Punjab budget proposes incentives for direct seeded rice

Bathinda: Despite Punjab not achieving much success in various alternatives to paddy transplantation, the state govt has furthered certain schemes for water conservation. The state announced that it will continue with a cash incentive for Direct Seeded Rice (DSR) and promote kharif maize in 6 districts. However, there was no mention of a subsidy on Bt cotton hybrid seeds for 2026-27 in the budget presented by finance minister Harpal Singh Cheema on Sunday. During 2025-26, 33% subsidy was extended to the cotton growers.Cheema, while presenting the budget, stated that to encourage water-efficient cultivation practices, financial assistance of Rs 1,500 per acre is being provided to farmers adopting Direct Seeded Rice. During FY 2025–26, assistance amounting to Rs 35 crore was disbursed. Recognising its benefits in addressing labour shortages and conserving groundwater, a provision of Rs 40 crore is proposed in FY 2026–27 to further promote this sustainable alternative to conventional paddy transplantation. The state agriculture department in Aug 2025 claimed that paddy in 2.90 lakh acres was transplanted under DSR, though the target was 5 lakh acres.
He further stated that, as part of a continued effort to promote sustainable cropping patterns, a pilot project encouraging a shift from paddy to kharif maize was implemented in 6 districts of Pathankot, Gurdaspur, Bathinda, Sangrur, Jalandhar and Kapurthala, with an incentive of Rs 17,500 per hectare (Rs 7,000 per acre). An allocation of Rs 15 crore was earmarked for this purpose in FY 2026-27. The FM stated that during FY 2025–26, a 33% subsidy on PAU-recommended Bt cotton hybrid seeds was extended to support cotton farmers, benefiting over 52,000 cultivators through direct transfer of Rs 11 crore, which resulted in an increase in cotton acreage by 19%. As cotton growing starts in late April and the state govt targeted an increase in acreage under cotton in the coming financial year, no fund allocation was kept for subsidy on seeds.To address the challenge of crop residue burning, the govt continues to provide 80% subsidy to panchayats and 50% subsidy to individual farmers for the purchase of stubble management machinery. During FY 2025–26, Rs 402 crore was utilised for subsidising such equipment, and a budgetary provision of Rs 600 crore is proposed in FY 2026-27. The FM stated that to sustain the vital contribution Punjab makes in food production and to further strengthen the resilience and prosperity of the farming community, an allocation of Rs 15,377 crore was earmarked for the Agriculture and Allied Sectors in FY 2026–27, supporting targeted interventions in crop diversification, sustainability, market reforms and farmer welfare. MSID: 129266872 413 |