but scaling it and ensuring market infrastructure are critical. KCC and PM-KISAN funds could be tied to sustainable practices, incentivizing shifts away from paddy. Mechanization under the Sub-Mission on Agricultural Mechanization (SMAM) needs broader reach to small farmers, while ATMA’s extension services must bridge knowledge gaps. Conclusion The Centres push for Punjab’s agriculture blends tradition with transformation. MSP and procurement secure incomes, while diversification and sustainability schemes signal a greener future. Yet, Punjab’s farmers—burdened by debt and habit—need more than subsidies; they need assurance that change won’t cost them their livelihoods. As groundwater dwindles and stubble smoke chokes the skies, 2025 is a pivotal year to align policy with reality. Punjab can remain India’s breadbasket, but it must also become its beacon of sustainable farming