Haryana outpaced Punjab in agriculture through reforms, diversification, debt relief, and sustainable policies.
CHANDIGARH: In the fields of two leading agrarian states of northern India, a quiet transformation is underway. The small state of Haryana is steadily surging ahead with agricultural reforms, while Punjab—once the undisputed leader and epicentre of the Green Revolution—struggles under financial stress and stagnant policies. A deep dive into the data reveals a striking divergence. From reducing farmer indebtedness and incentivising crop diversification to robust machinery distribution and direct benefit transfers, Haryana’s multipronged welfare strategy is visibly outperforming Punjab’s traditional model. In Haryana, approximately 45% of the population is engaged in agriculture, operating on 36.46 lakh hectares of cultivable land. In contrast, 35.5% of Punjab’s population is involved in agriculture and related activities over a larger area of 42 lakh hectares. Comparative data over the years reveals a significant shift in agriculture in both states, with Haryana emerging as a leader despite having smaller landholdings compared to Punjab. The average landholding per farmer in Punjab is 3.62 hectares, while in Haryana it is 2.22 hectares—both above the national average of 1.08 hectares. According to the National Sample Survey Organisation, in 2005 nearly 65.4% of Punjab’s 18.44 lakh farmer households were in debt, compared to 53.1% of Haryana’s 19.44 lakh households—both exceeding the national average of 48.6%. The latest data, as shared by the Union Finance Minister in Parliament, shows that by the end of 2024, Haryana had reduced its percentage of indebted agricultural households to 48%, while Punjab’s remained higher at 54.4%. The average outstanding loan per agricultural household in Punjab has risen to Rs 2.03 lakh, surpassing Haryana’s Rs 1.82 lakh, and both are significantly above the national average of Rs 74,121. According to agricultural experts, the key difference lies in policy approach. “Haryana has aggressively pursued multi-layered schemes to support its farmers,” an expert explained. Under the ‘Mera Pani Meri Virasat’ initiative, farmers who shift away from paddy cultivation receive Rs 7,000 per acre for adopting less water-intensive crops. Additionally, Rs 150 crore has been spent under the Atal Bhujal Yojana to improve groundwater management in 36 blocks. Haryana has also addressed stubble burning effectively. The state offers Rs 1,000 per acre to discourage residue burning, Rs 50 per quintal for baling, and up to 80% subsidy on crop residue management (CRM) machinery. Since 2018, Haryana has spent over Rs 3,333 crore on CRM, distributing nearly 3 lakh machines under various mechanisation schemes. Furthermore, the state guarantees procurement of all crops at Minimum Support Price (MSP) and protects farmers shifting to horticulture through the Bhavantar Bharpai Yojana. This scheme compensates farmers when market prices fall below the government-determined rates for vegetables. The Haryana government also waived interest and penalties on crop loans worth Rs 1,300 crore, benefiting over four lakh farmers. Additionally, 1.11 lakh farmers received Rs 23.80 crore under the Surcharge Waiver Scheme-2019. Farmers in the state also benefit from broader access to crop insurance under the Pradhan Mantri Fasal Bima Yojana, which is voluntary in Haryana, supported by extensive village-level awareness campaigns. In contrast, Punjab continues to rely heavily on the union government’s MSP procurement of rice and wheat, which still account for over 86.8% of the Kharif and 97.9% of the Rabi crop areas. While Punjab still ranks third in both rice and wheat production, this overwhelming dependence on MSP has stifled diversification and contributed to stagnation in farmers’ financial growth. State programmes like the Crop Diversification Programme (CDP) and Rainfed Area Development Programme (RADP) exist in Punjab but have limited reach and impact. CRM implementation in Punjab lags behind Haryana both in terms of machinery distribution and per-acre incentives. Consequently, Punjab continues to witness the highest number of farm fires in the country. Technological adoption has also been slower in Punjab. Around 82% of farmers reported issues accessing information on e-NAM, and 62% face problems with the selling process. In contrast, Haryana has more seamlessly integrated e-marketing platforms, offering farmers greater flexibility and market access. The disparity is also evident in procurement infrastructure and outcomes, with the Haryana government actively supporting farmers’ interests. During the pandemic, the state established 2,000 wheat and 248 mustard procurement centres, resulting in the procurement of 71.89 lakh metric tonnes of wheat and 7.46 lakh metric tonnes of mustard. These robust procurement mechanisms have significantly bolstered farmer incomes and enhanced market integration. Despite Punjab’s higher average income from MSP procurement—Rs 19,000 per month in 2018–19 compared to Rs 16,600 in Haryana—financial stress in Punjab remains more acute. Punjab’s total farm-related debt has surpassed Rs 3 lakh crore and is projected to cross Rs 3.5 lakh crore by March 2025. Of this, Rs 1.04 lakh crore is directly tied to agricultural loans for 38.37 lakh farmers. In comparison, Haryana’s 40.22 lakh farmers account for Rs 96,855 crore in debt. Punjab’s loan distribution includes Rs 85,460 crore from private banks, Rs 10,000 crore from cooperative banks, and over Rs 8,000 crore from regional rural banks. Officials in Haryana’s agriculture department stated that the state’s focus on debt reduction and loan restructuring—along with schemes like the Kisan Credit Card and a 4% interest scheme for animal husbandry-related credit—has significantly helped reduce financial distress among farmers. Additionally, the direct payment system to farmers has strengthened their financial autonomy, reducing dependence on arhtiyas, who often charge up to 24% annual interest on loans. Agriculture experts attribute Haryana’s progress to proactive, data-driven governance, describing the state’s agricultural policy as “sustainable and forwardlooking.” They emphasise the need for Punjab to reassess its dependence on MSP and to develop systems that offer greater resilience and sustainability. “Direct payments of procurement funds to farmers’ bank accounts are welcome and positive decisions in Haryana, but more needs to be done on schemes like ‘Mera Pani Meri Virasat’, DSR, and ‘Bhavantar Bharpai’,” said Dr Virender Singh Lather, former principal scientist at ICARIARI, New Delhi.